The Financial Times On Winning New Buinsess In A Recession…

Posted by Gavin Ingham on January 7, 2009 · 1 Comment 

As many of you know I have been very busy speaking at sales conferences and sales seminars so I haven’t had chance to post this article before in which I was interviewed for the Financial Times of December 08. Virginia Matthews was exploring the need for small and large businesses to drum up more prospects and more opportunities in the current economic client and I think it is well worth reading her findings and conclusions.

There are many ways to gain new prospects and win new business and if your only way of winning new business is via cold calling then your business model is every bit as flawed as if you never cold call for new business at all… That said, professional cold calling skills and making legitimate new business calls, like the ones that I teach you how to make in my cold calling books, audios and programmes is an essential skill set for every sales professional and every business that wants to succeed.

In this article, James Caan, whom I have found to be a strong addition to Dragon’s Den, makes some interesting points not least that a sales person who cannot convert a cold call should probably not even be termed a sales professional and that he would not invest in a business which was incapable of cold calling...

A comeback for cold calling as chill sets in
By Virginia Matthews
Published: December 8 2008

When Robyn Jones was made redundant during the recession of 1991, she realised her future rested solely on her ability to cold call. Her confidence was then at a low ebb but she knew that, if she did not pick up the phone, her dream of setting up a catering company would never become reality.

Armed with a redundancy cheque of £2,500 but no clients, Ms Jones learnt that “getting through the gatekeepers” who protect decision-makers from unsolicited callers requires mental agility and charm. But the cold calls paid off and, today, Charlton House Catering has an annual turnover of £75m. “If I hadn’t gathered up my courage to phone strangers, which was quite tough, having just lost my job, I wouldn’t have created a business.”

As the recession bites, the practice of cold calling will become increasingly important, say Ms Jones. She believes that “having a good reputation in your industry is not enough when times are hard”. In order to make new contacts, generate leads and differentiate yourself from the competition, she says “all businesspeople need to forget their fear of cold calling and learn how to market themselves one-to-one, even when the person at the other end of the line is clearly skeptical”.

Serial entrepreneur James Caan, who appears on the British business television competition, Dragon’s Den , has a rather strict rule for start-ups. He will not invest in one if they are incapable of cold-calling. “If people don’t have the skills to convert a cold call into a face-to-face meeting or even a potential contract – and it’s particularly important to have these talents when you are generating sales in a recession – then I doubt whether they can even be termed sales professionals.”

He believes effective cold calling is a dying art among those more accustomed to the anonymity of the internet. But he argues that generating sales leads over the phone is far easier today than it was in the 1980s when he set up recruitment firm Alexander Mann from scratch.

Mr Caan says: “In the 1980s, there were literally hundreds of thousands of us using the Yellow Bible (Yellow Pages telephone directory) all day and it became fairly easy for personal assistants and other gatekeepers of the time to get rid of us before we were even halfway through our pitch.

“Today, cold calling is far rarer and the relatively small number of people who manage to talk their way past switchboard and into my office usually have something worth listening to.”

Mr Caan adds that the secret of cold calling may come down to the caller’s posture. “Too many so-called salespeople currently hide behind the internet when they should be getting on the phone and talking to people. I always encourage people to do it standing up because that way, you sound more in control and less like someone who has had the phone put down on you 20 times already that morning.”

The Institute of Sales and Marketing Management takes a less indulgent view.

“Cold calling can scare clients and make you look desperate and we believe it is even less appropriate in a recession,” says director of training William Pedley.

“We want people to be invited in to see their clients because they already have a good relationship with them, not because they’ve been rushing round like headless chickens trying to get appointments. We hope there won’t be a resurgence in either cold calling or doorstepping.”

Gavin Ingham, who coaches sales staff, trained 5,000 people in recruitment, IT and telecoms to cold call last year and says that, to judge by his order book for 2009, both the numbers and the sectors willing to get on the phone are rising.

“Aside from business start-ups, I’m getting requests from solicitors, accountants and even fire and rescue services looking to build their businesses and brands with a campaign of cold calling.”

Mr. Ingham has three rules however. “The WIIFM (what’s in it for me?) rule is there to remind you that it’s the person being cold called, not you, that’s the really important one, and the 10 second rule is all about making your pitch relevant and different right from the word go.”

And the third? “If you’re following up an e-mail, call your target within 24 hours or you’ll have to start all over again.”

©The Financial Times Limited 2008.

p.s. For more strategies and techniques for selling in a downturn market make sure that you read my free special report on selling in a recession.

