Monthly Archives: January 2017

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Consulting: This Is How We Do It

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There are millions of Freelance consultants in the U.S. and our numbers continue to climb on a steep upward slope, fueled both by the reluctance of employers to offer stable full-time, benefits-paying jobs and the desire of workers to have more flexible schedules, whether single and childless or married with children.  There are different levels of Freelance consulting, from the one-off hourly paid short-term project to ongoing client relationships that may endure for several years.

Some Freelance consulting projects are very limited in scope: you are hired to design a brochure, build a website, facilitate a meeting, provide special event PR, or redecorate a living room. Other projects might start with a change management process that would benefit from the perspective and expertise of an external  professional and segues into implementation and training for impacted staff.

It is useful to break down the components of the consulting function because it will encourage us, its practitioners, to think about the sum total of what we do— the value that each component brings will remind us that the whole is greater than the sum of the parts.

Further, when we speak with clients or generate our content marketing information or traditional advertising copy, having the components of our work and good sound-bites at the ready will keep marketing messages and elevator pitches fresh and relevant and help us to communicate to clients that we understand their needs and priorities and we would make a good hire for their mission critical project.  Below is a list  of a consultant’s core duties.

  1. Provide information.
  2. Diagnose (and maybe redefine) the client’s problem.
  3. Provide recommendations for the short and long-term based on the diagnosis.
  4. Propose one or more effective solutions that will resolve the client’s problem.
  5. Assist with the implementation of the chosen solution to the problem.
  6. Suggest how the client can encourage and sustain internal support for the solution.
  7. Facilitate training or learning, to allow impacted staff to resolve similar problems in the future.

When we Freelance consultants are called in to discuss a possible assignment with a client, we may want to ask a few questions of the project team or leader, to allow us to gain insight and context; to help reveal one or more potentially useful solutions; and to make it more likely that the client will accept and approve your recommendations:

  1. What solutions have been implemented or proposed in the past and what was the outcome?
  2. Which untried steps toward a solution does the client have in mind?
  3. Which, if any, related aspects of the client’s business operation are not going well?
  4. When a reasonable solution is recommended, how and when will it be implemented?
  5. What steps can be taken to encourage buy-in for the solution, to assist its successful implementation?

Thanks for reading,

Kim

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A Superb Speaker Introduction

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Excellent public speaking makes those who have it appear both credible and smart and those who wish to obtain or maintain the appearance of authority and expertise are advised to cultivate the art.  Public speaking not only refers to s/he who makes a featured presentation—keynote speakers, guest lecturers, panelists, moderators, or the toastmaster at a social function—but also includes s/he who introduces a speaker.

An invitation to introduce a speaker is an honor and a vote of confidence and you would be wise to prepare for the occasion.  The introducer bears the responsibility of preparing the audience to respect the speaker and trust his/her information or story line.  If you receive an opportunity to introduce a speaker, keep the following suggestions in mind:

Show that you have the credentials to make the introduction

S/he who introduces a speaker must earn the confidence of the audience.  The leader or some other high-ranking member of the sponsoring organization usually introduces speakers, and earns that confidence by way of the authority vested in his/her position. Alternatively, a VIP speaker may be introduced by a similarly ranked colleague or guest VIP, who earns the confidence of the audience and as well conveys the importance of the speaker.  The guest VIP who introduces the high profile featured speaker will merit his/her own introduction and that will be given by a member of the sponsoring group.

Direct audience attention to the speaker

A speaker introduction is in reality a sales presentation and obtaining audience buy-in for the speaker and topic is your mission.  Your first order of business is to persuade the audience to be fully present in the moment. Typically, audience members are engaged in other activities in the intervening moments between speaker presentations, or as they await for the program to begin.

Some will be in conversation with those nearby, perhaps discussing the previous speaker or the program agenda.  Others will be focused on electronic devices, checking email, sending texts, or posting social media updates.  Your introduction must provide a bridge that transports the audience away from distractions and leads them to the subject of your introduction, the speaker.

