Monthly Archives: December 2010

Professional Development , , , 2 Comments

What if…You Change Your Mindset and Seize the Moment?

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For the umpteenth time,  we all know that business conditions are less than stellar and competition is fiercer than ever.  Everything is in flux (or seems to be),  the ground is unsteady and we all have to get comfortable with ambiguity.

But honestly,  none of this is new.  When has life not been ruled by the slings and arrows of outrageous fortune? When has life ever been safe and predictable? If you chose to get out of bed this morning,  then consider yourself a risk taker. 

Freelancers expect the earth to quake and shake.  We walk the road less traveled and we reach for the stars.  We  expect to be tested.  We know that the only way to become capable,  confident and successful leaders is to face down our fears and challenges.

Freelancers don’t make excuses,  we can’t afford to stay mired in a rut for years at a time and we know when to color outside of the lines.  We assess the big picture of the marketplace and recognize when it’s time to adjust how we fit:  when it’s time to rebrand,  enter a new market,  sharpen our message,  boost our skill set with a helpful seminar,  or forge a strategic partnership.  Freelancers know how to exit our comfort zone to keep what we do fresh, relevant and valuable in the eyes of our clients.

Still,  sometimes we need a little inspiration because alas,  we are mere mortals and cannot always dwell on Mount Olympus.  According to Bill Bartmann,  CEO of Bill Bartmann Enterprises in Tulsa, OK,  there are three behaviors that we must recognize and modify to keep ourselves in positive thinking mode and break the cycle of second-guessing and inaction that repels success.  Be mindful of the influence (for good or ill) that our mindset has on the fortunes of our business and our lives.  Remember that the glass is half  full.

1.  Awareness.  Catch yourself in the act of making excuses or resorting to defensive behavior (“But my situation is different…”) as you seek to justify why you haven’t achieved target goals.  Avoid becoming mired in negative thinking that sucks you into the self-sabotage vortex.  Remember that fear of the unknown is normal.  Realize that like Dorothy in The Wizard of Oz,  we must step outside of our comfort zone in order to learn,  grow and move forward.  The Yellow Brick Road presented many surprises as it wound its way to the Emerald City.

2.  Acknowledge challenges.  Denial of reality prevents us from overcoming obstacles.  Just  don’t allow yourself to be handcuffed by them.  Inevitably,  some possibilities will be closed to you,  yet others will be available.  You may have to work hard (and smart) to make those possibilities a reality and you might need some help to reel them in.  A Freelancer is a leader and according to Linda Hill,  professor at the Harvard Business School and co-author (with Kent Lineback) of Being the Boss (January 2011),  “Leadership is not about getting things done yourself—it’s about accomplishing things through others.”  So if your goal is somewhat beyond your grasp,  do not become overwhelmed with despair about the impossibility of it all.  Reach out to the right person.

3.  “What if…” is the phrase that encourages us to see beyond limitation and all the way to the pot of gold.  Say  “what if”  and put yourself on a positive trajectory that allows you to see or create competitive advantages that will be of great benefit.  The  “what if”  mindset is a powerful magnet for good ideas.  The glass half empty mindset is negative.  It crushes good ideas and rebuffs those who could help us realize our goals.  Instead of thinking  “What if I fail”?,  imagine  “What if I succeed”? and let your mind take it from there.

“It is not because things are difficult that we do not dare,  but because we do not dare that they are difficult”.  

–Seneca 

Thanks for reading.  I hope you’ve managed to survive and thrive this year and I hope that you’ll stop by in 2011.  I value your support.  Thanks again to those of you who’ve made comments.

Kim

Sales , , , Leave a comment

Finesse Tough Questions Like a Pro

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An important ingredient in the recipe for success in life and business is the ability to effectively resolve objections.  Nothing takes the wind out of your sails faster than getting blindsided by a thorny question about your intentions,  abilities,  products or services.

The silver-tongued devils among us,  being natural planners (OK, schemers),  always anticipate and prepare for the likely push-back that their caper of the moment might receive.  But because they take a few minutes to consider how the other side might react to their idea,  perfectly pitched and expertly crafted answers land like rose petals,  as they have their way again and again.

You’ve gotta  admire those folks.  Imitation is the sincerest form of flattery,  so let’s bestow a silver-tongued compliment and borrow a  few of their tricks,  so we can have our way with a few clients.

