Author Archives: Kim Clark

Marketing , Leave a comment

10 Tips to Energize Email Marketing

by

Email marketing remains an effective and valuable practice that deserves a place in the marketing strategy of Freelancers and other small business owners. If you haven’t explored email marketing as a way to promote your venture, read on and learn why you will reap benefits from developing email marketing campaigns and how to maximize their success.

Data supplied by Statista, the Germany-based marketing info giant, reports that an estimated 4.3+ billion citizens of planet Earth use email. Maybe that’s why email marketing continues to be central to our business and personal lives? Email marketing campaigns will help you to promote your products and services, acquire new customers or retain current customers, increase your venture’s annual revenue and position yourself as a thought leader and expert in your field.

Email marketing remains one of the most effective forms of outbound marketing, whether you send email appeals and announcements to prospects and current customers or publish a company blog or newsletter. According to data from the e-commerce company Oberlo, 81% of small business owners use email marketing as their primary method of customer acquisition and 80% use email marketing outreach to support customer retention. Marketing researchers have calculated that email marketing campaigns generate an average ROI of $43 for every $1.00 spent. In 2022, B2B and B2C email marketing campaigns combined generated $9.62B in sales revenues.

  1. Update your list. Review your address list each month and follow-up on all emails that “bounce,” that is, are returned. Verify and update the address or delete the name.
  2. Personalize greeting. Your readers likely have little use for a emails that are addressed to no one in particular and reek of spam. Impersonal mailings are not endearing and are usually deleted. Your email marketing distribution service has the capability to personally address the communications you send.
  3. Opt-in, opt-out, sign-up. To grow your database, make it easy for those who’d like to follow you and/or subscribe to your emails by making your sign-up/ opt-in link visible. On the other hand, those who’d rather not receive your mailings should be able to easily decline them. The unsubscribe/ opt-out link is usually placed at the end of the email.
  4. Customize templates. Represent and promote the value of your brand by having a custom template designed for your marketing communications. The cost is modest and will give your campaigns a professional look that is immediately recognizable to your audience. Choose a template design that is uncluttered and visually cohesive. Also, since more than half of the audience will view your emails on a mobile device, confirm that your marketing service uses responsive design.
  5. Relevant content. Know the topics that will interest your readers. Stay current in your knowledge of national and local developments by regularly reading nationally focused business publications and the business section of your local newspaper. Furthermore, it’s helpful to create a marketing calendar, because some topics are seasonal and your information should be timely so that it will be useful. In other words, if your email will discuss taxes, keep in mind the filing dates for quarterly and annual taxes. As well, keep in mind the Pareto principle, best known as the 80/20 rule, to keep audience engagement high. Make about 80% of your content educational and no more than 20% self-promotional. In time, your audience will come to trust you as a source of helpful information, which will keep them opening your emails. Your emails are about the reading audience and not about you.
  6. Tempting subject line. Give readers an incentive to open your emails by creating subject lines that command attention. The subject line is the most important element of a marketing email. If it’s not compelling, your email will be swiftly deleted. A good subject line often arouses curiosity or surprise. It may even shock recipients, or make them laugh. A well-crafted subject line makes recipients want to go further and find out what you have to say.
  7. Interactive extras. Every so often, give readers something unexpected and interesting to see or do as they skim through your content. Devise a one or two question survey to let them tell you how they feel about an issue. Not only will you get to know them better, they’ll appreciate that you value their opinions. A 60-90 second audio and/ or video clip that showcases something they’ll find useful is another good tactic. Including an image that ties into the message and purpose of the email is yet another good idea. Limiting extras to a maximum of two is suggested, to avoid clutter or sensory overload.
  8. Social media teasers. Before emails are sent, post a line or two of content on social media as a way to cross promote and expand the audience for your mailings. Let social media visitors know that the content is exclusive to your email list and use this incentive to increase sign-ups.
  9. One irresistible call-to-action. The purpose of your emails is to convince readers to do something—-hire you, watch your webinar, read your case study, come out to meet you and hear you speak. If email recipients don’t know what you want them to do within 20 seconds of opening your email, whether that’s visiting a page, calling a phone number, or completing a form, they will most likely click and delete.
  10. Consistent schedule. Whether you send a newsletter, blog post, or marketing letters once a quarter, once a month, or once a week—-every Tuesday at 11:00 AM Eastern or the 15th of every month—-be consistent. Predictability breeds trust.

FYI, as of March 5, 2023, data supplied by the email marketing company Constant Contact reported on email open rates in various industries and a sampling is below. As of January 2023, the combined B2B and B2C sales conversion rate of email marketing campaigns was 8.17%.

  • Administrative support—billing, phone answering—29.1%
  • Business consulting—marketing, advertising, management–28.3%
  • Financial services—accounting, bookkeeping, insurance–27.1%
  • Technology services–19.3%
  • Health & wellness–home care, nutrition, dental, medical–35.3%
  • Cleaning, contractors, landscaping–38.6%

Thanks for reading,

Kim

Image: Invented by Edward E. Kleinschmidt in 1914, the high speed teletype machine allowed users to both send and receive typed messages and was a major breakthrough in telecommunications technology. The picture shows teletype machines being used in England during WWII.

