Author Archives: freelancetheconsultantsdiary

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Perfect Pitch

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“The goal of networking is not to gather sales leads,  but to start business relationships and that begins with a conversation and not a sales pitch”,  asserts presentation and communications coach and author of The Anti-Elevator Speech (2009),  Cliff Sutttle.  Whether you’re at the Rotary Club lunch,  the gym or your second cousin’s third wedding,  eventually someone will ask what you do for a living.  For Freelance consultants and business owners,  a well-crafted elevator pitch is your answer.

The original idea behind the elevator pitch was to have something to say about your business to a potential customer whom you met by chance.  Presumably,  the two of you would be in an elevator and you would have about one minute to tell your story.

An appropriate elevator pitch presents you and your business offering in a casual,  socially acceptable manner.  To use your elevator pitch as a sales pitch is always wrong.  Someone whom you’ve just met is not a candidate for a sales pitch.  Delivering a sales pitch when you should deliver an elevator pitch will soon make you a social pariah.

While it is true that a Freelance consultant or business owner must constantly seek out potential customers,  it is important to first,  verify that one is speaking to a potential customer and not to someone making polite conversation and two,  communicate in a manner that is not perceived as selling.  Focus instead on solving a need and building a relationship and formulate an elevator pitch with a style and substance to communicate that.

The right elevator pitch will open doors for you,  business or social.  Your elevator pitch is a verbal business card.  It introduces you and your business to those who inquire.  Follow these steps and create one that works for you:

!.  The Hook

Cliff Suttle recommends that you give a short,  accurate-yet-vague statement of the ultimate benefit of your product or service.  A financial planner might say that he/she helps clients sleep well at night.  A web designer might say that he/she makes sure that potential customers get answers to their questions about your business.   A marketing consultant might say he/she builds communication links between the business and its customers.   After the hook is given,  say no more.  If the questioner wants to know what you mean,  then there will be a follow-up question.

Sales and marketing guru Geoffrey James,  author of the soon-to-be-published book Business Without the Bulls**t,  recommends that in the hook,  position your firm in one sentence that describes who you are and the primary service you provide,  with a focus on benefits and outcomes.  One who facilitates business strategy meetings might say  “In a one-day session,  I get my clients to reach consensus on pursuing a half-dozen relevant and achievable business goals that are guaranteed to deliver measurable results.”  If the questioner asks how you do that,  then proceed to Step 2.

2.  Differentiate

Defend the claim you made in Step 1 and give two or three reasons that show how your services are superior to competitors’.  Years of experience, marquee clients,  a special proprietary system or patented methodology or scientific data published in credible journals are how you make your case.  Client testimonials on your website or LinkedIn page add credibility to your claim.

3.  Conversation

If your questioner continues to show interest,  he/she may just be nosy,  may be a competitor trying to get information on how you do business,  or may be a genuinely interested prospect or referral source.  You won’t solve the mystery until you get that person talking.  When you ask if your area of expertise happens to be a concern at his/her company,  or note that he/she sounds as if they’ve encountered this situation before and inquire as to how it is being handled now,  the answer will reveal true motives.

4.  Meeting

If it makes sense to continue the conversation,  then ask your questioner for an opportunity to meet and continue what has been started.  If your questioner turned prospect  suddenly seems hesitant,  then ask  what less than optimal previous experience gives him pause, or what you can provide to ease his/her mind.  If your newest prospect seems enthusiastic, then ask how to get on his/her calendar and the preferred mode of contact and time to reach out.  You’ll be on your way to building a profitable business relationship.

Thanks for writing,

Kim

Business Strategy , , 3 Comments

Market Research: Benchmarking and Your Positioning Strategy

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Every few months it makes sense to do some benchmarking and find out how your services,  marketing message buzzwords and delivery systems compare to that of competitors.  Whether you are a start-up or a veteran entrepreneur,  market research in its many forms is an important barometer of the environment in which your business operates.  Fail to keep your finger on the various pulse points of the marketplace and you can miss the boat on either a lucrative opportunity or a shift in business practices or customer priorities that will leave you out in the cold and scrambling to catch up.

