Monthly Archives: November 2011

Administrative , , Leave a comment

How to Hire an Intern

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Perhaps by some miracle business has picked up and you need some help,  maybe for just a few hours each week.  You foresee that your need for help could last for some time and you’re ready to commit to a trial of at least six months.  You don’t have much money to spare,  but see that you’re probably losing money as you spend time performing certain functions that could  be handed over to less expensive labor,  which would allow you to focus on the vital aspects of client projects,  search for more billable hours and engage in other business-building activities.  Bringing on an intern may be the solution to your dilemma.

If you live in a locale with at least one college or university,  then you may have a source of interns to help you with business needs.  Interns can be a valuable resource,  especially for those who cannot afford to hire full-time employees.  With some planning,  a busy Freelancer can devise a win-win situation for both business and intern.

Plan to  offer a paid  internship.   Unpaid internships narrow your candidate pool more than you may realize.  In today’s economy,  many students must generate an income.  College has become wildly expensive and students and/or their parents often go into significant debt to finance their education.  Daddy may not be able to send spending money every month.

Paid internships provide a student with the tangible benefits of relevant work experience,  a reference for future full-time employment or graduate school application and a much-needed paycheck.  Moreover,  unpaid internships may present a legal snafu.  Strict federal and sometime state guidelines limit the hiring of unpaid interns to discourage student exploitation.  If you can find an intern whose financial aid package includes work/study,  the grant will absorb some of the hourly rate cost and save you money.

Start your search by thinking carefully about which tasks can be farmed out to an employee.  Be mindful that internships are not designed to provide businesses with low-level labor performed at low pay,  but rather to provide apprentice-level  learning opportunities.  Be realistic about what you can offer an intern.  Be prepared also to provide adequate instruction and supervision,  because you will be dealing with a young person who will need some guidance.

Next,  contact the school’s career services department or academic department that aligns with your professional needs  (e.g., communications or computer science or business).  Colleges are very eager to help match interns with prospective employers because that makes them look good.  Be ready with a basic job description and qualifications  (like web design or writing skills),  as well as what level of students you will work with  ( seniors, most likely). 

Remember also that students live on the academic calendar.  That means they disappear from about December 15 – January 15 for Christmas break,  they may disappear for a week during the April spring break and they may go home on May 15,  unless they can afford to stay in town for the summer or it’s convenient to commute in.

Plan to interview at least three or four candidates before you make your selection.  When you make an offer,  institute a 30 – 60 day trial period,  at which point you can decide whether the arrangement is working out.  Create the conditions for success by thinking through and communicating expectations clearly.  Discuss with your intern what s/he will be able to learn and be transparent about how performance will be measured.  Expect to spend time supervising your intern and maybe also explaining things twice. 

Empower your intern to show some autonomy and creativity once things get rolling.  Invite your intern to make some suggestions and offer opinions.  You never know,  you might learn something useful and you’ll show the intern that s/he is valuable. 

Always treat your intern with respect.  Assign meaningful work and provide the required training,  tools and follow-up to ensure that tasks are performed satisfactorily.  Offering an internship is your chance to mentor a young person and the rewards can be personal as well as professional for both parties. 

In the ideal circumstance,  your intern will give you the time to expand billable hours to such a level that you can offer to hire him/her full-time,  the ultimate win-win situation.  Good luck!

Thanks for reading,

Kim

Professional Development , Leave a comment

How You Say What You Say

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If you want to get your way,  then you must be persuasive.  To make friends is to persuade,  to receive help is to persuade,  to get a date is to persuade.  To sign a client is to persuade,  to negotiate is to persuade.  To sell any idea,  product or service is to persuade others of its relevance,  quality and value.

The ability to communicate ones’ needs,  thoughts and opinions is a cornerstone of a successful life.  It is vitally important to know what to say and how to say it as you expertly customize the message for its recipient.

I do not advocate manipulative behaviour,  however.  The idea is to get what you want in a way that creates a positive outcome,  with all parties feeling good about the exchange and no one feeling bullied,  resentful or exploited.  Persuasion is about how we frame and deliver our desires,  proposals or assertions and we must be respectful of others.

Tone of voice,  that is delivery,  is a big factor in persuasive communication.  Anger,  sarcasm and condescension are unlikely to facilitate persuasion.  Delivery that is perceived as hostile causes those on the receiving end to become defensive and mired in reacting to your style,  losing sight of your content in the process.  You’ll be treated as if you are wrong even if you are right  and you will lose.

To inspire you to pay attention to certain aspects of your communication style,  I offer here a few suggestions that will lead you to improve your powers of persuasion:

Avoid  “always”  and  “never”

Substitute  “often”  and  “rarely”  instead.  There are many people who will reject a reasonable assertion out of hand,  without taking its full measure,  when you frame and present opinions in dogmatic,  absolutist terms.

