Author Archives: Kim Clark

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More Smart Responses to Common Objections

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You’re a smart,  ambitious Freelance cookie and you’ve set up appointments this Summer with prospective clients who could award contracts that will pay you in fourth quarter and perhaps beyond.  You’ve thanked the saints for finally allowing you to sit down with a much sought-after prospect and the last thing you need is an objection slithering into your Garden of Eden,  ready to poison the victory.  Here are more smart approaches to common categories of objections that will help you put them to rest and start building a lucrative client list.

I.    Too Small

Your prospective client may be impressed with your insights and proposed solutions,  yet fear that your consultancy lacks the capacity to successfully execute complex projects.  There is a fear that the job you’re discussing is too big for your plate.  To counter,  reassure your prospect by emphasizing that his/her needs and priorities will always receive prompt and meticulous attention because all aspects of the project will be personally overseen by the principal—you.  Stress that you are always immediately responsive and able to elegantly customize all required services.  Furthermore,  should more hands be needed,  you have a carefully curated group of associates to call upon to handle specific tasks,  when necessary.

II.   No Money

Especially when looking to perform consulting services at not-for-profit organizations,  remember that meager budgets are an issue and the problem will continue to bedevil NFPs for the foreseeable future.  I’ve been burned by NFPs who’ve invited me in to discuss projects for which  (unknown to me)  there is no extant budget.  Getting reliable information about the financial reality may be difficult; even executive directors and board chairs can be evasive and coy about money.  They are not afraid to waste your time.

The game most often will be played by a small organization that has fingers crossed about receiving grant money.  However,  the hoped-for grant may not arrive and the client could disappear on you.  Protect yourself by trying to encourage transparency by breaking the project down into smaller bites.  Start by asking the NFP prospect what he/she would like to achieve and clarify what your role will be.  Diplomatically inquire as to whether a budget has been established for the project.

Next,  ask for project needs to be prioritized:  the  “must-do”,  the  “would be helpful” and “this too, if we can afford”.  In your written proposal,  package and price your services in ascending tiers,  thus scaling the project in accordance to client priorities and budget.  Clearly emphasize the ROI of the project and how it is an investment in furthering organization objectives and its future.

Thanks for reading,

Kim

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Smart Responses to Common Objections

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The savvy Freelancer knows to make hay while the Summer sun shines and contract assignments dwindle.  Registering for a conference that will expand your knowledge and your network is one way to make good use of your time.  Setting up meetings with potential clients that you’ve perhaps been pursuing since last November is another good use of your time.  Despite vacations,  I’ll bet they’re more available to meet you for lunch or coffee in July and August.  Summer is the time for Freelancers to sow relationship seeds that will be harvested as billable hours come Autumn.

Along the way,  we will unfortunately have an objection tossed onto our path by a skeptical prospect.  All may appear to be rosy until it’s time to schedule the appointment—and then your prospect balks.  “What is it that we’re supposed to talk about?”  “I’m not sure if we’ll have any of your kind of projects on the immediate horizon.”  Or maybe the stumbling block won’t get thrown at you until the face to face is on.  Whenever it happens,  your potential client will be in grave danger of fading away and  you’ll need effective CPR to save your budding relationship.

Fortunately,  client objections tend to fall into predictable broad categories.  To formulate a credible response,  you must first recognize the real question that underlies the objection— that would be the category it falls into.  There are only a handful of objection categories that Freelancers will most often encounter.  Take a look at these two:

I.     No trust

Your prospective client doesn’t trust you and questions your experience and abilities,  or might be somewhat cool toward you, because you are an unknown quantity.  The remedy is to obtain an endorsement from someone who is known and respected by your prospect.  If you sense that you are being held at arm’s length and rapport is not being established,  name a client  (or organization)  for whom you’ve worked,  one who could be familiar to the prospect.  If possible,  strengthen your hand by attending a gathering  (social or professional)  that the prospect is known to attend.  Proceed to let your prospect witness you interacting as a peer with colleagues and friends he/she knows and admires.   Your prospect will feel much more comfortable with you,  the ice will melt and you’ll soon be invited into the office to talk turkey.