As we approach the fourth quarter,  it is useful to start thinking about the new year and how you can refine and confirm your services offered,  targeted clients,  business model and delivery of services.  The results of your benchmarking research can be used in the marketing or operations sections of a business plan,  to create a marketing or operations plan or to measure the success of a current ongoing plan.  Start the process by following the advice of the late,  great business strategy guru Peter Druker,  who famously noted that getting the right answers begins with asking the right questions.  Some important questions to pose include:

  • What drives targeted clients to hire outside help  (that is, Freelancers)  to perform the types of services your organization provides?
  • Who is providing that service for them now and what is the level of satisfaction with the deliverables?
  • What would those clients like to see included in the service itself or in its delivery that is not now being provided?
  • Does the client anticipate any changes in demand for this service within their organization?
  • What does the client feel is a fair price to pay for these services?

In market research,  there are primary and secondary sources of information.  Primary source information emanates directly from the client or competitor. Secondary sources are anything that has been published.  Because Freelance solopreneurs typically do not have market research budgets,  a DIY low or no cost strategy will be necessary.  Primary information can be collected from current and prospective clients through surveys and questionnaires that either appear on your website or are emailed separately to those who you feel will respond.  Provide an incentive to participate,  such as a free half hour consultation.  Also,  clients,  prospects and referral sources can receive from you an invitation to have coffee or lunch,  so that questions about their organizations’ needs and priorities as relates to your services can be asked and answered.

Competitors are another source of primary information.  If you attend a seminar outside of a competitor’s working geography,  he/she will likely be comfortable about sharing information.  Over time,  certain competitors that you encounter on a regular basis at business events may drop their guard just a bit and share a couple of pearls with you.  It is for that reason that establishing good relationships with competitors is a smart idea.  What they share will be limited,  but it could be beneficial.

You may want to begin your research with secondary information.  The easiest DIY market research tactic is to visit the websites of four or five of your closest competitors,  that is other Freelancers who offer similar services to clients that could be yours,  if you play your cards right.  It’s a good idea to monitor the sites over the course of months or even years and make note of any additions or deletions of services.  Changes in the available services of more than one competitor could very well indicate a change in client priorities and should prompt you to start asking some questions of your clients.  Periodic explorations of client’s websites is also a good idea.  A new service could suddenly appear and give you a new opportunity to make money.

Take your secondary research a step further and do an internet search of clients and competitors. You may find articles and press releases that yield useful information.  Periodic checks of competitor’s LinkedIn profiles is also a great idea,  especially if the two of you share a connection.  That will grant you access to a competitor’s page without making that person a connection.  Lots of juicy details about the competitor’s activities may await you.  How can you create a second degree,  strategic connection?

Give your business an important reality check with some good market research.  Obtain information that helps your business identify niche markets or glean more billable hours from current clients.  Use the December Christmas build-up weeks to conduct your investigations and make plans that will set you up for a successful new year.

Thanks for reading,

Kim

 

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Press Kit Recipe

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Public Relations experts say that creating a good press kit is as essential as creating a good website.  Both items reflect your brand and are important marketing tools for your business.  Make your press kit one-stop shopping for a busy journalist,  prospective customer or potential referral source who would like information about you and the products and services that your business provides.  PR pros say that a useful press kit contains the following ingredients:

Company overview    AKA the “one sheet” gives a thumbnail sketch of your business: company name,  year formed,  contact info,  name and contact info of the company’s media spokesperson if the business is not a single person entity,  a succinct description of the products and services provided and two or three key benefits,  value addeds or outcomes derived.

FAQs    Differentiate your company from the competition and provide helpful information with a Frequently Asked Questions page,  if you desire.  Use as a guide questions that prospective clients ask when you meet to discuss doing business.

