Monthly Archives: April 2017

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Why Won’t the Client Call You Back?

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You were thrilled to be invited to submit a proposal for a project that will bring in a good amount of billable hours wrapped in a most respectable fee structure.  In the meeting with your prospective client, you asked all the right questions–

  • Confirmation of the decision-maker, s/he who can green-light the project
  • Details of the project timetable and deadline
  • The approximate start date
  • The value of the project outcomes and deliverables to the organization
  • The project  budget

You have every reason to believe that the project is legitimate and that there is organizational money and motive to get it done.  You may have worked previously with this client and you relish the prospect of working with him/her again.  Or, you’ve not worked with this client before and the project represents a step-up for you.  You can’t wait to add this brand enhancing and validating client to your roster and you plan to do whatever it takes to exceed expectations and become a preferred vendor.

Because you met with the project advocate and decision-maker, your comprehensive and professionally presented proposal is essentially a confirmation of what was discussed and agreed upon.  The deliverables and deadline are confirmed.  Your proposed financials are within budget.  You’ve submitted on time.  You were told when the answer would be given.

But uh, oh, that date passed three weeks ago and you are now tense with worry.  Where are they?  You try sending a diplomatically written email, but receive no reply.  A week later you call the project advocate and s/he has stopped answering the phone, regardless of when you call, early or late.  In resignation you leave a voicemail and of course, there’s no reply to that, either.

Why do clients play these passive-aggressive games? What the hell are they made of? Here are some behind-the-scenes reasons that will let you see the other side and I hope, avoid feeling like a failure and a fool.

  1. There’s no answer yet

Just because your prospect told you that s/he is the decision-maker does not mean that s/he is the sole decision-maker.  Group decisions are the norm.  Your prospect is most likely one of three or four “decision-makers,” the one who is assigned to speak with all vendor candidates, or maybe just one or two.  Alternatively, your prospect may be one of several team leaders who at the end of the month (or whenever) sit down and review all pending projects and discuss proposals received.

Depending on what is going on at the organization, the team leaders will agree to move forward on certain projects, delay one or two and put the remaining on hold.  Your prospect may advocate for funding, but a project that is more urgent, or more favored by other team leaders, could overrule your prospect and kill your project.  Your project advocate will speak with you only when a definitive answer can be given to you.

2.  Waiting for a favored vendor

One of the group of decision-makers may have the power to push in a vendor candidate with whom s/he has worked previously (and who may have the inside track).  That vendor candidate might be a late entry and no decision will be made until his/her bid is received and reviewed.  One of the vendors might have a powerful friend on the decision-making team and that friend plans to push his/her preferred vendor candidate into the project (whether or not that vendor is the best qualified, or offers the most competitive price).  Your prospective client is too busy politicking to speak with you.  S/he would like to say yes, but a battle must first be won, s/he hopes.

3.  Your decision-maker advocate has had an unexpected emergency 

Things happen.  An unexpected problem or opportunity may draw your advocate’s attention away from your project, which is no doubt #1 in your life, but is only one of many possibilities that exist in the constantly shifting landscape that is the new economy.  Short-term priorities and putting out fires are the order of the day.  Your prospective client is too busy to speak with you.

4.  An unexpected loss of support

Second-guessing is practically an Olympic sport in organizations today.  I’m sorry to say that it doesn’t take much to pour cold water on a project and reverse a decision that once earned the favor of the decision-making team.  It could be that the heaviest heavyweight on the team, when all is said and done, does not feel that the project ROI is worth the investment of time, staff attention and money.  Your advocate and perhaps others may believe in the project and they’re scrambling to keep it alive and included on this year’s calendar.  Your project advocate is too embarrassed to talk; s/he feels humiliated and powerless.

5.  Project funding may not yet be officially awarded, or has been lost

Your project advocate and prospective client may have spoken too soon about the availability of an adequate budget for the project.  There could have been a last-minute decision to fund another project that is now perceived as more important by one or more of the decision-making team.  Maybe a project that was previously put on hold will now be given the green light?

Your advocate must now 1.) Confirm if there will be available money in this fiscal year, or the next, and 2.) Confirm the amount of money that will be earmarked for your project.  Your prospect is too frustrated to speak with you now; s/he has lost face.

