Monthly Archives: September 2011

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Pick the Right Clients

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As a coda to last week’s post about understanding,  communicating and being rewarded with money and respect for your value, I add thoughts about how to recognize good and bad prospective clients so that you will be positioned to sell on value and avoid being treated as a mere commodity.

As mentioned last week,  it’s important to develop the confidence to understand and accept that your services are not meant for every possible prospect.  Those who intend to exploit and devalue Freelancers will get us nothing but a knot in the stomach and lousy pay.

I know all too well,  however,  that sometimes it’s about paying the rent and keeping the phone on.  Who among us has not worked with a client who was a complete jerk early in the game,  but we kept telling ourselves that we’re pros,  we’ll make it work,  just get the frigging money and pay the g-d bills?

Other times,  it’s about getting the right name on the client list and catapulting yourself to the next level.  So you roll with the punches and vow never to work with the SOB ever again.  Even billionaires wind up doing business with those they’d rather not, so they can stay billionaires.  Business is like that.

Yet we do have some measure of control over the clients we work with,  no matter how dismal the economy.  It starts with our very own business model and whom we envision as our target clients: Fortune 1000s and large not-for-profits,  arts or social service organizations,  medical device and biotech.  Perhaps you decline to pursue chemical companies that create seeds for genetically engineered crops,  or tobacco companies,  or start-ups of any kind.

Whoever your target clients,  you must avoid like the plague those who display disrespectful or unethical behavior.  The sorting process takes place in the initial meetings.  First,  pay attention to how the particulars of the project and its scope are presented.  There should be attainable goals,  specific deliverables,  a clear idea of what your role will be and a reasonable project time-table.

The client should probably do 70% of the talking in your first meeting,  but there should be space for you to add your insights to the discussion as well.  Your second clue is,  have you been invited to add your thoughts about possible solutions and strategies,  or is your prospective client the supreme expert who casts you in the role of supplicant?

Several months ago,  I spoke with a prospect who had one set of goals during a phone meeting and our first face to face and a rather different set of goals in our second meeting.  Our first meeting was great,  our second meeting was revealing.  The prospect did all the talking and blocked a true dialogue.  Goals had changed and they seemed unattainable to me.  My perspective was not sought and my value seemed unappreciated.  Further talks were postponed as the prospect decided to take a vacation.  Eventually,  she opted to shelve the project. I was furious at the time but  now realize that she did me a favor.

As you get to know your prospective client do not ignore how he/she speaks in reference to other Freelancers with whom he/she may have worked.  Very early in Freelancing,  I met a prospect who was oh,  so charming in meeting #1.  But in the second meeting,  he showed his true colors by making frequent references to how he was reliably able to hire Freelancers to work  “cheap”.  Also,  as he described the project,  my role and the deliverable,  he stipulated ridiculously scant hours and short time frame for project completion.

Definitely,  I should have walked right out of that clown’s office after politely suggesting that it might be best if he contacted one of his  “cheap”  Freelancers for that assignment  (I wanted to, believe me).  But I was needy and desperate for both money and a better client list,  so I meekly sat there and sucked up the attack on my professional value,  signed the contract and began work.

The whole impossible task was going nowhere and I was not even close to producing the deliverable as scheduled when lucky for me,  a ranking staff member realized the whole thing was untenable and stepped in to work with me.  That staff member understood my value and appreciated the contributions that I made to setting the stage for the project’s eventual successful completion (and also ensured that I was paid on time).

So what is the moral of this story?  As always,  learn to appreciate and communicate your value as a competent professional and insist that all who aspire to work with you do so as well.  It’s the only way to be a successful Freelancer.

Thanks for reading,

Kim

Sales , , 1 Comment

Sell on Value

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According to business experts,  it costs 5x more in resources to acquire a new client than it does to retain an existing client.  That cost is probably greater for those of us who specialize in providing intangible services,  where relationships and reputation exert a huge influence on the ability to attract clients and generate billable hours.