Identify the questions and objections that are most likely to be raised.

Organize what you’ve identified into basic  categories.  Your objective is to simplify the process by reducing the amount of preparation you must do and give clarity and focus to your responses.  You will feel more relaxed and in control because it will be easier to remember what to say.

Formulate and rehearse simple,  succinct and rational answers for each category.  Your answers should make sense separately or collectively and nothing can contradict.  In some cases,  your response may not precisely answer the question/objection,  but it must appear to do so (listen to politicians).  Think of one-size-fits-all answers for each category you’ve identified.  Ideally,  you will create a cohesive and convincing narrative that can add additional support to whatever it is you’re trying to advance or sell.

Listen carefully to questions and find the  “trigger”  word that reveals the heart of what  you must convincingly address.  Repeat the question,  to ensure that you’ve understood it and to give yourself time to reach into the right  “bucket”  and pull out a well-designed and rehearsed answer.

Project confidence as you look the questioner in the eye and respond with authority (but never defensiveness).  Jury consultants say that much of witness credibility involves body language.  Jurors apparently trust those who give good eye contact,  have good posture and do not fidget and squirm.

Respect the questioner by showing empathy for his/her viewpoint.  When I worked in sales,  I learned the  “feel,  felt,  found”  method and it goes like this: 

I understand how you might feel this way…

Occasionally,  others have also felt this way when initially evaluating…

Here’s what I’ve (or those who’ve successfully used this product) found…

As every silver-tongued devil knows,  questions or objections will eventually arise.  It’s not all bad,  actually.  The opposite of love is not hate,  but indifference.  If your client has an objection to some aspect of your concept or product,  it signals that he/she has paid attention to what you’ve said and is thinking about how your offering compares to what is being done now and if it could better meet the organizations’ needs.  The quality of your response will go a long way in either building or breaking the client’s trust in your brand.

Thanks for reading,

Kim

Administrative , , 5 Comments

Year End Tax Reducing Strategies

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President Obama’s tax plan will probably pass before Congress recesses for Christmas. The $250K + crowd can once again relax as they glide by in their Lincoln Navigators,  splashing mud on the hoi polloi.  Nevertheless,  those of us who are somewhat closer to the earth (flat on our backs financially speaking, perhaps?) still have a few defensive measures to take,  regardless of whether Bush’s tax cuts get extended by Obama and Congress.

Get the money now

In addition to giving a nice boost to your cash flow to help with Christmas shopping,  this is also a most clever way to approach clients and entice them to either pay on time,  finally make good on a late payment or even request payment a couple of weeks early.  You are not chasing money,  this is all about tax planning… Your accountant would like you to show X dollars in 2010,  for tax purposes.  The client will benefit by cleaning up accounts payable as the year ends.  That’s how you’ll phrase it when you speak to the finance director and ask that your outstanding invoices,  late or early,  get paid by 31 December.

Or, take the money later

Did you buck the trend and have an extraordinary year in 2010,  but expect less than thrilling billables in 2011?  In that case,  income deferral is your best strategy.  Mail invoices in January and sign contracts that require an up-front payment after the calendar turns.

Pump up the write-offs

If you have a few dollars available,  then stock up on office supplies before 31 December.  If you have more money,  then take advantage of the sales and purchase big-ticket items such as office furniture,  a more powerful computer,  a good camera,  or software that will help you manage business more effectively.  For example,  the right accounting software will make tax planning and business financial analysis easier.  Evaluate whether what you’re using now is sufficient for the needs of your business.

You get to choose how and when the expensive purchases will be written off,  either slowly over a period of years as depreciated assets or immediately,  by using the Section 179 deduction.  You can make that decision at the April 2011 filing.  Conversely,  if you suspect that you will come up short on deductions next year,  shop after the new year.

Review your retirement plan

If you’ve thought about establishing a Solo 401K,  do it by 31 December.  Add extra dollars to your pre-tax funded and tax-deductible SEP IRA or Solo 401K (if you’re age 50 +,  remember the catch-up contribution feature of the latter).  Exercise the profit sharing or salary deferral benefits of your Solo 401K if you’ve had a lucrative year and would like to keep some money away from the tax man for a few years.

Review your choice of business entity

Especially if you operate as a Sole Proprietor,  try to squeeze in an appointment with a business tax attorney or an accountant,  so that your financials can be reviewed and you can talk about where your business is now and what you’d like it to become in the future.  Do you envision selling your business,  or passing it to a family member? Perhaps you would be better served if you changed your business entity to either an LLC or S  Corporation.

