Case Study - Building a Business... Twice!

Jeff Nolan founded his Ontario based firm in 1995, after working for a start-up ISP in the previous year.

Having little experience in running a business, Jeff applied for a program called the Business Advisory Center. All applicants were required to submit a business plan and sales projects which were then graded and judged. Jeff's was one of the lucky 17 that were chosen!

After graduating in February of 1995, aged 21, and with less than a thousand dollars to his name and a PC borrowed from a friend, he started Imagination Plus.

Cold Call Rejection can Pay Off Big!

Cold calling. It's probably the most dreaded of all marketing tools, but it can also be the most effective if it's executed correctly.

In 1997 Jeff hired a sales person, and worked alongside that person as they embarked on a cold calling campaign that netted the business 35 new customers that very year. How did they do it?

"When I first started cold calling, I would locate suitable prospects using the local phone book. I always researched the company to find out who's in charge, what they sold, and whether or not they had a Website. I usually compiled a list of reasons why they could benefit from my services, and I always tried to relate those reasons back to either saving money, or making it.

"During the first few weeks of cold calling, I must've sounded like a complete idiot, because I didn't get much of a response. But as the weeks went by I became more comfortable with the concept, and developed confidence in what I was trying to achieve. I believe that was one of the reasons why the response rate improved," Jeff notes.

After a few weeks, one out of every ten calls was turning into a lead, and one of every four leads was turning into a sale. Here's how Jeff did it.

"I would call the company and ask to speak with so-and-so -- always referring to the person by their first name only. When the person finally answered the call, I'd introduce myself and ask when the last Website project was completed. The next question usually involved probing to find out if, and when, any site upgrades were planned. Next I'd refer to the list that I'd compiled prior to the call, and explain, very briefly, what I had to offer.

"The conversation would usually wind down naturally, and I'd ask if it would be possible for me to send a preliminary estimate, or a pack of information about the company. I'd always schedule a call back within 4 weeks, just to check up on the prospect -- unless of course they wanted a proposal or a meeting."

Jeff's Top 5 Tips for Cold Calling

1. Do your research before you call, and find out who has the authority to OK a Website design project and/or budget. You can sell yourself to the company janitor, but it won't do you any good.
2. Compile a list of compelling reasons why the person should hire you, and translate the list into reasons to which an executive can relate: "How much will this save my company?" or "How will this increase sales potential and/or revenue for my company?"
3. Always, always, always ask open-ended questions. That is, questions that don't just require a simple yes or no answer. The key to a successful cold call is to get the prospect talking so:

a) you begin to uncover their needs, and
b) the call becomes more personal to the prospect.

4. Be polite and professional. And don't take it personally if prospects become rude, defensive, or even hang up the phone. Some of my best clients were acquired through cold calling.
5. Make a note to follow-up if the prospect has shown some interest. And be punctual when you call back.