How to qualify a sales opportunity before submitting a proposal

Your time is extremely valuable and should not be wasted on prospects that have no interest in developing a business relationship with you.

Yes it’s important to find out if the prospect has budget for your product or service. And it’s very important to uncover their decision making process. However, if you are to truly qualify an opportunity, and avoid being taken advantage of, there are 3 other things you must understand first.  They are:

1. Can the prospect clearly explain their need?
2. Do they feel this need is important?
3. What is their motivation for fixing it? In other words how will they and the company benefit?

Confirming they do have budget and that they are currently interviewing several vendors is not enough information to consider the opportunity qualified. Here are 3 reasons why:

1. They might want to get information from you to renegotiate with their current supplier.
2. They might have zero intention of buying, and just want to pick your brain for free ideas.
3. Perhaps they do have a sincere interest but don’t have decision-making authority. Maybe they want to collect information and “run it by their boss.”

If you ask your prospect to explain the need they have and they are able to do so with a fair amount of detail it proves that this need is real and one they’ve given some thought to. It also shows you they find it to be important. If they are unable to articulate the need either the need is not very strong, and therefore they have no real interest in your product, or you are talking with the wrong person.

You’re insight into how well qualified the opportunity is crystallizes when your prospect explains to you how they and the company will benefit from satisfying the need.

Finally, if they openly and sincerely answer your investigative questions this is a strong indicator that they are open minded and have not already chosen the company they intend to do business with!