When it comes to selling to local businesses, understanding their unique needs and preferences is essential for success. However, many salespeople fall into common pitfalls that hinder their effectiveness. 

In this guide, we'll explore both what local businesses don't want to hear and what they do want to hear, based on insights gathered from interviews and industry research. 

Outline:

• What Local Businesses DON’T Want to Hear
• What Local Businesses DO Want to Hear
• Understanding the Small Business Owner
• Connecting with Local Businesses
• Overcoming Small Business Owners' Risk Aversion
• Conclusion

What Local Businesses DON’T Want to Hear

There are some common pitfalls we all fall into when trying to sell to local businesses.

• Generic pitches: With the best intentions of showcasing all the amazing things our product or service can do, we often end up sounding generic instead of personalized. Neglecting to understand the owner's specific needs, we can come across as pushy or overly aggressive.
• Assume, don't ask: As Zamanta shared (small business owner) on our Selling Local Podcast, assuming what they want instead of asking if they're interested automatically closes the door. Every local business owner knows they can grow, but we don't know if they're happy right where they are.
• Talks that aren't about them: You need to show your expertise and establish your brand as an authority in your field. However, don't make the entire conversation about you. It's all about the customer, not how amazing you or your service are - over and over again.

It can be tricky to personalize your approach sometimes. Maybe you lack data, testimonials, or case studies. Let's see how you can overcome those obstacles!

What Local Businesses DO Want to Hear

During the Forrester Sales Enablement Forum, Hoar disclosed five sales situations where surveyed buyers sought assistance from salespeople: 

• When negotiating price (91%) 
• When the purchase is complex (82%) 
• When the purchase is expensive (67%) 
• When the offering needs installation (67%) 
• When the offering requires service (64%)

If what you’re offering is a complex purchase, expensive, or can be negotiated, they’re more likely to engage with you. But what if they’re not? What about your outreach through cold email and cold calling?

Don’t waste their time. Be concise, state what you’re selling, and ask if they’re interested. Check out this cold email template:

Hi [First Name]!

I'm reaching out to businesses interested in expanding their online presence. After learning more about [Business Name], I believe we could be a great fit for your online expansion.

As a specialist in creating complete websites and e-commerce solutions, I've helped businesses like yours thrive in the digital world. If you're interested, I'd be happy to discuss the details and provide you with a personalized plan to get started.

Thanks,

[Your Name]

If they want more information, remember to ask open-ended questions, actively listen to their responses, and connect their challenges to your offer in a practical way. For example:

• Are you satisfied with your online presence currently? 
• What are your goals for this year? 
• What is preventing you from investing more in marketing? 
• What are your biggest challenges?

Paul Daniels, another guest on The Selling Local Podcast, shared what his community of small business owners want to hear from sales reps.

“Products are simply the conduit to a group of people that are supported. I'm not actually buying chains, derailers, and frame sets, I'm buying a channel of people that is going to deliver them. 

So when someone comes in and just talks about the product, I'm going to ask what's behind it. What's the customer service looks like? 

I understand you're the salesperson. I appreciate that you're here. You're pounding the pavement. You're getting out there. You're doing your job. I need to know where the support beyond you is. Is everyone supporting this product as well as you're selling it?”

The best way to know what small business owners want to hear is from them. Subscribe to our newsletter and receive weekly insights from our interviews and specialists!

Understanding the Small Business Owner

Mindset: Conservative but Willing to Invest 

According to the Small Business Administration (SBA), there are 33.1 million small businesses in the United States.

Unlike their larger counterparts, every dollar counts for small businesses. Tight profit margins mean a single mistake can have a significant financial impact, taking months or even years to overcome. 

Local business owners are laser-focused on day-to-day operations, ensuring their business stays afloat. 

This constant pressure creates a unique decision-making process: every purchase needs to be carefully considered, as inaction can also lead to falling behind competitors and potential closure. 

Understanding these distinct challenges is crucial. Small business owners wear many hats, juggling various responsibilities and facing constant time constraints. 

This necessitates a streamlined approach when selling to them, one that is smarter and simpler than traditional methods used for larger companies. Remember they are:

• Sensitive to price: They prioritize maximizing the return on every dollar they spend, often lacking dedicated budgets for acquisitions. 
• Focused on immediate returns: They seek immediate and tangible benefits from their investments, prioritizing short-term value over long-term strategies.

This doesn't mean they don’t invest. They recognize that to enhance profitability, they require products and services that can assist them in enhancing operational efficiency, boosting revenue, generating leads, and reinforcing connections with prospects and customers.

Needs, Pain Points, and Priorities

The Small Business Trends 2024 report from Guidant reveals that 28% of entrepreneurs started their own business because they wanted to be their own boss.

For 2024, 24% are focused on increasing staff, 18% on investing in digital marketing, 17% want to expand or remodel, and 10% will invest in traditional marketing. 65% of businesses are profitable, but only 33% are confident in today's economy.

We can see that local owners value autonomy. They want to invest in growth, but they’re not confident in the current economy, even though the majority are profitable. 

When considering your pitch, don’t assume that all small businesses are the same, but remember these overall characteristics. It makes sense that most of them want a concise approach, personalized to their needs. 

And if you can show the return on investment they will have clearly, even better!

