Monthly Archives: May 2024

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The Return of In-Person Networking

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As the COVID-19 pandemic era continues to recede, we’re revisiting many of the activities that circumstances compelled us to (temporarily) reconfigure, as we transformed our homes into mission control—work from home, school at home, online orders for all manner of items delivered to our home. City council meetings, business conferences, museum exhibits, music performances and other events were accessed by videoconferencing because attending public in-person events was for many months out of the question.

While everyone greatly appreciated the convenience of Zoom and other video platforms that allowed us to maintain some semblance of normal life, we’ve collectively breathed a sigh of relief and we’re mostly done with staring at a computer in order to experience so much of life. It’s time to resume face2face In Real Life interaction. Those who sponsor professional development and other business meetings have noted that attendance at in-person events is now robust, while attendance at virtual events is waning, with the exception of webinars.

Hosts of in-person events report that networking and developing relationships now tops the list of priorities driving the renewed interested in such events in 2024. Previously, the primary reason to attend business events, in-person or virtual, was the professional development info obtained in the presentations. Today, however, YouTube et al. overflows with online tutorials, many of them free and delivered by well-respected presenters, making skills-building knowledge available at your convenience. As a result, meeting content has taken a back seat and the value of attending meetings and conferences has shifted to the opportunities you’ll have to meet and greet colleagues in-person and forge beneficial connections. Can we agree that it’s time to revitalize your face2face networking chops?

Refresh your networking pitch

There are many potential success factors to consider when launching and nurturing a business venture and developing relationships with the right people is one that you would be wise to address. Relationships you establish with colleagues might open doors to opportunities that advance business growth in ways that otherwise may not occur. Taking a proactive stance to meet people in professional and personal sectors will enable you to expand your circle of relationships and increase the possibility of encountering those who can help you in some way.

In other words, networking is central to your marketing strategy. Freelancers and other business owners can always be in networking mode, whether at a chamber of commerce event or when having drinks al fresco with friends on a warm summer evening.

  • Re-examine your elevator pitch in all formats, from the 30 second self-introduction to the long form that’s rolled out when someone asks questions that signal genuine interest. Learn to articulate your brand and value proposition in two or three succinct and meaningful sentences, so you can fluently convey basic information about your venture when asked. You may find it helpful to use this formula to shape your elevator pitch:
    • The product/service you offer
    • For whom you work (your typical clients)
    • The benefit derived (the problem you solve, your solution)
  • Devise a networking agenda. It’s useful to have a purpose to remind yourself that you’re in the room to do more than eat, drink and talk sports. You don’t want to leave the event empty-handed; you invested time and money to be there, so to the best of your ability, make the experience worth the investment. This is my go-to agenda, because I find it easy to remember and carry out, but you can always create another that feels more natural to you, if you prefer:
    • Get a client (a long-shot, for sure)
    • Get a referral (you never know)
    • Get information (useful, possibly actionable)

Conversation starters

Networking starts with a conversation and the proceedings are greatly enhanced by the participants’ Emotional Intelligence (E.Q.). A key ingredient of successful networking is a willingness to share part of yourself with someone you’ve not interacted with before, so that the two of you can begin to build a relationship. Networking in motion is about exchanging ideas, information, stories and active listening. What you don’t want to do is walk around the room flashing a big plastic smile as you give your elevator pitch and foist your business card on all whom you encounter. “Show interest in others, and others will show interest in you.” (Dale Carnegie [1888-1955, author of self-improvement, salesmanship and public speaking books)

To find the value of relationships at your next networking event, use your E.Q. to start conversations that just might create business opportunities for yourself and maybe a new colleague as well. Keep in mind also that the favor of making a referral may start with you and that an immediate return on networking conversation is unlikely. Your expectations will not be met if you think you’ll be introduced to a new client sometime in the immediate future. Another hint—avoid trying to strike up a conversation with a large group of people. Instead of trying to chat with five people standing in a circle by the bar, keep an eye out for someone who’s alone; you’ll feel more comfortable approaching these people and they’ll probably be very happy to meet you and talk.

