Your First Cold Call

Several years ago I started my software company on a shoestring budget. It was quite possibly the worst time to start a business, as the dot-com bubble had burst and the stock market had already tanked. We'd spent 6 months building our first product, but had no customers and didn’t know how to sell or market software. We were out in the ocean trying to learn how to swim while already neck-deep in the water!

After playing the search engine optimization game, trying online advertising, and working local connections and organizations, we were at a standstill. We had a great product with a strong team but no customers. Why wouldn’t people buy from us? Why weren’t the sales rolling in? What could we do? The answer was cold calling.

Not Just Sales!

Cold calling was invaluable to us because it got us a foot in the door of a range of different companies, and allowed us to conduct powerful market research. We literally picked up the phone and called every Web designer and Internet marketing company within 50 miles. Times were slow for other companies as well, so people were readily available to talk with us. We set up as many face-to-face meetings as possible, and used these opportunities simply to meet with other Web design firms and talk about their businesses.

Several of my staff had been web consultants before and we each had different knowledge about the industry. Sitting down and talking with other Web professionals provided a much-needed understanding of how they operated their businesses, including what their plans were, and what areas they needed help to develop.

Through cold calling we learned that a lot of Web designers wanted to focus on their core competency as graphic artists and information architects, not spend their time wrangling with different scripting languages and databases. This knowledge was the answer to our marketing problems. We decided to hone our cold calling efforts to companies that focused on design first, and specialized programming second. Once we took the time to understand our target market, we could make more efficient use of our time, and gradually make the sales that built our business into a success.

Through cold calling we were able to conduct face-to-face market research at no charge (other than our time, and the cost of driving across town). With our newfound knowledge, we continued to use cold calls to our advantage, talking with a specific market of graphic and Web designers as we introduced them to our software.

Cold calling has negative connotations among the small business community, especially as why-are-they-calling-me-at-dinner-time-to-sell-me-long-distance-services-that-save-me-$1-a-month telemarketing puts a bad taste in people’s mouths. But cold calls are actually a very positive way for companies to generate new business.

Let’s address several of the myths of cold calling, and explore some of the ways you can successfully implement this technique. Cold calling is important for every business --large or small!

When Cold Calling is Important

Three areas of business where cold calling is important are:

1. generating new business
   
2. instant market research
   
3. developing business partnerships

Business-to-business cold calling is a necessary and standard part of the business world. Don’t think of cold calling as picking up the phone and blindly dialing the next person on a call list, but as a strategic part of business development.

Generating New Business

Who doesn’t want to generate new business? Nobody that I know! Use cold calling to your advantage. How about that big account you always wanted? Go get it! Do your research and pick up the phone to make something happen. Find the right contact person and do whatever it takes. Get in front of the decision maker, and prove you’re the best company for the job.

Instant Market Research

Don’t know if there’s room for another company to specialize in localizing English language Websites to Spanish speaking markets? Call some local companies and ask. Call across town to a factory that produces dog food and see what the firm’s business strategy is for Latin America. Cold calling gets people on the phone answering questions. You’ll be surprised at how much information you can learn in a short phone conversation.

Developing Business Partnerships

If your firm is strong at Web design and Internet strategy, and the firm down the street has an experienced background in print and old media marketing, develop a partnership.

Partnerships are a great way to team up and provide best-of-breed services to clients. They provide an opportunity for introduction to new clients and expand your company reach without costing you a dime. Isn’t it time you picked up the phone and introduced yourself to that complimentary firm in your town? It isn’t cold calling -- it’s the first step towards a mutually beneficial business partnership.

Cold Calling Myths Debunked

Cold calling conjures up images of warehouses full of people wearing phone headsets racing to see how many calls they can make in an hour. The typical “boiler room” scene where a high pressure salesman swindles some unsuspecting prospect isn’t how most cold calls are made. Let’s look at the reality behind the two most common cold calling myths.

Cold Calling Isn’t For Me

Yes it is! Just because you’re the owner/manager/designer/artist doesn’t mean cold calling isn’t for you. As long as you are a partner in a company, you’re likely responsible for:

• new business generation,
• market research, and
• business partnership development

-- the three mainstays of a living, growing business. These tasks need to be completed, and you’re the expert who should do them. Get past your fears of rejection and make the call!

Cold Calling is Only for Businesses that Target Consumers

Not true! Cold calling is how business gets done. I bet every company that has continued to grow over the recent economic slowdown has a team of dedicated cold callers working on inside sales and new business development. Not because they need to pay their bills, but because they want to grow and expand their businesses.

Just as relationships and current customers keep a business running, cold calls keep a business growing.