Monthly Archives: July 2023

Sales , , , Leave a comment

Virtual Mode Selling Asks You to be Mindful

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When you have a product or service to sell, it’s important to connect and communicate in formats that are convenient and comfortable for your prospect. As we discovered in the early days of the coronavirus shutdown, face2face In Real Life conversations cannot always be arranged. In March and April 2020, you took your first clumsy steps into videoconferencing. Once in a while, you leaned into telephone meetings, one-on-one conversations and group conference calls, too.

You did your best to maintain business as usual (under very unusual conditions) and that included talking with prospects about how your solutions might be of service in COVID era business conditions. As you continued to schedule virtual sales calls and other types of negotiations, it became apparent that the distance inherent in videoconferencing (and also phone calls) presents an obstacle to sensitive conversations. It’s so much easier to to connect with your prospect when you’re sitting in a room together. When in a face2face conversation, you’re more adept at conveying empathy for your prospect and showing your grasp of his/her situation. You instinctively know how to create trust that will nurture a good relationship and encourage the sale.

Virtual mode team meetings are one thing but selling, what with the nuance and expertise required to handle objections in a way that reassures and the diplomacy that supports you during price negotiations, can be rather a challenge. Selling is selling, whether you and the prospect are hashing through details while across the desk from one another, or while you try to make eye contact with a video image, or maintain your focus while speaking to a disembodied voice on the telephone. It’s just that you would be wise to remember that your approach to virtual mode selling must differ from face2face discussions.

Virtual communication requires a pronounced shift to a client-centered perspective. An intentional strategy on your part is needed to more effectively reach across the digital divide to establish rapport and build trust. Below are five actions you can incorporate into your virtual sales calls to show prospects that you understand their needs, priorities and concerns and enable them to feel secure as you guide them through the sales journey.

Lead with empathy

When prospects demonstrate interest in your product or service, perhaps by responding to your inbound marketing, it’s because they need a solution that will solve a problem or enable a goal to be reached. Descriptions of your product or service have aroused curiosity. They hope you’ll understand what they need to do and how to efficiently get it done. Demonstrate both empathy and business acumen by asking questions to show you intend to understand their needs and propose a credible solution.

Employ active listening

It’s been said that the most successful sales professionals devote as much as 80% of their sales conversions to asking questions of the prospect and listening to the answers. The best way to persuade prospects to become clients is to create conditions where they feel seen, heard and understood. You do that by listening more and talking less. When in doubt, or to confirm your understanding of the situation, ask more questions. The more carefully you listen, the more sales you’ll make.

Become the trusted adviser
Your would-be clients are in need of a solution, but they won’t buy until and unless they trust you. The worst move you can make is to get someone on your screen or on the phone and make it obvious that your motive is to rope them into a fast sale. No one wants to have a sales call with someone who just wants to “close” them and maybe even trick them into spending money on a solution that’s not the best and costs more than it should.

Serious prospects want an advocate — a smart, dependable adviser whom they can grow to trust. Prospects, whether they consciously realize or not, want to do business with a professional whose primary intention is to be of service. They back away from those who are too hungry for a sale.

Exhibit the behaviors referenced above and direct them to help you understand the prospect’s need, earning trust and building a relationship as you come to understand how you can be of assistance—-ideally by providing them with the right solution at the right price. A 2019 study published by Gartner Peer Insights found that customer perceptions of a sales professional are a critical element of purchase decisions. Customers are motivated to spend on purchases that support business growth when they feel their sales contact is a trusted adviser who boosts their confidence in their purchasing decisions.

Emphasize outcomes and benefits

The best sales professionals focus heavily on the solution’s outcomes and results, often by painting a vivid picture of how the prospect’s working environment will benefit when the solution is implemented. Prospects want you to take the lead, figure out what’s going on and tell them why your solution will work, without getting bogged down in minutiae. What really matters to prospects is, “How will my life be different after we work together? Will this project be worth the pain—i.e., time and money—-of hiring you”?

