When you are building a B2B startup or running a small business, your best customer prospects are rarely knocking on your door. At scale, they are not waiting in line, bank accounts open, ready to hand you their money. While it can happen, it is the exception, not the norm.
That reality puts you in a position every founder eventually faces. If you want to grow, you have to prospect. You have to go out and create opportunities rather than waiting for them to arrive. That is why one of the most common questions that comes up is also one of the most misunderstood: What is a lead?
It sounds like it should be a simple answer. In practice, many definitions are floating around, and that lack of clarity creates confusion. To make this useful, it helps to put the definition in the context of how B2B startups and small businesses actually grow.
Because inbound demand is rare at scale, growth depends on your ability to prospect for new business successfully. Prospecting is not about blasting messages or hoping something sticks. It is about putting yourself in a position to identify the right people, engage them thoughtfully, and determine whether a real sales conversation makes sense.
That process starts with understanding a few key terms and using them consistently.
The first category is what we call a suspect. A suspect is someone who fits your target market profile as best as you can determine. That assessment is based on the role they hold, the company they work at, and what appears to be their decision-making authority. Much of this information can be unclear or difficult to confirm, but based on what you know, they appear to be someone worth approaching.
A suspect is not a lead yet. A suspect is simply a potential customer who appears to be a good fit on the surface. In many CRM systems, including HubSpot, this stage is often labeled as a prospect. This is where the funnel truly begins.
At this point, you are working with assumptions. You believe this person could be a good customer, but you have not yet received any confirmation from them.
Turning a suspect into a lead starts with having the right profile. You need a clear understanding of who your ideal prospect is and what defines a strong fit. That profile should help you get into the DNA of your target audience so you understand what they are thinking about, what they are worried about, and what is consuming most of their time right now.
Without this clarity, prospecting becomes guesswork. With it, you are able to focus your efforts on people who are far more likely to engage.
Once you have the right profile, the next step is to compile a target list. This list can live in a CSV file, Excel, or Google Sheets. What matters most is that the information aligns cleanly with your CRM so you can avoid unnecessary issues during import or integration.
When compiling your list, it is important to remember that business data is not standardized. Even the best data sources are only partially accurate. That means some level of vetting is required. Validating contact information and ensuring your segmentation matches your CRM structure helps you avoid wasted outreach and protects the integrity of your system.
At this stage, you are still working with suspects. You have simply organized them in a way that prepares you for outreach.
The third step is your first touch. This usually happens through email or LinkedIn, though in-person conversations at events can be even more effective. This is where you begin to test whether your assumptions are correct.
Engagement is the moment where you start determining whether the person you identified as a suspect is actually interested in what you have to offer. It is the first real signal check in the process.
A suspect becomes a lead when you receive affirmation. That affirmation can take several forms. It might be a response that says they would like to learn more or have been thinking about the problem you address. It might be a form submission, a chatbot interaction, engagement with your LinkedIn content, or a download on your website.
In each case, the common thread is intent. The prospect has expressed interest and a desire to enter a sales conversation.
A lead is someone who has expressed intent and a desire to enter your sales cycle.
Once that intent is clear, it is time to move into qualification. Qualifications help you determine whether the opportunity is real and how to move forward efficiently. We will be covering that process in an upcoming episode focused on decreasing time to revenue, increasing win rates, and doing it with less effort and cost.
Until then, make sure your data sources are solid, your CRM is set up correctly, and you are engaging prospects through the right channels.
If you want help clarifying your ideal customer profile, tightening your prospecting process, or building a cleaner path from first touch to revenue, you do not have to figure it out alone.
Book a free strategy session to walk through your current approach, identify gaps, and create a practical system that supports sustainable growth. You do not need more leads. You need the right people, engaging at the right time, for the right reasons.