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Small firms ‘lax’ at business pitches

The majority of small company owners are failing to prepare for new business pitches, costing them valuable time, money and long term profit.

Seven out of ten entrepreneurs quizzed by The Seed.com said that two in three meetings they attend about generating new business for their outfit fail to pay off.

Just under half of the 200 managing directors polled by the website admitted they often sit through a meeting with a prospective client without understanding their budget.

And most business owners fail to qualify and prepare effectively for the meeting, saying they attend new business pitches without fully qualifying the prospect.

Moreover, most company owners won’t spend more than a single day preparing for a new business pitch.

But they are keen to attend them: a third admitted they’ve taken time out of the business to make a pitch that could have been delivered by a junior member of their outfit.

The study, obtained by Freelance UK yesterday, found business opportunities are being lost thanks to not understanding the initial brief, not being able to fulfil it, or not being able to meet budgets.

Despite business leads failing to materialise, three-quarters of small and medium-sized enterprises spend up to £500 a month attending new business meetings.

Keir McConomy, managing director of The Seed, reminded SMEs that they have a range of techniques for winning new business, including networking and pay per lead marketing.

He said: “The secret for all of them is to qualify the prospect properly and prepare a pitch that meets the brief. This will not only increase the chances of winning the business, but will save on time, money and effort in terms of attending the pitch.”

In terms of attracting new business enquiries, one third of SMEs cited their online marketing as the most important element to maximise the growth of their business

In fact, over 55% stated web marketing as the technique that works best in terms of generating new business.

The survey also asked about where the majority of new business currently comes from: 47% said it comes nationally, followed by regional and then local business, defined as being within 20 miles of the outfit.

For the business participants, less than 9 per cent of their new business came from the international market, suggesting the overseas market remains largely untapped.

“For many SMEs it can be a tough market, but the growth of the Internet is helping them to access new markets and opportunities,” Mr McConomy said.

He advised :“By targeting new business opportunities more carefully and investing in detailed qualification and preparation, there is huge potential to grow business in a controlled, manageable way.”

Aug 8, 2007
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