Moderate your tone of voice

It’s not only what you say, but how you say it. You’ll be most comfortable speaking in your natural vocal tone, but it may be to your advantage to adapt it for virtual formats, just as you do for speaking to an audience. You don’t want to sound timid and apologetic, but neither do you want to be perceived as arrogant or intimidating.

The ideal tone of voice for virtual (or face2face) presentations is warm, businesslike, confident and straight to the point. Your tone of voice and the pace of your speech should convey a sense of expertise, authority and trustworthiness to your prospects. Use your smartphone to record yourself reading a paragraph and play back to critique your pace, tone, elocution and relatability. Your goal is to find a way of speaking that is both authoritative and friendly.

Thanks for reading,

Kim

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Close- Up: Revenue and Profit

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Does the thought of managing finances more complicated than your household budget fill you with fear and loathing? You are not alone! Many share that sentiment but in the world of Freelancing, getting your arms around the management of company finances comes with the territory. Outsourcing your bookkeeping and accounting functions can be a smart move that allows you to focus on client acquisition and retention or other things that only you can do, for example, but you cannot afford to be in the dark about what’s happening with your money. You can’t plan and execute a marketing campaign or an expansion strategy until you know how much money will be available to carry it through.

You can ask your bookkeeper or accountant to suggest a reasonable budget for your plan, but it’s better if you have the answer before you ask the question. In order to know how much money you’ve got, you’ll need to get comfortable with reading your Income Statement, also known as the Profit and Loss (P&L) Statement. The P&L details all the money that is earned (sales revenue) and expenses paid, e.g., rent, utilities, professional association dues, or payroll.

Financial management is a big topic so today we’ll limit our focus to money that comes into the business—revenue—and the money that remains after expenses are paid—profit. The two categories are very similar and are frequently used interchangeably by those of us who are not accountants or bookkeepers, but there is a subtle difference between the two and it makes sense for Freelancers to grasp what each term says about your entity.

Revenue

Revenue is money generated through the sale of products and services plus other money-making activities that take place within the business. The initial tally of revenue indicates what’s been generated before expenses are deducted. Calculate revenue by using this equation:

Revenue = Price x Quantity sold

Sales generated when clients pay for your products and services, along with other income streams if applicable, is classified as revenue derived from normal business operations. However, since a business may generate revenue from different sources (income streams) it’s useful to consider each line of business separately, so that you can scrutinize how each performs. When you separate revenue by source and type you’ll quickly see which is lucrative and which is lagging—and you’ll be positioned to make smart business decisions.

So if you begin to regularly teach a class in addition to your Freelance consulting work, you can record that revenue separately, as it’s own income stream. If you also sell a tangible physical product in addition to your intangible B2B services, you can record revenue from your tangible products and intangible services separately. Or maybe you own a restaurant? If so, you’ll separate and analyze each revenue source by categorizing your menu offerings: side dishes, main dishes, appetizers, nonalcoholic and alcoholic beverages.

As well, you can separate your revenue into operating and non-operating sources. Operating revenue represents sales from a company’s core business. For instance, in a restaurant, operating revenue is derived from the sale of food and beverages to customers.

  • Annual Recurring Revenue

Another category of revenue that you would be wise to record and examine separately is known as annual recurring revenue (ARR). ARR is revenue that is associated with subscription agreements or other contractually dependable, expected revenue streams. Documenting ARR is critical because it provides companies with a predictable revenue stream. There is nothing sweeter than money you can depend on!

  • Non-operating Revenue

Non-operating revenue is sort of like selling an add-on—it’s revenue earned from sources outside of the primary (core) function. So in your hypothetical restaurant, non-operating revenue might represent sales of loyalty program cards, gift cards, branded T-shirts, or mugs, for example. Non-operating revenue might be unpredictable or mostly seasonable (associated with Valentine’s Day, or whatever) and is considered nonrecurring. Selling an asset is also categorized as non-operating revenue. Maybe you bought a non-fungible token (NFT) art work that’s now worth big money and you’ve decided to sell?