But back to getting conversations rolling—Preston Ni, communication coach and instructor in communication studies at Foothill College in Los Altos Hills, CA, has identified easy-to-remember, open-ended follow-up phrases that function as icebreakers that make almost any conversation feel organic and will keep the momentum moving forward.

1. “How did you get involved in …?”

The question may follow-up to the other person’s mention of a current project, his/her job or company, or the very event that the two of you find yourselves in now. Depending on the situation, you could ask what brought him/her there that day, or what has sparked his/her involvement with the topic at hand. 

The idea is to ask a generic question, without resorting to some variation of “How are you?” which tends to be answered with a reflexive, “Fine, how are you?” With a slightly more specific question that is still open-ended, you capture the other person’s attention and invite him/her to give you a thoughtful answer, one that invites him/her to take the reply in any direction and also enables a story that can be shared.

2. “That’s interesting. Tell me more!”

After the introductions, ask a question that starts with the phrase tell me and then actively listen as your new acquaintance does what s/he likes best—talking about themselves! You will make a friend. The phrase tell me communicates to the person you’ve just met that you are interested in what s/he has to say and that you value his/her opinion, which is affirming. Tell me is a powerful invitation to your newest acquaintance to speak his/her mind or share a story, Who doesn’t love to talk about themselves?

“It has the multiple benefits of saving speech and energy, maintaining engagement, and being attentive to your partner,” Ni says. “A good conversational partner will reciprocate the attention by asking questions about you in return, which will also facilitate the discussion.”

3. “If you were the event organizer, what topic(s) would you ask the speaker to address?”

Talking about the event is an engrossing way to start and sustain a rewarding conversation and give insight into a colleague’s perspective—and that is sure to be enlightening. A question that explores what your new acquaintance sees as an “ideal” event also expands the common ground between you. It’s a thoughtful conversation starter for those who want to get down to business quickly. It’s also easier to have a lengthy back-and-forth discussion about such a meaty topic, so you won’t encounter any awkward silences.

4. “What subject has your attention right now?”

When you’ve just met someone and you’re searching for ways to connect, this question can open the door to a discussion about business, family, extracurricular activities, a much-anticipated vacation—or even home renovations! The person to whom you put this question is certain to light up and be happy to talk and you’ll be on your way to building a relationship.

Host your meet-up

If you’re able, find the budget to attend an in-person conference in 2024. On the other hand, why not be truly adventurous and host an in-person networking event yourself? You may be able to host a networking event in your local library—a great place to meet and keep costs down as well. Your in-person MeetUp guest list can consist of your LinkedIn connections who live locally, plus other business contacts to round out your invitations. How cool is that?

Reserve a room at your venue of choice and order up a few light nibbles and drinks—beer and wine if the venue allows, or sparkling cider and water. Your job as event host is to introduce people and facilitate conversations and relationship-building. The options are many and the rewards are exponential and endless.

Thanks for reading,

Kim

Image: © NDABCREATIVITY

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Make Feedback A Building Block of Success

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When you’re working on an important project, it’s almost certain that at some point you will ask a colleague or mentor whose expertise you respect and character you trust to look over your work and give an appraisal. Another pair of eyes often sees what you don’t and can help you get beyond your blind spots and produce your best work.

The process is called feedback; it is the reaction to or evaluation of a performance. Feedback that is well presented has the potential to help you recognize your strengths and weaknesses; it provides valuable self-awareness that supports improved skill sets or professional development. Feedback is a form of criticism that can illuminate what you do well and what would benefit from improvement. Feedback inhabits several formats, from a job performance review to a casual conversation with a colleague or mentor. Insightful and timely feedback can alert you to problems capable of tarnishing the outcome of your important project and direct you to potentially more suitable solutions.

Asking for feedback on your work, or even your tennis game, might trigger an awkward moment, for yourself and/or the person you ask. Feedback is often experienced as intensely personal and can be uncomfortable for many people, whether on the giving or receiving end. Recipients of feedback sometimes become defensive, a reaction that makes it less likely that those asked to evaluate a colleague’s work will deliver an unvarnished assessment.

So, the “feedback” given by those who like you is often carefully couched and politically correct, a milquetoast response that’s designed to neither discourage you nor hurt your feelings—a bucket of hot air, in other words. These people may be reluctant to give your work a candid assessment because they want to encourage you and maintain a good relationship with you. Haters, on the other hand, when giving feedback are certain to be either passive-aggressive undermining or will shred you—the hater agenda is always to wound, if not destroy. Both scenarios fall short of delivering actionable advice.

