Identifying prospects: 11 creative ways to scout businesses new to the area
Here's how to get on the leading edge, discovering new businesses before everyone else does.
You want new clients. Let’s start with several assumptions. Your practice provides many services. This includes benefit plans. Commercial insurance. Personal insurance. Retirement plans. Investments and wealth management. If a new business opens nearby, you’ve got something to offer.
Let’s add another assumption. You have a defined territory. This might be based on where you are licensed. If you are located in New Jersey and an uncle lives in Oregon, you can’t do business. Put another way, most of your new business is likely to be local. Let’s look at 10 places to find businesses new to the area:
1. Local business journal. There should be one if you live in a metro area. They often run a column listing new business startups. Often there are lots of names.
2. New Chamber of Commerce members. Businesses new to the area often join the local Chamber of Commerce. It’s a way to avail themselves of services and meet other local business owners. You are likely a Chamber member. Should you be joining the “Ambassador” committee to solicit new area businesses to join and help welcome new members? The Chamber usually tries to help launch new businesses with some publicity, like a ribbon cutting.
3. Business incubators. Tech companies often cluster together in their early years, until they get to the point when they can set out on their own, establishing their own premises. These hubs are called business incubators. Your area likely has one or two. Where are they located? What do you know about them?
4. Local accountants. Ordinary people can often file their own taxes, but it’s much more complicated when you own a business. You really need to bring in the professionals. Your accountant and others in the area should know about new businesses. There might be confidentiality involved, but they could refer you as a resource.
5. Businesses changing hands. For many business owners, their wealth is often tied up in their business. Operating year in and year out can provide a good living, but the big payday doesn’t come until they sell the business to someone else and get lots of cash. Business brokers provide the service of getting businesses ready for sale and matching buyers with sellers. Cultivate some business brokers. Which local businesses have recently changed hands? This might be a matter of public record. New owners will likely review existing vendor relationships.
6. Talk with local realtors. They handle commercial along with residential listings. They can tell you about recent sales. You can also get this information from newspapers under “Real Estate Transfers.” Business premises sometimes change hands via auction. You can look for announcements of these types of sales.
7. Drive by strip malls. You’ve seen the “Grand Opening” banners and balloons before. You know where the outdoor shopping centers are located. Keep a file of empty storefronts and update your list as new businesses move in.
8. New commercial construction. You see new malls getting built all the time. Those stores will be leased and new tenants will be moving in. Many will be new businesses. Who are they?
9. Local advertising. In addition to banners and balloons, new businesses also promote their grand opening through newspapers and other advertising. Check them out. Go over and welcome them to the area.
10. Ear to the ground. As Yogi Berra said “You can observe a lot just by watching.” Listening too. You get new neighbors. Who are they? What do they do? New faces turn up at religious services. Be a good neighbor and welcome them to the area. There’s likely a committee for that purpose.
11. Become their customer. What do new businesses need? Customers. Become one if possible. People often do business with businesses doing business with them.
You’ve heard of the strategy “First to market.” You want to be on the leading edge, discovering new businesses before everyone else does.
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