6. Your proposal was used to get pricing info and to create a budget

Sometimes a Freelancer gets no respect and it’s a terrible thing.  Prospects who are not ready to commit may nevertheless wonder how much it would cost to get a certain job done and so they’ll seek out a Freelancer or two and request a proposal.  They ask Freelancers who they don’t know.  Avoid sending a proposal to an unknown “prospect” who mysteriously sends you a Request For a Proposal The Unexpected RFP .

7.  You were not awarded the project

Your proposal was not selected and the prospect who was not meant to be wants to avoid disappointing you.

Thanks for reading,

Kim

 

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Spring Training: Perfecting Your Elevator Pitch

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We get only one chance to make a good first impression and beyond the visual presentation that your clothing and accessories communicate, followed by how you greet those that you meet (with a pleasantly firm handshake, friendly eye contact and a warm smile), what you say means a great deal.

In business-related gatherings or meetings the direct communication of your elevator pitch must grab the attention of the listener, inspire confidence and entice him/her to want to hear more.  Your elevator pitch is a sales technique wrapped in a conversational tone that piques the interest or even curiosity of the prospects, referral sources, investors, or strategic partners that you meet and entices them to want to know more about you and what you do.  Your elevator pitch is Step 2 in the process of meeting and winning over a VIP (getting the meeting is Step 1).

An elevator pitch (or elevator speech) is your official business introduction.  In it, you state what you do, for whom you do it and the outcomes and/or benefits that you provide to your clients, all in about 30 seconds.  As the story goes you step into the elevator, encounter someone who would like to know who you are and you roll out your spiel between floors.

A well-designed and delivered elevator pitch answers the (unspoken) question, “What can you do for me?” If good luck is on your side, you’ll have a business card handed to you, with a request to call that afternoon at 5:15 PM.  Your elevator pitch should address at least three of the following points:

  • The problem or need that you solve, i.e., the purpose or mission of your venture.
  • Identify your usual or ideal target clients (for-profit, not-for-profit, life sciences professionals, B2B, B2G, Fortune 1000, etc.).
  • Identify one or two of the primary results that your organization provides.
  • Name one or two of the primary benefits that your clients receive as a result of your services.

Depending on what you do, your (heavy-hitting) client list, the person or group that you’re addressing, or your mood, don’t shy away from getting a little bold about the value that you bring.  Even introverts can step up in their own quietly determined way.  If you have some credible (and demonstrable) metrics to attach to the outcomes and results that you produce, so much the better.  That is, if you can truthfully say, for example,  that 9 out of 10 of the marketing campaigns that you design for clients are routinely associated with a 15% increase in top line (gross) revenues within a 12 month period, then include that information in your elevator pitch.

Alternatively, you can keep your pitch very stripped-down and simple and state something like, “You know when this (problem or need) crops up? I fix it.”

Ideally, whoever you’re speaking with will want to hear more but if s/he doesn’t give much of a response, that means you are not speaking with a prospective client and it’s useful to know that up front.  Your elevator pitch will separate the wheat from the chaff and help you recognize who deserves your time and who does not.

If you’ve delivered a good elevator pitch that portrays you as a knowledgeable and trustworthy professional, you may get a client or you may get a referral.  You could also get an invitation to appear on a panel, speak at a business association meeting, or an inquiry about your teaching skills.  An effective elevator pitch is an integral component of the first impression that you make.  Be certain that what you say communicates your brand in the best possible way and it will open doors for you.

Thanks for reading,

Kim

 

Professional Development , , , Leave a comment

The Power of Listening

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Recently, I attended a reception at the women’s club where I’m a member.  When I attend programs, I make it a point to circulate and talk, usually joining three or four tables over the course of an event.  I’ve been fortunate to participate in dozens of conversations, meaningful and superficial, and I’ve formed some good relationships.  When in conversation, ideally, I listen more than I talk. That ebb and flow is the subtle dance of communication.

While in conversation, learning to keep one’s mouth shut and ears open, so that you can focus attention on the person who is speaking, requires mindfulness and discipline.  So often we do not really listen, we only pause, to formulate an answer that will help us win a debate or demonstrate expertise in the topic.  Conversation can become a game of one-upmanship, when we’re more interested in being clever, or seeming to be very wise or au courant.

When you take the time to listen, the ego must be set aside as you signal the unique value of the other person by allowing him/her to express thoughts and feelings, insights and knowledge.  You may appear to be passive but in reality, listening well is quite active.  When we listen with intention, most of our senses are activated.