Whom to ask and when

Giving useful feedback is an art, providing a third-party, presumably objective, assessment that confirms what you’re doing well and helps you recognize what needs a correction. Useful feedback is candid and guides you to achieve your personal best. When considering a request for feedback, it is essential to consider the source. Valuable feedback is both honest and astute, meaning you must ask someone who has the expertise to understand what you’re doing, the ability to recognize the strengths and/or weaknesses in your performance and possesses the mentoring skills to swiftly and tactfully guide you to the right path.

Potential sources of practical feedback include colleagues who know your work and with whom you regularly interact, including your boss or a mentor. Freelance consultants might consider reaching out to certain of their clients to solicit feedback. While clients may not be as familiar with your responsibilities and priorities as are workplace colleagues or managers, it may be beneficial to consider a client’s perception of you. Furthermore, client feedback can help you better understand how to attract potential new clients, resolve client concerns and encourage repeat business.

According to Dan Heath, author of Upstream: The Quest to Solve Problems Before They Happen (2020), the ideal time to request feedback is when your work —project, important task, or presentation, for example — is 50% to 60% complete. “Asking for feedback earlier in the process gives you the mental space to really re-think, if necessary,” Heath explained.

Ask for specifics

It is in your interest to make the feedback ask a win-win—not only comfortable for the person you approach, but also a demonstration of respect and instructive for yourself—by expressing the request in a way that is less about inviting an opinion and more about adding value. You do that by being specific.

Unfortunately, most feedback requests are handicapped from the start because they are too broad and general. Is there any wonder why the outcome of the typical feedback ask is one person’s opinion rather than discerning and actionable insights? Author Dan Heath is also a fan of specific feedback requests and he sees vague asks as tending to produce weak and ineffective responses. For example, if he were to ask someone, “What did you think of my book?” they would be more likely to say something positive to spare his feelings. Instead, Heath suggests asking pointed questions.

Rather than asking, “Could you give me some feedback?” provide some guardrails for the feedback you’d like to receive. After you’ve identified someone who has the know-how to advise you in this subject, you would then frame your request to position that individual as an expert adviser who can add value. Now, you’ve set up both yourself and the dispenser of feedback as partners in a constructive interaction.

Finally, when looking for feedback on a particular project, think about what you really want to know. For example, if you’re creating a presentation, do you want a critique of your story and how informative and engaging your content is? Or do you want to know if your slides communicate the story and your data visuals are relevant and easy to interpret? The more specific your questions are, the more useful the feedback will be.

When you are clear about they type of feedback you’d find most helpful and the value that feedback could provide, you will likely receive information that’s pertinent to what you’re actively working to confirm and/or improve. From a learning perspective, this provides actionable insights that you can apply immediately.

If you are a golfer, you can put the word out to your LinkedIn connections in your area and arrange a weekend golf outing. It’s no secret then that golf is a very popular sport in America — according to the National Golf Foundation, over 40 million played both on and off-course. Golf’s popularity is especially prevalent in business communities. No matter what industry you are in, there is a good chance your company or management at the company are involved with the game of golf in some fashion. If you are looking for a secret weapon to building connections in your job, networking through golf is the way to go. 

Thanks for reading,

Kim

Image: © Shutterstock (2019)

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Survey Finds that Marketing Matters to Freelancers and SMB Owners

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An insightful survey of 1000 small business owners and independently employed Freelance professionals sponsored by printing powerhouse VistaPrint and website builder Wix and conducted in March 2024 conclusively confirmed that effective marketing is as important to small business entities as it is to enterprise companies like Apple and General Motors. Despite the enormous difference in the size of marketing teams and budgets as compared to multinational corporations, Freelancers and SMB owners value the impact of marketing and they’re enthusiastic about leveraging its impact to benefit their companies. The survey findings deliver a persuasive vote of confidence for the power of marketing.

