Subscribe to Entrepreneur for $5

Calculating the Cost of New Customers

How much does it cost your company to handle new business?

Opinions expressed by Entrepreneur contributors are their own.

There are many costs incurred after you land a new account--most of them in the form of time used for the following seven procedures:

  1. Credit checks
  2. Establishment of payments
  3. Internal accounting setup
  4. Internal shipping department setup
  5. Customer indoctrination and training
  6. Salesperson handholding
  7. Management monitoring

To get a good idea of the costs to your company, ask each department what it does when an order comes in from a new customer. You might be surprised at how much goes on behind the scenes.

Excerpted from Creative Selling: Boost your B2B sales

Entrepreneur Editors' Picks