Monthly Archives: January 2012

Marketing , , , , 1 Comment

LinkedIn Profile Refresh

by

Happy Year of the Dragon!  The New Year vibe is still rolling,  so I wonder if you’d like to keep-up the self-improvement kick and take a fresh look at your LinkedIn profile?  Usually,  I revisit mine about once a year.  Last year,  I pared down my rather long and complicated summary section. 

 I realized that in certain instances,  less is more and simplified my statement.  About  every 12-18 months,  I think it’s useful to make sure that my LinkedIn profile aligns with how I’m positioning myself and what I’m saying in the verbal package that is my elevator pitch.   So let’s do a little housekeeping.

Purge the clutter

Comb through your job history and weed out or streamline whatever does not support and enhance your professional goals.  Retain several years of your employment history,  but limit non-aligned jobs to title,  company and a one-sentence description of your responsibilities.  Use you employment and volunteer experience to reflect your brand and professional aspirations.

Add keywords

The headline of your profile is the critical factor in search results.  Choose your most relevant keywords carefully and add to your headline.  Be mindful of the subtle difference between keywords that are vital for your business / career and terms that are frequently searched.  If you provide services for a select market those keywords should reflect that market,  even if they are searched less often. 

 Judiciously embed relevant descriptive keywords that are associated with your business category into your headline and summary sections.   Visit Google Keywords Tool and identify popular keywords that will attract a sufficiently broad audience in local searches and then drill down to target your niche by discovering keywords that industry insiders might  search.

Add apps

Install Slide Share and upload a Power Point presentation to your profile that will communicate more specific details about your services.  I use WordPress Blog Link to invite connections and visitors to my page to read weekly blog postings.  I always write an excerpt that I hope connections will find tempting when LinkedIn Updates announces the arrival of a new post.

As of last week,  visitors to my profile will now find the app that was rolled out just a few months ago,  the Skills App.  The nice feature about  Skills is that you’ll receive data on groups that focus on that skill;  companies where that skill is common;  posted jobs requiring that skill;  and the size and growth trends of other professionals who hold that skill. 

Other free apps that may serve you well include Events,  that will let connections know the meet-ups and conferences where you will speak;  Portfolio Display,  that allows creative types to showcase their work;  and Reading List,  that allows you to share with connections the professional development books you’ve read and get ideas on additional books that you might find useful.  All of the apps will appear on your profile page.

Get recommendations

Recommendations are testimonials that provide third-party verification of your expertise and further support your professional goals and brand.  Ask a professional colleague who can vouch for your work to detail your contributions to a project that went especially well. 

 Specific,  quantifiable information that highlights your impact on company objectives enhances your credibility and is more believable than effusive compliments that merely tell people how talented you are.  Always return the favor and write a recommendation for those who produce testimonials for you.  In fact,  get the process started by  “spontaneously”  writing a recommendation for a colleague so that you can receive one in return.

LinkedIn is about creating and nurturing relationships,  so do your part and engage in conversations.  Congratulate your connections when an update comes through that heralds an achievement.   When you invite someone to join your network,  tell that person why you’re inviting them.  When someone invites you,  take the time to thank that person for his/her consideration.

Join groups appropriate for your skill set and goals and become known for posing good questions,  leading discussions and sharing timely and useful information.  Visit the  “Answers ”  forum and contribute thoughtful responses to questions that will allow you to showcase your judgment and expertise.  Utilize the free resource that is LinkedIn to position yourself as a go-to resource in your niche.

Thanks for reading,

Kim

Administrative , , Leave a comment

Probability Prospects

by

You’ve just been introduced to a person who was not only happy to meet you because you have the chops to take on a hot project that’s on his/her radar screen,  but also has the authority to green-light your hire.  Oh, happy day!  You’re thrilled to do the card exchange as your newest prospect asks you to make contact so that the two of you can talk specifics.  You can almost taste the billable hours,  but how excited should you be?  Statistical probability can help you put a dollar value on your happiness quotient.

I found this intriguing formula that uses sales outcomes historical data and probability that allows you to calculate the expected value of your next prospect.  As has been noted in numerous posts and no doubt reflected in your own experience,  there is a randomness to networking and Freelance consulting.  In our effort to bring much-desired predictability and financial security to our lives,  the Freelancer’s  (and all salesperson’s)  objective is to control variables,  positively impact outcomes and therefore win more projects and generate more revenue.

Let’s say you’re talking to a prospective client about a project that you estimate should be worth $10,000.00.  The operative word is should.  $10K is the potential value and not the real value until and unless one is awarded the project.  If you don’t win the project,  then it’s worth zero.

Your project’s worth is impacted by the probability of successful close.  The following formula allows you to calculate the potential value of the prospect and the project throughout the various stages of the sales process.  Both the steps in the sales process and the values assigned at each step in the process are based on historical data provided by a large corporate sales force.  To refine the accuracy,  identify the steps in your usual sales process and record your sales success rates at each stage of your sales process.