II.     No need

Sometimes a prospect just wants to blow a Freelancer off,  so we’re told that there is no need for our services  (even though we know that’s not the truth!).  Other times we hear this objection because the prospective client doesn’t know us or have reason to trust us,  so he/she will fudge the truth and claim to have no use for what we’re selling.  Keep talking and don’t be shut down by this one if you know there is a need for your brand of expertise.  This client must be convinced of the value and ROI of what you bring.  If you’ve worked with clients who would be familiar to this prospect,  drop the name and briefly describe the successful outcome of your project.

Talk about the revenue stream that was created or the money that was saved or the market share gained.  Then ask a pertinent question in an area you suspect may be of interest and where your knowledge and expertise shine.  “What about _____ keeps you awake at night?”  “How do you and your team get your arms around…?”  Get this client to open up and talk about what’s really going on and you may find yourself in a conversation about how you might be able to help them out.

More on this topic next week.   Thanks for reading,

Kim

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Pareto’s Principle, or the 80/20 Rule

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In 1906,  the economist and sociologist Vilfredo Pareto examined wealth distribution in Italy and found that 80 % of that nation’s wealth was controlled by 20 % of the population.  (In the U.S. as of 2009,  the top 5 % of the population controlled 63.5 % of the wealth and the bottom 80 % controlled 12.8 %.  Source: The Economic Policy Institute Briefing Paper # 292,  March 23, 2011)  Pareto dedicated his career to exploring the nature of individual and group social action,  along with studying the distribution of wealth in society.  Pareto’s discovery came to be known as Pareto’s Principle,  colloquially known today as the 80/20 Rule. 

Pareto determined mathematically that while numerous factors are connected to any given outcome,  only a select few are able to impact that outcome in a significant way.  Anecdotally,  I think most would agree that the principle holds up in real life.  The 80/20 Rule has been widely applied in business and several truisms have been noted, including:

  • 80 % of your sales are generated by 20 % of your customers
  • 80 % of your profits grow from 20 % of your working hours
  • 80 % of your sales come from 20 % of your product/service line
  • 80 % of customer complaints emanate from 20 % of your customers

Are you trying to get in the door with certain clients who will award to you the projects and billable hours that will allow you to achieve your profitability goals?  Of course you are!  Maybe it’s time to apply the science of Pareto’s Principle to the pursuit of an expanded client list and limit the randomness of networking and prospecting.  As Pareto discovered,  it’s vital to identify those critical few variables that provide the majority of leverage,  or problem-solving power,  when trying to achieve objectives.  In this assignment certain assumptions will be made,  such as the strength of your value proposition and your understanding of who would be an ideal client.

Get the critical few variable identification process started by listing all possible factors that influence your ability to sign a client.  Next,  pare the list down by filtering out the “trivial many”,  as Pareto termed factors that will have minimal impact on the desired outcome.  You’ll end up with about a half dozen critical variables,  powerful factors  that when impacted,  i.e. leveraged,  in the right fashion by the right person will influence the outcome and get you an audience with the decision maker who can award you a plum contract.

Ponder the critical variables on your priority list.  They have the power to either clear your path or block your success indefinitely.   Which critical variables,  if any,  might you be able to leverage on your own?  Which are beyond your reach and require the intervention of an ally?  Are any variables likely beyond the control of anyone save the client?  When you’ve determined which critical variables might possibly be leveraged by either yourself or an ally,  then consider carefully which of those factors will be most easily leveraged and how you should proceed.  You’re looking to leverage 20 % of the critical 20 %,  if you know what I mean.

On my priority list,  there are seven items.   Three critical variables appear to be within my control or that of an ally and four appear to be outside of my ability to impact  (including budget limitations).  Introductions and endorsements to the right people are both my barriers and critical success factors and I see a possibility for leverage.

