Marketing , , , , Leave a comment

Adding to Your Value-Added

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If you want to bill clients at premium prices,  you need to establish and present a brand that communicates your value-added as perceived by prospective clients.  In plain English,  you must make clients feel that you are worth the money.

A good brand is very seductive.  Brand loyalty leads people to pay $5.00 for coffee when they could buy perhaps higher-quality brew for $2.00.  It makes women covet $1000.00 + handbags so they can flash a certain designer label,  when handbags of similar quality and attractiveness,  but without the logo,  are available at less than half  that price.

As we continue to explore strategies to expand business,  let’s give some thought to building on authenticity  (see the May 28 post),  using it to strengthen perceived value-added and power of  the brand.  Increases in perceived value are generally more profitable than increases in the quality of services delivered.  Clients are known to pay more for what they think is worth more before they’ll pay for service upgrades.

Successful Freelance consultants deliver first-rate expertise and customer service.  As a marketing strategy,  we can attempt to make ourselves appear worthwhile to prospective clients in a number of ways.  One strategy can be to package ourselves rather lavishly,  handing out expensive business cards,  renting office space in the high-rent district and paying big registration fees to attend prestige conferences.  The premise is,  in order to attract big fish clients,  one must swim in the same waters.

Alternatively,  one may choose the high visibility route and invest scads of time on social media sites,  posting frequently, earning a high Klout score and showing up in the top ten of a Google search.  The premise is,  if one’s name is all over the internet,  then prospective clients will see it and one will then be considered the obvious choice when it is time to hire,  through the power of notoriety and perceived expertise.

Teaching,  speaking engagements and visible involvement in business and professional groups are a third strategy.  The premise here is that professional expertise is demonstrated through these activities and that builds trust and gives prospective clients the incentive to not only hire,  but pay a premium for services rendered.

Whichever strategy you find most attractive,  be mindful that your perceived value will be enhanced when you establish links with individuals and organizations that are admired and respected by your clients.  If you can arrange to be photographed with the mayor or governor,  it will raise your perceived value because you will be seen in the company of movers and shakers.  Membership in certain professional associations or social clubs may also confer significant value.

Professional certifications can do the same,  which is why a Certified Public Accountant can charge two or three times what an accountant with a degree but no special piece of paper can charge for providing nearly identical services.  The CPA designation allows a trust factor to kick in and it’s worth money.   According to Martin Reimann,  professor of Psychology at University of Southern California, the “right” affiliations and relationships bolster one’s perceived value.  They are endorsements of value-added.

My parents often told me when I was growing up that we are judged by the company that we keep.  I took that admonition to heart and picked my friends with care,  especially as I got older and there was more on the line.  The advice applies equally to our professional lives.  If it appears that we have the confidence of those whom prospective clients and referral sources respect,  we are more likely to be hired or referred and better able to charge premium prices for our services.  But it all starts with being authentic.

Thanks for reading,

Kim

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Getting Good PR

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Every Freelance consultant and business owner has an eye open for good publicity opportunities.  Articles written about one’s business are far more effective than paid advertisements,  because they are considered objective opinions.  Other than word of mouth by satisfied clients who sing your praises,  there is nothing better than good PR to help build the buzz that makes you look credible and successful and worthy of still more business.  So what are the best ways to get good publicity?

If you have the kind of business that can potentially attract more than sporadic media attention,  then building relationships with editors and writers whose publications and stories focus on your category of business is a good use of your time.  Once you’ve identified good media prospects by reading their articles,  send a press release that details an event that would interest.  In your email,  reference an article or two of theirs that you’ve read.  Follow up with a telephone call.  Offer to take that person to lunch or coffee.  Even if your press release doesn’t get you any editorial space,   you may be called to provide comments as an expert when other stories are written.  Check in periodically,  to maintain the relationship.  Meeting for coffee every once in a while can pay off.

Bloggers have lots of influence and it is sometimes a challenge to reach them.  Blog Dash is a site I recently found that helps you connect with bloggers whom you can hire to spread the good word about your business.  Fifteen categories of business are represented,  from arts to travel,  and numerous bloggers within each category can be reached.  There is a free option,  which will give you no real access to bloggers  (but they will see your business and may comment),  or you can pay up to $50.00/month and be able to pitch bloggers directly and build relationships.  http://blogdash.com

Write a good press release  (see my post Press Release Primer,  3.1.11)  to encourage traditional journalists and bloggers to give your story some editorial space.   They are considered old school in some quarters,  but a press release is still the way to get the word out to journalists and bloggers,  whether or not they know you.   But you have to provide good content and 95%  of the time what a Freelancer or other business person has to say is not considered relevant.  Hint:  when one advertises,  one generally receives editorial space.