Sales , , Leave a comment

Unspoken Desires: What B2B Clients Really Want

by

The punchline of today’s story is that your clients say one thing and mean another. Surprise! Those of you who sell or provide B2B products or services know that prospects present themselves to Freelancers and sales reps as dispassionate decision-makers who demand value and aim to minimize costs as they operate in the harsh realities of tech company lay-offs, bank failures, inflation, war and the lingering aftershocks of the coronavirus shutdown. Oh, and they’d also like the products or services they buy to save them time, because time is money.

However Ron Friedman, PhD, a psychologist who studies human motivation, surveyed 2,128 office workers in the U.S, U.K, France, Germany, Spain and Italy discovered some additional, unspoken, motivations of office workers who purchase B2B products or services.

Friedman and his team found that B2B customers favor interactions that cater to certain psychological needs, even when satisfying those needs costs the company more money and time. The findings suggest that what humans really want are choice (control, power), meaningful connections with others (relatedness) and opportunities to grow skills that are important to them (mastery).

Let’s dive in to get more insights and understand how you can leverage these unspoken motivations as you and your prospective clients discuss your products and services.

Choice trumps problem-solving

When Friedman’s study subjects were asked if they prefer to discuss and potentially buy from a B2B services provider a single solution that can solve their problem or help achieve their goal, or be offered two or more potential solutions that they must evaluate and then select their preferred remedy, the ability to choose won out.

When a prospect is presented with a single, presumably effective, solution that’s expected to resolve the goal or problem at issue, time is automatically saved. Still, 58% of Friedman’s study subjects preferred the opportunity to choose and, it seems, the power that came with it. The ability to choose was considered desirable, even when going through the selection process did not provide additional benefits, e.g., better results or money and time saved.

Connection overrules time

Most prospects didn’t mind that extra time was spent to review and evaluate the available options that guide their choice of a solution. Although waiting for a human being to reply to an email or pick up the phone might require twice the time and provided no other benefits (in either case, participants were assured their problem would be solved), waiting twice as long to speak with a human being was preferred by nearly three-quarters of participants (74%).

Furthermore, respondents much prefer to know who they’re doing business with. When asked to rate what they consider to be satisfactory or unsatisfactory customer service delivered by the sales reps and other service providers they interact with, study subjects rated just 33% of vendors they didn’t really know as providing “satisfactory” service, but 70% of vendors who received “satisfactory” ratings were known personally by the respondents. In other words, the experience of close connection and impressions of good service are linked.

Experiences that expand horizons

Human beings enjoy learning new skills and being exposed to new experiences. It makes life interesting and expands our horizons. It’s good for self-esteem. Keep that affinity for learning in mind as you discuss your product or service with prospects as you simultaneously show respect for their expertise.

The process of acknowledging the prospect’s skill set, I.e., mastery, and providing a learning opportunity starts when you offer the choice of potential solutions to the problem or pathways to achieving the goal, as noted above.

When you are hired to work on a project (another empowering choice that the prospect, now a client, gets to make) and carrying out the client’s preferred solution, you can as well satisfy the (unspoken) desire to learn by giving him/her an inside look at how you apply the solution and make it work. For your client, this can appeal to the desire to keep his/her skills up to date in a rapidly changing economy and workplace.

What might these findings tell us about the rising popularity of marketing automation? Freelancers and other business owners have used the software to facilitate engagement and bring in point-of- service online sales. New and returning clients have gravitated to contactless interactions where, other than choice, psychological motives are not addressed.

Since 70% of Friedman’s survey respondents feel positively about customer service interactions when they are handled by someone they know, that does leave 30% who are OK working with someone they don’t know (contactless engagement). Also, the power of choice remains, which is an important factor for most.

Finally, prospects who explore your products and services on your website or social media platforms always have the option to contact you (or your team) and initiate direct conversations when choice, connection that may lead to relatedness and learning opportunities that expand mastery can take place.

Thanks for reading and welcome spring!

Kim

Image: © Netflix/ Mark Bourdillon. L-R Matt Lucas, Prue Leith, Paul Hollywood and Noel Fielding of The Great British Baking Show illustrate our unspoken desires.

Sales , , Leave a comment

Speed Date: How to Connect With Clients Faster

by

Time is money and relationships matter. Those sometimes conflicting realities must be confronted when, for example, you meet someone who may become a prospective client by chance, maybe at a business association meeting or even at a backyard barbecue. Somehow you two start talking and along with names and what brought each of you to the event, what each of you does for a living is revealed and it’s an aha! moment. As luck would have it, your new acquaintance is looking for a talented Freelancer with your kind of expertise to get an upcoming project done. Excellent!—now how do you connect quickly and start the process of establishing trust and rapport with someone you’ve only just met?

Building a relationship that you’d like to expand to include business requires finesse. It may be off-putting to appear to rush things but if you don’t move it along, your opportunity to do business may stall out.

Because you’ve only just met, each of you is an unknown quantity to the other. You’ve shared only cursory information but a spark has been ignited. The next step a successful Freelancer takes is to swiftly move to build a connection with this intriguing person. Happily, there are a few effective and easily executed hacks that in short order can help you steer the relationship in the right direction and avoid a cringeworthy scene as you do.

1. Repeat after me

Your prospect wants to know that you understand what s/he needs your product or service to deliver. There are simple and intuitive ways to convey that you “get it” as you and your prospect discuss the possibility of doing business.