Over the past 6-8 weeks I’ve had two endorsement/introductions to potential clients,  plus a promise from an influential advocate to try to help me resuscitate a client relationship that derailed because of competing organizational priorities and budget limitations.  At the end of July,  I will attend a conference where I hope to meet a certain prospect and I hope that the right person introduces us,  i.e. someone my prospect knows well and who will provide an endorsement for me.   I am working the 80/20  Rule,  planning to leverage critical variables wherever possible.  Wish me good luck!

Thanks for reading,

Kim

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Love Thy Competitor

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If you are the type of Freelancer/business owner who believes that a primary business goal is to annihilate and destroy your competition,  then you’re likely destined to become a less successful entrepreneur.  Research can now demonstrate the wisdom of the adage,  “keep your friends close and your enemies closer.”

A 2004 study conducted by James Westphal,  professor of management at University of Texas/Austin,  examined CEO friendships in 293 U.S. companies and found that regardless of the intensity of competition within a given industry,  rival CEOs who formed friendships enjoyed distinct business-related advantages over those who shunned competitors.

According to Westphal,  not only is it possible to make friends with competitors,  it’s advisable.  He explained the advantages of friendships among rivals this way:  when business owners get together,  what do we do?  Talk shop.  We compare notes,  discuss what’s new in the industry,  talk about the economy and how it’s impacting customer behavior.

In other words,  by going to trade industry conferences and meeting,  greeting and getting to know rival Freelancers,  you’ll obtain information and get exposure to perspectives that can help make you more successful.  So think about following a bit of counter-intuitive advice and realize that business is not always a zero-sum game.  A competitor’s win does not automatically mean your loss.

If getting chummy with the competition makes you feel a little queasy,  then get friendly with a competitor based in another locale.  The distance will create a boundary that could make it comfortable for the two of you to trade ideas about cheap and savvy advertising options,  how to make your clients happy,  or how to take advantage of,  or protect yourself from,  market trends.

In some instances,  you may decide to collaborate with a competitor.  It’s potentially risky,  but forging a strategic  collaboration with one of your competitors can benefit the bottom line and help both entities to thrive.  It can be a smart expansion or survival strategy for Freelancers and other small business owners who are trying to remain viable.  Maybe there is a partnership you can set up with the right semi-rival?   It’s called coopetition.

Get to know a fellow Freelancer who works in your own,  or a related,  field.  It’s preferable if each of you has discrete strengths,  with limited potential for overlap.  Meet for coffee and broach the subject of joining forces to make money.  How can you combine your strengths and approach clients with an innovative and more desirable package?  There’s nothing better than giving clients more reasons to do business with you.

Collaborations can work in a number of ways.  Just a couple of months ago,  a lady named Julie presented me with an idea where we can add-on or up-sell certain of each others’ services.  There is potentially a complementary need in a market segment that we share and Julie wondered if some selective cross-promotion would be beneficial.  Together,  we’re hoping to gain entry to clients where separately neither could get in the door.

Another form of coopetition is establishing a referral relationship with a near-rival.  Accountants and bookkeepers have done this forever,  with much success.  Their functions have similarities,  but each party knows and respects the boundaries and knows how to work together.

Nevertheless,  do not be naive.  Take precautions and clearly define boundaries and expectations.  Watch your back and work only with someone you know to be trustworthy.  Also,  do not underestimate the potential for difficulties in establishing and sustaining a coopetition arrangement.  Assumptions about appropriate customer service or corporate culture can derail your best intentions.  Careful planning and execution are crucial if coopetition is to work smoothly.  In close collaborations,  a written non-disclosure, non-compete agreement will be essential.

Finally,  remember where friendship ends and business begins.  There will be sensitive issues that are best kept to yourself,  like new business initiatives or the  “secret sauce”  of how you deliver your unique services.  Keep your antennae raised as you and a worthy competitor mull over ways to share resources or expertise and boost profits in the process.

Thanks for reading,

Kim

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What’s Your Influencer Score?

