Company Size RISK
The Size of the company introduces new variables
When you get used to working deals with companies of a certain size you build up experience of how the deal will run. You get to know what particular concerns they may have; they will typically want to talk price at a particular point and you know who you are likely to be up against in terms of the competition.
Moving outside this – to either a smaller company or a larger one – introduces a different set of dynamics. You will need to be on alert to these and navigate them carefully. Typically a small company looks to the features a lot; they want to understand the price and require a lot of transparency early on about the pricing to avoid “sticker shock” late in the sales cycle. Larger companies tend to involve more people, will see value in some of your features, and need more due diligence ( Contract details, data processing agreements etc.) so you can expect the final parts of the deal to go slower.
However the rewards can be great. Moving outside your comfort zone to new size companies can increase your addressable market.
Amplifying Factors Industry Location
Further reading :
RED – Larger than Normal Larger companies buy differently from small companies. The deal cycle from beginning to end is often much longer with many more touch points, more people involved, and frequently requires many meets that all cost you money and time to conduct. |
AMBER – Smaller than Normal Not as challenging as Far away but can be more challenging than you think. Local case studies/references coupled with on-site are likely issues that will arise. |
| GREEN – You normally win companies of this size. Other factors will of course come into play but you don’t need to be concerned about the company size. |
Mitigation – what to do?
What’s your unfair advantage? – If what you are offering is good then the size of the prospect company may not matter
Is this a Strategic sale? Ask yourself “Is this a strategic customer deal to win?” By strategic I mean is this an opener for a new region or do they have a name that even if it’s a difficult account to service after the sale is made it’s worth it (for example a key reference account). Maybe you want to go for a larger company size as your new normal so this could be the break you are looking for.
Be more attentive to cycle times. This means if they send you an email reply fast. Don’t let the doubt enter their heads that you can’t look after them in a timely fashion.
Expect different competitors to be involved. A competitor that are not strong in your usual segment ( Based on Size) may be strong in the prospect’s segment so bear that in mind.
Reference customer in the region or country? Do you already have a reference customer that you can use to provide them with re-assurances that not only can you service them but that you are doing so successfully today.
Consider right-sizing the deal to one you are comfortable with. Maybe you need to go for a “Land and expand” approach – get a small deal done first, prove your ability but more importantly, get a deal done that you can cope with and then expand within the account.