One good way is to confirm that you’re on the same wavelength is to incorporate, that is, repeat, a few key words or short phrases that your prospect uses to describe what s/he wants to achieve. Do that and you’ll communicate to the prospect that you two literally speak the same language.

2. Feel their pain

Empathy is an essential component of every healthy relationship. When your goal is to fast- track a serendipitous meeting and build it into a mutually beneficial experience, acknowledge the urgency, excitement, importance, concern and/ or stress that motivates your prospect to seek a solution and demonstrate that you not only understand what s/he wants to achieve, and why, but you also validate his/her reasoning and judgment.

What motivates your prospect to obtain a solution and address the matter may be a problem to solve or a success to celebrate. While in conversation, your job is to affirm good news or encourage a prospect who faces a challenge. Either way, describe how your product or service can expertly and efficiently either save the day or maximize a happy occasion.

3. Sum it up

Confirm your understanding of what your prospect would like to achieve with the assistance of your products or services and you’ll boost the prospect’s confidence as you do. The budding relationship will strengthen as your prospect’s confidence, trust and comfort level grows. Sum up the points made by yourself and the prospect, distilling and paraphrasing what each of you has said, and confirm that you see the big picture of what your prospect has in mind and your capability to fulfill the objectives.

If for some reason either of you has misinterpreted or omitted some relevant information, a correction and reconfirmation can be quickly made. Showing the prospect that you’ve listened and understand his/ her priorities, concerns and goals is, BTW, a compliment and a sign of respect. Your prospect will know that s/he has been heard and that his/her feelings, judgment, priorities and goals are valued.

4. Next steps

While your prospect is basking in the glow of having found a capable, trustworthy, good-natured problem-solver who appears to be someone with whom s/ he can connect and work successfully, suggest that the two of you schedule a face2face or video meeting. It is in your interest to move the process steadily forward and into substantive talks. You have business to discuss!

Thanks for reading,

Kim

Image: In 1977, actress Marlo Thomas was invited to be interviewed on The Phil Donahue (talk) Show. I watched the episode and it was something to see! No doubt about it, Phil and Marlo connected in a live broadcast from Chicago. The couple married in 1980. They live in Manhattan.

Professional Development , Leave a comment

Board Service Is A Win-Win

by

Creating and recognizing networking opportunities is a subject often addressed in this column, as regular readers know. One networking method that’s been less frequently discussed is serving on a not-for-profit organization board of directors or committee. I’ve served on half dozen boards over the years and have found the experiences to be rewarding, especially in terms of professional development and filling my network with smart, fun and interesting people. If time allows, I recommend that you consider serving on a board. To confirm that your role will be a good fit, you might first volunteer to provide day-of help at a special event sponsored by an organization whose mission is meaningful to you. If the volunteer experiment goes well, then inquire about joining a committee before making a commitment to join the board.

Serving on a not-for-profit board of directors or committee can potentially bring long-lasting personal and professional benefits. It’s a decision that you’re unlikely to regret. The ability to help an organization realize its vision and mission is tremendously rewarding. Service as a not-for-profit board or committee member inevitably involve responsibilities that teach you how other organizations operate. Board and committee service or other pro bono work can also enable you to develop or reclaim competencies either within or outside of your primary skill set. Board members are sure to learn more about marketing, governance, finance, branding, recruiting and managing volunteers. In some instances, your board or committee may embark on a project on behalf of the organization that calls for members to meet or collaborate with local politicians or community leaders.

Prospective clients, especially those who adhere to the growing corporate social responsibility movement, will be pleased to see your record of board service and other pro bono activities when they review your curriculum vitae, bio, or social media profiles. You may discover that you can “do well by doing good.”

When seriously considering board or committee service, remember to ask questions that clarify what will be expected of you. For example, ask how often, when and where board meetings are held and whether there will be business to conduct between meetings. You’ll also want to confirm the length of your term.

Since fundraising is a standard part of not-for-profit organizations, board members are almost always expected to participate in fundraising in some fashion. That often starts with a financial contribution that may have a suggested minimum amount.

Be aware that not-for-profit boards sometimes look for additional members because there are problems in the organization. Other motivating factors may be a pending major fundraising campaign or big project that’s on the horizon. Make it a point to have a frank discussion with a board member whom you trust about any current or past problems within the organization or with other board members. You’ll also want to know if the organization is financially healthy and whether there are any pending lawsuits.

There are caveats—-walk in with your eyes open. The benefits of board service typically include:

1. Exercise team working skills: Offer to chair a committee and you’ll quickly position yourself as a leader. Not only will fellow board and committee members appreciate your initiative, but you’ll also be able to fine-tune your group dynamics competencies as you work to motivate people who are not being paid to fulfill their roles so that your committee goals will be achieved. It’s called volunteer management and it is a subtle art!

2. Improve decision-making skills: It seems as though the appearance of the coronavirus and the subsequent year-long (or thereabouts) shutdown has caused nearly every organization to reassess and regroup because customers, donors and patrons have reevaluated their priorities. Inflation and the threat of recession have in some cases eroded the donor base and/or the patron or customer bases. Organizations must be nimble and resourceful. Leadership teams, staff and board, must understand risk management—risks to take and risks to avoid. Smart decision-making has never been more important.

