One of the most important discussions I have with clients (and potential clients) also happens to be one of the most confusing: No, it is not the one about the meaning of life, it is the one about selling “solutions” over “capabilities.” As this is one of the cornerstone principles of my consulting practice, it seemed worthy of careful clarification, and potentially informative to a wider audience. So, what do I mean when I tell clients to stop selling their capabilities and start selling their solutions, and what makes this a confusing topic?
The simplest way to explain it is that capabilities are about you; solutions are about your customer. Your capabilities are just that: the things you are capable of doing or providing. Solutions, on the other hand, are what connect your capabilities to your customers’ problems. When you walk into that client pitch, and spend the entire time talking about capabilities, it is up to that potential client to make those connections (assuming they haven’t started checking email half way through your pitch). However you are the seller, your product is supposedly new and innovative, or otherwise different from the competition, so the onus is on you to make the connection. That is why you need to walk in ready to discuss solutions: What problem can you solve and why is your product the best way to solve it?
Another way to look at the issue of capabilities versus solutions is as selling the “why” over the “what.” To the entrepreneur, the “what” is something to be truly proud of: It is the sum of their accomplishments, innovations and passion, neatly packaged into a new product. Unfortunately, that alone does not close a deal, because the “what” does not necessarily clearly demonstrate that all-important solution. That solution is the “why.” This is what we have, and this is why it is relevant to you. Even better: This is why we can help you, and this is what we will use to do it.
When your capabilities, or your “what,” truly stand out from the crowd, it is cause for much excitement, and it is a reason to give yourself a pat on the back for your achievements. But your job of selling those capabilities is far from over, and their success in the marketplace is far from a foregone conclusion. Not until you communicate their roles as solutions, or each customer’s “why,” will you have any chance of building a business around them.
Here, on paper, this sounds simple enough. But rarely are things so simple in the real world. The lines between “what” and “why” often seem blurry. One capability may form the basis of multiple solutions, creating additional confusion. In other words, these things are still complicated. But, if this one article could clarify all, I would be putting myself out of business (which would tell you just how much my advice is worth). Instead, please look at it as a way to frame some of entrepreneurs’’ most prevalent issues, and take it as an invitation to reach out and delve into them further.
Dan Palay is a Chicago-based consultant, specializing in marketing and business development for early-stage and business service companies. Please feel free to contact at [email protected].