Solicitations to provide expert opinion or commentary showcase you to look like the go-to in your field.   Help a Reporter Out HARO  http://helpareporter.com and Seek or Shout  http://sos.cision.com  allow you to respond to requests for quotes on any subject,  from big data to the medical device industry.  Three or four years ago I signed up with HARO but I quickly shut this free service off.  I was nearly buried in emails and I couldn’t take it.

It is obvious that the adage  “There’s no such thing as bad publicity”  was created before the dawn of social media.  Social media can cause a minor PR hiccup,  or negative customer review made by a spiteful customer (or maybe a competitor),  to blow up out of proportion and do you some damage.  Resist the temptation to hand over your social media functions to some 22 year old.  In theory,  social media updates ought to be a great responsibility for a young person who lives this stuff anyway, understands how to get the word out and works cheap.   The problem is,  that young person may not have the wherewithal to give the right answer when something challenging is written.

Creating good buzz about your business is part of the Freelance consultant or business owner’s job.  How to get that done in the most effective manner requires a strategic approach,  like all of your other business activities.  If sporadic PR is what your business attracts,  it is best to engage in a variety of activities to ensure that you appear viable and relevant to clients and colleagues.  You may not get written up,  but you will build a good reputation.   If your business is the type that would attract more press,  then spend the time and money to advertise in the relevant publications and build relationships with journalists who cover your kind of business.   Subscribe to have the ability to reach out to bloggers and see what that does for you.  Budget for a year and then evaluate.  Learn to write a good press release  (see my post  FOR IMMEDIATE RELEASE,  3.19.13).

Thanks for reading,

Kim

Professional Development , , , Leave a comment

Authenticity is the Only Personal Brand

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The successful Freelance consultant is acknowledged as an expert and leader in his/her chosen field  by clients,  colleagues and competitors.  This Freelancer has superior skills that are accompanied by integrity;  s/he can be trusted to meet or even exceed expectations.  This individual commands respect because s/he is highly competent,  reliable and credible,  that is to say,  authentic.

Authentic is an adjective that’s thrown around a lot these days and perhaps suffers from overuse,  but I agree with leadership development specialists who assert that a truly effective leader is highly skilled,  trustworthy,  respectful,  communicates well and is unafraid to be him/herself.  A leader embraces the genuine self,  strives to develop and present  the best self and does not waste time trying to be someone else.  For those reasons,  leaders are often considered charismatic and they inspire great loyalty.

Les McKeown,  CEO of Predictable Success,   an adviser on organizational growth and author of  “Predictable Success: Getting Your Organization on the Growth Track and Keeping It There” (2010),  has shared three phrases that will telegraph your authenticity and leadership ability to others.   At some future meeting,  it will make sense for a leader to make at least one of these statements:

“I have nothing to add.”  The confident leader is not in love with the sound of his/her own voice and does not feel compelled to weigh in on every matter.  A leader intuits when everything that is relevant has been expressed,  respects the well-reasoned opinions of others and allows others to take center stage and shine every now and again.

“I don’t understand what you mean by…..”  Authentic leaders admit knowledge gaps and ask for information that will clarify,  so that they can grasp the subject under discussion and promote good decision-making.  They are not driven by a need to appear  expert in all things.

“I recommend that we…..”  A leader recognizes when it is time to make a decision,  whether or not all the facts are in hand.  Usually,  all the facts can never be in hand,  but a leader knows when we must move forward and either take advantage of an opportunity,   head off a crisis,  or cut losses.  An authentic leader takes responsibility to put resources and reputation on the line and make,  or advocate for,  a decision or action.

Role models can be inspiring and show us the way,  but at the end of the day we must be ourselves.  We must be willing to embrace what we believe in,  acknowledge our priorities and articulate our values and vision.  To do so takes confidence,  which is yet another attribute of a leader.   An authentic leader has no desire to present a false  “personal brand”  that may seem trendy at a given moment.  A real leader knows that authenticity is the only worthwhile personal brand and that its value is timeless.

