Introduction: Entrepreneurial Sanity
Hello Everyone, I’m Tanner Chidester, CEO of Elite CEOs, and today I want to share some insights that are crucial for every entrepreneur: setting realistic expectations in your business. I recently had a conversation with a business owner that perfectly illustrates the importance of entrepreneurial sanity.
Quick answer: What are realistic benchmarks for cold calling and closing rates?
Expect only about 10 to 20% of cold calls to get answered. A member of my paid group was upset that over 50% of her calls went to voicemail, but her numbers were actually solid. Same with closing. Someone claiming an 80% close rate makes a 30% closer feel like a failure. Set benchmarks from real data.
- Only about 10 to 20% of cold calls get answered, so voicemail is normal.
- An 80% closing rate claim is unlikely and should not be your benchmark.
- A 30% closing rate is solid, not a failure.
- Learn what is normal in your industry from someone who has actually done it.
- Double dial after a voicemail, then follow up by text, email and voicemail.
“I recently had a conversation with a business owner that perfectly illustrates the importance of entrepreneurial sanity.”
The Danger of False Expectations
A member of one of my paid groups, a business owner, was struggling with her lead response rate. She was disappointed that over 50% of her calls went straight to voicemail, expecting a higher pickup rate. However, in the real world, only about 10 to 20% of cold calls get answered. Her expectations were far from the reality, leading to unnecessary frustration and a negative mindset.
Aligning Expectations with Reality
When I corrected her expectations, her whole perspective shifted. Suddenly, she realized she was actually performing well. This is a common scenario in business. Entrepreneurs often set their benchmarks based on hearsay or exceptional cases, not realizing that these are not the standard.
The Impact of Unrealistic Benchmarks
Take, for instance, a business owner who claimed his sales reps had an 80% closing rate on calls. Such a figure is highly improbable in most scenarios. If a novice entrepreneur hears this and compares it to their 30% closing rate, they might feel inadequate, not realizing that 30% is actually a robust figure.
Entrepreneurial Sanity: How to Set Realistic Expectations
- Understand Industry Norms: Research and understand what is typical in your industry.
- Experience or Expertise: Either go through the process yourself or consult someone who has.
- Avoid Comparing Apples to Oranges: Every business is unique. What works for one may not work for another.
The Best Approach to Lead Calling
For those struggling with lead calling, here’s my approach:
- Double Dial: Call, if it goes to voicemail, hang up and call again.
- Follow Up: After the calls, send a text, an email, and leave a voicemail.
- Use Dialing Software: Tools like Phone Burner can streamline the process.
A Word on Entrepreneurship and Aging
As I’ve aged (I’m now 31), I’ve realized the value of time. I’m more willing to pay for expertise to save time and achieve my goals faster. This approach is not just about impatience but about maximizing my productive years.
Entrepreneurial Sanity: Conclusion
In entrepreneurship, it’s easy to get caught up in what we think should be happening versus what is realistically achievable. Remember, success is not just about hard work; it’s about smart work based on realistic expectations.
Frequently asked questions
What percentage of cold calls actually get answered?
Only about 10 to 20% of cold calls get picked up. A woman in my paid group was frustrated because over 50% of her calls went straight to voicemail. She thought she was failing. She was not. Her expectations were off. Once she knew the real benchmark, she saw her results were solid.
Is an 80% closing rate on sales calls realistic?
Not in most businesses. I heard a business owner claim his reps closed 80% of their calls. If a newer entrepreneur hears that and compares it to their own 30% close rate, they think they are bad at sales. They are not. Benchmarks based on rumors and outliers make good results look like failure.
What should I do when a sales lead does not answer my call?
Redial right away. I call it the double dial. If they still do not pick up, follow up with a text, an email and a voicemail. Use dialing software like Phone Burner so your reps can move fast. Most leads will not answer the first time, so the follow up process matters more than the first call.
How do entrepreneurs set realistic business expectations?
Three rules. First, learn what is normal in your industry. Second, get your numbers from firsthand experience or from someone who has done it. Third, stop comparing your business to ones that are different from yours. Unrealistic benchmarks make you quit on things that are working. Real ones keep you sane.
Why should entrepreneurs pay for business expertise?
Because time gets more valuable as you get older. I am 31, and I would rather pay someone who knows the answer than spend years figuring it out myself. Paying for expertise gets you to your goals faster. Working smart from realistic expectations beats working hard with the wrong ones.