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If you have a Facebook,  LinkedIn or Twitter account, get ready to have rating points assigned to your online presence.  There’s yet another way to keep score in this world and the newest yardstick is your social media reach. The rating system resembles a credit score or Google page ranking and it assesses your social media power and influence.  Three companies, Klout, Peer Index and Twitter Grader, will analyze and determine who the heavy hitters are.

Who are the movers and shakers,  experts and taste makers,  across a range of topics and specialties within a certain geolocation? Marketing departments want to know.  While authors, celebrities, politicians and athletes have traditionally been capable of influencing opinions on a large scale, social media have given a powerful voice to ordinary citizens and a new league of authorities has emerged.

The rating companies measure your Facebook (Klout),  LinkedIn  (Klout, coming soon)  and Twitter  (all three)  friends,  connections and tweets on their respective algorithms.  According to analysts at Hewlett Packard who tried to crack the codes,  a large network of contacts and friends is not the primary value of the influencer score.

Peer Index focuses on topic resonance  (how much interest you generate within your area of expertise),  subject authority  (perceived credibility and trust)  and activity  (how much content you generate within your topic)  in its ranking recipe.  If you’re looking to game the system  (you wouldn’t try that, would you?),  it is beneficial to become well known for a particular topic and avoid being a generalist.

In other words,  go narrow and deep.  Boost your influencer score  (and online brand)  by demonstrating knowledge and expertise,  trustworthiness and credibility and enthusiasm and passion for your preferred subject.

Furthermore,  demonstrate your ability to influence those in your network with calls to action and recommendations that engage and inspire followers and friends and cause them to spread the word about your choices and opinions.  Did you get out the vote for Obama or persuade people to join the revolution in Cairo? If so, then you are an influential social media darling.

Surprisingly,  blogs,  newsletters and YouTube are not in the ratings mix at this time,  but tweets and online profiles most definitely are.  The rankings of your connections and friends also factor impact your score,  as do the rankings of those who retweet you.

It’s possible to sign yourself up for free and learn your Twitter rating on Peer Index http://peerindex.net or Twitter Grader http://twitter.grader.com and your Facebook score on Klout http://klout.com.  The latter recently announced a deal to rank LinkedIn profiles  (I wonder if activity on the Answers Forum will be in the algorithm?).

So what’s in it for high scorers? Thousands of companies have already signed on to buy data and big influencers are positioned to receive all manner of promotional goodies.  As reported in The New York Times on June 26, 2011,  Audi will begin to offer special promotions to Facebook users based on their Klout scores.

Last year, Virgin America selected highly rated Facebook influencers in Toronto and rewarded them with free round-trip flights to Los Angeles or San Francisco.  The Palms Hotel and Casino in Las Vegas used Klout scores to choose Facebook influencers and give them either free room upgrades or free admission to Cirque du Soleil.

Nevertheless,  a corrective is in order.  While it is apparent that social media influencers exist and in certain circumstances they are able to impact the actions and opinions of others,  they do not necessarily live up to the hype.  Duncan Watts,  author of  “Everything is Obvious Once You Know the Answer” (2011),  asserts that the  “influencers”  do not always obtain impact through their expertise,  persuasiveness,  popularity or reputation.

Watts used computer simulations to model how information is likely to disperse through social media and found that the spread of an idea or story depends upon  “a critical mass of easily influenced people,  who in turn influence other easy-to-influence people.”  When this critical mass exists,  “even an average individual is capable of triggering a large cascade.”

Well,  so much for algorithms.  However,  it may be fun to sign up and get your influencer score anyway. You might somehow manage to get a high rating,  perhaps because you’re connected to other high influencers,  and get some promotional comps as a result.  But then again,  being connected to the right people has always  been how to get the goodies,  with or without social media influence!

Thanks for reading,
Kim

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The Ideal Network

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We’ve all encountered people whose primary goal is to create a vast network of  “contacts”.  These folks supersize.  They have an enormous collection of Facebook friends and they exchange business cards with everyone they meet,   inviting one and all into their LinkedIn network.