Revenue vs. Income

For an intermezzo we can also consider income, which in the world of accounting is distinct from revenue, despite the obvious similarities—-both categories mean money in your pocket. Recall that revenue represents money earned from core business operations, that is, the sale of your products and services and also ARR and money classified as non-operating revenue. Income is the money that (thankfully!) remains after all fixed (operating) and variable (sales, marketing, professional development, etc.) expenses have been paid. Income has more in common with net profit, or earnings, than with revenue.

Profit

Profit describes the total gain (or loss) of money that a business has at the close of the period (e.g., month). As is the case with revenue, there are various aspects of profit to calculate and consider. Gross profit, operating profit and net profit are three metrics recorded on your P&L Statement. In general, profit is calculated by subtracting the total fixed and variable expenses, taxes and calculated amortization and depreciation values from total revenue. Calculate profit by using this basic equation:

Profit = Revenue – Expenses

  • Gross profit

The amount of money brought in from the sales of products and services, minus the acquisition or manufacturing costs of the products or services that were sold, is known as gross profit. The number reflects the Cost of Goods Sold (product or service acquisition or production costs, including direct labor) but does not reflect the impact of fixed or variable expenses. Calculate gross profit by using this equation:

Gross Profit = Revenue – Cost of Goods Sold (COGS)

The interim assessments of profit, in addition to gross sales revenue (also called the top line) allow you to scrutinize the numerous expenses incurred between the top line (gross sales revenue) and the bottom line (net profit) and expose points of profitability weakness (i.e., worrisome expenses) in the acquisition or production of the solutions you sell, all of your fixed and variable costs and even taxation, of your business. In fact, if your top line number is strong but your bottom line number disappoints, an adjustment of COGS or fixed or variable expenses could remedy the problem.

  • Operating profit

Operating profit is the next step in the P&L progression toward the big reveal that is net profit, the bottom line. It’s similar to gross profit but includes three more categories of expenses. Calculate operating profit by using this equation:

Operating Profit = Revenue – COGS – Operating Expenses – Depreciation – Amortization

Depreciation and amortization are also values you’ll want to understand as one who manages money, even if you outsource to a bookkeeper and/ or an accountant. Depreciation reduces the actual value of equipment or vehicles due to time or use—wear, tear and age. This calculation puts a numerical value on the asset’s cost versus its operating and residual value.

Amortization refers to the value of intangible assets, such as patents or trademarks and is calculated in the same way that depreciation is calculated. Both of these accounting methods exist to spread out the cost of assets over their useful lives and provide a more accurate picture of a company’s expenses and profits.

  • Net profit

Net profit is the final assessment of actual profit and it’s calculated by subtracting all fixed and variable expenses, plus taxes, amortization and depreciation, from your total revenue. Net profit illustrates the overall health and profitability of the entity. It is the final word and is found on the bottom line of your P&L Statement. You can calculate net profit by using this equation:

Net Profit = Gross Profit – Total Expenses – Taxes– Depreciation – Amortization

Differences between revenue and profit

These very similar values are calculated in different ways and each tells a somewhat different story. Revenue reflects your company’s sales and market share growth. Profit is the company’s indicator of financial health. Another difference between these two values is the potential for fluctuation throughout the year. Revenue is prone to fluctuate from month to month because it is subject to marketplace demand which, for example, can be seasonal. In contrast, profit tends to remain more stable over time.

Finally, net profit earnings may also be known as net income or net earnings. Net earnings may be the most important number on your P&L Statement not only because it comprehensively shows the company’s total earnings performance but also, the value is carried over to your company’s Balance Sheet and Cash-Flow Statement.

Thanks for reading,

Kim

Administrative , Leave a comment

Get Aboard Your Onboarding!