We watch facial expressions and detect happiness, distress, interest, or boredom in the eyes and mouth and even the posture.  We hear the cadence of speech, the choice of words used and the tone of voice.  In this way, we take in the story as it is told and we begin to understand the other person’s values, worries, joys, competencies and humor.  Listening with conviction is the highest compliment that one can pay to another human being.  When we listen, we get to know people and build relationships.

Careful listening also allows you to grasp what a person does not say and that could be very revealing.  Hone your listening skills and learn to “listen between the lines,” so that you can more fully understand the motivations and perhaps hidden agendas of those with whom you interact.  Listen and get a sense of who is telling the truth and who is hiding behind a facade.  Whether you are in a negotiation with a client, interviewing a job candidate, or at dinner with someone you wonder if you should see again, listening well will guide your next steps.

Listening skills are a key ingredient of selling skills.  Listen carefully to your prospect and learn what is most important to him/her and then describe how your product or service will resolve the need and eliminate difficulties.  If you are a Freelance consultant who is interviewing with the hope of winning an assignment Dave Mattson, CEO and president of Sandler Training, the sales training firm, recommends that you get straight to the point and ask what three criteria define success for the project and then listen, and truly hear, the answer.  You will quickly discover whether you are a good fit for the project and what you must say and do to win it.

Finally, listening will allow you to adjust your style of communication to align with the person you are speaking with and that is a very important part of building trust, demonstrating proficiencies, telegraphing empathy and being persuasive, the building blocks of both good relationships and effective selling.  Essentially, your heightened listening will allow the two of you to speak the same language and that is the heart of effective communication.

Thanks for reading,

Kim

Administrative , , , , Leave a comment

LLC vs. S Corp: Which One for Your Company?

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At any point in the life of your business venture, you may choose to create for it a separate legal entity.  Creating a separate entity is essential for those businesses where the potential for liabilities associated with normal operations is an issue.  There are also potential tax advantages that derive from the establishment of a separate business entity.

There are two categories of business legal entities: corporations, Chapter S and C, and Limited Liability Company (LLC). Corporations are tax structures and are regulated by the federal government through the IRS.  LLCs are created and governed by the states.

Founded in the state of Wyoming in 1977 and now available in all 50 states plus Washington, D.C., the LLC is a comparatively more lenient structure than either the S or C Corporation and for this reason, it is the preferred entity for the majority of small businesses and Solopreneurs.  Unlike the S Corp, LLC members, as they are called, are unrestricted in number and are not required to be U.S. citizens nor must they reside here, with the exception of the Registered Agent, who receives official correspondence such as tax and legal documents on behalf of the entity and must reside in the state where the LLC was formed and operates.

Multi-owned LLCs are advised to develop an operating agreement (not required in all states) that along with the percentages of member ownership also specifies member titles and responsibilities, such as Managing Partner and Registered Agent.

In the LLC, whether single or multi-owned, all business income and expenses “pass through,” meaning they are reported on the members’ tax forms.  There is no double taxation of business and personal income for single-owner LLCs, but multi-owner LLCs must file U.S. Form 1065 Return of Partnership Income to report profits and losses.  All LLC owners must pay the self-employment tax, due quarterly (multi-owners pay on their share of entity ownership).

Real estate investors will find that the LLC is the only available legal entity option that allows passive income (rents) to exceed 25% of gross annual revenues.  A big added bonus of real estate LLCs is the ability to create a separate LLC for each property owned, thereby shielding the owner(s) and other properties held from cross-liabilities.

A drawback for owners who plan to attract investment partners (as opposed to those partners who operate the business) is the lack of stock, preferred or otherwise, and this represents a deal-breaker for venture capitalists, who do not invest in businesses structured as LLCs.  Even smaller investors prefer stock certificates to LLC member shares.  A positive for this structure is that it’s much less expensive to set up than are corporations, costing just a few hundred dollars for the filing (plus the initial set-up fee charged by your accountant or attorney).

If you are considering establishing a legal structure for your business, consider your plans for business growth and also your exit strategy as you do.  Growth may cause you to seek money partners, which could point you in the direction of the S Corp.  If you see venture capital or an IPO in your future, then only a C Corp will do.  If you might want to sell your company to employees as your exit strategy, or if attracting key C Suite level talent to your team would also point you toward the corporate structure, so that stock can be offered as an incentive.  If some of your business partners live outside of the U.S., or if acquiring real estate holdings is your business model, then only the LLC will be allowed.

It is strongly recommended that you consult with a business attorney or accountant before you file legal entity paperwork at the Secretary of State’s office.

Thanks for reading,

Kim