It is therefore imperative to 1.) Expertly communicate a strong value proposition and 2.) Unfailingly meet client expectations,  even when the client doesn’t really know what the expectations could or should be.  Those of us in the service business,  tangible and intangible,  must learn how to make the customer feel as though he/she has won by doing business with us.

To successfully compete as a service provider involves confidence,  reputation,  personality and selling skills.  Have the confidence to believe in your value as a highly qualified expert in your field.  Develop the selling skills to communicate your value with self-assurance  (but never arrogance)  in a way that is easily understood and targets the needs of your prospective clients.  Make clients and prospects feel as if doing business with you is a very smart decision.

Accept that you are not mass market and that your services are not a fit for every potential client.  It’s been estimated that 1/3 of customers are focused primarily on price.  Do not waste your time with such individuals because they are not for you.  Most are negative and difficult to work with,  because they know the price of everything and the value of nothing.

Sell your unique value by building a portfolio of success stories to trot out and demonstrate the excellent results that you reliably deliver.  Use those stories to inspire confidence in your abilities  (in both the client and yourself).  Turn your client list into your sales force by obtaining word-of-mouth endorsements whenever possible.  Build trust in your professional capabilities.

Continue to demonstrate your value by fine tuning your listening skills,  so you will hear and understand both what your client wants and also what he/she really needs  (and that may not be the same thing)  and how you can best apply your talents to the project in a way that the client will come out feeling like a winner,  believing that hiring you was a smart decision.  Express your answers by using the client’s own words and phrases when possible,  using language that the client will relate to and appreciate.

Emphasize the customer service that you are known to provide,  the prompt response to client questions and needs and also your sensitivity to costs  (despite your premium pricing).  Let clients know that it’s actually less costly to travel first class.

Thanks for reading,

Kim

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Make the Right Decisions and Do the Right Thing

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I’m back with more on decision-making because in this perilous economic climate,  which shows no signs of abating,  the ability to make good decisions is so crucial.  Our survival depends upon being able to size up a situation or puzzle through a dilemma and make wise choices that will put us on the right path,  whether we are Freelancers,  business owners or employed/unemployed professionals.

But then again,  when in history has good decision-making not  been an important skill? The results of wise decisions made by the pharaohs in Egypt gave the world a magnificent civilization that thrived for 3000 years and the architectural wonders that are the Sphinx and the pyramids.  Doing business has always been about making decisions,  in ancient times and the present.

Often,  we must make decisions fast and on the fly.  Data available may be incomplete and possibly unreliable.  The ground shifts underfoot and the clock is ticking.  We’re anxious and stressed,  maybe borderline panicky.  Critical thinking is probably clouded by our biases,  born of preferences,  fears and past experiences that we pass off as intuition or gut feelings.  It’s disturbingly easy to be blind to the smart decision that is staring us in the face.

But if we intend to survive and maybe even thrive,  we have to learn to play the had that’s dealt and that means making the right decisions in a timely fashion because time is money.  We can get some much-needed assistance from author Guy Hale,  who provides useful guidance on how we can learn to make credible decisions in an imperfect world in his book  “Think Fast: Accurate Decision-Making, Problem-Solving and Planning” (2011).  Hale recommends the following:

I.  Figure things out
Analyze your situation and see the big picture.  Gain an understanding of how and why you are faced with this decision.  Did your actions,  or inaction,  bring you to this point,  or was it circumstance? Discover the root cause.

Maybe your decision is a positive one,  like you’ve been invited to work with a new client or form a strategic partnership with a colleague.  You’ll need to determine whether the arrangement is likely to be a good fit and that means weighing your options and making a decision. 

II.  Plan and act
Identify the time frame in which you must respond.  Identify potential obstacles and risks and the unknowns that may impact the outcome of the decision,  to the best of your ability.  Identify factors in your favor and how you can best employ and magnify them to your advantage.  Draw up a list of people who will become your allies,  willing to help you if needed and do the same to identify those likely to oppose you.

