Smart Questions for the Client Interview

A Freelance consultant’s first project specs meeting with a client or prospect is the time to start building the foundation for a successful working relationship.  A major element of a positive and productive relationship is your understanding of the client’s priorities,  which will allow you to assess what will be required to meet or exceed expectations.

Are you capable of doing the job alone, or must you subcontract some portion to a Freelance colleague ? Can you successfully complete the project within the client’s preferred time frame?  What will be your project fee or hourly rate?

Asking the right questions guarantees that you will receive the information that you’ll need.  As the meeting proceeds,  be sure to ask these three questions.  Your client will be happy that you did.

  1. What do you expect me to accomplish in the first 90 days?

Freelance consultants must hit the ground running. Unlike salaried employees,  there is no training or orientation period.  Often,  there are certain components of a project that organization leaders deem more critical than others. These components could be the most time-sensitive,  or simply the most urgent problems. If there are any front-burner issues,  you want to be prepared to take them on straight away.

     2.  What do you see as driving results for this project?

Getting your arms around these matters can make your project work easier and ensure that you achieve all milestones within the preferred time frame.

      3.  How does this project fit into the organization’s highest priorities?

Seeing the big picture is always helpful.  How important is your project to the company’s long-term strategy and mission-critical goals?  Your pricing will also be impacted by this knowledge. If the project is pivotal,  the smart Freelancer charges a premium.

Within 24 hours after the meeting,  send an email to confirm all major issues and agreements requested by the client and yourself  (think scope of duties,  milestones,  deadlines and your payment schedule). Your email can constitute the project contract and it has legal standing.

If your client would like you to perform additional tasks along the way, confirm that request, including the completion timetable, in writing and specify the additional fee and the payment due date.

Thanks for reading,

Kim

A Fail-Safe Christmas Party Strategy

Christmas party season is here, bringing Freelancers and business owners opportunities to become their own Santa Claus and put some new clients under the tree.  Christmas is the time to pick up the thread with clients past,  nurture relationships with clients of the present and meet clients you’d like to add to your roster in the near future. To make that happen,  you know that you’ll need a game plan.

First,  go to your parties alone.  Under no circumstances do you need to drag someone along with you, unless that person is required to get you into a party where you can expect to meet prospective clients,  or that person promises to introduce you to a good prospect while there.  Even that arrangement can be risky— a few years ago I was invited to what should have been a networking bonanza for me,  except that my friend wound up getting very drunk and even worse,  he reneged on bringing me into a post-party meeting with someone who could have been very helpful to me.

Second,  confirm the dress code.  A weekend party held after 6:00 PM will imply fancier dress and maybe even black-tie optional.  If you are the  +1 (guest),  ask your contact to send you the invitation.  If s/he does not do so,  then call the party organizer and inquire.  You do not want to show up improperly dressed,  even if your contact claims not to care about such things.

Men should wear a jacket,  even if a suit is not required.  Women should avoid too-short or too-tight clothing and revealing necklines.  Jeans or leather pants are out of the question for either sex,  unless your host is in the arts or tech.

Third,  ask who is on the guest list,  if you can do so casually and diplomatically.  Present your request as a way to find out if you’ll know others in the room.

Fourth,  polish up your short-form elevator pitch and think about how you might approach guests that you’d like to meet or reconnect with.  You may want to Google a name and find out what that person has been doing,  so you’ll know what to “spontaneously” bring up.

However,  be mindful that pushing business topics will be a turn-off,  unless the other person raises an issue.  Focus instead on scheduling post-party follow-up with selected people who would like to know more about your products and services.

While at the party,  greet and thank your hosts straight away,  before you visit the bar or buffet.  After that relax,  mix and mingle.  Brainstorm some friendly ice-breakers that will open the door to conversation (“How do you know [the hosts]?”)  Eating and drinking are party highlights,  but take it easy with the drinking.  I recommend that you have not more than one drink and then switch to a non-alcoholic beverage.  You must be sober to successfully work your networking agenda.

Moreover,  you’ll also need to master the drink and hors d’oeuvres plate juggle.  Hold your drink in your left hand,  so that you can shake hands easily and not give a cold,  damp greeting.  Likewise,  eat your hors d’oeuvres with the left hand,  so you don’t offer a sticky handshake.