Reaching new customers drives the motivation to market for 46% of survey respondents. It was found that 71% of Freelancers and SMB owners do their own marketing, that 79% feel confident in their ability to function in the role of marketing manager for their company and 77% are satisfied with the results of their marketing strategies and campaigns. However, the majority of Freelancers and SMB owners are realistic about their marketing expertise and survey results indicated that the majority of respondents either have or plan to upskill and learn to market more effectively; 63% reported that they took steps to hone their marketing abilities in 2023; and 76% reported that they plan to do so in 2024.

Though Freelancer and SMBs are happy with the results they’ve achieved as marketers, they are aware that they face challenges. Standing out in a crowded marketplace is perceived as their biggest threat, with 53% worried about standing out vs. competitors. Furthermore, 47% of respondents are concerned about choosing effective marketing tactics to promote their business and 49% wonder if their budget can cover their marketing aspirations. Freelancers and SMBs see their greatest marketing opportunities in expanding their online presence (24%), increasing brand awareness (23%) and launching new products or services (22%).

Experimenting

The inevitability of digital marketing is understood by survey respondents but surprisingly, social media outreach and search engine optimization do not completely dominate their choices of marketing strategies and tactics. Survey results showed that while 78% of respondents experimented with “new” marketing tactics in 2023, achieving a balance between digital and traditional marketing tactics and identifying a mix of strategies and activities that work best for their business is the goal.

The importance of social media and search engines is obvious to them, but traditional marketing continues to resonate most likely because customers still value real-life and face2face interactions and physical touch points, as well as digital experiences. In 2024, 48% of Freelancers and SMB owners plan to increase their spend on newer (digital) marketing, while 30% will likewise increase marketing spend, but will continue with the same marketing mix. 

Balancing

Word-of-mouth will always be an asset to Freelancers and SMBs for promoting brand awareness, but a range of marketing touch points is often needed to raise awareness and persuade prospects to do business. For those reasons, achieving a balance between digital and traditional marketing activities is a goal for survey respondents: 28% allocated their marketing budgets 50-50 traditional and digital, while 40% invested more heavily in digital marketing activities and 32% chose to invest more in traditional marketing. The leading digital 
marketing tactics chosen in 2023 were an upgrade of the company website (60%), social media paid ads (60%), search engine optimization (50%) and email marketing (46%).

Traditional marketing continues to play a key role for Freelancers and SMB owners, with 71% reporting that physical marketing tactics are important because customers still value the experience. Regarding traditional marketing activities, 50% of respondents invested in business cards, attended trade shows and similar conferences, 31% invested in paid print ads and 29% used promotional items.

Locavore

It can feel intimidating to compete with major retailers and corporate giants when doing business, however small entities have one huge advantage—many customers want to feel connected to their local neighborhood when doing business and 78% of customers surveyed reported that it’s important to them to “shop local.” Marketing that emphasizes location, loyalty and community can help keep customers coming back, as reported by 1000 small business customers who also participated in the VistaPrint – Wix marketing survey.

Customers of SMB and Freelancers surveyed reported that marketing tactics that help them find SMBs and Freelancers to do business with include social media (54%), search engines (44%) and print ads (26%). Furthermore, 41% of small business customers reported that a primary reason they choose to shop small business over big is to support local business and 46% say they actively seek out such companies. These customers value knowing the owner and staff where they do business and those relationships are a motivation for shopping local. Click to read the full report. https://smb.vistaprint.com/_files/ugd/3121be_d99794458cee45079ba421dbb61ed1d2.pdf

Thanks for reading,

Kim

Image: © Santulan Architecture Denver, CO

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Start-up Funding Options

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Starting a new business venture will thrill you and challenge you. You’ll take on responsibilities you never knew existed but will become a regular part of life when you choose to launch your entity. It is likely that money will be a challenge, starting with figuring out how to finance the business launch and bring your entrepreneurial dream into reality. You’ll also need to secure sufficient funds to sustain operations while your marketing strategies kick in and attract customers whose purchases generate sales revenue.

The amount of start-up capital needed will depend on the product or service that your company sells and your sales and distribution strategy. Your start-up capital requirement could range from the low four figures to the high six figures and if your entrepreneurial plan is especially ambitious, the need might reach seven figures.