Filed under In the media, Marketing, Prospecting & cold calling, Sales training · Tagged with , , ,

98 Lead Generation Strategies To Grow Your Business

Posted by Gavin Ingham on April 12, 2008 · 12 Comments 

lead-generation-money-120_1.JPGIn the new sales and marketing paradigm individuals, consultants, entrepreneurs and small businesses can play on a level playing field with the big boys. Anyone can embrace the power of the internet, couple this with a powerful sales and marketing strategy and bootstrap their way to success on minimal expenditure. 

In fact, minimal budgets, far from being a barrier to success, can actually focus your mind on what you really need to do to get more sales. Minimal budgets make you ask the question all of the time, "What will get me the best sales results?" Minimal budgets don’t lure you down the the tempting path of spend, spend, spend!

I had a friend who used to run a small business. He complained a lot. Mostly about lack of funds. "If only I had the funds to spend on advertising I could compete with the big boys." he used to say.

He didn’t and he went bust.

Since then he has set up a new business with a budget of  £0. He even had to use someone else’s credit card to pay the £4.99 per month for his webspace!

His business is flying. Lack of cash focused his mind.

But in today’s new selling paradigm, lead generation is key. If you don’t know how to generate leads then you’re not playing the game properly. Most small business owners and professionals I speak to employ less than 5 methods of lead generation regularly. They rarely review or change their tactics. The average number that people employ is 2 or 3.

This is not enough.

If you want a successful business you need to utilise as many methods of lead generation as you can. You need to monitor the success of these lead generation methods, measure their results and tweak your strategies until you find a mix of 7+ minimum methods that work.

Once you have this mix you need to keep on shaking it up and trying other methods as well.

Here is a list to get you started. I am not saying that all of these will work for you or be practicable in your business or industry because every situation is different. B what they will do is set you off on the right track, get you thinking creatively about lead generation and, perhaps most importantly, they will remove the biggest blocker to your sucess, "But I don’t know what to do!"

Please comment and let me know other ways that have been successful for you and which are your favourite methods out of the ones below. I will share my top 7 with you another day but for now… and in no particular order,  here are 98 lead generation strategies to help you grow your business…

  1. Sales letters to decision makers
  2. Classified advertisements
  3. Catalogues in venues
  4. Flyers
  5. Leaflet dispensers at tageted locations
  6. Special reports
  7. Online catalogues
  8. Telemarketing
  9. E-Newsletters
  10. Traditional newsletters
  11. Viral marketing
  12. Ebooks
  13. Magazine and paper inserts
  14. Associates and affiliates
  15. Introducers
  16. My top 100
  17. Family and friends
  18. Joint ventures
  19. Radio ads
  20. TV ads
  21. Position yourself / your company as an expert   
  22. Internet adverts (PPC)
  23. Press releases
  24. Yellow pages
  25. Toastmasters
  26. Sponsor an award
  27. Fax marketing
  28. Business cards
  29. Chamber of Commerce
  30. Public relations (PR)
  31. Attend industry seminars
  32. Gather and use testimonials
  33. Offer a free consultation
  34. Offer a free trial
  35. Organise an open day
  36. Promote an industry event
  37. Give endorsements to prominent people
  38. Set up a Squidoo lens
  39. Write articles online
  40. Form alliances with your peer group
  41. Create a give away e.g. calendars, mugs, posters…
  42. Write for the local newspaper
  43. Syndicate a column
  44. Write letters to industry magazines
  45. Conduct industry research
  46. Send articles to clients
  47. Advertise on buses, bill boards, cabs
  48. Speak at the local college
  49. Panel at professional seminars
  50. Write a how-to pamphlet
  51. Offer a finder’s fee
  52. Do pro bono work for charity with industry links
  53. Sign your car
  54. Make up t-shirts
  55. Do a stunt (e.g. Richard Branson)
  56. Cross-promote with other businesses
  57. Enter a contest
  58. Create a contest
  59. Direct mail new clients
  60. Post card promotions
  61. Business cards
  62. Networking offline
  63. Networking online
  64. Trade shows
  65. Referrals
  66. Speeches
  67. Cold calling – foot
  68. BNI
  69. IOD
  70. Trade shows
  71. Franchise shows
  72. Blogging
  73. Social networking sites
  74. Christmas cards
  75. Birthday cards
  76. Thank you cards
  77. Add value notes / paper cuttings
  78. Promotions
  79. Article writing
  80. Online forums
  81. Bill boards
  82. Freebie pens / t-shirts / mugs
  83. Teach a class
  84. Send letters to papers as expert
  85. Local radio interviews
  86. Loss leaders
  87. Free teleclassses
  88. 3-foot rule
  89. Podcasting
  90. Youtube
  91. Ebay
  92. Mini-courses
  93. Two-step paper ad
  94. Rotary
  95. Church
  96. Masons
  97. Golf club
  98. Press release

 

Filed under Marketing, Prospecting & cold calling, Sales training · Tagged with , , , ,

The Sales Apprentice 2008: Sales Training Tips From The Hit TV Show, Part III

Posted by Gavin Ingham on April 10, 2008 · 14 Comments 

profit-margins-120.jpg“This is a job interview from hell. I’ve been in business for 40 years. Your prize is working with me.”