But what do their  “contacts”  actually mean to them?  Do such collectors of contacts follow networking best practices and act as a resource? Would they actually even recognize many of their  “contacts”  if they ran into them at the grocery store?  Too often,  the answer is no.

I’ve had the experience of being sucked into the clutches of a few super-networkers and found that when I emailed an easy and uncomplicated question,  my inquiry went unanswered.  Needless to say I severed the association but I’m sure my absence is neither missed nor even noticed.  Who can keep track of or maintain contact with 500 connections?

Well I’m happy to report that at last there is data that supports what has long been my gut feeling about networking.  Apparently,  when it comes to our network of relationships,  size matters and smaller is better.

Robert Cross,  Associate Professor at the University of Virginia’s McIntire School of Commerce and Robert Thomas,  Executive Director of the global consulting firm Accenture’s Institute for High Performance,  contend that the most effective networks focus on high-quality relationships,  ideally with people who come from diverse levels of the corporate and/or socioeconomic hierarchy.  Cross and Thomas found that a properly functioning network consists of about 12-18 people.  The ideal network provides guidance,  exposes us to fresh approaches to decision-making and problem-solving,  challenges us and also gives us validation and encouragement.

A diversity of professional and personal interactions pays numerous dividends,  socially and professionally.  We get to meet and rub shoulders with those who’ve lived different lives and therefore have different values,  perspectives and experiences.  We learn how to become more flexible and resilient.  Our decision-making capabilities improve because we incorporate additional information and we become better leaders and better business people.

Take a look at who you know and who you consider to be a member of  your network.  Who looks out for you and who do you look out for?  Cross and Thomas recommend that we cultivate relationships in these categories:

  • People who share or expose you to new information or expertise,  e.g.,  giving the heads-up on happenings in your business environment.  This could be a client or someone from the chamber of commerce or other business group.
  • Peers in other industries,  who can open your eyes to what other organizations consider to be best practices or smart business strategies.
  • Powerful people,  who can open doors,  make introductions,  cut through red tape,  provide useful inside information and mentoring.
  • Those who know and validate validate your work and can provide feedback and challenge you to get better (maybe a client,  peer  or boss).
  • Peers in a business similar to your own,  but who are based in another geography and therefore allow you to discuss business strategy and not worry about competition.
  • People who provide personal support,  good friends and family you can call on when things go wrong and you need to talk.
  • Outlets for spiritual and physical well being:  fitness,  meditation,  religion,  volunteering,  sports and hobbies.

As you review and perhaps revamp your network,  look to include people who bring good energy,  people who bring out the best in you.  Build relationships with people who see opportunities and know how to reach for them.  If you’ve been gestating an important goal you’d like to achieve,  think about who in your network can help you get there?  Is there someone you should reconnect with?

Most of all,   remember that networking is about building and maintaining relationships,  whether or not there is an immediate need to call in a favor.  Reciprocity rules,  so maintain contacts,  reach out and reconnect to good friends and colleagues and be generous when they are in need.

Thanks for reading,

Kim

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Face Your Financials

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Although you may have both an accountant and a bookkeeper on your payroll you, the business owner,  still bear the ultimate responsibility for maintaining the financial health of your enterprise.  Every business owner should be able to understand and make good use of business financial data.  Each financial statement has a story to tell and you the business owner must be able to decode the language and comprehend the information that the numbers relay.

There are three financial documents that are generated monthly  (and also compiled quarterly and annually): the Balance Sheet, the Cash Flow Statement and the Profit & Loss  (or Income)  Statement.

  • The Balance Sheet resembles your checking account monthly statement.  This document details business assets and liabilities,  showing the monetary value of all the business owns and what it owes.
  • The Cash Flow Statement is the business budget and shows what sales revenue will flow into the business and what expenses will flow out.  This document helps you stay on top of how much money is available to cover expenses,  like payroll and rent.  Accounts payable  (the bills)  and accounts receivable  (sales revenues)  are listed on this statement.  If you’ve ever managed a household budget,  then you can master the Cash Flow Statement.
  • The Profit & Loss  (or Income)  Statement is similar to the Cash Flow Statement.  It contains many items that are also found on the IRS tax form Schedule C,  Profit or Loss From a Business.  Sales revenues and expenses are listed on this statement,  including labor,  taxes,  inventory  and the wholesale costs of products sold.  Net Profit (also known as the bottom line)  is  the last line of this statement and this figure represents the ultimate story of business financial health.

