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 15th
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 17th:
“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?
The majority of small business owners in America are sole proprietors and single-member LLCs. These are the entities that benefitted the most from the extension from April to May.
This extra time has allowed for managing through all the new tax twist and turns associated with the PPP and EIDL stimulus programs.
Before the pandemic, many SMB’s had trouble effectively planning for tax payments and making tax deadlines. The pandemic magnified these patterns, as many businesses’ cash flow were significantly cut.
SMB owners often wear many hats to operate the business and make it go day to day. Paying whatever taxes are owed on the individual income tax deadline every year is imperative for the business to continue to grow smoothly, without any major unwanted obstacles getting in the way.
One of the most formidable of obstacles for SMBs can be the IRS, and it is always best to keep the IRS on your side, when possible.
Penalties, interest and additions to tax will begin to accrue on any remaining unpaid balances as of May 17, 2021.
Many SMBs must go beyond the deadline without payment to the IRS because some of their funds have already been earmarked for urgent projects and operations that seem much more pressing in the here and now than a letter from the IRS that is destined to arrive within weeks to months.
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.
The majority of your sole props and single LLCs 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 talking taxes with you right now?