Author Archives: freelancetheconsultantsdiary

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A Politically Correct Skill Set

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Besides the whims of fortune (and luck is an enormous force in the universe),  what differentiates a successful person from an unsuccessful person? What defines a successful leader?  According to Samuel Bacharach,  co-founder of the Bacharach Leadership Group,  successful leadership is defined by the ability to rally support for an idea and inspire others to collaborate with you and help bring that idea to fruition.  Regardless of the quality of the initiatives that you’d like to advance,   you cannot lead without possessing highly developed political skills.  In the absence of good political skills,  the most brilliant plans will die on the vine.  A good agenda will never be realized and a legacy will be greatly diminished.

Bacharach says that the essence of political competence is the ability to understand what you can and cannot control.  One must identify who will support the initiative,  who will oppose and when the time will be right to go public and move forward.  Those who possess political skills get things done because they take the time to think things through.  The politically skilled will not naively or arrogantly move forward alone,  but will instead win over the right people and build a coalition to take on the project. “Anticipating the obstacles your idea might face when you present it is a political skill that can help you get across the finish line”,  says Bacharach.  Politically skilled leaders will consult with a trusted ally or two to reality test their concept,  create a list of potential allies and detractors,  decide who to recruit for the launch team,  calculate the best time to move forward and create a roll-out strategy.

Political skill means knowing how to map out the battlefield terrain,  convince people to join your team and lead a coalition.   The best ideas do not always win out,  but the best launched ideas always have a good chance of seeing the light of day.  The highly respected movers and shakers in life are yes,  the luckiest,  but also they have political skills.

Some are born with a highly developed political skill gene,  but it is possible to improve your skill level.  As noted above,  taking the time to think through the arc of the initiative’s development and roll-out is a good place to start.  Who is likely to support you?  In whose interest might it be to see the project realized?  What can you do to make potential allies see that it will benefit them to support the project? Which of your allies has enough power to make things happen and bring other high-ranking players to your team?

Now who are likely to be detractors,  active or passive—who will feel threatened by a perceived  (or actual)  loss of power and influence if your plan is adopted?  Who might be able to withhold resources  (funding)  or start a whisper campaign to undermine you?  Can your team overcome these matters? Are there cultural,  historical or other barriers that you might face?

Assembling your winning coalition is the next step.  Work only with those whom you trust and respect and know that the feeling is mutual.  Be certain to compile a list of compelling benefits that will help you sell the merits of your idea to those with the power to make it a reality.

You may want to approach the mapping of the political terrain as strategic planning and conduct a SWOT Analysis (Strengths,  Weaknesses,  Opportunities and Threats),  to help you visualize the resources you hold,  any gaps in your war chest,  obstacles that you will likely face and opportunities that may strengthen your position along the way.  Anticipate the arguments that will be made against you.  Sell the benefits that will overcome those arguments and convince  (powerful)  allies to support your position.  Collaborate with supporters to bring your initiative to life.  Be an effective leader.

Merry Christmas,

Kim

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Change We Can Believe In

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Change is inevitable.  Change is good.  Be the change.  Just because everything is different doesn’t mean that anything has changed.

Change is inevitable because tomorrow will be another day.  Change can be positive or negative but unfortunately,  change often brings with it undesirable consequences.  In my experience and observation,  change is frequently something that the powerful foist upon the less powerful.  Change based on self-aggrandizement or an opportunity to enrich oneself at another’s expense is needless,  damaging,  unethical and the source of much stress for its recipients.

On the other hand,  change can be a positive and life-sustaining process that we ourselves control.  When the changes made are an adaptation to a new set of circumstances that allow us to explore new people and places,  avoid a threat,  or capitalize on an opportunity,  then change is a blessing.  This kind of change helps us to grow and prosper.

No life or organization can escape the inevitability of change.  Our only defense is learning how to manage change as gracefully as possible by formulating plans to minimize the negative and maximize our access to whatever is positive.  Guiding change may be the ultimate test of our inner resources and leadership ability.  Please consider the following Critical Success Factors for instituting change,  developed by retired Harvard Business School Professor John Kotter and detailed in his 1996 book  Leading Change.