3. Sharpen financial management skills: As a board member, you are responsible for the organization’s fiscal health. The ability to analyze the monthly financial documents and interpret the story that they reveal is a critical skill. Parsing the financials in board meetings, even if you are “only” listening to the board’s finance committee chair or treasurer giving reports, will improve your ability to understand and interpret your own businesses’ financial documents and improve the financial management and oversight at your own venture.

4. Gain the confidence to fund raise: In not-for-profit organizations, donor cultivation is a must. Many people, however, are uncomfortable with asking for money. Remember that recruiting donations is no different than asking for a customer’s business. It’s all about believing in your organization’s mission and relying on that trust and confidence to coax yourself into asking a donor to make a financial commitment to the cause.

5. Revitalize seldom used skills and develop new ones: Doing what you know is the most natural way to demonstrate your value to the board or committee, but it’s an exciting growth opportunity when you dare to try new things. Board or committee service is a safe place to take chances, something we cannot often do in our paid professions. Stepping into a role that requires you to reactivate a seldom-used skill or learn a new competency that you find interesting will enhance your commitment to and enjoyment of your board or committee service. Just do it!

6. Building relationships and networking

In your tenure as a board of directors or committee member you are almost guaranteed to meet successful and interesting professionals, some active and some retired. Your fellow board and committee members may hold, or have held, mid-level or senior positions in the for-profit or not-for-profit sectors. Others may be Freelance solopreneurs or entrepreneurs who launched and operate their own enterprise.

With your fellow board and committee members, you will discuss routine business, puzzle through decisions that solve problems, strategize to take advantage of opportunities and in general, work collaboratively to keep the organization relevant and preparing for the future. As this happens, you business acumen, judgment, resourcefulness, creativity, work ethic and EQ will be on display.

A fellow board or committee member may grow to trust you enough to introduce you to a colleague who is in need of your skill set, whether as a Freelance consultant or a full- time employee. You may do the same for another board or committee member. Boards are all about building relationships and that is the primary gateway to success.

Thanks for reading,

Kim

Professional Development Leave a comment

How to Dazzle at Your Next Speaking Gig

by

Getting out in front of an audience is one of the best and most efficient ways to network. Approach the podium and the spotlight will shine on you! Everyone in the room will want to meet you and exchange a few words. Inevitably, some will ask to exchange cards and request follow-up conversation.

Taking on a keynote speaking role instantly lends credibility, showcasing you as a an expert in your field and a trusted source of information. Freelancers, owners of business ventures of every size and corporate and not-for-profit organizaton leaders understand that speaking engagements introduce them and their organization to colleagues, potential clients or donors, influencers, referral sources, potential investors, or strategic partners.

Some are intimidated by the thought of speaking before a group of people, no matter how well-versed they are in the subject matter. Public speaking is not a natural activity for everyone. Nevertheless, for those who hold or aspire to a leadership role of some sort, public speaking comes with the territory.

The good news is that public speaking is skill that can be learned. Those who make the effort to develop the skill will be happy to realize that the more you do it, the more proficient and comfortable you’ll become. Consider it professional development. Also encouraging to know is that like learning any skill, breaking the components down into manageable “chunks” and tackling them one by one prevents you from feeling overwhelmed and helps you to learn.

Keep it simple

Be considerate to your audience by making your talk both informative and relatable. Let the audience govern the content of your talk. In particular, unless you’ll address an industry group, avoid technical jargon—it’s not the best way to show off what you know. Not only does high-falutin’ tech speak bore most listeners, it doesn’t convince anyone of your expertise or insights into the topic.

To make your subject engaging for an audience, using easily understood language is the most effective way to demonstrate your grasp of the subject . The most important thing about your talk is that the audience “gets it.” Keeping your things simple allows you to control the flow, no matter which way it goes,” says Maria Thimothy of Forbes Magazine Young Entrepreneur Council.

Shape the story

Rather than composing your entire speech ahead of time, write out key concepts you want to emphasize and then rehearse, using those key points as a focus. You’ll find that by allowing room for flexibility, it will be easier to adjust your talk to the mood of the room and your talk will be better received. For example, if you sense that you’ve lost the attention of some in the audience, you might pose a question or slip in a joke or reference to some happening in the news as a way to re-engage them.

Own the stage

A presentation is more than words. Audience members expect the speaker to be an expert in his/her field who possesses knowledge and experience that will inform and enlighten those who’ve come to listen. Additionally, the speaker’s intention may be to rally audience members with a compelling Call-to-Action that inspires them to demonstrate their support of a cause. To achieve these objectives, public speakers must be both highly competent and also confident.

The successful speaker makes it known that s/he is worthy of the audiences’ trust and respect not only by way of the content of the talk but also in body language and demeanor. It is important for a public speaker to develop stage presence.

  • Power stance

How one stands is a strong indicator of that person’s confidence and mindset. When facing an audience, the speaker should hold a strong and steady position. The feet will be shoulder width apart, with knees relaxed and not locked. The spine will be comfortably erect and the neck and shoulders will also be relaxed.

With this posture the speaker signals that s/he has important information to share and that s/he feels confident. In a 2012 TEDGlobal talk Your Body Language Shapes Who Your Are, social psychologist Amy Cuddy sparked a sensation when she modeled this and other so-called “power poses.”

