A prospect should match your ideal customer profile. How big is the company? What industry are they in? Where are they located?
You must know your customer’s needs to qualify the prospect. And you should know how to fulfil their requirements and requests. You should have an idea what result they are aspiring for, and how the result is going to impact their company or team.
Decision making process
You should also know how they make decisions and how many people are involved in the decision-making process. Are they impulsive buyers or do they take time to buy products?
For instance, some companies take almost a year to purchase products. But if you have a sales target to achieve in the next four months then they are not your qualified prospects.
It is said that you should keep your friends close and enemies closer. So you should know about your competitors. You must know whether the lead has worked with any of your competitors and also what are the decisive factors on which they will base their decision on.