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B2B Approaches for Different Economic Cycles 133

In hard times, businesses consciously shut certain money
flows off and allow other money flows to continue but at
reduced rates. The objective is to:

(a) assess where and how money is still flowing (or not
flowing) for your prospective client;

(b) understand and then position your value proposition
toward that money flow;

(c) quantify the impact your value proposition will have
on that area.

It is relatively easy to interview insiders within your prospec-
tive customer to understand where the money sensitivities
lie. While it is not necessary or practical to engage the CFO,
this is helpful if they are amenable to a meeting. Once you
have built a schematic of how the money is now flowing,
you must reassess your value proposition relative to that
new flow and how your products or services impact that
flow.

Build your business case models for different
economies and transitions

Businesses typically build business cases for their products
and services for the current economy with no explicit
iterations for significant contraction or expansion of the
economy. This would be akin to building an automobile
without windshield wipers. Businesses need to proactively
build several different models of their business case to buy
based on several different levels of economic activity.

One particular tool manufacturer has a tool cost of valu-
ation spreadsheet with specific highlighted components for
prosperous economies and specific elements for contracted
economies. For prospering economies, potential customers
can enter variables that will project how much margin
per machine, e.g. $6,500 additional margins generated