Lead with the positive

When disagreeing with another’s point of view,  it is natural for many of us to immediately,  perhaps vociferously,  take exception to that opinion or interpretation of fact.  Whenever possible,  promote persuasion by finding some common ground,  some point upon which parties can agree.  Soften your rejoinder and offer up a soupcon of validation,  maybe like this  “I know some people feel that way,  yet based on my knowledge and experience,  I’ve come to view the matter in this light…”  Call it smoothly handling an objection.

Don’t complain,  but do explain

Rather than criticize and complain that someone is wrong,  tell that person what behaviour or action is preferred or necessary and why that is so.  Reframe your complaint or criticism as a request,  delivered respectfully,  perhaps in this way  “When you arrive late to our meetings,  it makes others feel that our sharing of information is unimportant to you,  that you do not value the process.  Is the time frame inconvenient for you?  What can be done to get you here on time so that all parties can be present to address important agenda items?”

Thanks for reading and Happy Thanksgiving,

Kim

Administrative , , Leave a comment

2011 Year-End Tax Planning

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It’s about that time,  folks.  2011 ends in 7 weeks and it’s time to plan how to handle your taxes.  We all have to pay something  (except if you’re a multimillionaire or billionaire, in which case you pay nearly nothing!),  so before December 31 it’s important to enact a strategy that will work well for you.

Tax planning boils down to either accelerating or deferring income or deductions.  In other words,  do you want to report and pay taxes on more money or less in 2011 and do you want more or fewer write-offs?  The road you follow will depend on many factors,  including what you did last year,  how much money you will make this year,  whether you expect to make rather more in 2012 because a big project will start then,  or you expect to make rather less next year because an important project will soon conclude and you have nothing big on the horizon.

Take a look at your 2010 tax forms and 3rd quarter 2011 P & L statement to see what your financials say about your options.  What do fixed and variable expenses look like?  That will impact your decisions about deductions.  What does net profit look like?  That will impact whether you choose to accelerate or defer income.

If you want to accelerate income,  start by collecting outstanding receivables.  Pick up the phone or send an email and ask clients to pay ASAP,  or at least before December 31.  Tell them it’s a tax-planning matter (it sounds so much more dignified than telling clients that you plain old need the money!).  If you’ve got a contract in the works,  ask for a bigger retainer.

If you opt to defer income,  perhaps because 2011 has been a good year and you’re not sure what 2012 will bring,  then wait until January to collect receivables and ask for a smaller retainer fee.  BTW,  it’s possible to defer up to 25% of your income through your Solo 401K and it’s tax-deductible.

If you need write-offs,  scout for year-end deals on office furniture,  computers,  iPads,  office supplies,  software and whatever else you need to do business,  including enrolling in a course or attending a conference.  Office furniture,  computers,  company vehicles and other big-ticket items can be written off in a lump sum,  or depreciated over a period of years  (which is in reality deferring the deduction since it’s being spread out).

If you elect for fewer write-offs,  hold off on shopping until the calendar turns.  Alternatively,  if you are presented with office or business equipment deals that you cannot refuse,  then choose the depreciation method and spread out your deductions.

Speaking of deductions,  remember your retirement plan.  Solo 401K and SEP-IRA are funded with pre-tax dollars and are tax-deductible up to $16, 500.00  If you’re 50+,  the catch-up contribution feature raises the maximum to $22,000.00.  Remember the tax-deductible income deferral feature if you’ve had a very good 2011,  but expect to have a less lucrative 2012.

Further,  you might want to make an appointment with your accountant or business attorney and confirm that you are enrolled in the best legal entity for you.  Your exit strategy can impact  the legal entity you use.   For example,  if you want to take on a partner and eventually sell out,  or pass the business to offspring,   niece or nephew,  a different legal entity may be preferable.

Finally,  the end of the year is the time to assess what’s happened this year for you,  professionally and personally. Review your successes and challenges.  What will you do differently in 2012 and what will you continue to do?  Did you meet your financial goal?  Did you manage to sign a dream client or get a wonderful proposal approved?  What should you reach for in 2012?

Thanks for reading,

Kim

Business Strategy , Leave a comment

Protect Your Intellectual Property

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Suppose you decide to do what I recently did and contact the managing partner of a consulting firm and propose that the two entities agree to explore the possibility of  forming a business alliance that just might become very profitable? Business is all about deal-making and every once in a while a Freelancer has to pitch a good proposal to the right prospect.  After all,  nothing ventured,  nothing gained.

But there is risk involved,  usually for the smaller entity.  Freelancers typically offer intangible services,  better known as intellectual property.  We trade on our expertise and judgment,  our brand and reputation,  that which distinguishes us from the pack and allows us to make a  living.

Engaging in a business alliance or joint venture usually involves the sharing of intellectual property by one or both of the parties  (in this case,  it would be me).  How can you protect yourself from unscrupulous operators who might decide to appropriate your valuable IP,  when you’re out there trying to be proactive and proposing potential business deals to parties that might be interested,  without getting ripped off  for the fruits of your ingenuity?