Bio   The founders,  principals,  C-level executives and major investors should submit a one page bio for the press kit.  The qualifications of the leadership team should be made known.  Lou Hammond,  of the public relations firm Hammond and Associates,  recommends that three paragraphs is the ideal length of a bio.

Testimonials    Customer testimonials allow those who have done business with you to sing your praises and add loads of credibility to your professional capability.  Invite your three best customers to write a sentence or two and extol your virtues.  Again,  keep the testimonial segment to one page.

Press releases    Include three or four recent press releases,  so that the press kit recipient will know what you are saying about your business activity: new product or service launches,  business partnership,  speaking engagements,  webinar presentations or participation in a local charity event,  for example.

Article links     Formerly known as press clippings,  include links to articles in which your business has been mentioned to let interested parties know that you’ve garnered press coverage.

Photos    Invest in a session with a professional photographer and get an attractive head shot of yourself and each leadership team member.

Audiovisuals    A link to a short video clip of you or a leadership team member speaking at a prestige event,  accepting an award and/or demonstrating a product can be included.  Customer testimonials can also be presented in this format.

Press kits are usually compiled and distributed electronically.  Nevertheless,  there can be reasons to have ready hard copy to present to select individuals on the spot.   A physical press kit represents another opportunity to communicate good things about your brand.  Create an attractive and informative package.  Enclose the information in a portfolio folder in your company’s signature color.  Attach a pre-printed label that contains your company name and logo.  Print documents on good quality paper stock.  Remember to include your business card.

Despite the rise of social media,  the relevance of traditional media outlets,  whether print or online,  has not diminished.  No matter how many social media followers you may have,  mention of your name in the business section of a legitimate publication gives real credibility to you and your business.  Invest the time and money necessary to create an informative and attractive press kit and update its contents each year.

Thanks for reading,

Kim

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Your Brilliant Idea, the Set-up and the Pitch

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You envision a project concept that has the potential to significantly benefit both you and a particular organization.  You wrangle a meeting with either the decision-maker or one who has influence.  Convincingly,  you show that the proposed project will add money or prestige to the organization and that you are uniquely qualified to put the plan in motion and make it work.  You are invited to submit a formal proposal and you see dollar signs twinkling for all concerned.  Needless to say you are stunned when the proposal,  which you perceived to be a confirmation letter since you received the decision-maker’s unqualified invitation to submit,  is shot down.  What the heck happened?

Kimberly Elsbach,  associate professor of management at University of California / Davis,  has done research that shows it’s not only the perceived value of the project that is at issue,  but also the perceived value of the seller—you. According to Elsbach,  the decision-maker makes a judgment about your ability to generate a genuinely creative and beneficial idea and that prejudgment diminishes its perceived value.

Elsbach reached this conclusion when she studied the Hollywood film industry,  where filmmakers regularly  “pitch”  movie concepts to studio executives.  She also attended meetings where entrepreneurs pitch business concepts to venture capital investors,  yet another venue where brilliant ideas are proposed to those with the potential to fund them.

Elsbach emphasized that there are no reliable criteria on which to base creative potential,  so decision-makers rely on purely subjective and often inaccurate evaluation stereotypes,  which kick in very early in the pitch meeting.  From that point on the decision is made,  no matter what they tell you.

However,  Elsbach discovered that there is sometimes a way to redeem oneself.  The trick is to make the decision-maker feel that s/he is participating in an idea’s development.  In other words,  rather than bringing it in all wrapped up in a red ribbon,  showing that you’ve thought things through and you’re basically ready for the roll-out,  devise something for your decision-maker to do to feel needed and  important.  Make the decision-maker feel like a creative collaborator.