A clever way to gain audience attention is to capture their imaginations with a rhetorical question related to the topic.  Consider opening your introduction with “What if…?“, “What is it about…?“,  or “Have you ever wondered how…?” The question will allow you to segue into the topic, which ideally will be perceived as compelling, to validate the audience member’s decision to attend.

Endorse the speaker

Now that you have the audience’s attention and confidence, it’s time to portray the speaker as an expert who is deserving of the audience’s time, attention and money (if admission was paid).  Put them in the mood to hear the talk by saying something like… “I first heard (the speaker) about three years ago, at a reading s/he gave soon after his/her book (title) was published.  I’ve been anticipating the release of this new book (title).” “I’ve heard more than one expert address our topic this afternoon, but I believe that (the speaker) gives the most comprehensive and clear representation of the facts…”

You may in addition give a build-up that precedes the above by listing awards and honors that the speaker has received, if applicable, or reading quotes about the speaker that have appeared in important publications.

Create intrigue and excitement about the topic

Tempt the audience with a smidgen of how the speaker will meet or surpass their expectations for the talk.  Read a sentence or two of an early review of the book that will be discussed.  Describe a useful piece of information that audience members will receive as they listen to the presentation.  Make them know that a worthwhile pay-off awaits.

The introduction

Continue to demonstrate that you make excellent speaker introductions by weaving the sense of anticipation into your actual introduction, perhaps in this way… “Let’s all welcome (the speaker) and let him/her give us the real story about what’s going on.” “Let’s invite (the speaker) to tell us what happens next in the ongoing saga of this character. Please join me and give him/her a warm welcome.”

Thanks for reading,

Kim

 

 

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How and When A Freelancer Should Collaborate

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Several years ago, I was one of four Freelancers who collaborated on the development and presentation of a half-day marketing and sales themed professional development conference whose target audience was in-house sales and marketing professionals who had the authority to hire Freelancers to manage special projects at their respective organizations.  Each of us would cover an aspect of sales or marketing (I agreed to present a networking workshop, another would present B2B sales training, etc.).

The conference was the brain child of an experienced and successful marketing services competitor. She invited us to participate, assured us that she had relationships with more than a few corporate clients and acquaintances, at least a few of whom we could count on to attend, and she ran the show.  Rather a lot of time was spent on planning meetings. A few hundred dollars was spent on production expenses: printing the promotional fliers, the room rental fee (we received a good discount at a fancy law firm’s conference room) and continental breakfast for the attendees.  We charged maybe $69 to attend.

We managed to draw an audience of about 30, a number that we considered respectable, but the corporate prospects failed to materialize, apparently because my marketing competitor hugely over-stated her client relationships.  The audience consisted entirely of people just like us—Freelancers who were trying to make themselves more attractive to those who control billable hours and who were hoping, no doubt, to meet a corporate marketer or two.

The whole thing was a complete waste of time and money because,  as we three along for the ride came to realize, corporate types do not feel the need to attend such programs. They are not looking to upgrade their skills at a conference hosted by a bunch of Freelancers.  They don’t even turn out for conferences hosted by their local chambers of commerce, despite the fact that most of their companies are members.  In fact, it has become increasingly difficult to meet them at all,  except perhaps in certain social situations or in board service.

Collaborating with carefully selected colleagues can open up doors to success that would ordinarily be closed and can result in good clients added to your roster and more billable hours added to your Income Statement.  However, there are questions that you would be wise to ask your prospective collaborators and also yourself, to increase the chances that the collaboration will be a win-win for all involved, including the client.

Can the collaboration achieve worthwhile goals?

Precisely, what valuable tangible and intangible assets will the collaboration produce for you? The project mentioned above was highly speculative and as a result, risky. Partnering with a colleague or two as a strategy to win the bid on a lucrative or prestigious assignment is less risky than creating yet another professional development conference.  Collaborating to chase rainbows is not what you want.  Collaborate to more effectively compete for a valuable resource, such as a project that exists and has funding.

