Marketing

While it might seem contrary, starting a business in a recession can actually be a good idea. With so many people getting laid off, people are struggling to find sources of income. Many with that entrepreneurial drive are starting new businesses.

Is it time for you to start a new business? Here are some questions to ask yourself:

• Can this type of business thrive in this economy? You know people aren’t spending on luxury items, so that pet spa idea might not be ready to bear fruit. But think about what people are spending money on, or how you could save them money with a business idea, and then you have a winner.
• Do I know how to start a business? It’s not necessary you know all the ins and outs of running a business, but starting one in a recession means you need to be better prepared than at any other time. Read some books on business, or take a class or two at your local community college. It’s important that you see beyond the idea to the accounting, hiring, marketing and labor that will go into your business. If you’ll have a retail or office location, overhead may be more than you originally guesstimated. Do your homework first.
• Do I have resources to help me? Resources might mean money or an organization that helps small businesses, like SCORE. Or maybe it’s staff. Is your husband willing to help you get started until you can afford to hire help?
• Do I truly want to start a business? If you’re just looking for a way to make some quick money, starting a business probably isn’t your best option. You might not even make money (most don’t for a few years; factor in the economy, and, well, you get the picture). But if you genuinely have passion for something, and are willing to put in the time and tears, by all means, get a plan and get going.

If you’re still reading, I’ll assume you found that you really do want to start that business. Start with a plan before anything. Figure out what kind of investment you need, how you’ll market it, who your customers are. Talk to others about the idea to see what they think of it. And most of all: good luck!

Recently on my blog on Sparkplugging.com, I wrote about customer appreciation. You know, making sure your customers know you think they’re all that and a bag of wasabi potato chips. But what about your contacts? Isn’t it just as important to let them know you care?

I’ve been blogging here on Dell’s Small Business Blog for a few months. I do it out of love of Dell and entrepreneurship. I don’t get paid. So imagine my surprise when Kara Krautter, who runs this blog, sent me a special thank you gift. Check out the video:

I was so excited. And it’s nice to be appreciated. So think about ways you can show your contacts you’re thinking of them. It doesn’t have to be a grand effort. Here are some ideas:

· If you’re on Facebook or Twitter, take the time to look over a contact’s page. See what they’re up to and comment on their page. Show that you’re paying attention.

· Send a Starbuck’s card. Even $5 will get a smile.

· Take someone to lunch. Who doesn’t love free lunch and good conversation?

· If you find a blog post or article that you think a contact will like, send it to them.

· Send a quick email just checking in. No motive.

· Send a handwritten letter or thank you card.

· Refer business to the contact.

As you can see, it doesn’t take much. Think about the things others have done to make you feel special. Care to share?

Mark Borkowski, one of the UK’s most successful PR practitioners, explains how simple, low-cost PR and marketing activity can help your business through economic crisis and strengthen your brand and reputation.

Mark is the founder and head of Borkowski PR. With his lengthy experience of working with names like Sony UK, American Express, Vodafone and Virgin Mobile, Mark is perfectly placed to advise on how you can make your Marketing and PR budget stretch further, reach your audience more effectively and the tools you can use to achieve this. Host Sean Walsh is also joined by Dan Matthews – business owner and journalist with around 10 years experience editing and writing for the likes of the Financial Times, Guardian, Real Business Magazine and his own online title LaunchLab.co.uk, which has seen him interview such notable public figures as Gordon Brown, Alan Sugar, William Hague and Duncan Bannatyne.

According to the DMA, telemarketing is a billion-dollar industry driving 66 million men and women to purchase a product via outbound telemarketing calls. Before you make telemarketing part of your strategy though, figure out what kind of telemarketing would work for your products and / or services and what to look for when hiring an outside company.

Telemarketing can be used to solicit information, conduct surveys, record and process orders, provide technical support, offer customer service and make actual sales. Inbound telemarketing is used fairly often when a company needs to process orders or provide customer service. This type of call center can easily be provided through a third party company as long as that company is qualified and capable of providing that information. Outbound calling, as the name implies, is when a company place calls to prospective sales leads. Companies oftentimes use outbound call centers when conducting a survey.

If you have a customer database and want to inform them of an upcoming sale, or event, an outbound call center would be your best bet. You’ll need to provide a phone script, or you can have the company draft for you for a few hundred dollars. If you don’t have a contact list, you can purchase one.

Telemarketing companies typically charge per hour, or per-call. If you need a highly skilled representative to provide technical information, your rate will be higher than if you only need reps that will process customer orders. In the quote or agreement, these rates should be detailed and ask if the company charges a monthly minimum if the call volume goes below a certain level.

One of the downsides to hiring an outside company is training. If you work with an outbound call center, the representatives will be the first impression customers have of your company. You can conduct “trial” calls with these representatives after you train them on your key messages. Some business owners may want the reps to leave messages and others may not. You can set these guidelines (how long to stay on the phone, when to leave messages, etc.) for the reps to follow.

Before you hire a telemarketing company, there are a few elements you’ll want to ask when negotiating a contract and signing an agreement.

1. Features. If you work with an outbound call center and instruct the representatives to leave a message, can you use an 800 number associated with the call center?
2. Tracking. The reports you get from these companies can be very valuable feedback and is a way for you to decide if a campaign is working. Ask how often you are provided with detailed reports on the status of your campaign and how often you can listen in on calls.
3. Agents. If you hire an inbound call center, see if there are different fees associated with the agents. You will only want to use the specialized agents for technical support and general agents for other calls.
4. Do not call lists. The telemarketing company will most likely be up-to-date with any laws and regulations around these lists. However, it doesn’t hurt to confirm that with the company you outsource.
5. Agreements. Negotiate, negotiate, negotiate. Keep the initial conversations high-level, but when it comes time to sign an agreement, make sure it spells the specifics out. Sales, lead generation, order processing, and other functions can all be specifically negotiated, which usually ends up costing less overall.

Does the prospect of getting on the phone and calling a complete stranger paralyze you? It’s not surprising. Many business owners dislike  cold calling, myself included. I think it’s fear of rejection that scares us. But there are a few ways to make the process easier.

Research.

Pretend you’re in school. Don’t go into a call without knowing who you’re calling and as much as possible about the company. Visit the company Web site and read it thoroughly. Read the bio of the person you’re calling. Do whatever you can not to be caught unaware because you didn’t do your homework.

Get Your Foot in the Door.

Likely, the person you’re calling isn’t going to give you an immediate “yes” along with his or her credit card. Make your goal to get a meeting with the person you’re calling, as well as to gather as much information about the person or company’s needs and goals. Then when you meet with them, you can address how your product or service can help them solve the problems they have.

Write a Script.

It helps to sketch out what you want to say. Now, don’t take this the wrong way; I’m not encouraging you to read from your script in a stilted voice. We’ve all gotten those calls, and they never go well, do they? Write out a general introduction of you and what your company do (try your elevator speech). Ask a lot of questions, and in your script provide replies based on a few possible answers. Think in terms of benefits, not product features. Everyone wants to know what’s in it for them.

Get to Know the Gatekeeper.

Typically, getting past the secretary or assistant that answers the phone is the most difficult part of a cold call. Be as pleasant as possible and ask for their help. People love vulnerability!

With these tips, you should find your cold calls a little easier.

*Photo courtesy of graphiteBP