1.    Acknowledge or create a sense of urgency. 

  • Identify and discuss current or potential crises or major opportunities.

2.    Assemble a coalition to guide the process.

  • Recruit a team whose members have sufficient skill and power to lead the change initiative.

3.    Create a vision of what the change will bring.

  • Create a vision to help direct the change process.
  • Develop goals,  objectives,  strategies and action plans that will achieve and manage the change.

4.    Communicate and gain acceptance of the vision.

  • Employ all available methods to communicate the vision to those who will be impacted.
  • Teach behaviors that reflect the change,  demonstrated by the guiding coalition.

5.    Empower the coalition to create the vision.

  • Eliminate obstacles to the change: lack of understanding or trust,  administrative and financial constraints.
  • Reconfigure or eliminate all systems and procedures that can undermine realization of the change.
  • Encourage risk-taking and nontraditional ways of thinking and actions.

6.    Identify popular and visible goals that are achievable in the short-term.

  • Plan for visible performance improvements that can be reached in the short-term.
  • Acknowledge and reward guiding coalition members and others involved in achieving those improvements.

7.    Use the credibility and support gained from short-term successes to move forward and promote the vision of the change.

  • Increased credibility is the green light to change or eliminate systems,  structures and policies that do not align with the new vision.
  • Continually reinvigorate and reinforce the change process with projects and people who support and validate it.

8.    Institutionalize the change.

  • Articulate and communicate the connections between the change and the enhanced success of the organization.
  • Develop a succession plan to ensure the ongoing presence of leadership that supports the change.

Thanks for reading,

Kim

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Better Business Writing

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The ability to write well is an asset and poor writing undermines the perception of one’s professional abilities.  Skilled writing is in great demand in the business world,  where content marketing and social media updates require Freelancers,  business owners and corporate marketing teams to write newsletters,  blogs,  white papers,  Twitter updates and press releases.

Some of us hate to write and we are intimidated by the prospect.  From time to time,  even good writers struggle to express their thoughts.  Submitted here are business writing tips that will help you to communicate your expertise to clients,  peers,  prospects,  hiring managers or potential business partners.

Purpose

What is your written communication meant to achieve?  Do you want to write a proposal,  a thank you letter,  a follow-up email that confirms agreed-upon actions that were discussed in a meeting,  or a message in a greeting card?

Inventory

It’s helpful to write down and list what you want to say,  in no particular order.  Don’t worry about vocabulary or grammar,  just grab paper and pencil and capture what information is necessary to convey your intentions.  Save the editing for later.

Concise,  complete and organized

Prioritize your subject matter and lead with what is most important and time-sensitive.  Write a first draft and do your best to express your information clearly and concisely.  If your communication is business,  you may choose to highlight the most noteworthy points in bullets,  so that the reader’s eye is drawn to them quickly.

Active voice

Business writing is all about action and you will convey your command of the subject or events that transpired when you write in the active voice.

Spelling and punctuation

Run the spelling and grammar check that is on your software.

Edit

Review and edit your writing and if time allows,  take another look anywhere from a few hours to a day or two later.  Allowing your writing to “rest” will sharpen your editing prowess.

Thanks for reading,

Kim

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Your B2B Christmas Party Networking Guide

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The Christmas season is an excellent time to meet potential clients.  Many organizations would like to put projects into motion when January comes around and more decision-makers than you may realize are on the lookout for a Freelance consultant to help their department achieve important goals.  Do what you can to attend those that appear to have potential for good networking.  You may receive an invitation to a party where you know only the host.  Don’t shy away.  Accept and devise a winning game plan to see you successfully through what might otherwise be an awkward clunker of an evening.