In a 2013 Harvard Business Review article, TED Curator Chris Anderson seconded Cuddy when he noted that the most common mistake made by inexperienced or nervous speakers is the inability to maintain a solid, stationary posture. Swaying or fidgeting works against the ability to communicate confidence. Anderson noted that “Simply getting a person to keep his or her lower body motionless can dramatically improve stage presence.”

  • Eye contact

Making eye contact is important for maintaining dynamic interaction with the audience. It’s another reason to avoid memorizing your speech and instead focusing on the key points you want to emphasize

To incorporate good eye contact, Chris Anderson recommends finding five or six friendly-looking faces in different parts of an audience, then making eye contact with them as you speak. “Even if you don’t have time to prepare fully and have to read from a script, looking up and making eye contact will make a huge difference,” he advised.

  • Vocal power

When you think about it, the human voice is like a musical intrument. What is singing? You can learn to use your voice as if you are playing a musical instrument, to increase your vocal power and persuasiveness, whether you’re giving a speech or having a conversation.  You can learn to adjust your vocal pitch, volume and speed in a way that allows audience members to follow your talk and want to hear more.

The primary lessons are to keep your tone of voice conversational, enunciate your words clearly and speak somewhat more slowly. When you slow down your speech somewhat, your voice will take on more power and you’ll sound more authoritative. Another benefit of slowing down your speech is that it gives your listeners the opportunity to absorb and reflect on what you’re saying.

Another useful public speaking vocal technique is to include strategically placed pauses when you’ve made an especially salient point to let the information sink in and resonate. Tape your rehearsals and play back to assess your vocal delivery and make adjustments where necessary.

  • Dynamic opening

Attention spans and patience seem to get shorter every month. In the Twitter, TikTok, jump-cut to the chase media hyped world we inhabit, engaging an audience has become more challenging than it was even a few years ago. Those is search of an audience have had to become more inventive.

So try this tactic—rather than opening your talk with the usual trite and predictable ritual of thanking the person who introduced you and then greeting the audience and asking everyone how they’re doing, dare to do the unexpected. Why not simply take the stage and look at audience, as you pause for a beat to create a frisson of tension. Then, launch your talk with a fact or a story that is surprising, if not shocking. You might begin with a tale in which you or someone else is in a moment of crisis. Make a confession. Say something in that very first line that both demands attention and is entirely relevant to the rest of your speech.

Thanks for reading,

Kim

Image: ©  PA Archive/Press Association Images. Sir Winston Churchill (1874-1965) speaking at Blythe Road, Hammersmith, London February1949. Churchill served twice as UK Prime Minister, 1940-1945 and 1951-1955.

Survival Strategies Leave a comment

Manage Your Time, Manage Your Mood

by

According to Philip G. Levendusky, Ph.D., Director of the Psychology Department at McLean Hospital in Belmont, MA, “Those who struggle with time management are more likely to experience stress, sleep issues, anxiety, depression and other mental health issues. They may also start to exhibit symptoms of workplace burnout.” Time management is now recognized as a vital soft skill that impacts not just your professional (and personal) life, but also your health.

Moreover, if establishing success in just about any part of life is a goal, you’ll be greatly assisted by well-developed time management skills. The inability to effectively manage time means, frankly, that life will be more difficult because you won’t be able to get things done. Your plans may never get beyond the drawing board.

When you can’t get things done colleagues and friends, to say nothing of clients, may enjoy your company, but may simultaneously label you as undependable and perhaps also frustrating. Those who can’t appropriately manage their time often don’t have the best reputation. That managing time is a way to avoid hassles, frustration, embarrasment, disappointment and other aggravations that feed both stress and low self-esteem is, I’m afraid, not obvious to everyone.

Freelancers know that when there is a deadline to meet good time management, which involves prioritizing and planning, is essential. Time management is part of your brand and when it’s lacking, you can’t call yourself trustworthy or dependable.

As part of your strategy to make Freelance consulting projects efficient and pleasant for yourself, your team and your clients, it’s important to be mindful of where and how to devote time. Not only will you achieve optimal productivity, you’ll enhance your (everyone’s!) health. Here’s how time management can help you minimize or avoid professional difficulties, personal disappointments and affective mood disorders.

Decrease stress

Recent research found that nearly 57% of U.S. and Canadian workers reported that they feel stressed on a daily basis, an 8-point increase from the year prior, compared to 43% of working people worldwide. Stress, worry, sadness and anger rates have been trending upward in the U.S. since 2009.

Numerous horrific and all-too-often deadly acts of workplace violence demonstrate that undeniable finding. During the coronavirus shutdown and its aftershocks, stress was further increased by concerns over the virus and risk of illness, conflict associated with families grappling with WFH and at-home schooling and financial insecurities. Prolonged stress can cause a wide range of negative health outcomes. Related physical effects include sleep difficulties, high blood pressure, anxiety, depression and habits such as procrastination, over- eating, a depressed appetite, or excessive drinking.

Effectively manage your time and give yourself as much control over your schedule as possible. Smart time management helps you find, or create, blocks of free time that can be spent relaxing and enjoying yourself by participating in whatever physical fitness or relaxation activities make the stress you’ve been feeling melt away.

