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The 7 Myths of Selling for Smaller Firms

June 19th, 2009 @ 5:54 am

5 Comments

Categories: General

Tags: Business, Leadership, Strategy, Management, Geoffrey James

Selling for an SMB (especially on the “S” side of “B”) can be challenging, especially if you’re used to working for a larger firm.  There’s usually not much in the way of sales support, and people often end up doing multiple jobs. All of that is manageable, however, providing you have the right attitude about your job.  Unfortunately, there are seven erroneous myths about selling for small firms that may be negatively influencing your attitude.  Here they are, along with the corresponding truth:

  • Myth #1: Prospects won’t buy from us because they’ve never heard of us.
  • Truth #1: It’s an advantage when prospects lack negative preconceptions.
  • Myth #2: Prospects won’t buy because we’re new in the business.
  • Truth #2: Prospects are always interested in something new and different.
  • Myth #3: We can’t compete because we’re only a tiny handful of people.
  • Truth #3: It’s an advantage not to have a bureaucracy to weigh us down.
  • Myth #4: Customers won’t buy because our product is new in the market.
  • Truth #4: In today’s world, true innovation is (almost literally) priceless.
  • Myth #5: An enterprise CEO can’t possibly be interested in speaking with us.
  • Truth #5: It’s in a CEO’s best interest to learn what we’ve got to offer.
  • Myth #6: Prospects are asking us to do a lot of work to get their business.
  • Truth #6: We have the right to ask for major concessions in return.
  • Myth #7: Big companies have more resources, so they’re likely to win.
  • Truth #7: Big companies frequently bite off way more than they can chew.

Here are two more posts about selling for smaller firms:

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  •  
    1

    joannesblack

    06/20/09 | Report as spam

    RE: The 7 Myths of Selling for Smaller Firms

    Right on the mark. Plus, smaller firms have the advantage of moving quickly and can pull in outside resources to get the job done. They are also more flexible and will look for ways to partner with others to close the sale.

  •  
    2

    mbv@...

    06/21/09 | Report as spam

    Small firms are often more focused

    An advantage that small firms can have is that they often are more focused in their offering. "We only do xyz" while lager firms can come across as being "all things to all people". Customers often expect a closer more personal service from small suppliers.

  •  
    3

    eshipglobal

    06/22/09 | Report as spam

    RE: The 7 Myths of Selling for Smaller Firms

    Smaler firms come up with innovative ways of offering solution with more personal attention to customers and compete with bigger companies. Bigger the firm, the better the compay is no longer true. Smaller firms can compete in the market place with more strategies. Smaller the firm, the quicker to act.

  •  
    4

    Geoffrey James, Sales Machine

    06/22/09 | Report as spam

    RE: The 7 Myths of Selling for Smaller Firms

    Re Note 3:
    Actually, I think there's a continuum of preferences. Some companies do prefer to buy from a "one stop shop" even if it costs more per product, because then the larger firm removes the burden of sorting out all the parts and building a solution.

    However, there are other firms where that's less important, and where they want to work with smaller firms, even though that entails more work on their part to sort things out.

    The point is that it's not necessarily a competitive disadvantage to be small nor a competitive advantage to be large. However, you do need to take a different approach and do different kinds of lead qualification in order to sell for different sized vendors.

  •  
    5

    nhernandez

    06/22/09 | Report as spam

    RE: The 7 Myths of Selling for Smaller Firms

    Geoffrey, I own a startup company, I would like to hear more
    about theses myths, some of which are definitely affecting our
    thinking in sales... can you ellaborate???
    thanks
    Natalia Hern?ndez
    IPOHS
    Mexico City, Mexico

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