Finally,  pay attention to the ebb and flow of guests.  Unless you’re in a serious conversation  when their number begins to fade,  find your hosts,  thank them for the invitation and take your leave.  There is an optimum time to arrive  at and leave a party.  Arriving 15- 20 minutes after the start time is usually good.  The next day,  send a quick email to thank the host once more.  After all,  a good party is a wonderful thing and you want to get invited back next year!

Thanks for reading,

Kim

 

2015 Year-End Tax Planning Thoughts

It’s mid-November and time for Freelancers to think about how much money we will hand over to the tax man this year. Tax planning is usually at top of mind as the year ends, but be advised that obsessing over taxes is not always useful. New York City CPA and small business tax specialist Michael Hanley recommends that you take a breath and consider the impact that aggressive tax strategies would have on your financial circumstances.

Hanley cautions small business owners and Freelancers against inflated spending on business expenses just to give themselves a lower tax bill, because tax deductions are not a dollar-for-dollar benefit. Every dollar written off as a deduction yields on average only 30 cents in tax savings (depending on your tax bracket and legal structure of the business). If you have a big-ticket item to buy and you anticipate that this year’s income and next year’s will be about the same, then buy when you can get the best price on the item, be it in this year or next. Your savings could be worth more than the tax deduction.

Hanley also addresses the apparently common tactic of zeroing out one’s business bank account by December 31. Paying for business expenses, adding to your retirement account, or purchasing business equipment or supplies will likely make the zero balance bank account tactic work. Paying yourself a bonus, taking a shareholder distribution if your business is a corporate entity, paying down your credit line at the bank, or paying off business credit cards will not give you legitimate tax deductions.

Professional development education is tax-deductible, so if you’re holding money and there is a potentially useful workshop or symposium offered late in the year, do register and attend. You might also consider throwing a Christmas party for clients, prospective clients, referral sources and selected business colleagues (meaning, no one who might steal a client!). Your Christmas party could turn out to be a networking bonanza that creates billable hours for you in the coming year (and beyond).

Clients and referral sources could come away with more business as well and that will make their relationship with you more valuable to them. If you can grab a big table or a private room in a restaurant that needn’t be fancy, but has a good reputation, then plan your party with Evite, even if a Monday night is all you can reserve.  Allow 7-14 days for the RSVP—last minute invitations can be just fine. Spontaneity has its charms, especially at this time of year.

To make sure that the social swirl and networking will be effective, invite 30 and expect 12 to show. Set out five or six finger foods and arrange for a signature cocktail. If someone asks for beer or wine, let them have it. Your party can run 6:00 PM – 8:00 PM. Most people will have two drinks, the restaurant will tell you how much food to set out. You will probably spend $60/pp, meaning that a table of 12 will cost less than $750.

You might also consider inviting your Linked-In connections to a party. It would be a wonderful way to introduce your colleagues to one another and billable hours could be created as a result. You may want to make this a pizza, salad, beer and wine affair, but so what? It’s a great idea, regardless. If you have 100 connections, plan on 25 showing up.

If it’s too late to host a party this year, the cards and stamps used for the December greetings that you’ll send to clients and referral sources are tax-deductible. If you act now,  there will be time to order specially printed cards for your business (you will still add a personal message).

Thanks for reading,

Kim

So Why Should They Hire You?

Congratulations! A client with a big budget and a need for your kind of services has called you back for a second talk. You’re excited and a little nervous, too. There’s a lot riding on this interview—maybe this is a prestige client who will help you attract still more prestige clients? Maybe you have bills to pay and this assignment is your ticket to solvency?

Whatever your motive, acing the interview and signing the contract are paramount. Then the client throws this last-ditch, totally common and yet potentially flummoxing question at you–“Why should I hire you for this project?”

Most of us will flap our jaws aimlessly, talking about the value-added we bring, our work ethic, excellent customer service or deep expertise. All of these benefits are positive but in today’s hyper-competitive economy, a Freelancer must make a stronger case. We need to make the client salivate to have us on board.

As luck would have it, there are some good stock answers available and they will make you shine. These templates give the prospect the confidence to open the door and bring you onto the team. You maximize the impact by replying in a relaxed tone, keeping your answer clear and simple and avoiding the use of jargon.

