Sales Cycle Basics for Modern Entrepreneurs

A sales cycle is a series of processes in which a sales representative undergoes in order to complete a sale.

SALES & MARKETING

Dezmon

11/27/20254 min read

Introduction

A sales cycle is a series of processes in which a sales representative undergoes in order to complete a sale. From another perspective, it is the journey of a buyer starting from the product recognition to the purchase decision. In this sense, the sales cycle provides a sales road map for the sales representatives as well as the sales team.

With a sales cycle in place, a sales team or entrepreneurs can better prioritize sales tasks, evaluate the efforts, and streamline the sales process. A sales cycle is advantageous for both sales teams and individual representatives.

For individuals, it marks the location or process in which they currently are, and indicates the next step forward. For sales teams, it helps other members collaborate or continue the sales process left off by another member with consistency.

With the sales cycle model implemented, entrepreneurs can also identify which step in the cycle needs to be improved and allocate resources necessary for closing the deal. The data gathered along the processes, moreover, is also beneficial to potential sales prediction based on an average time consumption.

Seven Stages of Sales Cycle

It can be said that closing sales is the ultimate goal for any company in any industry. With all the benefits the sales cycle provides, all modern entrepreneurs ought to know how it works. Sales in general, can be divided into 7 stages in the cycle.

Prospect: The very first step is about identifying the target audience and prospects — your potential customers. To find prospective buyers, entrepreneurs in the modern world need to have product insights, and be able to underline how their product will overcome a particular problem. As a result, entrepreneurs will be able to generate leads — the relevant audience that is interested in your product.‍
Qualify: While some experts recommend that making contact be done after the first step, our suggestion is to filter prospects to know whether they meet primary qualification for a product or service or vice versa. By doing some research on potential purchasers, entrepreneurs will be able to save their valuable time and money and proceed to the next stage with confidence.‍
Present: With qualified leads in hand, entrepreneurs’ next move is to make a pitch through phone or video calls, emails, or any other means. It is also the best chance to perform the ‘personalized’ presentation of a product or service using the gathered research data on the customer. Convincing prospective buyers about the product’s ability to get the problem solved is the goal in this stage. In this sense, it is perhaps one of the most crucial processes in the cycle.‍
Manage Objections: It is time to address customers’ hesitations and rejections that might stem from other offers, price concerns, terms, or even issues on the product and service itself. Entrepreneurs encountering these situations need to figure out the logic behind the delayed purchase decision and address them rigorously. Keeping track of common objections will also be helpful for the subsequent contact and sales pitch.‍
Close the Deal: If presenting is not the most crucial phase, closing the deal should be. This step’s success relies on all efforts made in previous actions. On this stage, entrepreneurs or sales representatives are required to prepare the paperwork such as contract and agreement in order to complete the deal. ‍
Follow Up: Just because you completed a purchase doesn’t mean that it is over. After-sales service is also a crucial step that helps entrepreneurs become aware of customer’s satisfaction on the provided product or service. Satisfied customers create the possibility for entrepreneurs to repeat the sales cycle or even start a new one by generating referrals.‍
Generate Referrals: With great product/service quality and customer service, sales representatives will have a great opportunity to introduce themselves to new prospects via current customers. This enables the company to not only retain clients but also build up new relationships with new prospects.

Use Case Example

For a better understanding of the sales cycle, let us tell a story where all the seven steps of the sales cycle are included.

John is a new member of a sales team in a software company. The product development team in his company introduces him to a new application that is able to resolve a certain problem for their customers. He then 1) studies the functions of the application thoroughly to learn about its benefits.

Knowing every aspect of the application, John does some research to 2) determine the target audience and his potential buyers who can benefit from his company product. After shortlisting the potential customers, he starts to contact them through proper means of communication. John makes the most out of the contact opportunity and 3) introduces the new application.

Days and weeks go by, he is able to draw the attention from the customers and 4) manage to deal with all the questions and objections. With a clear path ahead, John takes a step forward and successfully 5) sells the new application. By 6) providing good customer service long after the sale, he is able to build and retain the relationship with his clients.

Having been satisfied with John and his company, one of the 7)customers refers the product to other prospects. John, therefore, has a new lead which allows him to start a new sales cycle.

Conclusion

It is undeniable to say that people negotiate every day. If negotiation means some kind of sales, then everyone is a sales representative. That is why the sales cycle is so utterly essential that everyone, not just entrepreneurs or marketers, should learn. While it looks like the sales team and representative can make the most out of its streamlined approaches to succeed in sales, any business person can apply this knowledge to their daily operation as well.

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