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Signing a new client, or welcoming one who has returned, is a real vote of confidence. Winning a client’s business is a victory that validates your decision to become a Freelancer but as you know, bringing in a client is just the beginning. Before you take on the tasks specified in the contract, it makes sense to introduce your client to the next phase, beyond the sales process—the working relationship, where you show your bona fides and live up to your brand promise. Your client will feel even more confident in the decision to do business with your organization when you:

  • 1. Provide a coherent introduction to and efficient launch of the working relationship
  • 2. Reiterate the value that the client will receive from the product or service that was purchased
  • 3. Show the client how to get started with the product or review how your organization will begin to implement the service

You have a unique opportunity to achieve all of the above (and more) within the sliver of time between the contract signing and initiating the working relationship between your organization and the client’s. Onboarding facilitates that opportunity. It is how you formally welcome new clients, acquaint them with your organization and demonstrate that they are in capable hands. Onboarding reassures new clients by letting them know what to expect when working with you and your team. Onboarding can also be used to allow new clients to get comfortable with using your product or understanding how your service will operate.

Onboarding isn’t just about pleasing clients, however. It’s in your interest to skillfully deliver a seamless experience, from the first pre-sale touchpoint through the post-sale stage. Onboarding is a critical function and your organization must get it right. Do that and you set the stage for successful, long-lasting client relationships that will reflect well on your brand, promote client retention and create conditions that grow your client list and revenue.

Onboarding strategy

For the same reasons that you wouldn’t launch a marketing campaign without first creating a strategy, your onboarding process likewise deserves careful consideration. Because there is both an obligation and opportunity inherent in onboarding, it’s imperative to have a clear purpose for your objectives and desired outcomes. You need a roadmap for where you want onboarding to take your client and envision how that should proceed. Build an onboarding strategy that is specific to your product or service and the client.

Onboard to set expectations

While you made clear to your client the features and benefits associated with the product or service that was purchased, it’s nevertheless a great idea to reiterate during the onboarding process the value that the product or service provides to your clients and it’s also wise to prepare them for potential setbacks that could confuse or frustrate. That way, should they encounter a bump in the road, they’ll be able to take it in stride and not label a sticky point as failure.

Welcome email

Your first correspondence with new clients should be to congratulate their purchase and thank them for choosing you over the other options. Let clients know that you’re delighted to work with them. You can include a request for client information in your email, as shown below.

Client information

Once a client has agreed to work with you, it’s time to collect all the information you need from them to do the job. Consider automating this function to make it easier for and to demonstrate that your organization is tech-savvy. With the right form-building tool, you can quickly create and share digital forms that guide clients through the process step by step. The best tools allow you to add context to submissions via embedded video, text or attachments. They also allow you to send automated reminders for missing info. The info you might request or confirm includes:

  • Client contact information
  • Project details and goals
  • Project completion target date
  • Budget
  • Point of contact for client’s team and your team
  • Schedule a face-to-face meeting or videoconference call with your new client

Recognize onboarding as an opportunity to create a personalized experience for new clients. Each customer has a unique set of concerns and the more you tailor your solution to their needs, the easier it will be to nurture customer loyalty.

Confirm milestones, invoicing, payment format

If an electronic invoice payment system will be used, the client will send the payment registration form to you. Review of the scope and timing of the project deliverables, plus the associated payments or other payments can be discussed at the project kick-off meeting. Also on the kick-off meeting agenda are a confirmation of the project or product performance goals, client expectations for the product or service and ideal outcomes for using the product or implementing the service. You and the client can then discuss how you’ll work together to make them the client’s goals and expectations actionable and achievable.

  • Review and confirm project milestones
  • Review and confirm payments triggered when milestones are achieved
  • Review and confirm the invoicing schedule, if milestones are not used
  • Confirm the accepted payment methods—digital, credit/ debit card, check (electronic or physical)
  • Integrate info with your Client Relationship Management software (if applicable) to capture client data
  • Allow clients to view, comment on and sign e-documents

Check-in call

Although check-ins fall under the heading of a best practice, they should be a feature of your onboarding process. Your new client should feel like you care about his/ her progress and satisfaction with the performance of the product or service. Schedule a check-up call 30 days after beginning to work with a client. You want to make sure that no one has dropped the ball during the onboarding process and to ensure that everything is running smoothly on their end. Make it your practice to periodically check in to see whether and how your client is getting stuck, if that is the case, and either offer advice or assistance or—-happy day!—- celebrate success.