I.     Identify the steps in your sales process

  •      Invitation to meet and discuss the project
  •      Initial appointment / discussion of of needs and benefits
  •      Verbal proposal / assessment of needs and benefits
  •      Invitation to submit written proposal

II.    Determine the probability of a successful outcome at each step

  •       Invitation to discuss project                                                      2%  success probability
  •       Initial appointment / discussion of of needs                       8%  success probability
  •       Verbal proposal/ assessment of needs and benefits      25%  success probability
  •       Invitation to submit written proposal                                 65%  success probability

III.   Calculate the dollar value at each point of the sale for a proposed $10K  project

  •        Invitation to discuss project                                                     $   200.00
  •        Initial appointment / discussion of needs                           $   800.00
  •        Verbal proposal / assessment of needs and benefits      $2,500.00
  •        Invitation to submit written proposal                                  $6,500.00

The key to customizing the outcomes probability formula for your business is keeping detailed records of  sales presentations from which to compile your statistics.   In other words,  here is yet another reason to document your business transactions so that reliable data will be there to guide business planning.

Thanks for reading,

Kim

Business Strategy, Sales , , , Leave a comment

Sales and Networking Resolutions for 2012

by

Welcome back for the final installment of New Year’s resolutions.  To keep yourself motivated to do what you resolve to do,  be aware that the key to success with any resolution,  personal or business,  is willpower.  Once you’ve set your goal,  then it’s all about execution.  Willpower—call it commitment or perseverance if you like— is the x-factor that most often separates winners from losers  (although good luck helps, too!).

Invite success by instituting systems that will keep you on your path.  Always develop strategies and an action plan for each resolution/goal.  Write up your resolutions and action plan timetable and tape it to your office wall.  Enter action plan activities and tasks into your calendar.  Attach notes to your file cabinet or refrigerator.  Reward yourself when key milestones are reached.

Resolve to network with purpose

A colleague named Lisa is very proud of her networking schedule.  She brags about attending five or six events every week.  The girl is everywhere.  A colleague named Erika is out and about less often.  She attends an event about once a month and works on getting to know the right people and building relationships over time.

So which Freelance consultant has the better reputation and bigger billable hours?  Erika does,  by far.  She works with name brand clients and she always seems to have a job in  (or has just completed or is about to start).  The last time Lisa and I spoke,  she told me that she hadn’t had a client in about six months.   So what’s up? Apparently,  Erika has figured out a networking strategy and activities that bring opportunities.  Lisa’s  “networking strategy”  seems to leave her with nothing but a bar tab and a tax write-off for event admission charges.

It’s interesting,  because it was Lisa who schooled me on the importance of having a networking agenda:

  • Get a client
  • Get a referral
  • Get information

Unfortunately,  the girl does not follow her own advice well enough.  While it’s advantageous to have a presence among peers and potential clients and also check out a fresh venue now and again,  it’s more important to know who will be in the room and understand why you should spend time and money to be there.

Swanning around town is not a viable networking strategy.  The process obviously is random and we never know when and where our next good client will appear—maybe in Pilates class?—but you still need to institute a system and go fishing where the fish you can catch will be.  Review your networking strategy and its ROI.   How did it contribute to your sales pipeline and what was your conversion rate?  Which events might you add or delete?

Take time also to refine the verbal package that is your elevator pitch.  Are you communicating the right info about your talents and services that grabs the attention and respect of potential clients? Do you know what their hot-button issues will be in 2012?

Resolve to show more than tell

Clients want relevant information about your services and how they will drive objectives.  They need to be assured that bringing you in on a project will make them look smart to both subordinates and superiors.

Rather than just droning on about how wonderful you are,  show prospective clients what you can do for them.  Set up this process by doing some research on the organization and its mission and customers.  Get a working knowledge of how your expertise will be useful.

If possible,  tell a story of a similar project you’ve successfully worked on,  to paint a picture that helps the client visualize how what you do fits with their needs.  With that approach,  you may even be positioned to up-sell services they didn’t know they wanted.  Present yourself as a trusted resource who is there to promote the client’s interests.

Good luck with your resolutions and thanks for reading,

Kim

Business Strategy , , , , 11 Comments

Business Planning Resolutions for 2012

by

This week we’ll consider where you’d like to take your business,  what you’d like it to look like and how you’d like it to operate.  Every journey has a destination or goal.  The journey of your business should not be random;  it deserves careful thought and planning.  Reserve some quiet time to think about the journey of your Freelance venture.  You may want to start by reviewing where you’ve been.

Which kinds of clients and assignments give you the most fulfillment?  Which let your talents shine and/or bring in the most money? What competencies have you learned along the way?  What has taught you to become wiser and more confident?  What were your successes and what would you like to do better next time,  or maybe avoid altogether? Take stock and make a plan for the New Year.

Resolve to develop business goals and strategies

This sounds obvious,  but we all know that it’s very easy to get totally caught up in just trying to find clients and get paid,  getting tunnel vision.  We become like the hamster in a wheel,  busy–busy running in circles,  without giving adequate thought to our actions and following a road map.  As a result,  we can be going nowhere fast.