Call the host  (do the Evite as well if that was sent)  to personally RSVP and express thanks for the invitation.  Tactfully inquire about the guest list  (you can also check on Evite and ask for intros while at the party)  and proper dress for the occasion,  so that you will know what to expect.  Knowledge is power and power brings self-confidence.  Tell the host that you look forward to meeting the other guests and ask him/her to introduce you to anyone on your personal VIP list.  Right away,  you’ll make the host happy because you’ve identified yourself as a good guest.  Tip: since your purpose for attending is looking for your next client,  go alone.  The last thing you need is a friend who could detract from your agenda or take over a conversation that is going well for you.

At the party,  fulfill that expectation by taking on the role of facilitator.  Do your best to be  (appropriately)  friendly and authentic.  Have the courage to extend yourself and greet people,  especially those who are alone.  They will be grateful that you’ve rescued them.  When in conversation,  allow the other person to talk about themselves.  After introducing yourself and offering up some pleasantries about the nice party that you’re both at,  “How do you know  (the host)?”  is a great ice-breaker.  A general question about holiday plans— at home or traveling?— is a nice follow-up.

Practice the art of mingling.   When conversation seems to hit a dead-end with one person,  excuse yourself to refill your plate or your drink  (Hint: 3 drink limit,  do not overdo) and find someone else to talk to.  Do not intrude upon conversations that appear to be private.  At the party,  remind the host of whom you would like to meet.  When meeting your VIPs,  resist the temptation of promoting yourself.  If you know something of the guest list in advance,  search LinkedIn or Twitter to get a career update,  so that you can  “serendipitously”  ask questions that will allow your wish-list guest to talk about him/herself and make yourself look wonderful in the process.

Use the 80/20 Rule and cede 80 % of the conversation to the other person and spend 20 % talking about your own life and business  (unless the VIP really wants to know).  If it seems appropriate,  suggest post-party contact and do a card exchange.  Ask for a good time to call/email—December or January?

Leave social media out of the party.  Do not even think about posting a photo on Facebook or Instagram.  Do not invite a VIP or anyone else you’ve just met to join your LinkedIn network.

Finally,  knowing when to arrive and exit a party are important social skills.  Especially when you do not know anyone on the guest list beyond the host,  arrive at 6:30 PM for a 6:00 PM – 9:00 PM affair,  so that you will have several people to talk to.  Unless you are in a good conversation with follow-up potential,  make your exit  (thanking the host on the way out)  when 25 % – 35% of the crowd has departed.  You want to be present when the party is at its peak.  Now go and check your email and look for invitations!

Thanks for reading,

Kim

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Get Your Arms Around Content Marketing

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Was it two or three years ago that the term  “Content Marketing ” entered the marketing lexicon?  I first addressed the subject in March 2013  https://freelancetheconsultantsdiary.wordpress.com/2013/03/05/content-marketing-is-the-new-ad-copy .  Back in the day,  advertising strategy focused on which publications would reach the most potential customers at a price the business could afford.  Depending on your business,  traditional advertising can still deliver the desired ROI,  but Content Marketing cannot be ignored.  It is the conduit to engaging with customers on a granular level.  Through it,  we are able to reveal our understanding of customer priorities and challenges,  build trust and credibility as a result of that understanding and demonstrate how and when they might benefit from using our products and services  (and in that order,  BTW).

KISSmetrics CEO Neil Patel defines Content Marketing as  “…the way for a business owner to educate your customers and potential customers about your products and services.  The goal is to offer tips,  help and education about anything that can be helpful to a customer.  This kind of information can be shared in the form of a blog, white paper, webinar, video or social post.  The opportunities are endless.”  Michael Brenner,  a Forbes Magazine Top 40 Social Media Marketer and head of strategy at NewsCred,  points out that  “Small businesses don’t have the luxury of massive ad budgets…they need to drive brand awareness and (sales) leads with limited resources.  Content Marketing is a great way for small businesses to do both.