And thus we entered tonight’s third show with 14 wannabee apprentices remaining to fight for the chance to become The Apprentice. This week’s task was to transform two pubs by putting on food service. As usual, the team with the most profits at the end of the day would win.

Sir Alan Sugar changed the routine slightly by picking the team leaders himself. He chose Sara for the girls, a trained barrister and international car trader (whatever that is), and Ian for the boys, a software sales manager.

Ian, somewhat ironically given he never looked like demonstrating this throughout the whole exercise, promised to give as much clear and concise management as he could. He then informed the camera that there are two types of people in life, winners and the second type of word that he could not even say…

As my wise my mum is fond of saying, “Pride comes before a fall.”

One of the my 6 Psychological Rules of Selling in the C21 is Be Humble. Humility is essential if you want to genuinely reach clients and set yourself apart from mediocre sales and business professionals (for more on humility and the 6 Psychological Rules of Selling in the C21 see my forthcoming new book No Fear Selling).

Back on the show the boys chose an Italian theme and Kevin asked to be head chef. Despite the fact he apparently ate out at Italian restaurants a lot his idea of Italian food seemed to begin and end with Spaghetti Bolognese and Spaghetti Carbonara! Still, they should be easy to cook!

Meanwhile the girls elected to host a Bollywood themed night. Claire had an issue with the whole theme saying that it would be “costly” and that curry was “niche”. Clearly she doesn’t read the papers then or she would know that curry is frequently voted the most popular food in the UK and that several commentators have suggested that the UK national dish should be changed to Chicken Tikka Massala!

During the afternoon the two teams focused on various activities. One of the most interesting was their totally different approaches to marketing. The boys designed a glossy and tantalizing leaflet and a fancy menu. Surely common sense should have told them that they were never going to get a return on that investment in one day’s worth of meals?

One of my friends, Olympic gold medal rower Ben Hunt-Davies (whom I am going to interview soon but more abou that another day), talks of how when they were training for the Olympics they used to ask themselves a question,

“Will it make the boat go faster?”

If the answer was “Yes” then they would do it. If “No” then they wouldn’t.

I often ask a similar question in selling, business growth and marketing, “Will it increase sales and profitability?” If the answer is “Yes” then do it. If “No” then find something else that will instead. This for me was a clear case of an activity that was always going to cost too much for what if could potentially make in profit in a mere one day!

Back in the show the girls had persuaded a printer to do their printing for free and had also blagged some saris for nothing in exchange for a little promotion for the two companies giving them the services. Small business owners and salespeople in general are often far too quick in shelling out money on goods and advertising when a little lateral thinking would get them the same or even better results for far less or even, as in the girls’ case, nothing.

Equally contrasting were the two approaches of the teams to costs and pricing this week. The girl’s took themselves off to the wholesalers supplied by Sir Alan to buy quality ingredients at the best prices that they could. They based their prices and their menus on market research done at a nearby restaurant.

The boys, disastrously, bought their food (expensively) in the supermarket and made up their prices. How many competitions need to be lost on The Apprentice before people realize that pricing and profitability need to be thought through and based on research, costs and clients?

In an attempt to drum up business the boys went door knocking, canvassing in the streets and handing out their expensive leaflets. In a stroke of genius the girls sold their tickets for £5 each promising VIP entry and money off the bill. They sold 45 of these meaning that they had banked £225 before they even opened their doors. Smart!

So at this stage the boys had spent over £400, the girls under £100 and the girls had already banked £225.

The boys were adrift by over £500 and the pub doors had not even opened yet!

When it came to cooking the girls’ over ambitious menu thwarted them from opening for lunch entirely. They had forgotten a few key ingredients and took until the evening sitting to create customer-ready meals.

The boys, meanwhile, were open and selling meals but had their own problems with the quality of their food and were picking up a few complaints from customers complaining that it was bland. During the afternoon and evening the boys ran out of ingredients on several occasions and had to run to the supermarket! Cook a duck! What a waste of time and money! The boys expenses were clearly spiraling out of control!