Start this year by nurturing yourself and taking time to reflect on what has transpired over the past year or two and acknowledging how you feel about it.  Did you set goals for your business? Were they realistic for you?  Which goals did you achieve and how did that occur?  Re-evaluate the direction it makes sense for your business to take and brainstorm strategies that you can enact  (alone or with the help of colleagues)  to bring it there.

Planning is the only way to create a successful business venture.  Set your direction and develop SMART goals :  Specific, Measurable,  Attainable,  Realistic and Time-bound.  Next devise strategies,  the path you will take to reach the goal.  Follow through with action plans  (with dates attached),  to keep you moving forward and on schedule.  Revisit your goals in three months and assess what is working,  what needs tweaking and what should be jettisoned.

Resolve to reaffirm your business model

The business model is the framework by which the business functions as a business:  the products and services that are offered;  by what methods,  in what location and by whom products and services are delivered to customers;  how the business will attract and retain customers;  the length of the sales cycle;  and how and when payment for products and services will be made.  Is your business model operating effectively?  In 2012,  take steps to ensure that your operation functions like a well-oiled machine.

For Freelance consultants,  the system of outreach to potential clients is often a sticking point.   Periodic review should be given to the products and services offered and how they are packaged,  presented, delivered and priced.  Talking with trusted clients is a good way to get feedback on your business model.  If you’re a LinkedIn member,  visit the Answers Forum and put questions out to your peers.  You will likely receive much useful information.

Finally,  review how you typically obtain clients and prospects.  Do you solicit them  (and how that happens),  do they find you  (and how that happens),  or do colleagues make referrals and introduction?  Which method has the best conversion rate?   What is the profile of organizations that have become your best clients over the past three years? Use what you learn about all of the above to buff up your business model and set the stage for a more profitable 2012.  New Year’s Resolutions will conclude next week.

Thanks for reading,

Kim

Administrative , , , 2 Comments

Business Finance Resolutions for 2012

by

Happy New Year!  Thank you for coming back in 2012.  The New Year is here and the time is ripe to take a fresh look at how you can bring more revenue and profit to your Freelance business.  The purpose of this blog is to inform and inspire readers to create the conditions that will generate a successful and rewarding Freelance consulting career.  Let’s get the ball rolling and look at how effective financial management promotes that goal.

Resolve to skillfully manage cash flow

Cash is king and cash flow is the life blood of every business.  Nothing flows unless the cash does.  Cash flow management means knowing how much money is expected to enter your coffers and when those checks are expected to arrive,  along with knowing how much money must be paid to creditors and when those checks must be sent. 

Even if you show a profit on your P & L,  it’s possible to have insufficient cash in hand to pay monthly bills and other accounts payable.  We all know that working as a Freelancer can be a cash flow nightmare,  so it’s vital to get arms around the accounts receivable,  or else sleepless nights will haunt.

Cash flow management actually begins in client meetings.  Once your project fee has been addressed and agreed upon,  diplomatically state that 15% – 20%  is paid at contract signing and that invoices are payable upon receipt.  Payment schedule for the balance will depend upon the length,  type and cost structure of the job. 

Whatever you do,  don’t allow more than 35%  of your fee to be payable at project conclusion  (unless it’s a small job).  Take steps to discourage the client from preserving his/her organization’s cash flow at your expense.  Write payment terms into the contract,  right along with the scope of your work,  deliverables and start date.

Resolve to get paid what you are worth

Establishing value and getting paid for same is the goal in every service business,  whether it’s teaching piano or being a nanny.  Your pricing strategy should reflect the value that your services bring to the client.  Needless to say,  pricing supports  cash flow and revenue.  To identify an appropriate fee range,  pricing experts recommend that you focus on four factors:

  • The perceived value of the services your provide
  • The demand for your services  (and your reputation as a purveyor)
  • What’s involved in the delivery of your service  (time = production cost = the Freelancer’s cost of goods sold)
  • Your mark-up / profit margin

Resolve to create and analyze the basic financial statements every quarter

Freelancers have a good idea as to how we’re faring financially,  because we either have the desired amount of money in the bank or we don’t.  We either have jobs in-house or we don’t.  We have either big jobs in or small jobs.  Like a balance sheet,  your bank statement provides the snapshot of your financial picture at a given moment.

There’s nothing like creating and then actually contemplating and analyzing one’s cash flow and income  (profit & loss)  statements to truly grasp your true financial picture and most importantly,  receive clues as to what would be advantageous for you to do about the business model,  sales and/or marketing segments of your consultancy.  Smart business decisions are invariably data-driven.

As you analyze your financials over the years,  you may identify regularly occurring busy periods and decide to hire temporary help or bring in a Freelance sub-contractor,  to give you another pair of hands at those times and allow yourself to make more money. 

Slow periods will likewise be identified.  You’ll be encouraged to find a way to either stimulate business during those times by incentivizing clients to hire you,  find temporary work,  find classes to teach (if that’s one of your competencies),  or engage in prospecting,  networking and professional development activities.

Next week,  I’ll return with more business-themed New Year’s Resolutions for 2012.

Thanks for reading,

Kim