Great.  Now let’s get you started on creating Content that’ll do some good.  First,  define the Content you should create,  i.e. the Content that your customers value,  presented in a way that will make them tune in to your message.  Think carefully and from the customer’s viewpoint about the reasons that they use your product or service: what are they trying to achieve and what information would they appreciate as they strive to examine and resolve that process?  Chatting with customers about their business goals and challenges and getting a better handle on where your products or services fit in will give you some guidance.

Shelly Kramer,  CEO and founder of V3 Integrated Marketing,  insists that you will benefit from applying what you learn from your research to your strategy and,  just as important,  commit it to writing.  “Write down your strategy.  The key is to tie your overall business goals and objectives into your Content Marketing strategy”,  she says.  Kramer is very astute as she reminds Freelancers and business owners to remember the big-picture marketing strategy for the enterprise and incorporate Content Marketing,  including social media,  in that picture.  “Social and Content have to work together in order for you to be successful….you can’t have success with Content without a robust presence in the social media space and….understanding the role that fresh,  relevant Content and social media channels play.  There is great Content being published on corporate blogs on a daily basis that no one ever sees.”

Next,  choose your delivery system.   Do customers visit your website often?  Then maybe posting a white paper once a month or writing a weekly blog will work for you.   Are customers part of your LinkedIn group,  Facebook fan page,  or do they follow your business on Twitter?  Add those icons to your email signature block and your website to make social media connections that alert customers to your Content an easy process.   A monthly newsletter is another great Content Marketing strategy.  It’s the savviest form of email marketing  (include an opt-out feature).

Fresh and relevant are your operative words,  as Kramer notes.  Volume,  value and variety are your other guideposts.  Brenner says “(Volume)….starts with this notion that you need to be present in our always-on,  always connected world.  The second thing is value.  Your Content has to be good.   I always recommend that brands identify what they want to talk about and then make every effort to produce as much valuable Content around those topics as often as possible.  The final tip is about variety.   People (and search engines)  reward those brands that deliver value in multiple ways,  so think about text-based articles,  videos,  SlideShare presentations,  research reports  (white papers) and all the different things we consume across the digital,  social and mobile web.”

How do you measure ROI and recognize success?  Patel offers 3 specific steps:

  • Track Content views
  • Use Google Analytics (free) to track which types of Content drives visits to your website
  • Measure your search traffic

Patel advises “You have to give it time.  Don’t expect great results in 3 months or 6 months,  but you will see traction.  Within the first 3 months you should see more traffic to your site.   Within a year you should start to see good results and an opportunity to monetize traffic on your site.”  Patel concludes  “Good Content Marketing builds trust.  If someone trusts you,  they are more likely to buy your products and services and more likely to tell their friends and family.”

Thanks for reading and Happy Thanksgiving,

Kim

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Open Enrollment: Freelancer’s Health Insurance

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Open enrollment for 2015 Affordable Care Act health insurance began on November 15.  Individuals who earn maximum $46, 680 and families of four (couples with two dependent children) that generate a maximum total income of $95, 400 are potentially eligible for a tax credit that will help defray the cost of insurance premiums. In tax year 2015,  the penalty for not carrying insurance will rise from $95 to $325,  or 2% of household income,  whichever is greater.

Business entities of 50 or fewer employees and located in Delaware,  Illinois,  Missouri,  New Jersey or Ohio can set up a Small Business Health Options Program (SHOP) account by completing an application that determines eligibility and if accepted,  investigate plans and prices and contract with an insurance company.  A 2014 University of Chicago study found that 2013 insurance prices offered through SHOP exchanges in 26 states were on average 7 % lower (about $220) than comparable insurance bought outside of the SHOP exchanges marketplace.

Freelancers and small business owners who did not buy health insurance in 2014 will need information to guide decision-making about the upcoming year.  The Freelancers Union  http://freelancersunion.org,  a New York City-based nonprofit organization that advocates for the interests of self-employed workers,   plans to help its 233,000 members purchase medical and/or dental insurance in all 50 states.

Freelance Union members also have access to retirement plans and disability,  liability and life insurance.  Additionally,  the Union operates two health and wellness centers in New York City,  where members can obtain primary care services at no charge and also participate in classes such as tai chi and yoga.  Membership in the Freelancers Union is free.