Connecting with Local Businesses

Building Trust (Relationship Selling)

To build trust and excel at relationship selling, it's crucial to understand the perspective of a small business owner. Here's a glimpse into what they truly value, based on more than 20 interviews we conducted for our podcast.

• Short-Term Focus: Forget the five-year plans. They typically operate in a fast-paced environment, prioritizing solutions for immediate needs. Focus on solving their current pain points and demonstrate the immediate benefits of your offering.
• Value-Driven Decision Making: While price is a factor, independent owners are more concerned with value. Highlight how your solution directly addresses their challenges and improves their bottom line.
• Building Trust Through Authenticity: Ditch the sales jargon and brochures. Speak their language and avoid corporate buzzwords like "synergy" or "value proposition”.
• Consistent Support is Key: Captivating marketing only goes so far. Small owners need ongoing support even after the sale. Provide a smooth onboarding process, offer readily available assistance, and ensure clear communication throughout their journey.
• Fostering Loyalty Through Partnership: they highly value loyalty. By solving their problems effectively and demonstrating genuine care, you can build lasting relationships. They'll become loyal customers and enthusiastic advocates.

By understanding the unique perspectives and priorities of your potential customers, you can develop strategies that address their specific needs and build mutually beneficial partnerships.

Big Blunders When Talking to Local Business Owners

Referring to your prospects by an abbreviation 

Describing your prospects with acronyms may depersonalize them, which is not what small business owners want. They see themselves as entrepreneurs and desire to be treated as unique individuals. 

Small business owners, whether they're wellness coaches or interior designers, have worked hard to achieve self-sufficiency amidst the challenges of inconsistent paychecks, limited healthcare benefits, and corporate perks. They appreciate direct communication. 

Avoid using terms like SMBs (Small and Mid-Sized Businesses) or WBEs (Woman-Owned Businesses) as they fail to convey respect for each person's distinct identity.

Addressing your prospects as a collective entity 

Local owners are distinct individuals with 100% decision-making power over their businesses. They expect personalized communication tailored to their specific needs and goals. Sending generic messages will likely be disregarded. 

Demonstrate your commitment to helping them achieve their objectives through thoughtful and personalized messaging.

Presenting a lengthy list of technical features 

Small business owners often juggle multiple responsibilities and lack the time or inclination to decode technical jargon or sift through a barrage of product features. Instead, focus on delivering a clear and concise message. 

Highlight how your product or service addresses their primary concerns: attracting new customers, reducing expenses, and saving time. Communicate in plain language that resonates with small business owners on a daily basis. 

Consider a small financial services firm operating on a tight budget. If you're pitching HR software to the owner, emphasize the efficiency gains. Demonstrate that you understand their challenges and how your offering can address them effectively. 

Respect their time and attention, positioning yourself as a valuable partner rather than merely a vendor.

Check out these tips about how to be a valuable partner:

Overcoming Small Business Owners' Risk Aversion

We already saw that local biz owners want to invest in growth, but are sensitive to pricing and risks. There are some ways you can overcome this.

1. Showcase undeniable progress: Highlight immediate benefits while strategically revealing your product or service's long-term value. 
2. Address specific pain points: Demonstrate how your solution saves time and resources for small business owners, boosting their revenue potential. 
3. Shift from selling to serving: Offer valuable insights and guidance, positioning yourself as a trusted partner in their growth journey. 
4. Foster lasting connections: Provide ongoing support and build relationships through meaningful communication that adds value. 
5. Empower through education: Equip potential customers with knowledge about relevant trends, techniques, and success strategies to achieve their goals.

Simply stating a return on investment (ROI) falls short, quantifying it with data adds significant impact. 

For example, marketing agencies can inquire about their potential clients' current website conversion rate. 

If they receive a specific percentage of organic traffic and convert 15 customers per month, you can demonstrate how your services can potentially increase their organic traffic by a certain percentage, leading to 3 times more organic leads. 

While you can't predict the future, you can showcase how other clients in the same industry as your prospect achieved similar results with your agency's assistance.

The marketing agency example can be adapted to any industry. Here are some additional ways to showcase value: 

• Commercial Real estate: Showcase historical data on similar properties to demonstrate potential value appreciation. Share success stories of clients who expanded their businesses within your managed spaces. 
• Insurance agencies: Share real customer testimonials about how your services helped them navigate unexpected situations and achieve financial security. Highlight how your clients have benefitted from your services over time. 

The key takeaway is to leverage the power of storytelling. Share real examples that demonstrate the tangible returns your product or service offers. Focus on specific metrics and customer experiences to make your message impactful and believable.

Conclusion

Selling to local businesses requires a nuanced understanding of their mindset, priorities, and pain points. 

By avoiding generic pitches, addressing specific challenges, and focusing on building trust and providing value, you can set yourself apart as a trusted partner rather than just another salesperson. 

Remember to personalize your pitch and always prioritize solving their immediate needs. If you ever wonder if all this effort is worth it, check these insights from the Forbes survey: Top Customer Experience Trends In 2024.

• 46% of consumers show more inclination to make additional purchases when offered a customized experience. 
• 48% demonstrate a readiness to invest more in high-quality customer service. 
• 50% of customers are open to divulging personal details in exchange for a more tailored interaction.

If you found this content helpful, don't forget to subscribe to our newsletter to receive weekly insights about selling to local businesses!