Mentor for a Month
A Helping Hand
A shy decorator wants to break out of her discomfort zone and become a cold-calling whiz. Can she do it in just one month?
Meet the Mentee
Marilyn Parrish, owner of Hamilton, OH-based Marilyn's House of Embroidery, bought her first home-embroidery machine several years ago while she had a full-time job. "I hated my job," she deadpans.
"And then, I learned the position was going to be eliminated," says Parrish, who then decided to take the plunge and invest in a one-head commercial-grade embroidery machine and start her personalization business with a loan from her husband.
"We anticipated that by the time my position was eliminated we'd be financially stable with the embroidery business," Parrish says. However, after leaving her full-time job a year ago to focus on her home-based business, she's only been able to bring in $800 in profits. Why? "My biggest challenge is making people aware of my services," she says. "And, it doesn't help that I'm extremely shy around people I don't know, so I'm not very good at cold calling or selling my services on the fly to strangers."
My Goals
• Rewrite my business plan and set realistic financial goals so I can pay off my machine.
• Identify profitable niches.
• Start cold calling and set up appointments to sell my products and services.
Week One
Revise Your Business Plan and Redefine Your Target Niches
Step 1: Take ASI Education's Online Learning Center course, "Writing a Business Plan."
Step 2: Take stock of what products you offer to what niches, then reorient them to hot selling niches in your area and think of new products you can sell.
Step 3: Pencil in time to review your business plan on a monthly basis to keep you focused.
The Challenge
Parrish wrote a slim business plan when she opened up shop, but she left one glaring omission: financial goals. "I never had a hard number," she says. "In passing, I've thought that maybe by the end of 2010, I could bring in $25,000. But, I didn't break it down to monthly goals of how much I needed to bring in to become profitable."
As far as niches go, Parrish had focused on serving medical companies and educational institutions when she started her business, but decided those markets were too hard to penetrate. "I started focusing on the gift market, creating embroidered gift baskets and linens to sell in local boutiques and gift shops," she says.
However, the money just hasn't materialized from that market focus. "Most of my orders have been for shirts and bags, not from my target markets and products," Parrish says.
The Mentor's Take
Parrish needs to hold her horses on her blown-up financial goals, says Don Stover, co-owner of Newcastle, NY-based SEW YOUnique Custom Embroidery Inc. with his wife, Marty. "When we opened our business, our goal for the entire first year was $12,000," he says. "We focused every month on bringing in $1,000, so we really thought about the action items we needed to do to make that happen. A $25,000 goal in six months is way too aggressive."
Second, "Unless you get a steady stream of gift-basket orders, you're not going to make it," Don says. "That should be your secondary line." His suggestion? Parrish needs to identify a profitable niche in which she can talk the talk, and identify what products she can offer to that niche – and then start identifying potential customers.
The Result
After Parrish took the "Writing a Business Plan" course and reviewed other materials Don sent her, she realized her plan had a lot of holes. "I was amazed at how many questions I hadn't answered, especially around financial goals and how I'd get there," she says. She decided to focus on a goal of $1,000 a month, fill in the gaps in her plan and review it once a month.
"In another life, I did wedding planning," says Parrish, who homed in on the wedding industry (wedding planners, bridal shops, catering halls, florists, spas, and brides and their entourages). "I started to think about all the products I could embroider for this niche, including lingerie bags lined with fabric that matches the wedding colors, hankies, bathrobes, slippers, towels and other linens, wedding veils, brand-new-bride tees and more," she says. And, she made a list of at least 40 prospect businesses she could make cold calls to, including wedding planners and spas that cater to bridal parties.
"This is a great niche, especially if you have connections," Don says. "The retail markup is also quite nice." Parrish and Don talked about pricing quite a bit, as well: The Stovers charge per thousand stitches with a markup on the garment, and this has worked for them for 12 years. "I plan to charge per thousand stitches and double the cost of the retail item," Parrish says.
Week Two
Get Involved in Community Activities
Step 1: Improve your social skills and confidence.
Step 2: Join a volunteer organization, women's group or chamber of commerce meeting.
Step 3: Attend your first meeting.
The Challenge
Since hers is a home-based business (with a bay window display of her wares and contact information) and doesn't yet have a website, Parrish's biggest stumbling block has been her fear of cold calling – and even of pitching her services to people she meets casually. "I'm not really part of any community activities and I don't have a large social circle," she says.
To make things even more challenging, "During this mentoring period, my father encountered some health issues and has been in the hospital and a nursing home," Parrish says. I don't have a lot of time to actively work on my social skills or pitch my business."
Parrish, however, reported that she was in her local grocery store wearing her logoed shirt, a cashier expressed interest in getting some graduation gifts. "I just gave her my card, and maybe I'll see her the next time I go," she says, adding that several nurses taking care of her father also expressed interest in decorated shirts and totes.
The Mentor's Take
To boost Parrish's confidence, Don recommended that she get involved in her community by joining a women's business networking group, her local chamber of commerce or a volunteer organization. "Community involvement was a major ingredient in building our business," Don says. "We've been members of the chamber of commerce and have held offices in Rapid City, SD, where we lived and had our business before we settled in Newcastle. I also served seven years on both the hospital board of directors and as president of the hospital's foundation arm."
