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.
Corporate Tax Deadline
This compelling trigger event is the March 15th Corporate 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 15th
The usual income tax filing date for most small businesses is April 15th, unless you file an extension.
S-Corporations and Partnerships must have their tax returns done by March 15th.
Why does this matter?
About 13% of all small businesses are S-Corporations and about 8% are partnerships, so, approximately, over 20% of the merchants you work with will have to file their tax return by March 15th.
That’s right around the corner!
If they don’t file now, they must file for extension, which automatically grants them another 6 months to get these done and submitted.
We are right on the cusp of the 30 day clock to get personal income tax returns filed, Schedule K-1’s will shortly be distributed to partners in S-Corps and Partnerships, and most SMBs are organizing their tax paperwork on top of everything else they’re managing.
Most merchants owe than are owed a refund come tax season. Managing cash flow throughout the year is the most important factor in getting through tax time fluidly. But often, the pattern has held that merchants have needed additional funding to fulfill their obligations to the IRS and continue capitalizing their initiatives forward.
20% of your merchants are triggered right now – all of them don’t need funding right at this moment, but all could definitely benefit from your expertise.
Tax liabilities drive relatively fixed compelling events, happening like clockwork every year, triggering demand for funding.
Like farmers keeping track of the sun and the moon in the sky for their harvests, Funding Pros must keep important trigger dates at top of focus to better execute best timing for follow-ups, engaging in effective talk-tracks and getting deals across the finish line.
Many SMB’s are working with their tax pros now and will need their Trusted Advisor on the funding side to be plugged in and ready to go when the time’s right.
How many of your clients are filing now vs extending?