Thanks for reading,

Kim

Sales , , 1 Comment

When the Sale Slips Away

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Whether we like it or not,  Freelance consultants are salespeople.  Before we are able to ply our given trade,  we must first sell prospective clients on the idea of hiring us to do what we do,  whether it’s web design or floral design.  Steve W. Martin,  professor of Sales Strategy at University of Southern California’s Marshall School of Business,  says that those who sell should be cognizant of the lowest common denominator of decision-making: stress.

Martin observes that stress is the death of rational decision-making.  Stress shortens the attention span,  escalates mental exhaustion and typically results in analysis-paralysis.  Despite the  “buying signals”  that your prospective client may display,  more than likely s/he is experiencing fear and doubt when speaking with you about your product or services.

The stress this creates serves as the key factor in determining whether or not the deal gets done.  The most successful salespeople anticipate,  seek to identify and learn to counteract that stress and enable the sale.  Giving prospective clients information and diplomatically phrased and presented tactical advice that will help them fight against internal organization politics is a useful part of your sales strategy as well.  Here are a couple of more reasons that your sale dies on the vine.

Stalled sales cycle

Customers are more cautious than ever and moving them through the sales process can become an almost Sisyphean task.  Steve W. Martin correctly labels this common phenomenon as an internal problem that occurs when project sponsors do not know how to sell their concept to the senior executives who are able to give the  green light.   Further, certain sales cycles are prone to be lengthy in the best of circumstances.  It is too easy for your contact person/project sponsor to get distracted and turn attention toward developing issues and in the process push your sale to the back burner,  where it drifts into oblivion.  Then there is sometimes reluctance to take responsibility.  As a result,  project sponsors involve more of their co-workers in the decision process and you know what happens when there are too many cooks.

Product information and vendor selection

As we enthusiastically pitch our services,  prospective clients often wonder if we are telling the whole truth.  Compounding that is the reality  (or perception)  that differences between many products and services are almost insignificant.  Buyers are often skeptical because they may have been lied to by previous sales people.  The client may feel that 1). it is necessary to separate fact from fiction when talking with someone who is trying to sell something and 2). it’s pretty much all the same thing anyway.  Selling on service and operational efficiencies and the resulting benefits is the best antidote.  Avoid selling on price if at all possible, because it reduces you to a commodity.

When preparing for your next prospective client meeting,  keep in mind the inevitable presence of stress in your would-be client’s work environment.  They don’t quite know who or what to believe.  They’ve got co-workers,  subordinates and bosses judging them.  They are torn between acting in the best interest of the company and in the best interest of themselves.  There is also the now-prevalent belief that not spending money is best for the organization’s bottom line and no one’s reputation suffers for declining to spend money.  Making no decision just gets easier and easier.

Thanks for reading,

Kim

 

 

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Why You Don’t Get the Sale

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Two or three years ago,  I read that a Freelancer’s main competition is not another Freelance consultant who does what you do.  Our real competitor is the client.  As the less than stellar economy grinds on,  enriching primarily the top 1%  of the population plus a few lucky folks in the  (shrinking)  middle class,  that statement gains more credence every day.  Prospective clients have got a boat load of excuses to slide away from a contract,  or cutting down what was originally promised.  Do you ever wonder what could possibly be on the minds of clients and prospects who promise you the moon and then either disappear or offer up a very paltry version of the original proposal?

According to Steve W. Martin,  professor of Sales Strategy at the University of Southern California Marshall School of Business and author of  “Heavy Hitter Sales Linguistics: 101 Advanced Sales Call Strategies for Senior Salespeople” (2011),  stress caused by peer pressure and insecurity is the culprit and its impact on decision-making is detrimental  (no surprise there).  Freelancers and sales people must do everything possible to communicate our value-added but in the end,  the decision to give the green light is an internal matter and those outside have only so much influence.  Here are examples of what worries our prospective clients:

Budget availability

There are two main criteria for deciding whether or not to give someone the contract or sale:  1). What is the ROI that will accrue from the sale? and 2). How does that ROI compare to what might be derived from other projects being considered?  Projects that are considered strategic by the senior execs have priority,  so if your project has that status,  it’s only a question of how many hours you can get.  Whatever your project,  product or service,   you must first receive the initial approval.  You may believe that because you have confirmed that you are talking to a decision-maker and s/he says the go-ahead is imminent,  that is not the whole story.  There is the all-important step two and that happens when  the team of heavy-hitters examines and ranks all pending projects and major sales and decides which items receive funding and at what amount.  In other words,  that decision-maker that you’ve been speaking with will confer with other decision-makers to compare which projects will go forward,  because projects are continually re-prioritized in response to shifting conditions.