Interview coach and author of Convince Them in 90 Seconds (2010) Nicholas Boothman suggests that you try something like this… “You know how an outside specialist has to be flexible and ready for the unpredictable? Well, I know how to adapt to changes, I have initiative and I can cover a lot of bases, so your team members will be able to concentrate on what they do best and I can take care of the other stuff that needs to get done.”

You might also try something suggested by business journalist Geoffrey James, author of Business Without the Bull (2014)…. ” You know how sometimes you can’t find top talent to bring on when you need them most? Well, I have ( x amount of) years experience in (whatever field) that will let me solve your (problem or need) and get the right solution up and running in a short time frame. When you hire my organization, you won’t have to spin your wheels searching for talent and you’ll avoid the risk of hiring the wrong person.”

Here’s a cool little retort for the Freelancer who has not seen age 35 in a few decades and it works whether one is speaking to a Baby Boomer, Gen X, or Millennial…”You know how sometimes people can get into emotional battles over how to approach a problem? One of the most important things I’ve learned over the years is how to bring these kind of conflicts to a quick resolution. If I’m on your team, you’ll not only get an experienced (name the specialty), but also someone with perspective, who can guide a team away from butting heads and toward getting the work done.”

Note that your answer positions you as the solution to the client’s problem or need and that is precisely how you want to be perceived, for that is why you will get hired. You may devise other answers that more closely reflect the circumstances of your field. Anticipate the question in advance of your next client meeting and think of scenarios that will help you answer the “Why should I hire you” question in a way that focuses on the client and how you can make his/her life easier.

Thanks for reading,

Kim

Step It Up: Taking Your Business Venture To the Next Level


You might be doing fine and dandy with your business revenues and profits, or you might feel the need to generate more of both. Regardless of your particular circumstances, it is a well-known business axiom that like a shark, organizations (for-profit or not-for-profit) must continually move forward. Growth = Survival.

Growth in any aspect of life requires well-considered and attainable goals, objectives, strategies and an action plan. Be mindful that what you set out to do, while perhaps far-reaching, has the best chance of success if things are kept quite simple and not complex at all. Here are some strategies that may help you to achieve your goals, whatever they are.

Save time

Productivity is a key component of success in life and business. Whether you prefer to view productivity as working hard or working smart (I say a bit of both!), nothing happens unless what must be done is actually done.  Plans must be conceived, discussed and implemented and then measured for efficacy and impact.

Assess your technological capabilities and make sure that you are using devices and protocols that are time-saving.  Examine also the way you deliver your products and services. Operational efficiencies save time and money and allow you to direct your creative energies toward  money-generating activities, such as performing market research and competitive analyses, or just plain old resting and refreshing your energy stores.

Making it possible to bring in as many customers as possible as your organization quickly and inexpensively provides their products and services is the ultimate goal of productivity. How can you do what you do faster and Continue reading

When “No” Is the Best Answer

“No” can be the starting point of the biggest sale of your career. Experienced and successful sales professionals know that “No” should not be confused with “Never”. “No” can mean that this is not the time to ask for the sale. “No” can mean that you are talking to the wrong person. After doing some homework to verify who can impact the sale and give the green light (that could involve more than one person), you may ask to speak with the real decision-maker, who will advocate for you and also re-allocate the budget if necessary, and you will strike it rich.

Rejection is a part of life and it is most certainly part of sales and entrepreneurship. Rejection is a challenge. In Mandarin Chinese, the same character represents crisis and opportunity. Resilient people — and I know that you are resilient, or you would not be a Freelance consultant — use a crisis to:

  • Re-examine the proposed value-added of your product or service
  • Reevaluate the competitive landscape
  • Refine your sales pitch
  • Re-engineer yourself to become more competitive
  • Re-approach that rejecting client and others as well
“No” can make us improve ourselves and become more relevant to prospective clients, now armed with a better message and better value proposition, or perhaps even an upgraded or more specifically tailored service or product. Try these tactics the next time rejection rattles you:
Listen
While it is a natural response to counter prospect objections, one would be advised to listen well. Is that prospect doing you the enormous favor of telling you how to re-shape, re-position or at least better describe your product or service?  Try to curb the reflexive defensiveness that every human has and listen with an open mind. What weaknesses are being pointed out to you?
Objections are not always rooted in misunderstanding or hostility. Learning the ways in which your product or service does not measure up is the most valuable information that can be presented to you.  After giving your perspective on the merits of the offering in question,  honor the client’s perspective as you do yourself  a favor and ask more questions about the preferred outcomes and what changes would perhaps be helpful.
Analyze
The negative feedback that you receive is just one person’s opinion or the report of a single experience.  Nevertheless, listen and do your best to be objective about what has been revealed to you. Some or all of the negative report may be accurate.  Separate the probably relevant aspects from what may be unreasonable or unfixable. Here begins your list of action items.
Adjust
After you’ve heard the complaints, thank your prospect for his/her candor. Hearing the truth is always a good thing, even when it hurts. On the spot, think of improvements or adjustments that can be made quickly and inexpensively (If it appears that might be possible). Has the prospect made suggestions that you can incorporate?
Reassess
After you’ve reviewed what transpired a couple of times, you may decide that revisions need to be made in your services or products; business model; operations process; sales distribution; quality control; or marketing message. Before institution any permanent changes, do speak with other clients and assess their experiences when doing business with you. Are you hearing similar complaints,  or wish-list type of suggestions that clients had not previously revealed to you?
If common themes emerge, then changes are definitely in order. Draw up a list of recommended upgrades or alterations so that you can take the full measure of what needs to change. Which changes be made quickly? Which can be expected to have the greatest impact on customer satisfaction or billable hours?  Create a budget and time-table and then prioritize the tasks and if budget allows, perform first those that will have the greatest potential for positive impact.
Freelance consultants, entrepreneurs and sales professionals will face rejection for the entirety of our careers. In order to withstand the ongoing assault,  we must believe in ourselves, in our abilities and in our products and services. Yet over-confidence is not useful and is not a true indicator of resilience.  The ability to hear and accept occasionally painful truths and the courage to re-vamp, re-group, move on and succeed are the attributes that distinguish the winners among us.
Thanks for reading,
Kim

Business Model = Profit Engine

Hatching an idea for a business involves much more than inspiration.  Your entrepreneurial idea must also include a strategy for making the idea profitable. That strategy is known as the business model. The function of a business is to provide products and/or services that help clients solve their business or consumer needs.  In addition, your business must work for you  and generate a reliable and abundant revenue stream from which you derive your annual income.

Before we go any further, let’s clarify the meanings of business model  and business plan.  Your business plan  is a document in which you describe the mission of your business; the target customers; the marketplace and competitive environment in which it will operate; its marketing, financial and operations plans; and the legal structure it will be given.

Your business model  will detail how the venture will attain and sustain profitability. The cornerstone of a good business model is a competitive analysis, which will help you verify target markets (customer groups) and establish your expected value-added in the presence of enterprises that offer similar products and services.

The primary element of your competitive analysis is customer knowledge, something that regulars to these posts know that I encourage frequently.  Information-gathering is a vital and ongoing business function.  James King, Director of the New York (state) Small Business Development Center, notes that “…customer purchasing patterns change rather rapidly and if you’re not ahead of your customers, you’re not making sales.”  Along with your selection of products and services to provide and customer acquisition strategies, operational aspects — that is, the process of how your products or services will be delivered — must meet the often fluid expectations of customers and will therefore figure into your venture’s business model.

Once you’ve developed a proposed business model, find a trusted potential customer or business owner or colleague and ask for a review.  Discovering and closing immediately obvious gaps is something you’ll want to do before your business is up and running.

King recommends that aspiring entrepreneurs “Sit down with someone who doesn’t have a vested interest and ask that person to poke holes in your model. If they do a good job, you’re going to be better prepared for any eventuality. The more risk you can eliminate, the higher the probability that you’re going to be successful.”

One is advised to revisit the business plan and business model every couple of years, or at least when changes in your industry, local business environment or technology have the potential to impact your sales revenue or how your do business. This practice will also give you the benefit of reviewing your projections as regards expected vs. actual target customers and allow you to refine planning for growth and expansion, as you create strategies for sustainable business success.