One does not need a degree in accounting or an MBA in finance to identify which numbers on financial statements are most critical to your business and understand the story that each one tells.  Keeping track of five or six key values,  including values called ratios,  will do wonders for your comfort level with financial analysis and in the process,  guide your business decisions in many ways.

  • Gross Profit  in the P & L tells how much money remains after selling and product production costs,  or the wholesale cost of products sold,  have been tallied.  Freelancers calculate this figure as time: how many hours were spent on your contract project,  networking to create new business,  developing a new workshop? Make a reasonable estimate of the wholesale cost of your labor.  This figure gives insight into how much money/time  it takes to make a sale.  Can you work smarter and faster,  or buy materials for products manufactured more cheaply? That’s how to increase gross profit.
  • Net Profit,  or the bottom line of the P & L,  tells the ultimate story.  Every line item that precedes it impacts it.  If you want that number to be larger (and don’t we all?),  look at all expenses to see what can be trimmed and also consider ways to generate new business through strategic partnerships,  referral relationships,  networking for client development,  PR,  etc.
  • Gross sales revenues  in the P & L may be tracked in two ways,  looking back over what occurred in previous months or years  (historical comparison)  and going forward  (projections, or forecasting)  to what you reasonably expect and want to sell in a given period,  guided by sales history and current demand for your product/service.  Are you achieving,  exceeding or failing your personal sales goals?

Finally,  see your Balance Sheet and calculate these ratios,  to expand your grasp of the financial data:

  • Quick Ratio = Accounts Receivable + Cash – Inventory divided by Accounts Payable    This figure indicates how much money is available to pay bills.  A 2:1 ratio represents a business in good shape.  However,  a big receivables number can mask clients who take longer than 30 days to pay,  thus signaling the owner to step up collection efforts.
  • Current Ratio = Assets divided by Liabilities   This figure measures resources available to pay debts over the next 12 months.  A value > 1.0 shows a business in good shape,  > 2.0 is a business in excellent shape.
  • Working Capital = Current Assets – Current Liabilities   This figure also demonstrates the ability to pay off short-term debts.  Obviously,  a positive number is what you want.
  • Debt to Equity Ratio = Total Assets divided by Total Liabilities   This figure indicates how much debt the business carries relative to its assets.  A value <0.5 is excellent and values > 0.5 mean the business is carrying rather heavy debt and is considered highly leveraged.

Thanks for reading,

Kim

Technology / Office , , , , 2 Comments

In the Cloud

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Cloud computing hooks you up to numerous computer based business functions,  including email,  website hosting and data storage,  directly through the internet.  Access to those computer functions,  which you select based on your needs,  is available from any computer that has an internet connection.  When your computer functions are in the cloud,  your business is truly mobile.  You can tap into your data and work from anywhere in the world.

Needless to say,  cloud computing offers big advantages to businesses and individuals.  A big plus is the tremendous flexibility available.  It’s possible to access numerous computer applications and software functions and operate your business entirely in the cloud.  Users of cloud computing essentially rent space on a virtual server and order a la carte the applications and functions that are desired,  be it Linux or Windows.

From the cloud,  you can request functions specific to your business,  without buying an entire software package that may cause you to pay for and install what is not useful to you.  One can order online accounting and payroll management functions,  for example,  rather than buying Intuit’s QuickBooks software.

Cloud based website hosting can be customized to provide the appropriate bandwidth to support video,  audio,  e-commerce, survey, etc.  Furthermore,  cloud computing is significantly less expensive to operate as compared to buying separate software components like the latest Windows,  traditional website hosting,  plus whatever else your business must run to operate efficiently.