I went to the Union website and found that medical insurance is not offered in my state,  but dental coverage is available for $60.77 /month  ($112.32 /married couple and $164.89 /family).  The twice-yearly cleanings are 100% covered as are annual x-rays.  Services such as crowns,  fillings and anesthesia are covered at 80% after a $50 deductible and root canals,  endodontic and periodontal services are covered only after a 12 month waiting period and then at 50 % after the $50 deductible.  The yearly maximum benefit is $1250.

An individual pays about $730 for the year.  I might spend that amount in a year paying out-of-pocket for two cleanings with bi-annual x-rays averaged in.  My gums are not great and I must very soon see a periodontist.  Heaven knows what he will charge but the visits will not be covered,  since only two are allowed in 12 months.  Periodontal work would only be half covered and the maximum annual benefit is only $1250 for a premium that costs $730/year.  In sum,  health insurance is all too often not an advantage,  unfortunately.  Maybe the medical plans are better?  An individual Bronze level plan in New York City will cost $393/month in 2015.

Still,  it appears that Freelancers can benefit in other ways from Union membership (I am not a member).  There are plans over the next five years to open 15 primary care clinics across the country,  including Los Angeles and Austin, TX.  The clinics will not charge co-pays for office visits and will be open to all who purchase health insurance through the Freelancers Union.  There are numerous professional benefits as well.  Maybe I will join before too long.

More good information on health insurance prices is available at the Consumer Reports Health Law Helper,  which walks you through questions to help you understand your options for buying health plans,  with links to marketplace sites   http://healthlawhelper.org.  The American Association of Retired People AARP sponsors the Health Law Answers site,  which provides information for health insurance seekers of any age  http://healthlawanswers.aarp.org/en.  The Kaiser Family Foundation provides the Insurance Marketplace Calculator,  which helps you estimate the cost of health insurance based on your location,  age and income,  along with pricing for various level plans  http://kff.org/interactive/subsidy-calculator/.

Thanks for reading,

Kim

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Year-End Tax Planning: Freelancer Options

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It’s never too early to start a retirement plan and Freelance consultants are encouraged to set aside money whenever possible.  Be advised that contributions to a self-funded retirement plan are guided by your net earnings from self-employment.  If you net $80,000 this year,  then you may contribute 20%  of that amount,  or $16,000,  to a SEP IRA or Solo 401K plan.  If you are age 50 +,  a  “catch-up”  contribution of maximum $5,500  (in 2014)  can raise your total allowed retirement fund contribution  (and tax deduction)  to $21, 500.  The maximum amount that one can contribute in tax year 2014 is $52,000 and $57,500 for those age 50 +.  However,  if you are a high earner and you consult with a savvy tax specialist,  it may be possible to divert lots more tax-deductible dollars to a Solo 401K than is allowed with a SEP IRA.

 

SIMPLE IRA

The Savings Incentive Match Plan for Employees Individual Retirement Account is a type of traditional IRA that is tailored for small business owners and self-employed Freelance consultants.  As with a traditional IRA,  contributions are tax-deductible and savings held in the account are tax-deferred until retirement withdrawals are made  (age 59 1/2 the youngest and age 70 1/2 the oldest).  If you have employees,  they may contribute to the SIMPLE IRA themselves and you the employer are required to make annual contributions as well,  whether or not the employee chooses to contribute.  You may make a 100%  match of the employee’s contribution,  but the maximum is 3% of your  net earnings,  or you may limit your employer contribution to 2%  of your  net earnings.

Any business entity that employs 100 or fewer workers may establish a SIMPLE IRA for employees and the owners,  too.  If you anticipate growth in your business that will likely cause you to hire even one full-time employee,  then consider a SIMPLE IRA,  because adding employees to the plan is relatively easy,  unlike other retirement plans.  The big downsides to SIMPLE IRA are 1).  the $12,000 annual contribution limit is considerably lower than that of SEP IRA and Solo 401K and 2). the  $2,5000  “catch-up contribution”  for Freelancers and business owners who are age 50 + is paltry by comparison as well.