Unfortunately, nearly 40% of businesses fail because they run out of cash. Many aspiring business owners are under-capitalized from the beginning and are unable to hang on until the customer list grows and sales revenue builds. If the start-up capital requirement is modest, it’s likely that you’ll self-finance, but if your projected need climbs through five figures, you’ll most likely be compelled to look beyond your personal credit cards and bank balance.

It is essential that aspiring entrepreneurs accurately project the initial funding needs of their proposed venture and be proactive re: securing adequate working capital. Insufficient funding cripples your ability to invest in the infrastructure that grows the business—technology that supports business processes, from accounting software and marketing automation to the inbound marketing/ buyer’s journey experiences you’d like to present; appropriate staffing, full or part-time; an optimized company website; and your ability to attend networking events or invest in skills training.

When start-up costs can be expected to outstrip your personal resources, aspiring entrepreneurs must learn which doors to knock on when searching for vital business funding. Traditionally, most Freelancers and small business owners fund their start-up in three ways — personal funds, loans from friends or family, or a Small Business Association (bank) loan. While these are good options, larger funding needs are likely to require other sources.

The campaign to secure investment capital is time consuming; plan to devote three to six months for your financing crusade. If you plan to recruit investors, you’ll also need time to negotiate the terms as well as the amount of an investor contribution. Furthermore, there will be a legal process required to finalize investments made. Be aware that larger funding rounds often involve more extensive due diligence, negotiations and legal processes.

Since we’re talking money, maybe you’re looking for a good pitch competition? Click here to learn about 25 that will be held, or were recently held, on three continents in 2024: https://www.growthmentor.com/blog/startup-pitch-competitions/

Know your funding timeline

Begin your search for investment capital at least six months before funds run out, to give yourself time to replenish cash. If you are raising seed money for a venture that will need investment in the six figures, you’ll be wise to project the amount of funding needed to sustain business operations for two years. Projecting the number of months the venture can operate before running out of cash both documents the financial stability of the company and demonstrates that you are a responsible financial manager—qualities that are likely to inspire potential investors to fund your company.

Furthermore, giving yourself plenty of lead time as you search for investment capital can only strengthen your negotiating position with investors; it’s always best to ask for money while you still have money. Position yourself to have as much negotiating power as possible when discussing company valuation, terms of the investment loan and legal aspects of the funding deal. This can result in more favorable terms for you as well as minimizing worry about a cash shortage.

Investor database

An investor database will be a useful resource that allows you to streamline communication with potential investors and facilitate relationship-building by enabling you to manage the all-important networking process and follow-up with those who demonstrate an interest in learning more about your venture. Your database will consist of warm contacts; your strategy will be to commence networking and initiate conversations with a pitch that sparks interest and opens doors to follow-up meetings and serious discussions that might lead to successful investment deals.

Your investor database will also contribute to the success of your pitch, since you’ll have notes that document investors’ hot buttons and investment histories, so that you can customize your pitch with talking points that resonate. A personalized approach increases the likelihood of capturing investor interest and aligning your company with their investment priorities. Below are funding options that you may want to evaluate:

  • Venture Capital and Angel Investors

Venture capital (VC) is a form of private equity and a type of financing for start-up companies that have long-term growth potential. VC money generally comes from investors, investment banks and other financial institutions. VC firms raise money from limited partners to invest in promising start-ups or sometimes larger venture capital funds. VC investments in start-up companies might also be provided as technical or managerial expertise and the investment often includes strategic guidance and industry connections that substantially benefit the entrepreneur.

The downside is that landing a VC deal is extremely difficult; just 5 out of every 10,000 startups are able to secure VC funding. Entrepreneurs will need to prove themselves through rigorous due diligence and, if funding happens, living up to high growth expectations. Many VC investors are primarily looking to make a fast, high-return payoff and may pressure the company for a quick exit. Furthermore, VC investors are likely to demand a large share of company equity, make demands of the company’s management and founders risk losing control over the direction of the company.