Thanks for reading,

Kim

LEAD With Conviction

Those who misinterpret the role of leader often feel that exerting power over others is its purpose but that hypothesis has been revealed to be false. The most effective leaders recognize that the quality of leadership is greatly enhanced when they are liked and respected by those in the organization and/or on their team.

Bill George, Senior Fellow at the Harvard Business School and author of Discover Your True North (2007), encourages leaders to empower those whom they lead.  He asserts that the most empowering condition is when organization members align around a goal or mission and team member passions and purposes are complementary and synchronized.

Leadership Development expert Travis Bradberry, co-author of Emotional Intelligence 2.0  (with Jean Greaves, 2009), says that leadership is about emotional intelligence and that it is a flexible skill that can be improved with effort. Here are the behaviors and attributes that successful leaders develop and cultivate.

Form personal connections

The best leaders know that a successful life is built on good, mutually beneficial relationships. A true leader is not afraid to extend him/herself and get to know the people whom s/he leads, as well as others. Good leaders may be introverts or extroverts,  but they nevertheless enjoy connecting with people. They focus on the person/people with whom they are speaking and have personal conversations. They care and those they lead know this to be true.

Be approachable

Good leaders know how to maintain boundaries and still make it possible for others to reach out and talk with them. They believe that those whom they lead are valuable and worth their time.
Have integrity

Good leaders keep their word, to the very best of their ability. They do not say one thing and then do another. They respect those whom they lead.

Have substance

Leaders understand that expertise is necessary, the foundation of their stepping into the leadership role. They rose to the top because they possess superior knowledge and expertise and they are masters at leveraging it.

Be positive

Leaders encourage those on their team to be the best they can be. They believe in the abilities of those on their team or in the organization. They have faith in the vision and mission of the organization and communicate their enthusiasm for achieving the goals that express and promote them.

Be generous

Leaders share.  A superior leader gives those on the team the tools they need to achieve success. They support and encourage people.   Leaders empower, they do not micromanage.

Recognize and appreciate potential

Leaders are able to spot talent and they are willing to help you to develop and leverage yours.  A leader aspires to recommend you to a position where your strongest talents and competencies can be utilized and rewarded, so that you will operate at your best and derive satisfaction as you do.

Be humble

Arrogance and braggadocio are not signs of leadership and that includes the “humble brag”.  Leaders are usually quite happy to lead, but they are aware that leadership is about accountability and responsibility and not an excuse to boss others around.

Communicate well

Whether standing before a large group or chatting over coffee with one or two team members, leaders both have something to say and listen well. They are well-spoken and fluent writers, as well. They are usually good story tellers. Many leaders have a background in sales.

Good judgment

As the song says, you’ve got to know when to hold and know when to fold. Judgment entails many competencies, including the ability to prioritize.  Leaders are good decision-makers and they are guided by their personal integrity; respect for their team and the organization; expertise in their field; and understanding of human nature and motivations.

Former political adviser and CNN political commentator and currently a professor at the Kennedy School of Government at Harvard University David Gergen, author of Eyewitness to Power (2000) writes, “At the heart of leadership is the leader’s relationship with followers. People will entrust their hopes and dreams to another person only if they think the other person is a reliable vessel”.

Thanks for reading,

Kim

The 7 Minute Presentation Rule

Freelance consultants are often called upon to make business presentations, at a client meeting or even a board meeting. Getting one’s point across clearly, succinctly and convincingly is an all-important component of one’s success as a leader or manager. Droning on in an unfocused way is not desirable, but communicating the required amount of information is paramount.

“Anything you have to say in a business setting should fit into a seven minute window”, says the computer technology, writing and presentation expert John Brandon. Brandon is a speaking coach and frequent presenter; experience has taught him that in seven minutes, it is generally possible to deliver your important message and maintain audience attention as you do. Like a stage play, he has blocked out a diagram of the action that will teach us his presentation method.

First, write a draft presentation and design your Power Points, if you elect to use slides. Confirm that all necessary information will about fit into seven minutes, perhaps with some judicious editing. Do an initial run-through and check your time. If the talk exceeds the seven minute window by a few minutes, further rehearsing may allow you to bring the delivery time down to the target time limit. You can also take another look at your material to consider what might be edited out. Here is Brandon’s presentation roadmap:

Minute  1: Grab audience attention

Brandon urges you to open your talk with a “bang”. You might begin with a surprising statistic or provocative point, verbally or depicted on a slide. The “bang” must persuade the audience to want to hear what you have to say. The opening is NOT where you deliver your main message. The “bang” whets audience appetite for your knowledge and perspective on the topic. Achieving the “bang” in 60 seconds requires discipline, editing and creativity. You can do it.

