Sweat Example: Cold Calling & Pipeline Development for Startups
Posted by walter.roth on Nov 3, 2009 in Packaging, SweatStart, Upside | 2 commentsI’ve been working on “packaging” my Sweat on various topics. One topic is on “cold calling for startups.”
The concept alone makes a lot of sales and non-sales people shudder. “I’m not a sales guy. I hate cold calling, I hate cold callers…I could never do it…”
My reply to this type of initial response is always simple. “But do you like revenue? Are you entrepreneur?” “Yes, of course” is the answer I typically get and thus the journey begins, to becoming hunters who feed the tribe against all odds, going up against the scariest of beasts hiding in the deepest of the darkest forests and around every corner…
I know for myself that cold calling is one of the hardest things to do in the world. Equipped with the right tools, attitude and value proposition it can be enjoyable…because closing is fun. Winning is a kick. With a full pipeline of qualified opportunities, you will close if what you have or eventually find a real value proposition.
Over the past couple of years, I’ve come across many startups that have no idea where to start or how to begin. Interestingly, being entrepreneurs they usually are 80% of the way already there. The rest is just attitude, technique and practice.
I’ve worked with a number of start-ups to get sales started, and I’m creating this “SweatStart” to reduce the amount of time it takes for me to help these entrepreneurs and technologists. I’m also doing it to get exposure to this particular kind of sweat I have to invest, which will increase my deal flow and its quality.
I’m in the process of formulating how I’ll do this. Still kind of defining the best approach. A few great resources I’ll be referencing:
Close the Deal – A great book with example scripts and techniques to cold call and sell (part of the training that I received at Oracle).
Innovators Traction – A great salesman blog written by Steve Browne (a sweatinvestor) who refined his sales approach at companies like Oracle, IBM, etc. He started as as developer so he is the poster boy for anyone who starts out with the notion that technologists or entreprenuers can’t put on the pure sales hat when they need to, or when they want to triple their salary. His no non-sense approach is great showing how you can avoid the biggest sin in sales, “wasting time.” I linked to my favorite post of his above, which walks someone through his 10 Steps of the sales process and forecasting.
..more to come…
I guess when it comes to cold calls the best solution is to bring true value to both the sides and it should be easier.
Also calling after lunch usually helps according to me
@StopSweats: You are right about the importance of value. Without it cold calling would be repeated death and one would eventually lose their soul from the agony and pain. I wouldn’t advise it unless the cold call is developing a value proposition … but then what you are selling now is something very different.
Beyond believing in the value of what you are selling, there are a lot of tactics and habits one can acquire to make cold calling much more effective, repeatable and scalable.
For example:
- Requesting a minute of their time which at the end they can decide if it makes sense to keep talking or to set up a meeting in the future … (this is opposed to talking as fast as possible and hoping you’ll hit something before they hang up on you)
- Structuring a 60 second “flow” that informs the person you are calling of what value prop you have … (not an absolute script but a framework to lean on as you adjust to who you are talking to and how they answer the phone)
- How to move past the, “sounds great, I’m busy, send me info, call me later” as usually this means you’ll never see them again (“Sure, I’ll call you back, but I’m not sure it will be a good use of your time, mind if I share with you for a minute what I’ll be calling about and you can tell me if its worth your time?”)
- How to find and develop multiple pain points, how to dig for budgets, and to map out how the buying decision is made and who is involved (As fast as possible …)
- How to condense multiple steps into the sales process into one, “Sure, let’s set up a demo … but let’s pretend I do that, and you are convinced you need what I have … THEN WHAT …”
- How to manage which leads you develop and with what priority you give them (managing a pipeline based on the Three Questions: Why buy anything, Why buy from me, Why buy now as Step 3 of a 10 step process from lead to close)
Etc…
These are some of the things I’ll be working on to fit within the SweatStart focusing on Cold Calling for Startups.
Thanks!
Walter