FundingStrat

 

Recap:

On our Sales Process map, if each Stage is a mile marker on the highway to Funding, the roadways in between the markers are the Phases.

 

Here are all the Phases:

 

• Phase 1 – The Prospecting Phase

 

• Phase 2 – The Consulting Phase

 

• Phase 3 – The Application Sending Phase

 

• Phase 4 – The Application Reeling-in Phase

 

• Phase 5 – The Submitting Phase

 

• Phase 6 – The Closing Phase

 

• Phase 7 – The Contracting Phase

 

• Phase 8 – The Contract Reeling-in Phase

 

• Phase 9 – The Closing Stip Reeling-in Phase

 

• Phase 10 – The Funding Phase

 

Each one of these Phases has specific steps to complete to get to the next Stage, and there are Key Steps to take in each Stage to accelerate your sales cycles and closings.

This is what it looks like when we put it all together:

• Stage 0 – Start:

How do I know for sure I am at this Stage?

• We have prepared and are ready to engage our Lead, pick up the phone and make contact.

Next:  Phase 1 – The Prospecting Phase

 

• Stage 1 – The Prospected Stage:

            How do I know for sure I am at this Stage?

• The Lead has been pre-qualified and confirmed to be a Prospect worth pursuing.

Next:  Phase 2 – The Consulting Phase

 

• Stage 2 – The Consulted Stage:

How do I know for sure I am at this Stage?

• The Prospect has been consulted about their goals/needs/obstacles, how our solutions can help them achieve their outcome, and has confirmed they want a quote.

Next: Phase 3 – The Application Sending Phase

 

• Stage 3 – The Application Out Stage:

How do I know for sure I am at this Stage?

• The Application has been sent to the Prospect, and it has been confirmed it was received.

Next: Phase 4 – The Application Reeling-in Phase 

 

• Stage 4 – The Application In Stage:

How do I know for sure I am at this Stage?

• The Application is in with all supporting paperwork.

Next: Phase 5 – The Submitting Phase

 

• Stage 5 – The Submission Stage:

How do I know for sure I am at this Stage?

• The Funding Package/Application has been submitted to Underwriting.

Next: Phase 6 – The Closing Phase

 

• Stage 6 – The Pitched Approval Stage:

How do I know for sure I am at this Stage?

• The Approval(s) have been pitched and sold to the Prospect.

Next: Phase 7 – The Contracting Phase

 

• Stage 7 – The Contract Out Stage:

How do I know for sure I am at this Stage?

• The Prospect has demonstrated intent to fund, requested contracts and we have sent them out.

Next: Phase 8 – The Contract Reeling-in Phase

 

• Stage 8 – The Contract In Stage:

How do I know for sure I am at this Stage?

• The signed Contract is in.

Next: Phase 9 – The Closing Stip Reeling-in Phase

 

• Stage 9 – The Closing Stips In Stage:

How do I know for sure I am at this Stage?

• All closing stips UW need to fund are in.

Next: Phase 10 – The Funding Phase

 

• Stage 10 – The Funded Stage – End:

How do I know for sure I am at this Stage?

• The deal has funded, great work!

 

*Phase 5 – The Submitting Phase*

Keep on Reading!

Keep on Reading!

 

What is a Compelling Event?

 

A Sales Compelling Event is a customer’s business pain that needs to be solved/opportunity that must be captured by a certain date, or else.

 

In other words, a compelling event has an economic owner, a defined date and is a direct response to a business pressure.  The action to deliver a significant business result, either to capture opportunity or to reduce pain.  The event itself defines the reason for the economic owner to act now.

 

Why are Compelling Events important?

 

Merchants have many compelling events (business pressures and opportunities) that are routinely spread across every calendar year.  Some are variable (showing up almost unexpectedly) and some are fixed (consistently and predictably occurring at various date-points).

 

Compelling events trigger buying decisions – drive funding decisions.

 

Knowing your way through the compelling events that are driving the funding decisions on the specific deal you are working on, as well as those that affect all of your prospects and customers routinely, allows you to consult them that much more effectively as their Trusted Advisor.

 

This in turn drives your efficiency on shortening sales cycles and helping more customers get funded.

 

Income Tax Deadline

 

This compelling trigger event is the May 17th Income Tax Deadline.

 

The ordinary Calendar Tax Year’s important tax dates are as follows:

 

• 1st Quarterly Estimated Tax Payment – April 15th
• 2nd Quarterly Estimated Tax Payment – June 15th
• 3rd Quarterly Estimated Tax Payment – September 15th
• 4th Quarterly Estimated Tax Payment – January 15^th

 

The usual income tax filing date for most small businesses is April 15th, unless you file an extension.

 

With the lasting effects of the pandemic, that gripped us in ’20, still rippling through our economy, the income tax deadline was moved back to May 17^th:

 

“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig.

 

“Even with the new deadline, we urge taxpayers to consider filing as soon as possible, especially those who are owed refunds. Filing electronically with direct deposit is the quickest way to get refunds, and it can help some taxpayers more quickly receive any remaining stimulus payments they may be entitled to.”

 

Why does this matter?

Keep on Reading!

Keep on Reading!

 

Of all the deals in your pipeline, what percentage do you actually close?

 

Sales close ratios let you know how effective you are as a sales rep.  As a great way to measure performance, the higher the close ratio, the better you are at converting opportunities in the pipeline into revenue.

 

How exactly do we measure the Close Ratio for Funding Pros?

 

The Close Ratio is typically calculated by dividing the number of actual closed deals by the number of lead opportunities the sales rep had during a given time period.

 

A simplistic approach to take for Funding Pros is to divide the number of actual Funded deals by the number of leads that actually had Approvals out on them.

 

Ex.

 

Funding Pro had 10 deals with Approvals out on them last month.

 

He/she funded 4 of them.

 

Closing Ratio for last month was 40%.

 

Other variables can come into play from the Approval Stage to the Funded Stage in the Sales Process, but this is the simplest way to measure this important metric.

 

According to one of Hubspot’s 2020 research studies, analyzing over 8,900 companies sales teams across 28 industries, here are some notable close ratios by industry:

 

1. Biotechnology – 15%
2. Business & Industrial – 27%
3. Software – 22%
4. Electronics & Hardware – 23%
5. Financial Services – 19%

 

 What are your 2021 closing ratio goals?

 

-FundingStrategist

https://fundingstrat.com