However,  as a business owner or self-employed Freelance consultant,  you are your own employer and you may contribute to your SIMPLE IRA as both employer and employee.  You may add in up to 3% of net earnings,  in this example up to $2,400,  to contribute $14,4000 in 2014 and $2,500 extra if you are age 50 +.  Finally,  if you don’t make much money but you still want to set aside a little something for retirement,  if your net earnings from self-employment are $12,000 or less,  you may contribute 100% of the amount of your net earnings to your SIMPLE IRA.

ROTH 401K

A designated Roth Retirement Account is an individual retirement account that exists under the umbrella of your 401K,  solo or traditional  (if the 401K is set up to allow it).  Unlike SEP and Solo 401K,  Roth 401K contributions are made with after-tax income and when you are ready to access the account,  you will draw down tax-free money.   The 2014 maximum Roth 401K contribution is $5,500  ($6,500 for those age 50 +).

Your selection of a Roth designation within your 401K will depend upon your financial circumstances and you should meet with a reliable financial adviser in advance.  An individual or couple might choose a Roth when there are insufficient deductions to itemize at tax time,  thus negating the tax deduction benefit of the other retirement accounts .  The Roth,  paid with after-tax dollars,  gives account holders the benefit of tax-free income during retirement.   Wealthy Freelance consultants who are concerned about minimizing taxes during retirement may also benefit from the Roth.

You may have both a  (pre-tax)  Solo 401K and an  (after tax)  Roth 401K and it is permissible to use the salary-deferred portion of your Solo 401K to make a Roth 401K contribution.  Profit sharing Solo 401K contributions are not eligible to be made as a Roth 401K contribution,  since they are made pre-tax and are tax deductible and you cannot commingle the two.

While Roth 401K income-deferred contributions are NOT tax-deductible,  withdrawals made after age 59 1/2 are tax-free IF five years have passed since your first contribution to the Roth  (known as the 5 year rule).  One is NOT required to take distributions at least by age 70 1/2 and that feature may be useful for retirement cash flow planning.

Thanks for reading,

Kim

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Year-End Tax Planning: Funding Your Retirement

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Happy November.  The year will soon end and it is time to put together a tax planning strategy while there is still time to plan and execute.  There may be business equipment to purchase,  upgrades to make to your website or a seminar to attend,  but we self-employed workers must also fund our retirement.  Traditionally employed workers must also fund their retirement,  but they get help from their employers.  Freelancers are our own employers and we must step up and do all that we can to stash a few tax-deductible dollars in the cookie jar,  so that we can eat when we’re 75.

Whether you’ll squeeze a few thousand dollars out of modest billable hours or you’re looking for a place to roll the overflow from a lucrative year,  saving for retirement is a superb tax planning strategy.  It is also a superb life planning strategy.  Under no circumstances do we want to be old and broke in America.  If one is single,  that is a real possibility.  This is not Europe and the government will not give us any financial assistance in a time of need,  even though we have been tax paying citizens our entire lives.

The good news is that there are good retirement plan options available to Freelancers with a few thousand dollars to spare and the discipline to save.  Also,  the retirement money can be invested in stocks,  bonds,  mutual funds or even real estate.  You might get lucky and see your investment really grow.  Taxes will not be paid until it’s time to draw down on the account  (age 59 1/2 the youngest and age 70 1/2 the oldest).

SEP IRA

The Simplified Employee Pension Individual Retirement Account is modeled after the IRAs that every employer offers.  They are evidently the easiest type of retirement account to set up and there are minimal IRS reporting requirements involved.  Your job will be to find a brokerage firm that will set up the plan,  process your deposits,  maybe give you some investment advice and not kill you with administration fees.