Reduce anxiety

The most common mental health issues today are anxiety disorders and (reactive) depression. The pandemic has increased their occurrence. Globally, depression affects 3.8% of the population, according to the World Health Organization. Approximately 30% of U.S. adults will experience an anxiety disorder during their lifetime, according to another study.

Time management and anxiety are intertwined—-poor time management can result in missed deadlines and missed deadlines are known to result in anxiety (and stress). Prolonged feelings of anxiety may bring about symptoms that signal depression, such as low energy, mood swings, irritability and an overall negative attitude. To address noticeable feelings of anxiety or depression, speak with your primary care physician or a mental health care provider.

Your time management skills can help reduce anxiety and distress (depression requires professional care). So if improving work- life balance is something you’d like to do, especially in light of the prevalence of WFH work schedules, time management skills can help you to establish useful boundaries. Meaning, when it’s time to prepare and enjoy dinner, whether alone or with family, flexing your time management muscle makes it easier to turn off your phone and avoid responding to work-related messages when it’s more important to let yourself have some battery recharging downtime.

Avoid burnout

Ongoing workplace stress can leave you feeling not just anxious, but also overwhelmed, inadequate, irritable and resentful—burned out. The World Health Organization classifies burnout as an extreme form of stress that is associated with mental and physical exhaustion, cynical attitudes, emotional withdrawal, difficulty with concentration and focus and diminished productivity and professionalism at work.

Yet another benefit of time management is that it makes you acknowledge how much work you can take on in a given day or week. As noted earlier, time management supports your establishment of healthy boundaries, making it easier to turn down potential demands on your time when you already have a full plate (work or leisure).

Improve your mood and attitude

Maintaining a positive frame of mind will be difficult if you suffer from high stress, anxiety, resentment, depression, or burnout. Time management is not a cure-all for the challenges you face. Still, as a readily available first line of defense, time management can be your go-to strategy when organizing your life is necessary.

Thanks for reading,

Kim

Image: © Courtesy of Harold Lloyd Entertainment. Actor Harold Lloyd (1893-1971, pictured) in the 1923 silent film classic Safety Last.

Survival Strategies , , , , , Leave a comment

Pulling Out of A Slump

by

It can be argued that periodic downturns are endemic to the business cycle. Companies large and small will eventually suffer through a downturn, a slump, in sales revenues and profit. A slump is always worrisome but some are seasonable and therefore predictable. That means you can prepare.

Landscaping services expect the demand for lawn and garden maintenance to drop during the winter months. To supplement cash-flow and position the company for year-round customer value, owners of landscaping concerns are known to retool for snow removal when gardens are dormant.

But for most businesses, unfortunately, a slump will occur unexpectedly and for no immediately obvious reason, such as the appearance of a competitor or a difficult economy. If the struggling business is to survive, corrective action must be taken soon. Reversing a sales trend that’s negative or flat is a formidable challenge, a high-stakes test of the resoucefulness and strategic vision of the company leadership. A turnaound, rather a bigger deal than a pivot, may be needed to turn the tide. Or not.

Freelancers typically do not have the financial wherewithal to bring in a management consultant to diagnose the problem and recommend solutions. Freelance consultants need a Do It Yourself remedy and that’s what we’ll talk about today. As usual, the solution you seek will probably be found in data and knowledge you already own and have access to. Your company’s Key Performance Indicators (determine which ones tell the story) and revelations shared by your customers will most likely steer you to both the correct diagnosis plus cost-effective strategies to halt the slump and stimulate revenue.

When to respond

A slump may be a sudden or gradual phenomenon and caused by any number of factors, including a national or regional economic downturn, the introduction of a compelling new technology, a large-scale health crisis, even a vote in your state legislature. If your top line gross revenues show a decline of 10 % or more (or flatline) for three consecutive months and you are unable to understand why revenue is dropping, recognize that your business is in a slump and you cannot ignore the problem.

The cause

If you’re in a slump, it’s important to identify the cause (single or plural). Did something happen in the industry, or in the local or national economy (like a widespread or a war)? Has business been adversely impacted by the shift to Work From Home, because your customers are no longer in the office five days a week and connecting with them has become difficult? Whatever the cause may be, it’s important to know what went wrong and decide if a work-around would make sense, or if a fundamental change should be made. In some cases, it will be necessary to assess your entire operation. It will be wise to consider the following possibilities:

  • Evolving customer tastes or priorities
  • Business model weakness
  • Powerful competitor
  • Economic factors

The cure

You will likely find that customer feedback is essential to the discovery process. Seeking out the wisdom that your customers can provide will guarantee that you’ll develop a more nuanced and sophisticated understanding of the marketplace and that understanding will lead to an effective solution. A more nuanced understanding of the marketplace can also help you to develop products and services that customers actually want and need.

When preparing to reach out to your customers, make contact through various channels—emails, call-outs in your blog or newsletter, calls-to-action posted to your website and social media platforms. Customer surveys and invitations to join (30-60 minute) conference or video calls can yield a wealth of boots-on-the-ground insights and you’ll be almost certain to obtain actionable information. Reddit, Twitter, Facebook and LinkedIn are ideal venues for this type of research. For example, Twitter Spaces is a feature that allows users to create a chatroom-like environment with a group of people.