Use scenario planning to project possible outcomes for the decision: best-case scenario,  worse-case scenario and a couple more that split the difference.  Consider the short and long-term consequences of your choices and think also about who and what will be impacted by what you decide and how they are likely to react.

III.  Factor in Murphy’s Law
Do whatever you can to prevent events from turning sour by controlling everything that you can control,  while recognizing that some things may not go according to plan.  Have Plan B  (and maybe also Plan C)  ready to roll,  just in case.  Know that you’ve been thorough and diligent in your decision-making process and have faith.  Try to relax and roll with the punches and learn from any errors in judgment.

Thanks for reading,
Kim

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Decisions, Decisions

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We’re in business and all day long there are decisions to make.  Which business strategies look the most promising?  How should I price my services for this project?  Is the money they want to attend this conference really worth it?  If I pay this guy to make my website more interactive am I really going to get more billable hours out of it,  or will Mr. Web Developer be the only one getting paid in this deal?  Everyone in business had better have sharp decision-making skills,  because everything we do hinges on our judgment,   including how to interpret the data used in data-driven decision-making.

Eventually,  decision-making makes our brains tired.  Our thinking gets fuzzy and we might even become irrational.  We’re unable to stay focused and we make careless errors.  We sometimes do and say stupid things.  The name of this condition is called decision fatigue.  We bring it on by making too many decisions.

By the end of the day,  we’ve waded through so many choices and options that we get punch-drunk.  We don’t realize it,  but the more choices—i.e. decisions—we make throughout the day,  the more difficult it becomes for the brain’s cognitive processes to efficiently make another,  and still another,  choice.  Return emails now or at the end of the day?  Finish the report that’s due tomorrow or listen to a webinar? Green salad or fruit salad for lunch?

Energy and willpower eventually become depleted,  we lose self-control and we screw up.  We blow off the diet and the gym and dive into a bag of cookies instead.  We forget our budget and buy shoes we don’t need.  We ignore the report that’s due and read the Onion.

To get some rest,  our tired brains prod us to look for shortcuts and we become sloppy or reckless.  We may act impulsively because we don’t have the mental energy to consider the big picture and weigh the consequences of our actions.  We are prone to taking the easy way and that can mean doing nothing—which is a decision in itself,  but it doesn’t feel that way to the brain.  Of course,  avoiding a decision can cause problems in the long run but in the here and now,  we may just decide to  “table”  the decision.

But we have work to do and decisions to make,  so what should we do when we need to do the right thing?  Social psychologist Roy Bauminster studied mental discipline at Case Western Reserve University in Cleveland, OH and at Florida State University in Tallahassee, FL.  His work indicates that it’s best to make important decisions in the morning after eating a light,  nutritious breakfast.  Our brains derive energy from healthy food and that helps us to comprehend and value long-term prospects and bolsters decision-making ability.  In the morning we have enough willpower to exercise the self-control needed for making important strategic or financial decisions.

Bauminster advises that we tackle the big decisions first,  before we have to make numerous smaller decisions that will sap energy and lead to decision fatigue.  In practice,  schedule your client meetings for early in the day,  before late afternoon whenever possible.  Write and pitch proposals early in the day.

But then again…Bauminster’s findings indicate to me that it’s possible to get a proposal slipped into the budget late in the day, when your client is a bit tired and defenses are down.  You may alternatively have a good proposal rejected because the client is too tired to decide and it’s easy to turn you down.  It’s a roll of the dice,  I suppose.

Also,  where does this leave the night people?  The energy derived from nutritious food holds the key.  Bauminster found that decisions and choices made immediately before lunch were often less than optimal,  so if you’re more of a night person,  making decisions and seeing clients in the two hours after lunch may work.  Discussing business deals over lunch or dinner can also be beneficial  (for any of us, actually,  even morning people like me).  You must decide.

Thanks for reading,

Kim