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Selling when the economy tightens

When budgets tighten, services buyers don't stop buying. They stop buying the wrong things. How firm leaders should adjust what they sell and to whom.

Kevin French
· 3 min read

Buyers don't stop spending when the economy tightens. They stop spending on things they can't defend.

Your job as a leader is to make sure what your firm sells is defensible. That's a different job from the one you had when budgets were loose.

What changes for the buyer

Discretionary work gets cut first. Innovation labs, experimental pilots, nice-to-have redesigns. Anything with a vague payback sits in a queue that never moves.

Work that saves money or protects revenue gets easier to buy. Cost programs need people to run them. Legacy systems that are expensive to maintain become worth replacing. Vendor consolidation opens doors for firms that can absorb scope.

The approval chain gets longer. Deals that a VP could sign now need the CFO. Finance enters earlier and asks harder questions.

Reframe what you sell

Look at your offerings through the CFO's eyes. Which ones reduce cost, protect revenue or lower risk inside a year? Lead with those.

That doesn't mean pretending your modernization practice is a cost program. Buyers see through relabeling. It means finding the honest cost or risk case inside the work you already do. A data platform project may retire several legacy tools and a support contract. Say that, plainly and with detail.

And be willing to sell smaller. A narrow first phase with a clear payback beats a large program that dies in finance review.

Follow the pressure signals

In tight markets, business pressure becomes the most useful signal after RFPs and new leaders. Read the filings. 10-Ks and 10-Qs name cost programs, restructuring charges, headcount reductions and margin targets. Earnings releases filed as 8-Ks tell you what management promised the market.

Watch for new CFOs and COOs. They're often brought in to cut, and they need help to do it without breaking operations.

Hiring signals change shape too. Fewer posts for growth roles, more for cost and efficiency roles. A company hiring a head of procurement transformation or a vendor management lead is telling you what's coming. The post on margin pressure is a buying signal goes further.

A scenario

Say you lead a 250 person digital engineering firm. Your pipeline was built on product development work for growth-stage clients, and those clients just froze budgets.

You don't wait it out. You shift the target list toward mid-size public companies whose latest filings mention cost programs or legacy platform risk. You reframe a core offering around retiring old systems and lowering run costs. You ask practice leads to write hypotheses about the gap between the savings target and the plan.

Fewer deals. Smaller first phases. More finance in the room. But pipeline keeps moving.

Protect the relationships you have

Existing clients are under the same pressure. Some will cut your work. Get ahead of it. Go to your sponsors and ask what they need to show their CFO. Offer to reshape the engagement before they're forced to.

A client who sees you help them save money in a hard year remembers it when budgets return.

Keep the team selling

The instinct in a tight market is to cut sales and marketing spend. Be careful there. The firms that keep reaching out, with sharper messages to fewer accounts, come out with pipeline. The ones that go quiet come out with an empty quarter and have to restart from zero.

Change how you spend sales time, not whether you spend it. Fewer events. Fewer broad campaigns. More research on fewer accounts, more warm intros, more senior people writing hypotheses.

Talk to your own team plainly

Your people read the news too. Tell them what's changing and why. Tell them which offerings you're leading with and which accounts matter. Uncertainty inside the firm shows up in every sales conversation, and buyers can smell it.

Cut the noise. Keep the research, the hypotheses and the warm intros. Sell smaller, sell to finance, and sell what you can defend.

See which of your accounts are moving.

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