VC isn’t the right funding choice for all start-ups. If it seems a fit for your venture, look for VC firms with expertise in your market plus target a funding amount that aligns with your needs. To obtain more information about VC investors click here https://www.vcaonline.com/directory/invdir/

By contrast, the typical angel investor is a high net worth individual and might include certain family members, close friends, or other associates who know you and might be interested in supporting your business venture.  They may have acquired their wealth through a variety of sources; however, most are themselves entrepreneurs or retired executives from enterprise business companies. These investors are inclined to fund ventures that are involved in the same or similar industries or business sectors with which they are familiar.

Unlike a bank, which will demand concrete proof of the viability of your proposed business venture, an angel investor might be more willing to gamble on your great idea. Angel investors generally understand the risk of investing in start-ups and may not expect any return on capital if the business fails. No wonder they’re known as angel investors!

To find potential angel investors or venture capital sources, networking within your business community is a must. Make a point to attend local business, trade and community organization meetings and other events to meet people—have your pitch well-honed. Start your research on angel investors by visiting sites that match entrepreneurs with angel investors:

Angel Capital Association : A collective of accredited angel investors

Golden Seeds : A group whose members focus on women-led ventures

Angel Investment Network : A network that seeks to connect entrepreneurs with business angels

  • Revenue Based Fundraising

The downside to raising capital through traditional debt financing is that it requires the business to accrue debt with interest. Revenue-based financing (RBF) https://www.joinarc.com/guides/revenue-based-financing is a type of business funding in which a company receives investment capital by promising a percentage or certain amount of the venture’s future projected revenue stream to investors. This is potentially a win-win for both aspiring entrepreneur and investors, as the start-up entity receives the necessary capital to launch and build the business by generating sales revenue, and the financer generates a return. 

  • Crowdfunding

Crowdfunding is a method of funding a business or venture by receiving small amounts of money from a large number of people who believe in the project. While crowdfunding can be an effective way to raise capital, it will require the business to convey its brand through compelling storytelling, strategic marketing and aggressive promotion.

In addition to financial resources, crowdfunding can also help the business build an excited and loyal community around the company’s products and services. It can also simultaneously validate if there is demand in the market for your business early in the startup process.

Crowdfunding bears similarities to angel investing. While traditional angel groups seek to match entrepreneurs with accredited investors, crowdfunding sites allow lots of smaller investors to pitch in to move your venture along. You’ll likely have to apply to have your idea or business vetted by the site before they’ll present your project to their members. Sites that are worth a visit include:

SeedInvest https://moneywise.com/investing/alternative-investments/seedinvest-review

WeFunder https://www.nerdwallet.com/reviews/investing/brokers/wefunder

Fundable https://www.trustpilot.com/review/fundible.com

  • Blockchain-based financing

Blockchain technology may provide exciting new options for start-up fundraising, with the use of digital tokens and decentralized finance (DeFi). These innovative fundraising approaches enable start-ups to access capital in a transparent manner that operates outside the traditional banking sector. Blockchain technology can be used to issue and manage digital tokens that represent equity or debt in a venture. These tokens can be traded on secondary markets, providing liquidity to early investors. blockchain also allows startups to raise funds through initial coin offerings (ICOs).


DeFi is built on blockchain technology, primarily leveraging Ethereum.  Unlike centralized financial institutions, which rely on intermediaries such as banks, DeFi operates on blockchain networks, enabling peer-to-peer transactions, lending, borrowing and other financial activities without using intermediaries. Smart contracts, self-executing code on the blockchain, form the backbone of DeFi applications. These contracts automate financial processes, eliminating the need for intermediaries. Still, DeFi is still evolving, and there are smart contract vulnerabilities and regulatory uncertainty. Users must conduct due diligence, diversify and understand the risks before participating in DeFi.

Another way to fund a blockchain startup is through initial coin offerings (ICOs). ICOs are a type of crowdfunding, where a company raises funds by selling digital tokens to investors. ICOs can be used to fund the development of a new product or service, or to support the growth of a company.

  • Government grants and incentives

To help encourage business growth in their area, many state, local and federal agencies offer grants, incentives, or tax breaks to businesses that satisfy certain criteria such as operating in a specific industry, for example, STEM (Science, Technology, Engineering, Math). Securing government funding can be time-consuming and come with strings attached, so entrepreneurs should carefully consider their options before applying for government funding. https://www.shopify.com/blog/small-business-grants

Thanks for reading,

Kim

Image: © Snaprender