What resources will the collaborator provide?

Collaborations are formed to bring together entities that have complementary skill sets.  A few months ago, I collaborated with an author to provide for her book content editing, serve as photo editor and perform self-publishing services that she preferred to outsource.  In exchange, I gained experience, added book editing to my CV and obtained (minimal) payment.  Collaborations should be win-win propositions and the project(s) on which you and your collaborator(s) partner should reflect Aristotle’s recommendation, that “the whole is greater than the sum of its parts.”

The trust factor

Collaborators must be able to trust one another for without trust, there can be no successful partnership. This is hugely important, because your reputation and client relationships, current and future, will be on the line.  If your collaborator(s) cannot or will not hold up their end, your brand can be damaged and unfortunately, you don’t really know anyone until you’ve either lived with or worked with them.  A discussion of the interpretation and practice of work ethic and customer service will give insight into the matter.

For example, if there is a big deadline looming, are collaborators willing to work and respond to emails on weekends, holidays and after 6:00 PM? How will collaborators respond to a high-maintenance client who emails at 9:00 PM on Sunday nights when there is no apparent emergency?

What will be the ROI?

The properly conceived and managed collaboration will allow the participants to offer additional services, exceed the client’s expectations, build good client and partnership relationships and enhance the possibility of referrals.  A good client will be added to the roster of each participant and billable hours that would not otherwise have been available will appear on Income Statements. The client will receive measurable ROI as a result of the venture.

Thanks for reading,

Kim

 

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Price Your Way To Profits

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Pricing your products and services is a critical element of a well-conceived marketing plan and appropriate pricing is integral to the development of a successful business venture.  The burgeoning field of behavioral economics reveals why certain pricing tactics work and how you can incorporate some of them into your pricing strategy.

Have an anchor baby

Your “anchor baby” can result in a positive outcome for sales and billable hours.  A cognitive bias called anchoring can cause us to perceive a lower-priced item as reasonable when it is viewed after we first see a higher-priced  version of a similar item. A $2000 item is perceived as a relative bargain after one has seen a similar version priced at $5000.  A prospect could be moved to envision him/herself purchasing that “bargain-priced” item.

Therefore, placing premium-priced products and services in proximity to the similar but lower-priced offerings that you hope to sell can potentially lead prospective clients to perceive the lower-priced items as providing real value, once they know that functionally similar items can be much more costly.

Zeros kill sales

In a previous post I discussed why, especially in retail sales, it is standard practice for merchants to list prices that end in .99 (or .98 and .95) and never .oo, because prices that end in zeros are often perceived by customers as being expensive, according to a study that appeared in the journal Quantitative Marketing and Economics in 2003  The Less Than Zero Pricing Tactic.  Yes, we really do think that $5.99 is cheaper than $6.00 and there’s still more downside to zeros— when pricing your services you should not only avoid listing, say, $3000.00, because you’re presenting too may off-putting digits, but you are also recommended to avoid listing your price on a proposal as $2995.00.  Prospective clients will feel better about your price when it’s expressed as $2995, according to the findings of a 2011 study conducted by the Society for Consumer Psychology.

Be a Lexus, more than a Toyota

A Vanderbilt University study demonstrated that customers are willing to pay more for a Budweiser beer in a fancy hotel bar than they would for that same Budweiser in a dive bar. Why? The economist Richard Thaler of the University of Chicago explains that the power of perceived prestige allows the luxury set to get away with charging higher prices. Freelance consultants (so much more classy and deserving than a mere Freelancer, no?) are advised to in various ways present cues that make the case for charging premium prices.

