202: Business Development

Cold calling is actually a relatively simple task. Each of us is the recipient of cold calls almost every day. We have all had a poorly trained individual read a script about your latest (pre-approved) credit card offer or health insurance policy. Their attempts to sell are usually terrible.  But you should realize, if they can do it for minimum wage, you can certainly do it for lucrative residual factoring commission.

The basic elements of all cold calls are quite simple and very easy to learn:

• Get the prospect’s attention
• Identify yourself and your company
• State the reason you are calling
• Ask a question or make a qualifying statement
• Set an appointment (conference call)

Get the Prospect’s Attention

Many salespeople feel they must have a powerful opening to a cold call such as ….“If I could show you how to double your business would you be interested?”   Such openings not only show your inexperience, but they build mistrust and will make the call more difficult.  Gaining your prospect’s attention is actually very easy. 

• STEP ONE….make certain that you know the prospects first name as well as the last.
• STEP TWO…never use Mr. or Mrs.  Always ask for the business owner using both names.  “Is Joe Jones there please?”
• STEP THREE…then, immediately address the prospect using his first name only such as…
  “This is Joe Jones.”
  “Jim, my name is Howard Smith with (your company)”

Identify Yourself and Your Company

When identifying yourself and your company, don’t just stop with the names.  Always explain what your company does to gain further attention from the prospect.

•  STEP ONE…Make certain that you know the prospect’s first name as well as the last.
• STEP TWO….Never use Mr. or Mrs.  Always ask for the business owner using both names.   “Is Joe Jones there please?”
• STEP THREE…immediately address the prospect using his first name.
   “This is Joe Jones”
  “Joe, my name is Howard Smith with Smith Factoring and Associates in Miami.  We’re a consulting firm specializing in small business finance solutions”
  “Joe, our research staff has identified your company as one that could possibly benefit from our financial services and the reason for my call today is to set an appointment with you.

Ask a Question or Qualifying Statement

The fourth part of the cold call is going to allow the prospect to respond to your call…in a positive manner.  The question or qualifying statement should follow easily and be straight forward.  You could say, for example,  “Joe, are you interested in additional financing for your company?”, but that would give the prospect the opportunity to say “No!” or “No, I really am quite satisfied at the present.” and hang up.

Your questioning or qualifying statement should be formed in such a way that a negative response is unlikely.  Don’t lose sight of your goal which is to simply qualify the prospect and to set an appointment to get in front of him.  A better way to reach this goal is the following….

• STEP FOUR…A better way to question or qualify is..
  “I’m sure that your company is like most that I work with in that periodically you could use some additional working capital to help grow your business.  Has your bank been able to provide you with enough credit and working capital when necessary?” 

You may already know (through UCC research) that Joe’s company has no loans outstanding and that the answer to that question is “No.”  Follow up with a direct proposal and
request for an appointment.

Set the Appointment

You now are ready to set the appointment.  Here’s how.

• STEP FIVE….Make a problem solving statement and set the appointment.
  “Joe, I think we can supply you with the capital you need going forward to help grow your business and I’d like to tell you more about our programs.  How about Tuesday at 3:00 p.m.?”

 Many sales people will not take such a direct approach but will give the prospect a choice by saying…

“What would be better for you, Tuesday   or Wednesday?” or  “What would be   better for you, this week or next?”

 By giving the prospect a choice initially, you are still
asking for the appointment.  If you simply state “How about Tuesday at 3:00 p.m., the appointment is now considered a given.  Only the convenience of a particular time is in question and you have a much better chance of actually getting the appointment.  Always ask for the appointment as directly as possible.

A Typical Phone Presentation Call

So here’s what a typical telephone cold call script might sound like:

“Is Joe Jones there please?” 
(This is Joe Jones)
“Joe, my name is Howard Smith with Smith Factoring and Associates in Miami. We’re a consulting firm specializing in the area of small business finance solutions.”  “Our research staff has identified your company as one that could possibly benefit from our financial services and the reason for my call today is to set an appointment with you to discuss our services further.” “I’m sure that your company is like most that I work with in that periodically you could use some additional working  capital to help grow your business. 

Has your current bank been able to provide you with enough credit and working capital when necessary?”

(No, not really)

“Joe, I think my company can help supply you  with the capital you need to grow your business and I’d like to tell you more about our programs.  How about Tuesday at 3:00 p.m.?”

Success is in the Numbers

Remember, sales is a numbers game.  Cold calling is the path to success.  Don’t make it harder than it should be.  You can easily make 50 such calls similar to the above every work day.  Your goal should be to set one or two appointments from each day’s cold calling work.  Keep it simple.  Your success is in the numbers.  Experience will greatly improve your quality if you maintain a daily regimen