First,  set the stage and gain the decision-maker’s empathy by finding common ground or perspective.  If you’ve worked with this person before,  then mention some shared memory of mutual success.  “How is that program going these days?  I so enjoyed working on that project.  It is great to know that your customers have responded well…”  If you’ve not worked with this person previously,  go to their LinkedIn profile and look for common ground there.  After the greeting and other pleasantries,  slip into a shared experience or perspectives story,  whether it’s a project you did for him/her,  or an accidentally-on-purpose reference to a company that the two of you worked at  (“So you worked there, too? I remember the days…”)

Second,  when you segue into pitching your proposal,  show the proper level of excitement and passion.  Moreover,  resist the temptation of being so thorough that you don’t give your decision-maker,  who has an ego,  a chance to put their hands in it and impact the project.  As you are enthusing about the features of your proposal,  ask qualifying questions that will engage your decision-maker in a discussion of what the organization and its customers really need from the concept you are pitching and together with the decision-maker be willing to improvise and compromise on your original proposal.  If you can make the decision-maker feel some ownership,  s/he is much more likely to identify with and support you at the meeting where projects and proposals are reviewed and the executive team finalizes what gets funded and what doesn’t.

Coming up with a brilliant idea is the easy part.  Selling the idea to the organization with the means to fund that idea is the hard part.  Psychology is a sales resource and the successful sales professional makes expert use of it.

Thanks for reading,

Kim

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The ABCs of Time Management

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Setting priorities and establishing boundaries are the heart of time management.  These behaviors are closely linked to productivity and the achievement of important goals and objectives.  There are inevitably instances when conflicting responsibilities and demands threaten to overwhelm us.  Deadlines loom.  Manipulative people scheme to insinuate themselves into our lives because they enjoy the attention and control.

Procrastination ushers in avoidance behavior that sabotages the fulfillment of obligations and may prevent us from reaching our full potential.  We may disappoint those who deserve our support.  The cold fact is that certain responsibilities and people are more important than others and we must be mindful of that reality when allocating the most precious resource we possess,  next to our health.

Julian Birkinshaw,   Professor of Strategy and Entrepreneurship at the London Business School and Jordan Cohen,   Productivity Specialist at the global firm PA Consulting Group,  have  spent the past three years studying how knowledge workers can become more productive.  The two found that knowledge workers spend 41%  of their time on discretionary activities that don’t necessarily bring much value.   To make the most our time,  it is not enough to merely draw up a to-do list and throw oneself into as many items as hours and energy allow.   It is necessary to give some thought to the implications and potential impact of what must be done,  as well as the consequences of failing to do it.

In his 1973 time management classic How to Get Control of your Time and Your Life,  Alan Lakein recommended that we evaluate each task by establishing SMART — specific, measurable, achievable,  realistic and timely- — goals when deciding where to devote our time and what to do first.

SMART goals are used to rank and label what we must do as an A,  B,  or C task.   A-level tasks /goals are the most important.  Lakein says A-level tasks are where one devotes 80%  of available time.   The remaining 20%  of available time will be divided between the B-level and C-level tasks,  with C-level tasks receiving the smallest percentage of time.

To achieve important goals and objectives and in general accomplish whatever it is you intend to do,  make a to-do list and start with A-level tasks.  Lakein emphasizes that in order to get beyond mere efficiency,  in which a laundry list of essentially unimportant tasks are completed,  and on to productivity,   we must understand and do what is most important.   He urges us to work smarter,  by doing what brings value-added and not harder,  by frittering our time on busy-work that could either be ignored or out-sourced.

Birkinshaw and Cohen suggest that we sort the C-level tasks into three groups:  quick kills,  meaning it’s possible to discontinue these tasks with little or no negative consequences;  off-loads,  meaning what can be delegated or out-sourced;   and long-term redesign,  meaning projects that need to be restructured or re-thought before they can be assessed for value-added potential.   The idea is to make more time available for A-level tasks or leisure activities that allow us to re-charge our energy stores,  relax and enjoy ourselves.   Work – life balance is an important component of quality of life,  preventing burn-out and enabling us to operate at our productive and creative peak.