Minute  2: Summarize in one minute

The right “bang” will be the perfect entrée to the heart of your talk. There will be no need for a transition statement—the audience will be more than ready to hear you. Brandon says that in this segment, you tell the audience why you are standing before them today. Give a 60 second overview of what you are selling, recommending or explaining.

Minutes 3-6: Present the main message

Your audience is keen to hear what you have to say. You have earned their respect and undivided attention. In this segment you deliver the goods, the heart of the talk, in four minutes. You will defend and explain your quirky or provocative “bang” with charts, graphs, non-text-heavy Power Point slides, or maybe just your silvery spoken words, perhaps with an anecdote of two sprinkled in. You may do and say whatever you feel will be most effective to win over your audience. It’s your talk!

Minute  7: Summarize the main message and conclude

Use the final minute to debrief the crowd. Close the deal by summarizing your main points, to help the audience retain the information. Do you have a call-to-action—do you want the audience to advocate for your idea or buy your product? Tell them in this segment. Leave the audience with an idea and information that they will savor and remember. That’s it!

Thanks for reading,

Kim

Pricing Primer for Freelance Service Providers

“The business world is driven by the desire to increase three elements: market shares, sales revenues and of course, profitability. Pricing is the key player in any strategy concerning the growth of these three goals.”   Mohammed Nosseir, Senior Marketing Adviser, Simon-Kucher & Partners, Middle East

Determining the pricing structure for intangible services provided is a real challenge for Freelance consultants. What is the value of our time and expertise in the open market? What if we promote our services, set the price and no one hires us? Should we lower our project fees? Can we ever raise prices?

Clients are motivated to spend as little as possible for the products and services that they require. However, they are known to pay premium prices when they “feel” that a particular product or service delivers exceptional value. That value can mean an expert solution to a business challenge; a long-lasting product that performs very well with little maintenance; the ability to meet a deadline; or other factors that have meaning to the decision-makers.

Often as not, different clients will have different priorities that define what is valued. It is the Freelancer’s job in the initial face-to-face client meeting to figure out what the client feels is important. That knowledge will achieve two objectives:

  • You will know the expectations that must be met (or preferably, exceeded) to justify a premium price.
  • You will know how to price, based on the time or other resources that will be devoted to meeting and exceeding client expectations and you will grasp the urgency of client needs, which impact your price.

Most likely, there are standard benchmarks and signifiers of high-value service in your industry and they should be incorporated into your marketing and operations, along with other value-addeds layered on as necessary. Knowledge of what competitors do would be most helpful as well, but it is very difficult to learn how competitors deliver their services or price them. Nevertheless, it is advisable to choose three or four to research. Visit websites to learn what services your competitors offer and how those services are described and packaged. Then, you can better identify potential competitive advantages for what you have and find a way to describe your goods.

It may sound like an obvious no-brainer, but part of your premium value-added that will be reflected in your pricing strategy should be your positive attitude and willingness to help prospective clients find the best solution to their business needs. Friendliness and the aim to genuinely want to offer good service go a long way in life and in business. Showing a good work ethic is likewise important.

For example when on an assignment, pay attention to emails. While I don’t recommend that one should be obligated to answer emails that a client dashes off at 3:00 AM (unless this is an urgent and high-revenue project), check emails through 10:00 PM and resume at 7:00 AM. If you can anticipate client needs, so much the better, They’ll think you’re a hero and will be happy to pay for the pleasure of doing business with you.

Step by step, client by client, focus on exceeding expectations on every project, building the trust and confidence that lead to a respected brand (reputation) as you do. You will receive referrals from satisfied clients (and you can also make referrals to your clients, enhancing your brand each time you do). Good brands create good word of mouth and that supports and justifies premium pricing.

As Mohammed Nosseir concludes, “Pricing has been, and will continue to be, the most complicated element in the marketing mix family…A proactive pricing structure will help companies…to maximize their profitability.”

Thanks for reading,

Kim