Keep in mind, however, that while customer feedback can be very helpful as you search for the cause of your business slump and can as well be very useful as you engineer a pivot or a turnaround for the business, blindly following customer suggestions is not recommended. The customers’ money is not on the line and neither do they see the big picture of the business and its challenges-—you do. Have the confidence to use your own judgment and expertise to make what you interpret as the best decisions for your entity.

In sum, good KPI data and customer feedback should be essential components of any business’s intention to understand and resolve a significant business challenge. An assessment of business conditions, industry trends and customer feedback re: their priorities, goals and preferences can inform any tweaking of products or services you might undertake, the pivot or turnaround you may follow to pull the business back from the brink and position your venture for the greatest success its ever experienced.

Thanks for reading,

Kim

Image: © AF Archive/Alamy. John Dimech (as Daud) struggles to escape quicksand in Lawrence of Arabia (1962).

Administrative , , , , Leave a comment

Third Party Payments and 2022 Taxes

by

The Internal Revenue Service announced in December that it will delay by one year implementation of a new policy that will tax funds you receive by way of third-party payment processors. All entities using third-party payers to transfer funds derived from business activity must, at the close of the calendar year, report said payments on the appropriate IRS Form 1099 and send the documents to recipients of the payments, who will then include the amount of funds reported as part of annual income. The annual taxation threshold has been lowered to $600 for all types of 1099 income.

This new IRS policy was originally scheduled to take effect in 2023 and impact 2022 income, however, many who regularly receive funds through Venmo, Apple Pay, Samsung Pay and other peer2peer digital wallets apparently only recently learned that payments received would not only be reported on Form 1099-K but, alarmingly, will be taxed in the same fashion as 1099-NEC income.

Furthermore, because a significant number of personal financial transactions are also conducted on peer2peer platforms, users are concerned about both an unexpected tax bill and its accuracy. Can your electronic payment processor be trusted to recognize the difference between side hustle income and monies you received from friends to reimburse you for laying down your credit card when you all went out for drinks one night? Will the promised line of demarcation between business and personal fund transactions be consistently respected? Inquiring minds want to know.

Before the rule change, peer2peer payment services reported recipient income on Form 1099-K only when payments reached $20,000 and the number of transactions reached 200. If those conditions were met, the1099-K was required to be submitted to the IRS along with the tax return. The new policy has lowered 1099-K taxable income to $600 per year, aligned with 1099-NEC and 1099-MISC reporting income requirements. The number of payment transactions made will be irrelevant.

You’ve figured out by now that the tax law change will significantly increase the number of folks who will face a higher tax bill. Another loophole closes for the little guy! Still, the IRS has decided that the peer2 peer payments tax rule scheduled to expire on December 31, 2022 will instead remain in place until December 31, 2023 and the new ruling will apply to 2023 income.

Regardless of when the new IRS reporting rule takes effect, Freelancers and small business owners are not liking it. There is resentment that the tax change is specifically intended to crack down on suspected tax evasion within this cohort and others who toil in the gig economy, saddling you with more paperwork and headaches. The population that will be most affected often cannot afford to hire a tax attorney to defend themselves against suspected IRS or payment processor inaccuracies.

Venmo, which was bought out by PayPal in 2012, has been trying to prepare its customers for tax changes that could affect them. The company has emphasized that payments not specifically designated as being for goods or services will not be included on the 1099-K and that the company will not list individual transactions.

FYI, Venmo customers will be wise to familiarize yourselves with the differences between its business and personal accounts. Business users may be better off quittng that service, to avoid the additional fees charged, and instead track business transactions manually from the “friends” setting.

Finally, there is an intriguing twist to the story and a possible loophole has been revealed. Payment processor Zelle insists that the new IRS rule doesn’t apply to its bank2bank payment service, since its network doesn’t hold funds. The company is run by Early Warning Services LLC, which is jointly owned by seven banks (Bank of America, Truist, PNC, US Bancorp, JPMorgan Chase, Wells Fargo and Capital One). In fact, Zelle is included on users’ bank dashboards.

While Zelle offers a service similar to Cash App, Google Pay, PayPal and other peer2peer digital payment platforms, it was built as clearXchange, a peer2peer payment service created by and for its member banks. Zelle is an electronic network that manages automated clearinghouse (ACH) transactions.

According to Wendy Walker, chair of the Information Reporting Subgroup of the IRS Advisory Council, “ACH networks are not subject to 1099-K reporting.” She went on to say, in an email, that payments sent through its network “are not subject to this law” and that small business banking customers choose Zelle “because it makes it easier to complete digital payments where they bank, enabling easier bookkeeping and accounting by having the banking data at one source.” Ms. Walker seemed to infer that bank customers see a benefit in having money in their bank accounts that is not held by third parties.

OK. Of course, Congress could extend the law to include Zelle and similar “by banks, for banks” platforms. Stay tuned for updates.

Thanks for reading,

Kim

Image: © The New Yorker June 13, 2022. The End of the Year, Liana Finck, illustrator

Marketing Leave a comment

Outshine the Competition

by

Believe it or not, if your business has competitors, you can consider yourself lucky. Think about it—- the presence of competitors means that there are customers who have money and motive to buy what you sell. Competitors bring you another gift in that they encourage you to get better at doing business. Competitive forces of the marketplace push you to deliver the value that customers and prospects demand so that your organization will survive (or fail).

