Project Not Funded? Put It in 2010

It’s August – more than halfway through the year. Are you going to make your numbers for 2009? If you’re not sure, or if you suspect that some of the deals your reps are projecting to close are more optimistic than realistic, ask your reps the following question about each opportunity in their pipeline: Is the customer committed to spending money this fiscal year to fix the problem? If you can’t confirm money is committed, assume the opportunity will slip into your 2010 objectives.

"This is the most important question to ask to achieve your 2009 objectives," says Mark Sellers, founder of Breakthrough Sales Performance and author of The Funnel Principle (Sellers, 2008). "If the prospect hasn’t committed money but wants to continue the dialogue because they like what they hear – great!" he adds. "But you’re not going to count on it for achieving your objectives in 2009."

When you ask your reps the commitment question, don’t simply take yes for an answer. Follow up with these three additional questions to confirm the funding is really there and that reps aren’t simply being hopeful about what their prospects are telling them.

1. What tangible evidence do you have that funding is committed? A prospect telling you that he or she is "working on it" or that the money’s in the budget isn’t good enough.
2. Is the money committed or just budgeted? Don’t confuse the two. Just because something is budgeted doesn’t mean the prospect has the money to spend. Just look at all the budgets that have been turned upside down over the past year – travel budgets that have dried up or technology upgrades that have failed to materialize. "Budgeted" is not the same as "committed."
3. Who committed the funding? Find the actual person who has the authority to commit the funding and talk to him or her to get confirmation. Sellers calls this source "the person with financial authority," or PFA. Miller Heiman calls these people "the economic buyers." Whatever the name, funding confirmation ideally needs to come from them. If you can’t get to the PFA, get as close as you can – an assistant or close colleague.

Keep in mind that the only way reps are going to get the answer to the funding issue is by asking the question. "Don’t beat around the bush," says Sellers, who says he is constantly amazed at how many sales reps struggle with asking the funding question. "You have to get over that," he says. "There’s nothing wrong with asking, ‘Have you committed funding this year for this project?’" If the prospect seems uncomfortable answering, it may be a good indication that funding is not there – and that’s important information to know.

For more information, visit www.breakthrough-sales.com.