There will be less money tied up in technology and more money available for marketing,  customer outreach and otherwise carrying out the business mission.  Prices start at about $4.95 US per month.  Amazon,  Google,  IBM,  Microsoft and Yahoo are among the companies that offer cloud computing services.

Many familiar online functions already live in the cloud: gmail and Hotmail; VoIP telephone services like Google and Skype;  social media sites,  including Facebook,  LinkedIn and Twitter;  media services like Flickr and YouTube;  and Microsoft WebApps,  which offers internet-based access to Excel,  Outlook, Power Point, Word,  etc.

So should you migrate your online operations to the cloud?  Maybe,  maybe not.  Cloud computing may be pervasive,  but it’s not yet perfect.  Reliability,  security and privacy are real concerns.  The major cloud service providers claim they deliver 99.95% availability with 5 hours/year downtime on average.

Nevertheless, during the week of April 21-24 of this year,  the data center that houses Amazon’s Elastic Compute Cloud servers (EC2) went down and internet access for thousands of businesses was lost as a result.  Although this exciting new technology is being promoted as safe,  comprehensive,  user-friendly and inexpensive,  the underlying infrastructure may not be there yet.

Moreover,  can some pimple-faced brat hack his/her way into your data and wreak havoc on your business?  Let’s pray that never happens,  but to provide the maximum available protection to the integrity and security of your cloud computing,  be sure to use secure sockets layer (SSL) encryption to keep your user name and password safe.

Issues of capability and capacity have also been raised.  Can the present technology support the fast expanding weight of VoIP,  website hosting,  video streams and data storage demands?  What happens as developing nations in Africa,  Asia and Latin America ramp up their internet access and 3 billion more global citizens elect to join the cloud?

All that remains to be seen,  but my guess is that the necessary upgrades will be made to accommodate new cloud users,  because money is the mother of invention.  Data security is probably the larger issue.

On Friday June 10,  the International Monetary Fund learned it was the victim of a major cyber attack.  The data breach occurred over several months and has the potential to expose highly confidential information about the fiscal condition of many nations.  In an article that appeared in the June 12, 2011 New York Times,  the incident was called  “political dynamite”.  There was no mention as to whether the IMF computer system operated in the cloud.

Thanks for reading,

Kim

Survival Strategies , Leave a comment

Launch Your Part-time Business

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Here’s a sampling of part-time business suggestions that will jump start your brainstorming and get ideas flowing for a business you can run while also keeping your nine to five.  Oh,  and do be sure to keep your business activities separate from your job,  meaning,  don’t tell your boss and co-workers what you’re up to.

Baker

First,  decide if you’re a bread baker or a pastry chef: will it be baguettes and croissants,  or cupcakes and pies?  You can sell your wares at neighborhood street fairs and farmer’s markets.  Do some market research and take a tour of local venues,  to see what sells in which marketplace,  at what prices and to which customers.  Check the licensing requirements of your state and city health departments and also find a commercial kitchen to give yourself the capacity for high-volume baking.

Bookkeeper

Those with experience in corporate finance departments,  payroll departments or accounts payable/receivable are the best candidates to set themselves up in a tidy little part-time bookkeeping business.  Brush up on your QuickBooks skills and promote yourself to Freelancers,  churches and small businesses.  Join your neighborhood business association to meet potential clients.

Caterer

Are you a fabulous cook who knows how to serve and present food elegantly and efficiently?  Does the prospect of preparing Christmas dinner for 12 or a buffet Easter brunch for 50 fill you with excitement and make your organizational skills shine?  If that is the case,  then catering on the side may be an ideal money-making and creative outlet for you.  Hone your chops by taking over the preparations for a few large family events.  Graduate to getting hired for dinner or cocktail parties held by friends of friends.  Consider renting commercial kitchen space to make cooking for large events easier.