Strategic imperatives

Your project must align with the organization’s goals as perceived by the higher-ups.  If you notice,  projects that are championed by lower-ranking employees often do not get funded because higher-ranking execs do understand or appreciate the value-added,  do not view the proposal as strategically significant.  Moreover,  your project must demonstrate that the sponsoring higher-up understands and is actively advancing strategically relevant projects,  products and services.

Ego and image

This is related to the above.  Your project must make its chief sponsor look good to the person s/he answers to,  as well as look good to colleagues and subordinates. When an outside consultant is hired or a major purchase is authorized,  the project champion absolutely must look like a genius for doing the deal.  Under no circumstances must s/he be perceived as having made the wrong move.  Peer pressure is real and the project champion worries about making the right decision,  especially if this is something that has not been done before.  This is why the Freelance consultant must at all times deliver exceptional service,  must exceed expectations,  because the reputation and career advancement of your project sponsor is riding on it.

I’ll talk more about your nervous prospect next week.

Thanks for reading,

Kim

Technology / Office , Leave a comment

Freelance Lonely

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Maybe Marissa Mayer,  CEO of Yahoo who recently nixed telecommuting for Yahoo employees,  is right.  Maybe we are happier and more productive when working in an office,  rather than working at home.  This theory flies in the face of the entrepreneurial,  independence-loving American fantasy,  where we sit at home in scuzzy clothes,  or deposit ourselves at the beach or the local coffee shop,  laptop and cell phone at the ready,  and efficiently run a million dollar enterprise.   That is a popular fantasy but for may people,  the reality is not so idyllic.

In a 2010 Census Bureau survey,  it was discovered that 6.6%  of adults worked exclusively from home.  The Bureau of Labor Statistics reported that in 2009,  15 million adults identified themselves as self-employed.  Add to those numbers telecommuters,  some of whom visit their workplace offices only one or two days a week.  Cutting back or eliminating the cost and time of the commute to the office are important benefits,  but there is a percentage of Freelance consultants and frequent telecommuters who find themselves overtaken with loneliness and feelings of isolation.

They are not as productive as they expect themselves to be.  With disturbing frequency,  they find themselves unable to focus on their work.  They are easily distracted,  prone to doing housework or watching television when they should be  “on the job”.  Conversely,  there are others who find that they are unable to stop  working  (that would be me).  Too often,  they (we) are immersed in work-related activities when we could be relaxing and re-charging our inner resources.  Neither group is able to establish good boundaries between working life and personal life.  Going to the right kind of office space may present the solution.

According to DeskMag, an online magazine that covers the co-working industry  http://deskmag.com ,  there are now nearly 800 commercial collaborative,  i.e. co-working,   facilities in the US,  up from a little more than 300 just two years ago.  I first reported on this phenomenon in my October 25, 2011 post and the trend continues upward.

In addition to offering reasonably priced office space,  co-working offices provide opportunities for interaction  (networking)  with like-minded professionals.  Tenants  (sometimes called members)  share resources like a kitchen,  a photocopier and conference rooms.  Some co-working offices create a party atmosphere and organize after-hours social situations like whiskey tastings,  art shows and Christmas and other holiday parties.  “The need to feel socially connected is a fundamental human need”,  notes Ravi S. Gajendram,  an assistant professor of business at the University of Illinois.

The well-designed co-working office will create spaces that organically bring tenants together:  pleasant seating areas with long tables designed for sharing and conversation nooks with coffee tables and comfortable chairs.  “The design strategy is a typology that looks at accidental encounters as much as organizational clarity”,  says David Rockwell, designer of NeueHouse in New York City,  a high end co-working space that styles itself as a private club.  Rockwell says NeueHouse was designed to sync with the interactive,  serendipitous manner in which creative professionals work today.

Still,  there are those who try it and eventually tire of it.  Po Bronson,  who 19 years ago co-founded the San Francisco Writers Grotto,  says that co-working offices eventually start to feel like the traditional offices that we know and loathe.  There can be collaboration,  but also envy,  competition and gossip.  Yet for those of us who need a degree of structure to help us form necessary boundaries between our work and personal lives,  it will be worthwhile to investigate a co-working space or two.

