Growing a business requires you to increase your average deal size. Some business owners are bullish about this and can create breakthroughs each year in increasing their sales revenue by targeting bigger deals. However, the vast majority get stuck working at the same level for many years.
Selling your software to large or enterprise-sized businesses requires a different approach than selling to small and medium-sized businesses. Although this is a valid point, it need not be a constraint for your growth.
Most business owners fear targeting bigger-sized customers because they feel they don’t know how to do that. Most Software business owners say I don’t know HOW to sell big-ticket deals. I have never done that before, so why bother? Thus get stuck being where they are.
What you may tend to forget is that it’s not so much about “HOW MUCH” You sell, but more importantly ‘WHO’ you sell to matters. Most small to mid-sized business owners themselves are never high-ticket buyers, so if you continue to work with them, you will get stuck at where you are. If you can make this shift, then things can start to fall in line.
The below pointers explain how making this shift consciously will quickly benefit you and your business :
You Have More Work on Hand Than You Can Handle :
If you have more work and more projects than you can comfortably handle, the simple truth is you’re not charging enough. Raising your prices will often result in fewer clients, but more revenue and profit.
Targeting clients with bigger budgets is like giving yourself a raise.
You Are Open For Customers :
If you have the bandwidth to take in more projects. Then why not target bigger customers?
We’ve all heard the principle in business that 80% of revenues come from 20% of your clients. This means we need to look for those customers specifically who could afford to and want to spend more budgets. Make those part of your 20% segment.
Larger Clients are Easier Prospects:
Most entrepreneurs are afraid to call big companies but it’s a lot easier than you think. Large companies are well-structured. They have specific roles and designations earmarked, and they don’t waste your time if they know they are not the best person you should be talking to about your services. They’ll quickly point you in the right direction in their company and move on.
Larger clients are more likely to need ongoing work :
It’s most likely that the large company that you struck a deal with, will be more than happy to get you introduced to other divisions at their end who may benefit from your services. They also like to stick to the same vendor and work like a partner while they get time to focus on what they do best.
Larger Clients Don’t Have as Many In-House Resources as You Think:
Most Software company owners like to target start-ups, as they feel they have the resource advantage over them. What you are assuming and telling yourself in your head is that larger companies have enough people and never face a resource crunch, so why bother chasing them with our technology services?
Well, this is a complete myth. You’ll be surprised at how much these companies have the bandwidth to pick up more work, but aren’t able to as they just don’t seem to have enough people or the right skills at their end too. Why not grab the opportunity?
It’s a small switch in your mind that is required to open up the doors for bigger deals. I hope this helped you and motivated you to try and jump into the band that you are in now.
Inculcating this will massively help you to grow your business. If you want some more frameworks to upscale your business, then you can connect with me on LinkedIn by CLICKING Here. Or you can reach out to me at [email protected]
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