At 6pm, and 5 hours late, the Chicken Korma was ok and the girls finally opened their doors to welcome their firat customers. They found a “dancer” from a local restaurant and were raring to go. Despite disagreements the girls seemed to be on top of things now. Helene, who we had seen little of yet in the series, said something that I have been waiting to hear for two series’… she wanted to stay as a team and perform as a team as she thinks that keeps people out of the board room.

Wow!

What a radical thought. So the best way is not to behave like an over-preened, arrogant, self-centred, me me me then?

Really? Gosh!

I do sometimes wonder whether people watching this programme who are not in business think that these people do really represent what it takes to do well in business? That would be really tragic.

Meanwhile, at the Duke of Hamilton, the boys were having a pep talk from Kevin. This talk probably did need to take place but Kevin just seemed to lack any gravitas. Why didn’t Ian step up and lead his team?

In the board room Sir Alan asked the boys what they thought of Ian. For once they were all lost for words and there was an ominous silence. The girls, whilst not showering her with praise, were broadly in favour of Sara as a manager.

The results were in. The boys had sold 844.97 of food with a measly profit of 310.97. The girls had sold less with 795 but had brought in a far more respectable 604.27. Not a lot for 7 people in a day but considerably more than the boys.

Whilst the girls swanned off to learn how to cook at a country manor (he is a wag that Sir Alan isn’t he!) the boys visited the local Bridge Café for a mug of tea!

Back in the board room Sir Alan berated the boys for not pricing things up correctly. He said that he did not see any business acumen in the room at all and that nobody picked up on this issue. This was incorrect as Simon did pick up on this and was crystal clear about it saying to Ian that they should deal in “absolutes” and “facts”. It was this conversation between Ian and Simon that, I believe, contributed to Ian calling Simon back into the board room along with Kevin.

(Aside: I’m not sure of his management or leadership abilities as yet as he has had no chance to show them  but Simon seems to have his head screwed on, works well in a team and is an industrious worker. He shouldn’t be in the board room and Ian picking him demonstrated that Ian was struggling to blame anyone for the loss apart from himself.)

Under questioning from Sir Alan, Ian blamed the head chef Kevin for all of the pricing errors. Kevin said that he did not want that responsibility and that he was just looking after the kitchen.

“Ian this was a total disaster. Quite frankly I think you lost it. Ian, you’re fired.”

A good decision from Sir Alan. Back at the house Kevin is giving it large, “I let Ian  speak and I nailed him to the ground.” Oh come on! Who do you think you are? Arnie in The Terminator.

Ridiculous!

So that’s it for another week. What what sales training and business lessons can we learn from tonight’s show…

Selling is not just about turnover, it’s about profitability too.

Understanding your costs and pricing accordingly is critical for your sales and business success. Whatever your costs you need to cover them and make the right amount of profit too.

In this exercise the boys massively over spent on food and on advertising. They should have either cut their costs or increased their prices. You should always be aware of your margins and your profitability when selling. Doing business is a choice and two people get to choose – you and your client. Many sales and business people approach selling as if only the client has a choice. They forget that they have a choice too.

A friend of mine was pricing up for his restaurant the other day and he started with what he thought his customers would pay. Whilst this is valuable information it is not the only information. He needs to work out his costs too. There is no point selling at a price if he cannot make profit out of it.

Advertising has to be measured – anyone can spend money.

Sir Alan made quite a song and a dance about the fact that the boys sold more than the girls. They did but it was not that much more and you have to remember that the girls failed to open for lunch at all.

Perhaps even more significantly the boys spent a whopping £272 on advertising. £272! Anyone can spend money on advertising and marketing. Anyone can buy adverts and brochures. Smart business people invest their money wisely measuring their return on investment and profit (sales, visibility, brand, reputation etc…) from each and every campaign.

Choosing the right marketing / advertising / sales mix is essential for the ongoing sales success of any business. Most business owners and salespeople are far to quick to lash out money on expensive brochures, fancy websites and paid advertising. All of these mediums have their place. The real skill in selling and marketing your business is in choosing the right one and the girls did that with their 121 promotions in the street.

Selling and business is about creativity.

There is a phrase out there that you should use OPE or Other People’s Experience to leapfrog your way to business and personal success. This is preferable to having to work out and invent everything for yourself when many of the answers are already out there. This is a great model and one that I utilize in my business and when working with clients a lot of the time.

But you need creativity too. You need to think laterally. You need to be flexible and to be open to better and more original ways of doing things. The girls had the idea of selling tickets and this more creative approach than just knocking out some fliers at the local printers gave them a business head start and a profitability margin that the boys never competed with.

So that’s it for another week. I’d be really interested in knowing your thoughts on the competition so far.

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