Thanks for reading,

Kim

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Presenting a Webinar

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Last Wednesday I presented my first (and perhaps only) webinar.   To prove to myself and the world that I’m capable of presenting a webinar made it a worthwhile experience,  although I suspect that there will be no tangible benefit derived.  I was not paid to present (same old story, hey?).  So far,  the only follow-up has been a guy who wrote to me looking for free advice (of course!).

Nonprofit Webinars offers free one hour presentations each week and the selection is very good.  My topic was  “A Business Plan for Your Nonprofit”.  If you’re interested,  please visit   http://nonprofitwebinars.com   and you will be able to access my presentation,  plus several others.  Maybe you can explore the possibility of presenting a webinar yourself?

Putting together the presentation text was not a huge chore,  since I teach business plan writing on a regular basis.  The challenge was editing down a 6 hour workshop to less than one hour (to allow for a Q & A session) and adapting the focus to a nonprofit,  rather than for-profit, venture.

The part I hated was creating the Power Points.  I am no graphic artist and I resent that audiences expect as much graphics works as they do content.  My feeling is that a webinar is like radio.  Content is king and graphic art is the chorus.  The mere thought of producing graphic art work caused me severe stress.  But I had to do the deed.

I found out how to get free online images and registered myself at Morguefile  http://morguefile.com ,  which has hundreds of very decent high-resolution photos available for download to your desktop.  A respectable number of them were applicable to my topic.  I chose photos that were interesting and somewhat ironic or amusing,  yet still related to my topic.

High resolution photos present a problem,  though,  because too many photos cause your file to be too “heavy” to send as an attachment.  Thank goodness a friend who is proficient in producing customized Power Points shrank some of the images and combined with text on some slides and wrote text on top of other photos.  She also used the Power Point animation feature,  which I know exists,  yet was totally unable to figure out.  As I said,  graphics work is not my forte.

On webinar day,  there were technical issues to surmount.  Go-to-Webinar refused to download in Internet Explorer,  but thank goodness I also have Firefox.  Second,  one is supposed to speak into a land line with a headset.  I had neither,  but my iPhone 4 gave good sound quality,  according to the moderator,  and it was better without the headset.

I rehearsed,  but I could have done more  (my schedule went crazy).  I got a little nervous and talked somewhat too fast.  I synched the slides,  the text and my voice over rather well.  I did my best to sound more conversational and less preachy because a webinar is radio,  with visuals.

I developed simple poll questions to help me know who in the audience had done business planning and strategic planning previously and I took questions at around the 15 minute mark and again at around 30 minutes.  I preferred to address a few questions as I went along,  rather than holding all until the Q & A.  The moderator handles all questions and the presenter gives the answers.  I got some very good questions and I felt good about my answers.  I conveyed my expertise,  which was the objective.

Toward the end of Q & A,  my phone connection cut off and I had to dial back in,  which was frustrating.  I handled it like a trooper and traded some relaxed banter with the moderator.

So what grade would I give myself? A solid B.  If by some miracle I do this again,  I’ll make myself rehearse more.  Other than that,  I’m happy with my performance.  If only I could get a client out of it!

Thanks for reading,

Kim

Business Plan, Business Strategy , , 3 Comments

A Profitable Partnership

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Whether you are making a plan to start a business or expand one that exists,  inviting partners to join you may be the best way to achieve business goals.  Ideally,  partners bring some combination of complementary skills,  capital resources and strategic relationships that will make the business grow and prosper faster.

Before initiating a partnership,  evaluate the resources you need to launch your venture.  If you anticipate that start-up or expansion capital may not be available,  then taking on a partner or two may be the only way to take your business from the drawing board to reality.  But if skill sets beyond what you possess are the issue,  you may be better off hiring  a few key employees.  Speak with a business attorney to devise a way to attract key employees for your management team by offering equity in the business,  but not so much that you risk losing control.  Remember to include the option of your being able to buy back shares if you like.