Thanks for reading,

Kim

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Who’s Getting Paid

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Freelancers who design Power Point presentations,  write reports and perform accounting functions are the big winners in Freelance Nation right now.  A recent review of 2Q 2013 data on 300,000 job postings by freelancer.com. revealed the results.  According to freelancer.com,  business owners are hiring Freelance workers to perform core functions,  jobs that once were the domain of permanent employees.

Demand for Power Point slide design and production increased 35%  from 1Q 2013 to 2Q 2013;  requests for accounting services jumped 23% and report writing 20% between the first and second quarters of this year.  By contrast,  demand for copyediting during this period fell by 14%.  The survey indicates that demand for Freelance skills that are mission-critical and require sophisticated and specific knowledge are on the rise.

Freelance graphic designers,  especially those proficient in website and Power Point slide production,  and content marketing writers are in demand.  Employers are backing away from pricey advertising agencies and are continuing the transition to Freelance labor,  a trend that started in the 1990s.  Requests for Freelance illustration was 20%  higher from 1Q 2013 to 2Q 2013 and Freelance Photoshop design increased by nearly the same amount.  Banner design assignments increased by 14%  and logo design projects were 9%  more plentiful in 2Q 2013 than they were in the first quarter of the year.  Speaking of design,  3D imaging’s depth and sophistication caused demand for 3D printing to shoot up by 17% in the second quarter of this year,  over the first.

In a 2012 global survey of 3,000 Freelance professionals conducted by Elance,  the online employment marketplace,   respondents were queried on the types of assignments they were receiving.  Web programming,  website design,  mobile app development,  graphic design,  online marketing and content writing were the predominant assignments and Elance predicted that the trend would continue into 2013.  Results of the freelance.com survey support that prediction.   Both surveys indicate that graphic designers,  accountants,  certain techies and writers are raking in most of the money in 2013.

Plan to succeed in the gig economy by identifying which of your skills clients will pay to obtain,  how to package and present those skills and how to connect with paying clients.  On your website and in all marketing materials,  demonstrate that you are a top-of-the-line professional who exceeds expectations and works with recognizable clients.  The latter may not be immediately possible,  but those who provide visual products should post a portfolio that makes it known to prospective clients that your work is distinctive and not cookie cutter.  Providers of intangible services should include case studies.  Every website should include client testimonials.

Thanks for reading,

Kim

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Influence Peddling, the Path to Success

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The successful Freelance solopreneur is a highly respected,  usually well-liked,  professional.  He/she is regarded as uniquely qualified and able to consistently deliver results.  For these reasons,  the successful Freelancer is considered the go-to person by clients and colleagues.  The successful Freelancer has Influence  and that influence has been leveraged to build a lucrative client list.  If one aspires to become a successful Freelance solopreneur,  one must acquire Influence  and apply it skillfully.

Robert Cialdini, PhD,   Regents’ Professor Emeritus of Psychology and Marketing at Arizona State University,  president of the consulting firm Influence at Work and author of Influence (2001),  is considered the leading social scientist in the field of influence.   Dr. Cialdini,  who himself possesses significant influence,  has identified six elements of persuasion that help ordinary citizens to become influential:

!.    Liking   If people like you,  either because they sense that you like them or because of things you have in common,  they’re inclined to say yes to you and help you to advance your goals.

II.   Reciprocity   People tend to return favors.  If you help people, they’ll help you  (sometimes!).  If you behave in a cooperative way,  they are likely to respond in kind.

III.   Social Proof    People will do what they see others doing, especially if those people seem similar to them.

IV.   Consistency   People like to be consistent, or appear to be so.

V.     Authority   People defer to experts and those in positions of authority.

VI.    Scarcity   People value what is rare and not perceived as a commodity.

I thought about the elements of persuasion that Dr. Cialdini shared and wondered which are most applicable to the needs of Freelancers? My feeling is that Authority,  Consistency,  Liking and Social Proof  are within our control to varying degrees and attainable.

