Corporate Fit RISK

Corporate fit can influence the deal in many ways.

If you are a start-up and you’re dealing with a major company you have a mismatch in size and maturity. Consequently, you need to ensure that they’re willing and capable of working with a company at your stage of development.

This doesn’t just apply to small companies or start-ups. A company at any stage in its development can either be too small or too big to deal with a different size of company.

Corporate fit will also extend to culture. Some companies will have a culture of buying the lowest possible price solution that just about meets the needs while others look for value and innovation. Try to understand which type of company your prospect is.

Corporate fit can also uncover policies that simply don’t work for you. Policies around data retention, payment terms, insurance requirements et cetera et cetera can also have an impact on companies and their ability to do business with you in a way that you can do business with them. It doesn’t mean that it’s wrong; it’s just how they’ve evolved and how other cultures evolved over time.

Amplifying Factors Industry Location

Further reading :

7 signs your prospect is a bad fit

Prospecting and How to Choose Best Fit Customers

How to Set Up Your Prospect Fit Matrix to Better Qualify Leads

RED – Not aligned

This is where the company has flagged to you elements of their corporate culture and policies that make them unattractive as a business for you to work with. You need to consider qualifying yourself out or adapting to their requirements.

 

AMBER –No concerns shown

You may not have any reason to suspect any concerns but to listen to others who have done business with them or a quick look on their website might give you an indication of elements that might concern you.

 

GREEN – Good fit

This is  a good position to be in where their thinking and your thinking coincide and this can lead to fruitful and mutually beneficial long-term relationship.

Mitigations

 

Check the company website for anything that might lead you to be concerned. For example, they may have certain accreditations prominently displayed that you don’t have that could prevent you from concluding business with them. Check these out, flag them early to the prospect and qualify yourself out if there are dealbreakers.

 

Try to find others who have done business with the company. You may hear things that are concerning –  For example, some companies bring in new technologies for demo and trial simply to enhance their own knowledge and development team capabilities. Be aware that this can happen and make sure that your sales cycle allows you to test for this and qualify out when appropriate.

 

Procurement and legal. Some companies will always pass the final pricing stages through their procurement department and all contractual discussions with their legal department. Procurement is trained to commoditize your offering and push for price rather than value. Legal people are trained to protect the prospect in all circumstances. Both of these are areas to be careful about where you can get into a long loop in the final stages extending to or even beyond the time you’ve spent in the actual sales cycle getting to a point where they chose you.

Scroll to Top