Similar business goals and priorities

Business partners must share a vision of the long-term goals and priorities for the venture.  How big do you want the business to be? How much of your life are you willing to devote to building the business?  Have conversations and brainstorm different scenarios that might happen during the life of the business and how each of you thinks it would make sense to respond.  Partners must be able to agree on a course of action to move the company forward if success is to be realized.  Serious discussions about each partner’s preferred vision of the future will give valuable insight into how to handle challenges and opportunities that might present themselves down the road.  Write a business plan together and as you do,  almost everything will come out in the wash.

Similar approach to customer service

Customer service is an important aspect of the business brand.  Customers must know what to expect when doing business with you.  It will only confuse and frustrate clients if one of you is willing to burn the midnight oil and move heaven and earth to exceed expectations every time and the other is willing to let whatever it is wait until 9:00 AM the next morning.  Whatever approach you take,  devise standardized,  written customer service protocols that all partners can accept and agree to abide by.

Mutually agreeable exit strategy

Is this a one-off project based partnership,  or is everybody in it for the long-term?  Do you envision building the company rapidly and attracting a buy-out offer,  or is this a business you would like to pass to your children? Guided by a business attorney,  discuss the circumstances by which a partner can quit the partnership and how the transition will take place.  Who can buy out a partner? What is the protocol if a partner becomes medically incapacitated and can no longer work in the business? In a divorce,  can you wind up being in business with a business partner’s ex?

Partnership agreement

Your state may not require a written agreement to form a General Partnership,  but you are strongly advised to do so anyway.  A written agreement will clarify the parameters of the partnership.  Specify the share of the business owned by each,  the division of net income (or losses) and the duties and responsibilities of each partner.  Commit to writing everyone’s shared understanding of the partnership business arrangement.

Forming a partnership and going into business with one or more people can be an enjoyable and profitable experience,  but it doesn’t work for everyone.  When partnerships go wrong,  they ruin relationships and bank accounts.  Choose partners wisely,  be realistic and transparent and put everything in writing.

Thanks for reading,

Kim

Business Strategy , , Leave a comment

C x 5 = Success for Your Business

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If one intends to succeed in business,  then it is necessary to manage the business effectively,  because in the long run,  the better-managed businesses  succeed.  Dan Barufaldi,  Freelance management consultant active in metro New York City,   authored the 5 C’s for Success in Business list.  According to Dan,  success in business requires that you attain and leverage these five resources:

Clients

Credibility

Cash flow

Credit

Capital

I.   Clients

But of course a robust client list is necessary if one expects to keep the doors open.  Clients are the life blood of every business and priority is given to acquiring and retaining the  source of revenue.  There are a number of tactics  strategies that business owners can use to find and retain customers,  including:

Advertising and promotion

Advertising in newspapers,  blogs,  newsletters,  trade journals

Email marketing campaigns

Trade show and conference  exhibits

Participation in local charity events

Brand

The focus may not be on a specific product or service,  but branding is marketing/advertising designed to enhance the reputation of the company/ consultant in the marketplace.  It is important to communicate to current and potential customers that the company/consultant is reliable and trustworthy.

Customer service

Create good word of mouth  (still the best form of advertising)  and stimulate referral business by providing excellent customer service and exceeding expectations every time.

Networking

Those whose target clients are B2B will greatly benefit from membership in the local chamber of commerce,  Rotary Club and neighbor hood business association.  Those whose target customers are B2C will be wise to take part in neighborhood charity events and otherwise be visible in the community.  B2G oriented businesses and Freelancers will attend information sessions and certified vendor conferences sponsored by city,  state,  county and federal organizations.

II.  Credibility

Freelance consultants and small business owners must package and present ourselves and our products and services in a professional manner.   We cannot afford to advertise and brand like the major corporations,  so we must be creative in our use of promotional resources.  A good ongoing branding campaign to enhance reputation is essential,  as is excellent customer service.  Promote your brand and build trust with good customer service,  to create good word of mouth that can earn you recommendations and testimonials.  Teaching is a time-honored way to demonstrate one’s expertise.  Speaking on (or moderating)  a panel at a professional development symposium is another excellent way to create visibility among your peers and potential clients.

III. Cash Flow

For Freelance consultants and small business owners,  cash flow can sometimes take precedence over  short-term profitability.  Cash flow glitches will result in unpaid accounts payable,  the inability to take advantage of special offers,  an unmet payroll and/or the inability to cover immediate and urgent expenses.  It’s a smart idea to project cash flow needs over 8 – 12 weeks,  so you’ll know when to invoice clients,  when receivables are expected,  when accounts payable are due and have time have time to cover any gaps that appear.  It may be possible to extend the due date on certain accounts payable,  accelerate the collection of accounts receivable,  adjust expenses or even get a bridge loan  (or a temporary job).