Contributions are limited to 20% of your net earnings  (before the self-employment tax).  Contributions are capped at $52,000/year for tax year 2014 and the limit will increase every year or two,  to adjust for inflation.  A married couple who run a business together,  or are each Freelancers,  may open a joint account and save an annual maximum of $98,000 tax-deductible retirement dollars in 2014.  One cannot borrow against a SEP IRA.

SOLO 401K

The Individual 401K is modeled after a traditional 401K and once again,  the IRS filing requirements are uncomplicated and your job is to find a brokerage firm that will set up the plan,  process your deposits and not kill you with administration fees.  One may contribute money a little differently to a Solo 401K,  in that you may give yourself a  “salary deferral”  in a good year and stash up to 20% of your net earnings into the Solo 401K,  but the annual maximum contribution remains $52,000 in 2014  (the limit will rise modestly to adjust for inflation).  However,  Freelancers aged 50 +  can take advantage of the  $5,500 (max)  “catch-up contribution”  feature,  which allows those who are able to set aside more retirement dollars to do so and contribute up to $57,500/year in tax-deductible dollars.  Another big advantage of the Solo 401 K is that one may borrow against maximum one-half of the assets  (you must repay the loan with interest, to yourself).  Additionally,  a married couple who run a business together can start a Solo 401K retirement plan for the two and contribute up to $98,000 annually as of 2014 and $10,000 more with the catch-up contribution if both are age 50 +.

Next week,   we’ll look at the SIMPLE IRA and more retirement plan options.

Thanks for reading,

Kim

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Notes on Networking

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I’ve been thinking about networking lately.  Last week,  I had a great meeting with a young lady I met maybe 5 years ago,  when I revived a volunteer relationship with her organization.  I found the volunteer activity personally rewarding and I took it seriously.  I sharpened a seldom-used skill that I find highly desirable and I saw to it that my work met or exceeded expectations.  Scheduling prevented me from donating services for a couple of years,  but I always responded to her outreach. When she asked to pick my brain about a program-related matter,  which turned into a request for a face-to-face,  I was happy to say yes.

Little did I know that the volunteer service,  that is pro bono consulting work,  will now pay a stipend.  There is also an effort to grow the program.  The organization has had trouble selling to the new target market and I was happy to suggest some talking points that should produce results.  She took lots of notes.  Sometime over the next few months,  I expect that I will be invited to provide more pro bono work,  this time with a very helpful stipend and a chance to gain access to individuals that I would like to add to my client list.

What’s the moral of this networking story? One,  strategic volunteering can pay dividends.  Two,  selectively network at both ends the organization chart.  Don’t assume that lower ranking people are never in a position to help you.  This young lady was the program coordinator,  not a decision-maker and she’s half my age.  Nevertheless,  I treated her with respect and always enjoyed working with her.  When asked,  I offered to give her some much-needed insights,  without knowing that she is now in a position to help me make money.

Of course,  we all dream of meeting a powerful person who will miraculously agree to become our sponsor and shepherd us into a fabulous career.  That happens for some people,  but it has yet to happen to me.  For example,  for more than a decade I regularly attended Mass and sat at coffee hour with a very wealthy and well-connected lady who frequently discussed the professional success she had had before her retirement.

The lady was well aware of my need for clients and yet she never lifted a finger to help.  She who had never walked through a door that was not opened for her,  deliberately withheld from me.  Yet,  she never failed to enlist my help with her Sunday amusement—the New York Times crossword puzzle.  It is interesting,  because she sought me out for conversation and volunteered information about her career and connections.  I should have been golden.  Oh, well.

But how does one network successfully at the top of the organizational chart?  As detailed above,  interacting with someone who is inclined to respect you is rule #1.  Remaining aware of the difference in power and status is rule #2.  Understanding how you can be a valuable asset to an individual who has many resources and most likely doesn’t need anything from you is rule #3 and effectively communicating to Mr. or Ms. High-and-Mighty whatever value proposition that you think might be appreciated is rule #4.