In addition, Don says Parrish should wear her logoed shirts and carry business cards wherever she goes. "When you have a warm lead, don't just give out your business card," he says. "Ask them for theirs, jot down what they're looking for on the back, and then call them to see when you can set up an appointment. So, Marilyn needs to go back to the grocery store and get that person's contact info."
Don also recommended that Parrish take catalogs and business cards to the nursing home, and leave them in the cafeteria or break room. "She should also wear her logoed shirt there, since medical professionals can always use personalized scrubs and bags," he says.
The Result
Parrish got proactive and joined a local Women's Idea Network group. "I'll be able to network with other women business owners once a month," she says. "My goal is to get over my weakest link – not being assertive enough – and perhaps find a mentor there." She also contacted Optimist International (www.optimist.org) to find a local club that she could join. As Don says, "I'm involved in my local Optimist Club, and it's great to help the kids. You also get out into the community and meet people – you'll get back what you give tenfold."
Parrish also secured appointments with some warm leads, including the grocery store employee and a friend who'll soon be opening a stall at a large flea market and wants embroidered gift items to display.
Week Three
Start Cold Calling in Your New Niche Markets
Step 1. Practice cold calling and finish your sample book.
Step 2. Make cold calls.
Step 3. Set up appointments.
The Challenge
"I really need to learn how to approach a business or organization, make a pitch and close the deal," Parrish says. "The easy part has been putting together my sample book – I've got a lot of sewouts – and preparing my mobile office."
The Mentor's Take
Don and Parrish spent nearly 90 minutes doing cold-calling role plays on the phone before she tried it in real life. "I played the gatekeeper and customer, or business owner, and gave her a hard time," says Don, who pointed out that when Parrish first spoke to the "gatekeeper," she didn't introduce herself as a business owner. "She needs to say something very direct like, ‘Hi, I'm Marilyn Parrish, owner of Marilyn's House of Embroidery, and I'd like to speak with the person who orders or purchases your business's logoed apparel,' " he says.
Don also noted that when Parrish spoke to the "business owner," she wasn't very sure of herself at first. "It's the same approach as the gatekeeper," he says. "Marilyn needs to start the conversation confidently, and after introducing herself, say, ‘I develop marketing solutions for my clients, including decorated uniforms and giveaways. I'd like to share a few ideas on how I can improve your marketing efforts.'"
Don also met Parrish with a lot of objections, such as: Why is logoed apparel a better advertisement than a newspaper ad? "That stumped me," says Parrish, who's now armed with stats from ASI's Advertising Specialties Impressions Study, which shows that advertising specialties deliver a better cost-per-impression (0.004 cents per impression) than virtually any other media, including newspaper ads.
Don coached Parrish on how to make a cold call easily transition into an appointment. "Marilyn needs to ask some selective questions in that short time she's on the phone," he says. "She needs to ask leading questions like, ‘Would you prefer to have a polo and a cardigan for your staff uniform, or a cap and windbreaker?' She can also ask about colors, such as, ‘Do you like the blue or red color family?' Or ask about performance: ‘What do you need these polos to do for your employees, be moisture-wicking, easy-care or something else?'"
The Result
After her training with Don, Parrish started right in on cold calling. "I called a spa and asked to speak to one of their wedding planners," she says. "When I got her on the line, I asked how they handled their wedding planning with the brides, including at what point in the planning they start working with the bride. Based on that, I asked if the spa ever offered their brides customized chenille robes and slippers. She said no, and I told her that I could come in and show her some embroidered samples. She jumped at the chance, and I made the appointment."
Parrish also secured an appointment with a photographer who is part of a "wedding unit," which includes a wedding planner. "I showed them embroidered hankies," she says, and is working on putting together a sample kit of personalized wedding-related products to show on sales calls. "They go to a lot of bridal shows, so it would be great if I could become part of their unit," she adds.
The Ultimate Wrap-Up
In just one short month, Parrish, who's planning to attend her first women's networking event in the next couple of months, made major inroads toward achieving her business goals – and honing her sales skills to start building a customer base.
"It's amazing," Parrish says. "The fruits of all this hard work are beginning to pay off. I'm currently negotiating with the spa to provide spa robes, slippers and towels. One of my father's nurses in the nursing home who had noticed my embroidered shirt told her daughter's dance school about dance bags I can make – so I'm talking with them. And, my father's home nurse is ordering school bags for her children starting school in September."
The Stovers are thrilled with Parrish's progress. "I can hear such a difference in Marilyn's voice on the phone – she's much more eager to get out and make her place in the business community," Don says. "I believe very soon she'll be bringing in the revenue. One thing I really want her to focus on now is building a stable of repeat customers, so that she'll be able to get consistent orders and the cash flow will be steady."
Plus, Don spent quite a bit of time helping Parrish to revise her business plan, which means that she now has more realistic financial goals and a clear idea of what she needs to do each month to try to bring in that revenue.
NICOLE ROLLENDER is editor of Stitches and director of ASI Education. Contact: nrollender@asicentral.com