IV. Credit

Available credit supports cash flow management.  An honored request to increase the credit card limit allows one to float expenses when accounts receivable collections are unexpectedly slow,  or allows the business to stock up on inventory when prices are favorable.  Those with good credit ratings pay lower credit card interest rates,  which is also good for cash flow.

V.   Capital

Those looking to grow their business may need to make large expenditures and that will require access to capital.  If significant business growth is part of your organization’s three-year plan,  start now and improve your credit rating by paying off debts,  if that is an issue.  The establishment of a good relationship with a bank,  along with a credit rating and financial management practices that demonstrate good judgment and fiscal responsibility,  will be very helpful when it is time to seek financing.  Make an appointment with the manager of your bank to discuss your plans,  learn how much you are qualified to receive and the payment terms.  Meet a banker as you network at the local business association and get a second opinion.

Thanks for reading,

Kim

Marketing , , 9 Comments

A Winning Email Marketing Campaign

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I’ve not done many email marketing campaigns,  mostly because I dislike being on the receiving end of such campaigns,  so I made the decision to basically avoid that method of outreach.  I was remiss,  because there are times when an email marketing campaign fits the bill.  Content marketing,  or the new advertising,  is an excellent way to stay in contact with clients and cultivate prospective clients and that strategy forms the basis of email marketing campaigns.

What I needed to do was learn how to craft an effective email message,  create a catchy subject line,  avoid looking like spam and send the email to the right group of people.  In other words,  I had to learn how to do a proper email marketing campaign.  To that end,   I invite you to copy my homework.

1.   Start with a good list

Everyone on your email list should want to receive your emails.  Include a safe unsubscribe feature to allow those who would rather not receive your emails to opt out.  When collecting names,  ask if the person would like to receive email updates from you.  To track emails sent,  you may want to invest in Did They Read It  http://didtheyreadit.com, which will anonymously report to you the read rate of your emails.  Constant Contact  http://constantcontact.com ,  the email marketing platform,  will send out and track your email marketing messages and your newsletter,  too.  According to the Email Marketing Metrics Benchmark study done by the marketing firm Silverpop in 2012,  the open rate is 20%.  The click-through rate,  or the measurement of how many people clicked on a link that was embedded in your email and most of all the conversion rate,  or how many people signed up for a special offer or did business with you,  reveal the value of your email list.  Still,  the open rate is a very telling measure because nothing happens until the email is opened.

2.   Information, not sales

A few paragraphs that give newsworthy updates about the industry sectors of your principle client groups,  or info that can be used to help list members solve a common problem,  will greatly improve your email open rate.  An email marketing campaign is not the forum in which to swing for the fences and score a big sale or assignment.  Rather,  an email marketing campaign is the place to let your expertise shine and offer no-cost value to current and prospective clients.

3.   Subject line that pops

Be edgy and provocative, be witty,   be amusing,  but don’t be boring.  When your recipient opens emails and is faced with a huge stack,  make him/her want to open yours and see what you have to say.

4.   Interesting photo or video

A picture is worth 10,000 words,  so add a good photo or two to your email,  one that communicates some aspect of your message.  A short video of you speaking to a topic,  or a testimonial by one of your clients,  is also compelling.

5.   Easy call to action

Once you’ve made the case,  remember to ask the recipient to do something with the information that you’ve provided: take a survey,  sign up for a free 30 minute consultation,  sign up for your newsletter.   Resist the temptation to go for the jugular and force a sale in your email marketing campaign.  The more successful strategy is to entice the recipient to make some small contact with you that appears to have more benefit for them than it does for you.  Build trust and familiarity first and you will become the obvious choice when your services are needed.

6.   Optimize for smart phones

It has been reported that nearly half of all emails are now opened up via smart phone.  Figure out how to size and space your email and links to make it easy to read on a smart phone.

Despite numerous pronouncements to the contrary,  email marketing is alive and well,  according to a January 2013 survey conducted by the marketing services provider Experian.  Their survey indicated that correctly conceived email marketing campaigns remain the best way to draw traffic to your website and increase sales revenue.  So copy my homework and get busy creating one for your business.

Thanks for reading,

Kim