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Winning a huge account can be an important step in the success of your new startup business. The big accounts – whether you are looking for your product to be widely distributed or a big corporation using your services – are usually the largest and most profitable accounts. (article continued below ...)
However, selling to big companies is tough. Big corporate clients
typically look for a strong brand and/or wide customer portfolio – neither
of which your startup possesses.
Plus, there’s so much competition at that level as everyone, including
other big companies or well-established brands, wants to get that business.
In fact, it is highly likely that the account is already being serviced by a
more established business, and your task is made even more difficult as get
that account, in whole or in part, from their existing suppliers.
So how can your small business win the big corporate account? Just like
in one-to-one selling, the key to landing that big customer and winning over
more established competitors is to understand the customer and what they are
looking for in a supplier.
Here are some factors that will allow your small business to become a
partner or supplier of a big company, even winning over bigger competitors
in the process:
Credibility of the founder/s or owner/s.
With the absence of a strong portfolio of existing customers, you -- the
owner of the small business -- will be the main selling point. The big
company will want to see that you have the strong leadership and management
skills needed to successfully handle their account. They will need to see
your core competency. They will want to see that you have innovative ideas
that can benefit them. Hence, you should expect the potential big customer
to check on your credentials and references from business contacts and that
of your start up team (if any).
Quality of your presentation.
How you present your business will be a key factor in helping you land the
big account. The decision makers of the big company will be looking for your
demonstrable experience and enthusiasm in servicing the account. They will
look for your professionalism in presenting the business.
Readiness for business and hard work.
You need to convince the big business that you will be able to deliver what
you are promising. Sound financials is key; after all, they don’t want to
give their account to a new business on shaky financial standing that may go
bust the following month. The big client will also look at how operationally
efficient your new business is, and whether you follow standard practices
required in your industry. They will also want to see a solid startup team,
instead of a new business that relies on external consultants.
Strength of your offer.
It is important to be explicit in what the customer can gain by accepting
your offer. Are you less expensive? Are you likely to give them a better
product or service? What is the big business likely to gain by giving your
startup the contract? The big business will want to see whether you bring
something new or better to the table. They will want to see whether you are
really innovating a new product or just re engineering or modifying some
existing product.
Cost.
Cost is another important factor a big business considers in determining
whether to give business to startups or not. As a new entrant trying to win
their business (especially if you are trying to wrestle the business from an
existing supplier), they expect you to offer the least costly alternative.
Flexibility of your offer.
During negotiations, the big business may also consider the flexibility of
your small business in your short term and long-term commitments to win the
account. This can include, but not limited to, accepting longer terms of
payment.
Relationship with existing suppliers .
The client’s satisfaction level with the current suppliers will be an
important determinant in whether you can get all or part of the big
contract. Some big customers will look for other suppliers, and be willing
to entertain startup like yours, if they think that the presence of a new
competitor will perk up the existing supplier or provide them with a better
deal. The existing supplier may be expensive or late in meeting their
obligations or not giving their work the priority the customer needs. Or the
big company may have new needs that can be serviced by an additional
supplier, hopefully your startup.
Willingness to offer a free trial.
Some big companies will ask for a free trial of the services that they need.
They want to see whether your startup can produce the results they want
before moving forward to forging a business relationship.
Be prepared to start with a small deal and once you have proved yourself
to them, the big customer may be more inclined to build on the business
relationship and give your small business bigger contracts.
A small business can get a huge account – but remember, that it is not an
easy ride.
Author Bio
George Rodriguez is a writer for PowerHomeBiz.com. Read the blog at
PowerHomeBiz Small and Home Business Blog
October 2008
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