There are no hard-and-fast rules for networking up the food chain,  but despite my fruitless experience,  which I will say is unusual,  networking with the higher-ups is best done at volunteer board meetings,  houses of worship,  at the fitness center,  or in other non-work related venues.  There are many people tugging at the sleeves of the well-connected.  It’s probably best to get to know them in a social situation that facilitates participating in a shared experience that can lead to organic relationship-building.

Thanks for reading,

Kim

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Arranged Marriage: Propose A Strategic Partnership

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On numerous occasions throughout the life of this blog,  I’ve urged readers to create strategic partnerships as a way to grow and sustain their enterprise.  Strategic partnership can bring great advantages to the entities involved.  But if poorly conceived and executed,  the partnership will be an expensive and frustrating disappointment.  You know which scenario you want,  so let’s talk about how to get there.  Freelance consultants and small business owners will likely have one of the following goals in mind when contemplating a strategic partnership:

  • Expertise that is project specific or ongoing
  • Labor needed for the short-term or intermittently
  • Access to a certain target market
  • Increasing sales in existing markets
  • Sharing resources, e.g. office space or technology

Define goals that you can reasonably expect to achieve via the partnership.  Your need may be as simple and short-term as finding a talented and reliable graphic artist to design a save-the-date card,  invitation and program book for a nonprofit agency fundraiser that you are planning or a photographer to capture special moments at the event.  If you produce many events,  you will want to form ongoing strategic partnerships that will create a team of suppliers on whom you can rely.  If a long-term arrangement is your goal,  consider carefully the expected benefits to your organization in terms of market penetration,  access to bigger projects and clients,  increased revenue,  or other pertinent factors.  Project how long you expect it will take for your organization to realize progress towards the goal.

Well-defined partnership criteria will help you to pre-sort candidates in advance of approaching someone.  You won’t know until you have a meeting,  but learning about the potential candidate’s business model,  client list,  business goals,  business practices and organizational culture are important deal-makers or deal-breakers.  The more alignment between the participating organizations,  the better the chance for success.  Prepare and prioritize your list.

Next,  think about potential partnership candidates and your relationship with those individuals or entities.  Look for a firm where a complementary aspect exists with yours,  as noted above in the example of an event planner in search of a photographer or graphic artist.  Will organizations that offer any competing products or services be disqualified?

If it’s a long-term partnership that you will propose,  prepare a partnership worksheet for each candidate,  to ensure that you approach only those with whom you are likely to partner successfully.  Be specific about what you want the partner to provide and the responsibilities of each entity.

As you consider partnership candidates and develop the worksheet,  confirm and learn to articulate the expected benefits that would accrue to an entity that would partner with your own,  attainable over the short and long-term.  How long do you project it will take for the partner’s organization to realize progress towards the goals? Seeking feedback from a knowledgeable and neutral third-party might be helpful at this stage,  to eliminate excessive optimism on your part.

You are now ready to enter the recruitment phase of your search.  This process can be formal or informal,  depending on your familiarity with the organization leader.  You might run into that person at the grocery store and suggest that the two of you sit down over coffee and talk a little business.  If you’re not so chummy,   send an email and set up a call time or a face-to-face.  If the proposed arrangement will be complex,  provide your prospective partner with a copy of the partnership worksheet.  The worksheet will make you look super-prepared and can only raise your stature in the eyes of the candidate.

Especially if your intended has a bigger and more prestigious organization than your own,  providing the partnership worksheet should be a good tactical move.  The worksheet will also help you to launch discussions of organizational priorities;  clarify the perceived benefits, of the partnership;  anticipate obstacles;  reveal alignments or disconnects in business practices;  and give insight into organizational culture.

If at the meeting the partnership seems like a good fit,  propose or answer any questions that would constitute due diligence as you develop a formal partnership agreement.  The two of you must agree in writing to the specifics of the partnership:  its goals,  expectations,  services provided,  resources shared,  responsibilities,  fee schedules,  deadlines,  effective date and how success will be evaluated and other factors that would impact the relationship.

Thanks for reading,

Kim