Incidentally, your most formidable competitor is not another Freelancer who offers products or services similar to your own, nor is it a bigger, better known and better-funded entity that comes along to eat your lunch. Your primary compeititor is inertia—doing nothing.

When the customer you expected to sign suddenly tells you, “we’ve decided to hold off and reassess our priorities,” inertia is probably a factor. As we discussed in a post a couple of weeks ago, rounding up the decision-makers can be time-consuming in a hybrid work environment. Add to the mix the headache of budgeting for inflation-impacted costs and a fear of recession and shifting projects to the back-burner can seem so much easier. There goes your contract, unfortunately.

Still, there are time-tested actions known to improve a company’s competitive postion. Let’s take a look at some things you can do.

Competitive intelligence

First up, identify your two or three principle competitors. Visit their websites and social media platforms and study their messages. How do they articulate and promote their products and services to prospects? Make it a point to read blog posts, newsletters and case studies as well. If a competitor gives a talk, make sure you attend and if s/he participates in a webinar and/or podcast, listen in. Figure out what motivates their customers to work with them. What do your competitors say and do that may apply to you?

SWOT Analysis

The Strengths, Weaknesses, Opportunities and Threats strategic planning matrix that dates from the 1960s remains useful in the 21st century. Savvy Freelancers and small business owners know that to maintain your competitive position, it is wise to take every opportunity to portray your company as the best alternative within your product or service category. To achieve that aim, promote the reasons that customers should choose you and continually reinforce those attributes.

Use the SWOT template to catalogue your company’s strengths and weaknesses (internal factors) and anticipate opportunities and/or threats (external factors) that may be on the horizon. Obviously, you want to capitalize on your company’s strengths to position yourself to capture opportunities. You also need to acknowledge and correct as many fixable weaknesses as possible, to minimize or avoid threats.

Focus on expert and dependable delivery of your services and functioning of your products. Don’t expect to be all things to all people. Survey your customers and research your marketplace to stay abreast re: industry developments (or the developments in the industries of your largest customers) and updates in customer priorities to give yourself advance knowledge of both potential business opportunities or threats.

Understand your value

It’s crucial that you clearly understand what your unique selling proposition, your value proposition, to know what motivates customers to do business with you instead of a competitor. What makes your business unique and desirable to a select group? From there, work on promotional actions to take and how to most effectively communicate talking points that resonate with your select target audience.

In other words, learn how to best position yourself against the primary competitors and explain to prospective customers why they should choose you over another entity?

Known in your niche

If you conclude that your marketplace is too competitive for you to combat, or you realize that you don’t have the resources, bandwidth, or inclination to offer a product or service line broad enough to satisfy marketplace demands, establish yourself within a niche. In other words, specialize and pivot into narrow and deep.

Again, check out your principle competitors and note the products and/or services that they offer and what don’t they offer. Are they targeting certain areas? How does that match up with what sells well in your organization? Can you specialize in areas that competitors overlook?

Broadcast your brand

Establish a great first impression. Refer again to your competitors’ websites and social media sites-– how do they present themselves? Does their style seem corporate or does it feel personalized?

In your research, be sure to seek out not only what could be appropriate for your brand but also note what doesn’t seem right. Your goal is to articulate your brand while taking your unique selling proposition into consideration. You want to express what your company stands for. Aim to incorporate the visual identity, tone, persona and language that your customers and prospects gravitate to and identify with.

Bring the good news about your brand to every platform that your customers and prospects encounter and trust. What print publications do (or might) they read and trust? When you have something to announce, send that outlet a press release and follow-up with a call to the editor. What philanthropy (that you support) would you like to publicly associate with your brand and do they hold an annual event that your brand can support with not only your presence but also branded giveaways like notepads or similar items?

Multi channel marketing

The coronavirus shutdown hastened a shift to doing business online that was already taking place since at least 2018. Make sure that your website and social media accounts are earning there keep. Establish a presence on platforms that your current and potential customers trust and follow. Design a solid sales/marketing funnel for online appeals that can beckon to prospective customers who are searching your product or service category.

Hint—-if you haven’t done so already, start a newsletter and announce its launch and post it on your website social media platforms. Cover topics that will be of interest of your customers and remember that content marketing is about educating and winning the confidence of your readers.

Customize the experience

Several large studies have indicated that current and potential customers prefer email and other direct communications to be personalized. Direct subscribers to your newsletter or blog should receive a personally addressed post. Announcements of special offers should incorporate info of prior sales history or inquiries whenever possible.

Furthermore, attach a short customer survey and send it out with your next invoice. Ask how you can improve your company’s products or services to ensure tht customers are satisfied with the results of the solutions they purchase.

Price right

Communicate the value of your products and services and justify the premium—but fair—prices that you charge. It’s usually not possible to know what B2B service competitors charge but avoid offering your services at bargain basement rates, Low prices tend to bring in the wrong kind of clients. You also don’t want to set too high of prices since you’ll be more expensive than the competition with a similar skillet as them. If you’re just starting out, do some price testing. As you establish yourself, you can adjust your rates with future clients.

Thanks for reading,

Kim

Image: Evonne Goolagong, winner of 14 Grand Slam singles and doubles titles, including four consecutive Australian Open singles championships between 1974 and 1977, former Number One female tennis player in the world (1976), inducted into the International Tennis Hall of Fame (1988) and native Wiradjuri Australian.