Everyone needs new business, but in these tough economic times are you truly evaluating the prospect with the same scrutiny you did before the crash of 2008 or are you looking through rose-colored lenses? Too often, today’s hot prospect can be tomorrow’s nightmare client. For the client/vendor relationship to work, it has to be a good fit for both.

Consider creating a Grading Sheet or Pre-Qualification Survey to eliminate wasting resources chasing a bad prospect. Rate each response on a scale and set a minimum qualification score before you allocate considerable time and/or resources. You’ll thank yourself in the long run with greater client retention and eventually less resources dedicated to keeping the sales funnel full.

Here are some considerations you may want to incorporate, but remember each company’s ideal client or client fit criteria may/will be different. Beauty is in the eye of the beholder and ones man’s rags are another man’s riches, and stuff like that.

Knowledge of Prospect’s Industry – You’ll be successful where you have experience. Too often, you can invest a great deal of resources into a thorough understanding of a market segment without vertical advancement. Now, your stuck without being able to amortize the investment across multiple clients. You’ll always face an uphill battle not having, at least, a few market specialties. Diversity will help shoulder sector downturns, but hedge your product/service offering with not only a balanced portfolio, but also with specific industry knowledge.

Proximity to Prospect – There is something to be said about being the “specialist from out of town.” Sometimes, the mystery of it all makes you that much sexier and paid more. Also, without being in the same market, no free lunches or expensive tickets to see Billy Joel. Now, balance that cost against airline tickets, rental car expenses, hotel receipts and mileage thrown at you by not-so-thrifty account executive expense reports. Then, on top of that, add all the local competitors, which you know nothing about, knocking on your clients door every day.

Chemistry Factor – You either like each other or you don’t. It’s that simple. You’ll know, although may not want to admit it, after the first meeting.

Contact Level High / # of Contacts Low – This could actually be two line items, but we are listing it as one. It is important to both work with a high-level contact at a client and also have fewer direct contacts. High-level contacts mean you are working directly with the decision maker and the fewer number of contacts means you have a filter. Or at least if you are “working by committee,” your only having to speak with the committee chair/representative. Fewer cooks = better recipe for success.

$X,XXX – $XX,XXX of Anticipated Monthly or Annual Revenue – You dirty your kitchen whether you bake one cookie or a dozen. Bake the dozen. But, also remember, you are a not Keebler (unless you are and then welcome to our blog – need an agency?) so don’t bite off more than you can chew. Know your limitations or if you do land the whale, too many of your resources would have to go to managing it and then, if lost, so are you. But, I digress. Controlled growth is another blog entry for a later date.

Incorporated – Yes, they can hide behind the corporation if they don’t pay, but what do you think is easier to pry out of a hand, a PO from a CMO or a personal check from an entrepreneur’s 401K?

X Years Old – Youth has its advantages, but not when you are wondering if your client will be around in a few years. remember, most business fail. Work with an established company.

Sales Between $X and $X – Look at the sales of the clients you have had success with in the past, add 15% and set a range. Typically, a budget is a percent of overall sales or gross revenue. It is important to look at both. What are their sales and what % are they allocating to your services. Is it above or below industry average? Is this a determining factor for how well they value your type of service?

Service Budget Between $X and $X – See above. Just important, so we put it on here twice.

Has Worked with a Company Similar to Yours in the Past – if you have to educate your client on the services you provide, you are just getting them ready for their next supplier. Once they understand what your service is, they’ll want to shop it around. Don’t be the first service supplier or you won’t be the last.

Can Clearly Articulate Goals of Working with a Service Provider Like Yours – If you don’t truly know what their needs or expectations are, how can you ever achieve success?

Industry or Field of Interest – I bet the photographer for Playboy likes coming to work more than the one at Sears that photographs my crying children.

Similar Business Philosophy – Simple, but so important. If you let a swear word fly, are they ok with it? If you have a drink with dinner, are they going to too? Are your business ethics on the same plane? Do they value your service? Do they reward or pay their employees similarly to you? If you take off the day after the Superbowl, will they understand? Find the right fit.

Credit Worthiness – It is not only important that you work with clients that have money, but also with those who are willing to give it to you. Check out their Dunn and Bradstreet, and if you don’t subscribe, lean on your banker to help you. They aren’t doing anything right now, are they?

Then, tally the score. Commit resources only when the numbers are in your favor. There are tons of leads – chase the good ones.

Lastly, who says this has to be just a new business tool? Consider grading your existing clients every year. Throw is a few more questions on profitability and then drop the bottom 10% or so. Over time, you’ll run a more efficient portfolio and a happier staff.