Thanks for reading,

Kim

Image: The Venice Simplon-Orient-Express, the most luxurious train in the world, travels from London or Paris to Istanbul.

Professional Development , , Leave a comment

Summer Reading List 2023

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There are so many reasons for you to sit down and read a book. Reading is a pleasure, an adventure and an education. Books expand your horizons, awaken your creativity and stimulate your intellect. Reading shows you exciting possibilities, warns you with cautionary tales, challenges and enlightens you with new information and introduces you to alternative points of view. Books open whole new worlds for you.

Reading is also good business, whether you own the enterprise, preside in the C-Suite, or hustle in an entry level position, from barista to call center help desk. Reading is integral to building and maintaining the scope and value of your skill set and for that reason, reading books is integral to professional development. The books you read—in particular business books, but might include history, philosophy, psychology, semiotics, or other disciplines—can strengthen your analytical, problem-solving and creative outside-the-box thinking skills.

No matter how successful you’ve been in your business or career, no matter the educational degrees and professional certifications you’ve earned, regardless how amazing the team you collaborate with, you are destined to encounter challenges as you progress through your working life. You may find the answer to your dilemma while reading a book. Whether your book describes the grit and timing needed to launch a business, provides insight into how you can expand and grow your enterprise, or explores the art of leading or managing teams or organizations, there are books that will teach you to recognize and overcome obstacles and coax the best performance from your team and yourself.

The books included here are appropriate for every stage of your working life. The authors are people who’ve experienced obstacles in the business world and lived to tell the tales. Who better to learn from than someone who has already conquered the difficult predicament you’re facing now, or will encounter in the future?

Start With Why Simon Sinek (2009)

Sinek explores a way of thinking, acting and communicating that cultivates your ability to rally and inspire those with whom you work and interact. A defining behavior of that charismatic quality is demonstrated when you ask yourself (and your collaborators) why? When there are important choices or decisions to make, starting with the deceptively simple question why—-why is this matter important? why should we attempt to resolve the issue in this way?—-has the potential to put you on a path that will result in better answers, better strategies and, by extension, will allow you to achieve more fulfillment in your work and your life.

Leaders in organizations who have the courage to ask why—and question common assumptions, behaviors and practices—typically thrive even when others around them are failing. Often, their why is well articulated and forms part of their identity as it informs the reasons that people do the things that they do. Great leaders and visionaries have a powerful why and they invite others to explore it with them.

https://www.barnesandnoble.com/w/start-with-why-simon-sinek/1016513563

The Personal MBA Josh Kaufman (2010)

The Personal MBA delivers need-to-know information from that which MBA programs consider fundamental, from the five elements of business to the 10 ways to evaluate a potential target market and in the process, the book saves you the time and money involved in earning the formal degree. The Personal MBA breaks it down and helps you understand functions that are essential to business success—from finance to sales, marketing to operations, to the nuances of psychology, motivation and teamwork, to creating systems. Kaufman distills everything you need to know to transform your business, or your career.

https://www.barnesandnoble.com/w/personal-mba-josh-kaufman/1102823220

The Power of Geography Tim Marshall (2021)

Marshall explores 10 regions that are positioned to shape global politics in a new age of great-power rivalry—Australia, Iran, Saudi Arabia, the UK, Greece, Turkey, the Sahel, Ethiopia, Spain and (surprise!) Space. Learn why Europe’s next refugee crisis is perilously closer than it appears now. Examine the roots of the tragic instability that roils the Sahel; understand why Middle Eastern nations would be wise to look beyond oil to secure their future; explore why western Asia is one of the most volatile flashpoints of the 21st century; and contemplate why Earth’s atmosphere is set to become the world’s next battleground.

https://www.simonandschuster.com/books/The-Power-of-Geography/Tim-Marshall/9781982178635