Freelancers are hired guns and we must be perceived as experts.  Blogging,  writing a newsletter,  case studies on our website,  presenting webinars and working with prestige clients are some of the ways we demonstrate our Authority,  our expertise,  to colleagues and prospective clients.  Our reputation,  the brand,  must telegraph that we Consistently  resolve challenges,  overcome obstacles and produce desired outcomes for our clients every time.

People do business with those that they know and Like  and they do more business with those they Like  and trust and the successful Freelancer is well-liked.  Dr. Cialdini noted that we usually like people who we think like us,  people with whom we have something in common and people who help us by doing favors.  While remaining authentic and avoiding manipulative behavior,  the Freelance solopreneur can create conditions that will make people like him/her,  which is the essence of relationship and influence building.

On the most elementary level,  the Freelancer should be pleasant and respectful,  always ready to greet old friends and new with a smile and a handshake.  When in conversation,  listen and be interested in what others have to say,  another way of letting people know you like and value them.

Find commonalities with those whom you expect to meet  (or those whom you’d like to know better)  by turning to social media.  Read Facebook and LinkedIn profiles to find out where people went to school and what their interests are.  Without divulging the source of your information,  look for ways to casually drop these references into the conversation and take steps to strengthen the connection.

Should the opportunity arise,  do favors large and small for colleagues and clients,  always creating a sense that there exists a network of partners who are willing to help one another.  You will increase the likelihood of ROI and set the stage for Reciprocity  by characterizing your assistance as a two-way street.  Those known to be able to dispense valuable favors always attain Influence.

Finally,  clients are risk-averse.  No one wants to make a mistake and allow either superiors or subordinates to see them lose face.  They make decisions that favor the familiar,  the  “known quantity”,  because it is the safe choice.  The goal of Freelancers is to obtain that Social Proof,  the ultimate endorsement,  because it is the recipe for building a robust client list.  To become successful Freelancers,  we must persuade clients and colleagues that we are eligible and deserve the right to become the  “known quantity”  go-to expert because we have attained Influence  and they look smart when they hire or recommend us.

Thanks for reading,

Kim

Administrative, Marketing , , 1 Comment

The 21st Century Business Card

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I’ve become a lot more selective about who receives my business card.   I never hand over my card unsolicited,  unless I feel that follow-up with the intended receiver is a must and that the feeling appears to be mutual.   I’ve found that the traditionally employed are annoyingly promiscuous with business cards.   They hand them out at a furious pace,  mostly to folks they have no intention to interact with ever again.   Maybe it’s because they don’t pay for their cards?  Or maybe it’s because they are often not deal-makers or sales professionals,  so follow-up and relationship building are not tied to their success at work?

Over the years,  I’ve come to respect my business card.   I now realize that my business card is much more than a 2″ x 3 1/2″ piece of paper.   My card is my most ubiquitous marketing tool.  My card represents my brand when its recipient and I are no longer face to face.   My business card portrays me as a trustworthy and competent professional who will meet and exceed expectations through its text,  font style,  color scheme,   printing process and card stock.

The business card is a communication tool and is therefore part of your marketing plan.  See to it that its message aligns with all other marketing materials,  including the look of your website.  There is room for some creativity in its design,  so be authentic and allow your card to reflect your personality.

You may choose a vertical,  rather than the standard horizontal,  lay-out.  You may have a two-sided card,  or a 4″ x 7″ folded card,  both of which will allow you to include more information.  Real estate professionals have for several years included a photo of themselves on their card and you may choose that option as well.

Whatever style you choose,  take care not to overload your card with text.  Keep it simple and easy to read.  Include your name,  business name,  title,  telephone number,  email address and web address.   Providing your physical address is in many instances no longer necessary.   If you have a company logo,  absolutely include it and if there is space,  you may include social media contact info.

I was excited to learn that my little card can now become a 21st century interactive mobile marketing tool and include a Quick Response  (QR)  code.  Card recipients can scan the QR code with an Android,  iPhone or other camera-enabled smart phones  and be taken to my website,  LinkedIn profile,  or a specially formatted landing page.