Floral designer

If you’ve always known how to compose a pretty bouquet,  upgrade and refine your natural abilities by taking a flower arranging course at an adult learning center or community college.  Next,  identify good flower market and floral supply wholesalers,  so you can provide a wide selection of fresh and exotic blooms arranged in the loveliest vases and still earn a good profit margin.  Promote your services to those celebrating anniversaries,  births,  christenings,  graduations or other special occasions.  Form a strategic partnership with a (part-time) caterer who needs to decorate a party.

Gardener

Do you have a green thumb?  Do you know people who have no time for yard work?  There is money in mowing lawns,  trimming hedges,  tending window boxes, weeding and coaxing roses to bloom.   My mother’s uncle started a part-time gardening business which he ran for at least 20 years.  My father worked with him on many spring and summer evenings throughout my childhood.  The more artistically inclined can create a niche in landscape design for residential clients and neighborhood merchants.  Remember to include Christmas decorating in your list of services.

Hair stylist

So maybe you were a hairdressing school dropout? Pick up those scissors again and revive your skills,  so you can offer wash,  cut,  blow-out and maybe even color and straightening services at your kitchen sink or the client’s.  Friends and friends of friends who need makeovers,  or maybe just maintenance,  will appreciate both your talent and at-home discount prices.

Photographer

If you’re a clever shutterbug,  invest in a good digital camera,  become a Photoshop expert and  pull together a portfolio of your work to show to prospective clients.  You may even want to specialize in a niche,  like weddings  or family reunions.  Form a strategic partnership with a web designer who creates sites for Freelancers  and make money taking the all-important website photo.

Tutor/coach

Are you a good teacher?  What is your area of expertise—golf, tennis, algebra or languages? Open an account at Craig’s List,  to advertise your services.  Those who teach an academic subject should also contact local parent’s groups, neighborhood blogs and local schools.  My brother’s wife has taught piano for several years and she’s quite busy.  She is a full-time wife and mother of four.

Thanks for reading,

Kim

Survival Strategies , Leave a comment

Having it Both Ways with a Job and a Business

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To my readers in the weekly paycheck world: do you sometimes wonder what it would be like to chuck your day job,  become the captain of your destiny and start a business of your own?  Maybe you have a special creative talent,  something you do that makes you feel proud and fulfilled,  something that friends and colleagues always compliment you on?

Maybe you already daydream about starting a business,  but fear that you don’t have the resources or temperament to grow it into your primary source of income?  Perhaps you need a few extra dollars each month,  because your paycheck is no longer big enough as prices at the gas pump and grocery store continue to rise?

You can have it both ways and start a part-time,  on the side business while you continue to work full-time and enjoy the security of a regular paycheck and health benefits.  People have done it for years and for all sorts of reasons,  mostly as a cash flow safety net,  but also to provide an outlet for a creative talent.

Former full-time employee and part-time business owner Felicia Joy has coined the term  “hybrid entrepreneurship”  and she defines the process as  “the act of working a full-time job while building a business part-time.”  Joy explains it all for you in her new book  “Hybrid Entrepreneurship: How the Middle Class Can Beat the Slow Economy” (2011).

Joy advises that although your part-time business venture will not be your main source of income to still treat its launch seriously.  She recommends that you write a business plan to ensure that you cover all bases,  such as devising a good marketing strategy,  identifying your target customers,  perfecting the business model and assessing start-up costs.

Furthermore,  Joy says it’s important to create a professional image for your business: print business cards,  build a website,  have appropriate print collaterals,  open a separate business email account and maybe also have a separate business telephone line.

Network for your business venture,  so you will meet peers with whom you can form strategic partnerships and referral relationships that will help you to grow your business more quickly.  Join a professional association related to your business,  to receive access to information and other resources that will help you grow as an entrepreneur.

At work,  volunteer to take on assignments and lead projects that will help you acquire skills that you’ll need in your business,  such as sales,  operations,  bookkeeping or marketing.  As Joy says  “Learn to leverage your day job in a way that helps you in your business and also helps you at your job.”

Next week,  I’ll give a few examples of part-time businesses that you may want to start.

Thanks for reading,

Kim