Thinking the Future (2021) Clem Sunter and Mitch Ilbury

Think about it—every decision you make impacts the future! We constantly make choices that affect the next week, next year or upcoming decade. The problem is, you can be blinded by what you want or expect the future to be. Scenario planning experts Clem Sunter and Mitch Ilbury posit that the futurist’s art of decision-making, where the flexibility of thinking like a canny fox plays a key role, will be a deciding factor in successfully adapting to a complex and interconnected world.

https://www.penguinrandomhouse.co.za/book/thinking-future/9781776096299

How Big Things Get Done (2023) Bent Flyvbjerg and Dan Gardner

Understanding what distinguishes triumphs from failures has been the life’s work of Oxford professor Bent Flyvbjerg, who’s often called “the world’s leading mega-project expert.” In How Big Things Get Done, the author identifies common errors in judgment and decision-making that cause projects, big or small, to fail.

Happily, Flyvbjerg also shares research-based principles that will make your projects succeed. The book includes numerous helpful and vivid examples, ranging from the building of the Sydney Opera House, to a home renovation in Brooklyn gone awry.

https://www.barnesandnoble.com/w/how-big-things-get-done-bent-flyvbjerg/1141634446

Traction: Get a Grip on Your Business (2007) Gino Wickman
Don’t let common problems and frustrations overwhelm you and your business entity. In this book, you’ll learn the secrets of strengthening the Six Key Components of your business. You’ll discover simple yet powerful ways to run your company that will give you and your leadership team more focus, more growth, improved outcomes and more enjoyment.

https://books.google.com/books/about/Traction.html?id=VVDZCQAAQBAJ

Influence: The Psychology of Persuasion (1984) Robert Cialdini

The author cogently explains the psychology of why people say “yes”—and how to apply these understandings. You’ll learn the six universal principles, how to use them to become a skilled persuader and how to defend yourself against them. The principles apply to readers at every stage of your career journey. Influence will move you toward profound personal change and act as a catalyst for your success.

https://www.goodreads.com/book/show/28815.Influence

Your Next Five Moves: Master the Art of Business Strategy (2020) Patrick Bet-David

From the creator of Valuetainment, the #1 YouTube channel for entrepreneurs, is a practical and effective guide to thinking more clearly and achieving your most ambitious professional goals. Combining these principles and revelations drawn from Bet-David’s rise to successful CEO, the book is a must-read for any serious executive, strategist, or entrepreneur.

https://www.barnesandnoble.com/w/your-next-five-moves-patrick-bet-david/1136404932

Never Split the Difference: Negotiating As If Your Life Depended On It (2016) Chrisopher Vos, Tahl Raz

Negotiations take place in many different sectors of life, such as politics and business, and also in some critical events, most dramatically demonstrated by hostage situations. The book is a guide to the wisest behaviors to exhibit when stressful situations develop, whether that involves the need for negotiation techniques in hostage situations or in business. The authors describe what to do, questions to ask and how to react in situations that require negotiation.

Without question, Never Split the Difference can teach you a new and useful competency. Raz and Vos offer unique perspectives that will improve anyone’s negotiations skills, from novice to advanced.

https://www.barnesandnoble.com/w/never-split-the-difference-christopher-voss/1122714695

Freelance Your Way to Freedom (2022) Alexandra Fasulo

Freelancing phenomenon Alex Fasulo delivers a practical, step-by-step guide to navigating the potential and perils of launching your Solopreneur side hustle. The author draws on her experience of scaling a $36,000/year Fiverr gig into a million-dollar enterprise. She explains how to manage those critical moments in business when decisions need to be made quickly and without warning.

In the book, you’ll find actionable tips and hands-on examples to make the gig economy work for you. The book is a must-have for Freelancers, Solopreneurs and Entrepreneurs, as well as anyone who participates or is interested in the future of work.

https://www.barnesandnoble.com/w/freelance-your-way-to-freedom-alexandra-fasulo/1141301804

Happy 4th of July to my American readers! To all my readers, thanks for reading. I appreciate.

Kim

Image: Johann Hamza (1850-1927, Austria) A Gentleman Reading in the Library