2010 Tax Tactics

  • The health insurance deduction for Freelancers,  including Sole Proprietors,  LLC members (single or group),  general partners and S  Corporations (single or group and owning 2% or more of the stock),  will reduce taxes owed on income generated by self-employment and also the amount of self-employment tax owed.  Health insurance premiums are 100%  tax deductible if one is self-employed and does not participate in  a group health insurance plan.  Health plan premiums to insure your spouse and dependent children are also fully deductible.  However,  your business must show a Schedule C profit in order to claim this tax benefit.  Businesses that show a loss will not be eligible for this deduction.
  • Those launching a new business venture in 2010 will have a more generous start-up expense deduction of $10,000.00 ($5,000.00 is the usual limit).  File your registration paperwork toute de suite.
  • The Section 179 deduction has been increased to $500K for 2010 (and 2011).  Maybe you need commercial property for your business,  or a company vehicle or two?
  • If you’ve been thinking about hiring an employee and can find someone good within two weeks,  a one-time hiring credit can be taken in 2011 for an employee hired by 31 December, 2010.  The tax credit will equal 6.2%  of wages paid,  not to exceed $1000.00,  for each employee who is retained for one full year.  Your new employee(s) must have been either unemployed for the 60 days that preceded the hire or underemployed,  having worked a maximum of 40 hours in the 60 days preceding the hire.  Family members hired are ineligible for the new hire tax credit.

Thanks for reading,

Kim

 

Survival Strategies , , Leave a comment

Ask and You Might Receive

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Nearly all Freelancers are feeling the pain of the long slog through the sluggish economy.  Merely treading water is now considered a victory.  Even those fortunate  enough to have maintained robust billings are sensitive to the cash flow problems of their customers and fellow business owners.  Consequently,  the time is ripe to ask for a better deal,  for everything.  You may be pleasantly surprised at what people will do to keep your business.  To get the ball rolling,  all you’ll need are some creativity and moxie.

You’ll also need to remember that your goal is to both save money and build mutually beneficial business relationships,  especially when approaching fellow Freelancers or other small business owners.  Be assertive,  but considerate and respectful.  Don’t try to squeeze someone whose business may be hurting.  Think of benefits that will accrue to the other party and communicate that as you present your proposition.

The other party will appreciate that you’ve thought of their interests as well as you own,  so no matter what,  you’re likely to be seen in a positive light.  Even if you are unable to get what you want,  you’ll never lose by asking.  As they say,  it’s just business.

  • Think about bartering products or services.  What do you sell or do that suppliers and service providers might value for their businesses?  HR or IT services?  Graphics or PR or landscaping?  You’ll never know until you ask the question and get the dialogue started.  Make sure the exchange is of equivalent perceived value,  so that no one feels short-changed.
  • If you rent an office,  begin preparations now to campaign for a rent roll-back.  Commercial space is plentiful and most landlords want to keep a good tenant.  Be sure to pay your rent on time and otherwise cast yourself in a favorable light.  Get information on rents for comparable spaces in your area and determine what would be reasonable to pay for yours in the current economic climate.  Are their problems in the building?  If so,  make a list so that you can more effectively negotiate with your landlord at lease renewal time. 
  • When it’s time to advertise,  ask for a discount (try 10 %).  You’ll be more successful if the ad is larger and/or if you place multiple ads with that publication.  Ask also if you can be notified when remnant space is available,  which will save even more money.  You must be flexible and prepared to act quickly when taking remnant advertising space.  You might even spend more than you anticipated.  In exchange,  you just might get an eye-popping half page ad for the price of a quarter page.
  • Think about the products and services that you use all the time when doing business.  Do you ship items on a regular basis?  Do you travel frequently and stay at the same hotel?  If so,  then it’s time to ask for a loyalty or volume discount.  Have information about how often you use the service/product and how much you spend at the ready,  to support your case.
  • To preserve your cash flow,  request more flexible payment terms from suppliers and service providers.  Ask for 45-60 day terms,  or ask to pay half of the balance in 30 days and the remainder at 60 days.  The other party may not love it,  but the terms may nevertheless be extended in an effort to keep you as a customer.

Thanks for reading,

Kim