Be mindful that whatever data is linked to the QR code must be optimized for smart phones and enable a friction-less experience for the user.   Add value to the mobile marketing experience by creating a special landing page as a one-sheet that describes three or four of your primary services and offers a free 30 minute consultation to prospective clients.  It is possible to get a free QR code through sites like http://delivr.com and http://qrstuff.com and as far as I know,  they work.

There are numerous reasonably priced options available to produce good quality cards for you.   Business card templates are available through companies such as Vista Print.  I hired a Freelance graphic artist friend to design my card.   Sir Speedy did the printing and recommended just the right card stock  (Sir Speedy also has business card templates available).

Your business card is the on-the-ground embodiment of your marketing plan.  It reflects your personal brand and makes as much of an impression as the suits you wear and the brief case you carry.  Design a card that is appropriate for your business,  industry and personal style and communicate to prospects and colleagues that doing business with you is good business.

Thanks for reading,

Kim

Marketing , , , , , 5 Comments

Social Media Strategy for Solopreneurs

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Participation in one or more social media platforms is now a given in both the professional and personal spheres.  Nearly every Freelance solopreneur has a presence on at least one social media platform,  even if participation is not active.  Social media have the potential to provide benefits to business owners,  the self-employed and the traditionally employed,  but in order to reap those benefits,  one needs to understand how social media can best function for you.

The first question to consider is,  who’s listening? Do those you want to reach participate in social media for their organization’s needs or just for their own career? That answer will determine which platform you choose.  The second question is,  what is your business?  The third question is,  will social media function for you as a sales tool,  a marketing tool,  or PR?

If you produce a product that potential customers want to see, e.g.,  landscaping,  photography or fancy cakes,  then Facebook Fan Page,  Google + Business and maybe Pinterest are your social media best bets.  These platforms give you a place to post photos of your lovely creations.  Musicians,  artists and dancers use these platforms to display performance photos and videos.  LinkedIn Professional Portfolio also allows photos,  slide shows  and videos to be posted to the profile.  However,  LinkedIn has a “corporate”  image and prospective customers will not automatically search that platform when checking you out.

Foursquare is ideal for a bricks and mortar business.  First,  the platform specializes in geolocation,  so you’ll ensure that potential customers will find your business and second,  you can initiate dialogue between your business and customers.  Your customers may have already entered your business and created a page for you.  Links to Facebook and Twitter are available.  To track your advertising reach and evaluate the platform’s ROI,  offer exclusive  Foursquare specials and product updates.

Regarding dialogue,  Twitter is the king of all social media when having conversations about your business or industry is the goal.  Tweet the announcement of the class you’ll teach,  the conference you’ll attend and your thoughts on the presentation you just heard at that conference.   Store owners tweet the arrival of new merchandise;  restaurant owners tweet the daily specials;  musicians tweet the dates of upcoming performances.

LinkedIn is the social media platform of choice for the traditionally employed and Freelancers who offer business services.  I think of LinkedIn as my adjunct website,  where I can announce professional victories,  post a Power Point presentation that gives an overview of my services on Slide Share and link this blog and supply updates of new posts to my connections.  LinkedIn Groups lets me interact with peers in my industry by reading and participating in discussion threads.  Recruiters looking to fill jobs troll this platform in search of qualified candidates to interview.

Finally,  define how social media can function for you,  based on the business you’re in and the way your customers use social media.  If prospective customers like the look of the landscapes you design or the sound of your jazz combo and feel comfortable judging the value you provide online,  then social media directly impacts the sales process and is for you a sales tool .

If potential customers use Twitter memes to discuss industry developments,  then marketing is your social media strategy.  Use the platform to establish your bona fides as an up-to-date,  in-the-know thought leader.  Promote your expertise and develop a following by sharing a steady stream of relevant information  (content)  that will benefit prospects.  Tell,  don’t sell.

Google + Business Hang Outs,  which allow you to conduct a video call with up to 10 customers who may be located anywhere in the world,  make it possible to have an online face-to-face meet-up or meeting,  depending on your agenda.  Marketing as expressed through customer engagement,  market research and customer service is the social media function.

