Why More Leads Mean More Business

So many people I know think that business is complicated. However, while putting business ideas into practice may be a little challenging, the ideas themselves are simple.

Consider leads. We all get business leads all the time. Someone we know mentions a project they have seen that we could work as a contractor on. Someone else mentions that they know someone who needs a product or service we supply, or we see an article in the newspaper that indicates that a company or organisation needs something we supply. Leads to new business are everywhere, and we encounter them every day.

What most people don’t realise is that statistically, business is entirely a numbers game. The more people who are exposed to your products and services, the more business you are likely to get. It really is as simple as that. Even if you have the most efficient company, selling the best quality products and services out there, you’re still going to struggle if no one knows about you!

If you’re consistently selling to twenty percent of the people you encounter, via your leads, but you’re only reaching ten people with your marketing efforts, then you’re only going to make ten sales. Reach one hundred people, and your sales automatically jump to twenty, along with your profits.

Where many small business owners go wrong is that they fail to follow up on leads they receive. They rely on luck to bring potential clients to their doorstep, rather than spending some time finding, and connecting with the people who might already need their services.

How, you may be wondering, do you take advantage of leads though?

The first step is to be alert. Listen to what’s going on around you when in conversation. Read your local newspaper, or an internet forum that’s related to your business. Learn to pick up on signals that someone out there may need something that you can offer them.

Once you’re identifying the signals that tell you there’s a lead to potential business, the next thing is figuring out how to turn them from lead into customer. To do that, you need to make contact. Be proactive, and take charge of the process.

If someone you know mentions that they know someone who might need your product or service, ask for their name and contact details, and give them a call, or send an email.

If a newspaper article suggests that a company or individual in your area may need something you supply, spend some time finding them in the yellow pages or on the internet, and make contact to set up a meeting.

If you’re on the internet, and you find a group, chat room or forum that’s devoted to your industry or to a product or service you provide, or even something related, join up, and contribute. You never know how many referrals you’ll get from that type of community platform until you try, and in my experience, it’s usually a lot more than you thought!

You could even ask people you know to be on the lookout for leads for you. Family and friends might be willing to pass on your business card to potential clients, or to get their details for you, or you could use a trick that many car sales and other retailers use: they offer people a ‘finder’s fee’ for every lead that turns into a sale.

All of these tactics are designed to increase the number of potential sales that your business does, and as I’ve already said, the more potential sales there are, the more actual sales there will be. That’s not wishful thinking; it’s a simple mathematical fact.

The good news is that when you do follow leads, you’re connecting with people who probably already need what you’re selling, which makes the sales process easier. It’s also a lot less costly, since your efforts are targeted, rather than being spread over a broad group, as is the case with most marketing and advertising methods. It is a precision exercise, rather than a fishing expedition!

So, if you are in business, and you are finding that times are tough, start focusing on generating more leads and following up on them more proactively. After all, leads are the funnel that send business through your door, and that business is what creates your profit.