Denver attorney Susan F. Fisher defines intellectual property or trade secrets as  “any formula,  method,  or information that gives you a competitive advantage…anything that takes time,  money or effort to develop and that you don’t want potential competitors to know about.”  Most business alliances,  including licensing arrangements,  require a Freelancer or business owner to reveal trade secrets and other IP.

Protecting the coin of your realm is a top priority.  Surprisingly,  that can mostly be achieved by taking just a few simple steps that cost no money at all.  Step one is to identify your intellectual property or trade secrets as restricted material and therefore not available for general distribution.  Mark the material “Confidential” in big bold typescript.  Step two is to require a special password to access the document file,  to provide yet another level of security.

A third IP security measure is to unambiguously state in a letter,  or in the email to which the file of IP information is attached,  that said information is proprietary and confidential and that it is being provided as part of a business proposition in which you would like to be paid,  should the proposal come to fruition.

Instituting such safeguards not only protects IP,  but also demonstrates to lawyers,  judges and juries that you identified your IP as confidential and not for general distribution,  that you made it known that the information you shared was sensitive and that you intended and attempted to protect your IP,  should a dispute ever lead to litigation.

The ultimate level of security is to require that the party with whom you share IP sign a nondisclosure agreement.  The NDA provides formal legal protection of  your IP and trade secrets.  Furthermore,   the NDA specifies what information is considered proprietary and what is not and will also describe limits as to how the IP may be used and for how long the information must remain confidential.  In the NDA,  your attorney should request that all copies of confidential information that detail the ingredients of your  “secret sauce”  be returned to you at the end of that term.

So by all means,  be an enterprising Freelancer and pitch a good idea to the right decision-maker.  Just be sure to start the venture off on the right foot by taking a couple of no-cost steps to protect your interests.  I’ll let you know how things turn out with my idea.   I was invited to call the managing partner in early December to find out if he and his colleagues feel that we have something to discuss.

Thanks for reading,

Kim

Marketing , , Leave a comment

Make the Most of Prospect Meetings

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Lucky you!  You networked your way into a meeting with a prospective client.  Now make sure you don’t blow the sale.  Here’s a sales meeting checklist that will help you prevail:

1.     Do your homework.  Beyond the information about the prospect’s needs and priorities that you learned in early conversations,  be sure to supplement client info with a visit to the company website.  Familiarize yourself with products and services,  identify benefits that your services are positioned to bring and formulate the value proposition you will articulate in the meeting.  While on the website,  check out the CEO and other top officers.  If it’s a not-for-profit group,  check out who’s on the board. Perhaps you know or have done business with a VIP?  Finally,  do an internet search and read any articles that have been written about the organization in the last 12 – 18 months.

2.     Set realistic objectives for your meeting.  At the minimum,  verify your understanding of the prospect’s need for your services and learn if there is an upcoming project for which you may be considered.  If a project has been scheduled,  inquire about the timetable and what you must do to obtain the contract (like submit a proposal).  Further,  it’s also wise to  inquire as to whether others will be invited to submit proposals,  so you’ll know the competitive landscape and know how hard you’ll have to work to land the assignment.

3.     Have the right presentation materials.  Have color-coordinated,  good quality printed collaterals that communicate not only the necessary information that a client will need to evaluate your products and services but also a professional image that will reinforce your brand and sell for you after the meeting ends.  If you’ll present a Power Point,  make sure your slides are easy to read,  clear,  concise and relevant.

4.     Rehearse your presentation.  If possible,  videotape yourself as you practice using your printed materials and/or Power Points,  to perfect your pacing and make sure your tone is appropriately upbeat.  Moreover,  be sure to anticipate questions and/or objections and practice answers that will reassure your prospect.

5.     Notice your surroundings.  Are there golf or tennis trophies in the office,  or good art on the walls?  If you can comfortably weave in an element or two,  it will be a good way to personalize your presentation and acknowledge and validate accomplishments or items of which your prospect is obviously proud.

6.     Notice your prospect.  Does your prospect appear to be paying attention to you?  Are there smiles and nods of agreement,  or a bored look,  or even a scowl on the face?  If it’s the latter two,  then you must stop and ask your prospect to tell what he/she finds troubling,  because you clearly have an objection to resolve and you’re nowhere until you do that satisfactorily.

7.     Ask qualifying questions.  Make your presentation a conversation and not a monologue.  Ask questions along the way to discover and confirm your prospect’s needs and listen to the answers.  Incorporate those answers into the rest of your presentation.  Remember to confirm that your prospect is the real decision-maker:  “Are you the person who will make the final decision?”

8.     Present case studies.  Case studies demonstrate the ways in which you can successfully meet client needs.  Prepare two or three that you can discuss and in the process,  build confidence in your capabilities.  Case studies are also a wonderful way to position yourself against competitors.

9.     Summarize your key points.  Place special emphasis on issues that are dear to your prospect,  as revealed in the answers to the qualifying questions you asked earlier on.

10.    Take action.  Ask for the business!  “I’d like to work with you.  Have I answered all your questions and put any reservations you might have to rest?  Do you feel ready to move forward?  When can we get started?”

Thanks for reading,

Kim