Let the value you bring be known to those who matter. Teaching at the college level and speaking at respected business associations showcases you as a thought leader and an authority.  Producing long-form content that appears in a respected print or online publication, monthly newsletters sent to your email marketing list, or weekly blog posts that draw your followers also adds to the perception of your expertise and as well brings your writing skills to the forefront. The design and content that appear on your website should present you and your entity in a way that communicates competence and good taste, as should your business card and client invoice template.

The organizations of which you are a member, the quality of your clothing, where you vacation, the books you read, how you socialize and the boards on which you serve (along with the related committee activity) also enhance your reputation and reflect on your brand.

How to raise your prices

Weber’s Law (1834) indicates that your clients will probably accept a 10% price increase of the products or services purchased from you and some may not even notice the change.  You already know that other factors can impact your ability to raise prices, including supply and demand, the urgency of the need for your product or service, the presence of competitors and the perception of the value of your brand.

Thanks for reading,

Kim

 

 

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Launch 2017 With Strategic Planning For Your Business

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Happy New Year! My wish for all my readers is that 2017 will be filled with good health, good choices and prosperity and a year where you recognize opportunities and successfully move forward to attain what will benefit you.

Part of the process of realizing your goals may involve strategic planning. The process of strategic planning encourages business leadership teams to ask (the right) questions about the value that the business creates and sells at a profit, which is a reflection of its vision and mission.  The goals, objectives, business model and guiding principles (that is, culture and values) are likewise impacted by the organization’s vision and mission. Below are six strategic planning and positioning principles to enhance your planning.

Principle 1:  Sustained profitability

Economic value and the conditions for generating profits are created when clients value your product or service enough to pay more than it costs the business (you) to produce and provide it.  Strategic planning is all about Defining  business goals and objectives and devising strategies and action plans with the thought of ROI, in particular long-term ROI, in mind.  Assuming that profits will be inevitable when sales volume and/or market share are the most accurate measurements of success is not the best way to approach the matter.

Principle 2: Value proposition

First, be certain that what you consider to be the value proposition—that is, the most desirable benefits—matches what clients consider to be the value proposition. Be aware that strategy is not about offering services or products that will be all things to all prospective clients.  Businesses are in need of strategies that allow the venture to compete in a way that allows it to effectively and efficiently deliver what clients consider the value proposition.

Principle 3: Competitive advantage

The unique and desirable benefits that sustain the value proposition must be reflected in and supported by strategy that shapes them into a sustainable competitive advantage.  The successful enterprise will differentiate itself from competitors through the products or services offered, how those are packaged and/or delivered, customer service practices, branding, pricing and so on; those unique features and practices will matter to current and prospective clients.  Still, the company’s business model will likely resemble that of its rivals.

Principle 4: Choices and priorities

Resources are inevitably finite and choices about your products and/or services must be made, in order to define what is necessary and possible and therefore, a priority.  Some  product or service features will not be offered, so that the benefits (priorities) that clients have chosen as highly desirable can be optimized.  These priorities are what sets the business apart from competitors and define the brand.

Principle 5: Flow

Choices and priorities must be baked into the strategies that you and the leadership team devise, to enhance and enable the consistent  delivery of the value proposition. These strategies will be both stand-alone and interdependent, like dominoes.  Choices made to define the target customers that the business will pursue also impact product design and by necessity will impact choices that determine the manufacturing process and its cost.  Choices that determine what will be included in a service will be influenced by the expected target customers and will impact how that service is delivered and priced.  Choices about product positioning and branding will impact where the product is sold and the marketing strategy.

Principle 6: Direction

The late style icon Diana Vreeland, who served as editor-in-chief at both Vogue and Harper’s Bazaar Magazines, once said that “elegance is refusal.” A company must define its unique value proposition and that will eventually cause certain potential choices to be declined, because they are contrary to the brand.  The product or service lines can be altered to satisfy customer demands over time and business models can be adjusted to reflect current or anticipated market conditions.  Nevertheless, the vision and mission must be upheld to maintain brand awareness and trust. Strategic direction will guide that process.

Thanks for reading,

Kim