Peer-to-peer PR is the function of LinkedIn.  Stay abreast with what colleagues are doing professionally and announce your achievements.  Make recommendations and endorsements for those with whom you’ve worked,  in either a paid or volunteer position and receive commendations in return.  Those looking to hire employees or Freelance consultants always peruse the LinkedIn profiles of candidates,  so keep your profile current and complete.

Thanks for reading,

Kim

Administrative , , 8 Comments

Health Insurance Options for Freelancers in 2014

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There are five months left in the year and it is time to start planning for a successful 2014.  One important element of the business strategy plan for self-employed professionals must be our health insurance.  In 2014,  our options and requirements will change and we must be apprised of those changes and prepare to either make the most of them or minimize impact,  depending on our circumstances.

The individual mandate of the 2010 Affordable Care Act will require Freelance consultants and other self-employed individuals to purchase health insurance as of January 1, 2014,  or pay a penalty of $95.00 or 1%  of income,  whichever is greater.  That penalty will increase to $695.00 or 2.5%  of income,  whichever is greater,   in 2016.  If the revenue your consultancy generates is between 138%  and 400%  of the poverty level,  you may be eligible for a subsidy that will  ( in theory)  make the health insurance premium more affordable for you.

The subsidy for health insurance premiums will be available on the Health Insurance Exchange  (HIX).  Eligibility for a HIX premium subsidy is expected to be on a sliding scale,  but exact income thresholds have not yet been revealed.  It is possible that a single individual who generates about $45,000 annually will be eligible to receive a HIX premium subsidy,  according to information published by the National Association for the Self-Employed  http://www.nase.org .  It is expected that the income upper limit for a four person household to qualify for the HIX subsidy will be about $94,000.00 in annual revenue.

HIX enrollment is scheduled to begin on October 1, 2013,  for coverage that will commence on January 1, 2014.   Federal,  state and private health insurance plan options will be available for purchase through an online marketplace ,  where one can compare product features and prices.  One’s income tax data will be part of the enrollment application,  so that any subsidies applicable to enrollees will automatically be deducted as a tax credit.  Eligibility for Medicaid,  Medicare,  veteran’s benefits or HIX subsidy will be automatically calculated.  Be mindful that income of the self-employed tends to fluctuate and eligibility will fluctuate along with annual revenue.  It will be possible to renew with your present insurer,  but why not shop around and find out what else is available at your price point?

Unfortunately,  health insurance costs are expected to rise 10% – 13% in 2014,  in response to additional coverage that all plans must provide,  in accordance with Affordable Care Act regulations.  You may recall that in my April 2, 2013 post ,  I noted that when the Freelancers Union surveyed its members,  it was revealed that 58%  earn less than $50,000.00 / year and 29% earn less than $25,000.00 /year.  The majority of the groups’ members are in the New York City area,  a location that pays higher wages than many areas of the country.

That means many Freelancers will not qualify for the subsidy,  but will be required by law to pay large monthly health insurance premiums that will strain the already scarce cash flow.  As a result,  some will be forced to forgo health insurance,  because it is much less expense to pay the penalty,  even when it increases in 2016.

The penalty for avoiding health insurance in 2016 will be $1250.00 for those who earn $50,000.00 / year and annual health insurance premiums even for a healthy single person will far exceed that amount.  It’s a risky gamble that no one wants to take,  but for many it will be the only alternative.  When funds are both limited and unpredictable,  uncomfortable decisions must be made.

The rising cost of living and diminishing opportunities to generate adequate cash flow make it imperative that Freelance consultants must be savvy and diligent about marketing,  networking,  obtaining referrals and creating a good business model.  Responsible financial management is also necessary,  but first one needs to have money available  to manage.  Slacking off will not be an option,  at least not for those who are single or the primary breadwinner of their household.

Thanks for reading,

Kim