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Twitter for Your Freelance Practice

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Because the February-March session sold out,  I have been invited to reprise my three-part workshop  “Become Your Own Boss: Effective Business Plan Writing”  at Boston Center for Adult Education 122 Arlington Street Boston MA on Mondays May 9, 16 & 23 from 5:30 PM – 7:30 PM.  For more information or to register please visit http://bit.ly/becomeyourown59  or call 617.267.4430.

I don’t know about you,  but I’ve made a point of avoiding Twitter.  It appeared to be a total waste of time,  unless you plan to either start a revolution or take your band on tour.  Tweeting on subjects like what I decide to have for lunch is way too much information sharing.

Although it’s been easy to dismiss Twitter as just so much noise,  the microblogging platform is nevertheless rapidly gaining traction among businesses.  A convincing case can possibly be made for using Twitter to benefit a Freelance consulting practice.  So maybe I should reconsider?

Twitter is now five years old and growth trends for both business and personal use are upward, despite a reported 60%  dropout rate among users.  According to the tech marketing research firms BIA/Kelsey and ConStat,  nearly 20%  of businesses currently include Twitter in online marketing strategies and nearly 50%  indicate that in 2011 they plan to increase the use of online social media as a means to connect with current and potential customers.

Data from both research firms show that newer businesses and younger business owners are more likely to embrace online social media,  rather than traditional print media,  and to incorporate its use in marketing and customer outreach.  Businesses less than seven years old are more likely to use Twitter and less likely to advertise in the Yellow Pages,  for example.  Money is also a determining factor,  since other than time spent updating content (and time is money),  online social marketing is free.

But how effective is Twitter and the other social media platforms in helping to spin straw into gold and generate billable hours?  I’ve read a handful of anecdotal success stories,  but in my experience LinkedIn has not brought me a single contract in four years of active membership.  Come to think of it,  two years of blogging hasn’t brought me any money,  either (but hope springs eternal).  However,  there is a prospective client who follows my posts and has complimented me on what I produce.  There’s  no contract yet,  though (hint, hint!).

One thing I do know is that it’s entirely possible to build a lucrative consulting practice without either ad budget or Twitter,  LinkedIn,  blog or newsletter.  The most successful Freelance consultants with whom I’m acquainted—client lists to die for!—spend no money on promoting their services and have no social media presence.  An internet search of their names yields nothing.  That’s because in our business,  it’s not only who you know,  but also who knows you.  The highest paid Freelancers are known by the right people and they’ve successfully monetized those relationships.

Most of us will never dwell in that Valhalla,  but we know that Freelance consulting is a referral business.  We know that  to keep the cash flowing,  we must continually demonstrate to those who matter that we are capable,  reliable experts who will get the job done every time.  To be successful,  we must create and sustain positive word-of-mouth  (always the best form of advertising),  primarily by doing a first-rate job for our clients.

Beyond that,  we must establish good relationships with those who possess the money and motive to contract for our services.  The smartest Freelancers know to build relationships  before  they are needed. 

In theory,  social media help narrow the gap between the regular folks and the fortunate few by allowing us to share expertise and information,  announce our successes,  learn what is being said about the types of services that we provide and learn how to effectively communicate our value.  We have a forum in which to portray ourselves as  a knowledgeable,  trustworthy,  familiar known quantity,  which is precisely what our highest paid colleagues have done.  We also learn to get smarter about how we do business overall.

So maybe tweeting might be worth your time?  Next week,  we’ll discuss practical tips for how to create buzz for your business by way of Twitter. 

Thanks for reading,

Kim

Professional Development , , , , Leave a comment

Present With Pizzazz

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In this column I have often urged those who want to establish themselves as experts in their chosen field to find speaking and teaching opportunities.  Getting out in front of an audience is a time-tested way to identify and impress potential clients and referral sources,  a good way to drum up business.  So maybe it’s time to review a few useful presentation techniques that will make you feel more confident and therefore more likely to pursue this strategy.

Keep it simple and tell a story

The best speakers know that the more complex the topic,  the more important to make it easy for the audience to understand.  Distill a complicated message into fewer words.  Include a personal anecdote or story that illustrates a key point you’re trying to make.  A story makes your presentation more compelling by placing the message into a context that is relevant to the audience.  A story paints a picture and helps the audience make sense of the topic.

You are the star

You are the speaker and the stage belongs to you.  Do not allow slides to upstage your talk.  How do you do that?  By not using your slides as a crutch.  By not posting your entire talk onto slides.  Avoid presenting a boat load of text-heavy slides that you read from,  instead of speaking to and connecting with those who came out for you.  

On your slides include important charts and graphs,  key statistics,  major talking points and relevant visuals that support and advance your message.  Practice your presentation often and get to know your material,  so you won’t be overly dependent on slides.

Engage and involve your audience

Most of all,  give the right talk.  Know what the audience expects you to address.  The person who schedules your talk can help you choose a topic and give you the heads-up re: big questions that audience members may want answered.  To keep your audience engaged,  pose a question or two at some point in your presentation.  Also,  be willing to answer questions as you go along and make your presentation more of a conversation with the audience.

We deliver

While good content is essential,  that alone will not win over an audience.  Body language and delivery also matter.  Audiences size up and judge a speaker within the first three minutes of a presentation.  Be sure to project confidence,  expertise,  good humor and approachability.  Smile,  make eye contact and use a pleasant,  yet authoritative,  tone of voice.  Show appropriate enthusiasm and passion for your subject matter.  Let the audience know that you like being up there speaking.  

How to get to Carnegie Hall

Practice and practice some more.  It takes a lot of work to make a presentation look effortless.  Skilled presenters give the impression that their clever ad libs and convincing responses to questions are all ex tempore,  but nothing could be further from the truth.  The fact is,  successful presentations are built on lots of preparation and rehearsal time: wordsmithing what may sound too complex or unclear,  deciding what text and visuals to include on slides,  how to integrate the slides with the talk,  anticipating questions and formulating good answers.  Read your talk out loud and record your voice,  to make sure that you pace your delivery appropriately.

An effective presentation should inform, educate and entertain.  Make that happen when you simplify your message and de-clutter your slides,  interact with the audience by asking and answering questions throughout your talk and practice a lot.  Hit your mark and the audience will regard you as an expert.  Mission accomplished.

Thanks for reading,

Kim

Professional Development , , Leave a comment

Strategic Volunteerism: Doing Well by Doing Good

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Within three months of losing my corporate job back in the late 90s,  I got the bright idea to plunge into volunteering. I instinctively knew that keeping my hands busy with good work and meeting new people would help keep my spirits up as I figured out my next move.

Along the way, I also learned that volunteering provides opportunities to develop new competencies or resurrect dormant skills.  Plus,  I enjoyed the camaraderie and feeling of satisfaction that grew from joining with others to advance the mission of an organization we felt provided important benefits to our community.   More than a dozen years later,  I am still in at least occasional contact with several people I met in my first significant volunteer experience.

Volunteerism is de rigueur for Freelancers,  business owners,  corporate professionals and even students seeking acceptance to prestige schools.  Consider it additionally as a pathway to creating more business or entering the C-suite.  Volunteer projects allow important others to witness first hand your talents,  professionalism,  commitment and collaborative spirit.  Volunteering is an excellent way to beef up your CV and bio,  meet prospective clients and expand your referral network.

Strategically and purposefully volunteering one’s time is an essential component of smart networking and PR strategies. Volunteer to participate in  (or sponsor)  a noteworthy community event and create the perfect reason to write a press release and alert the media to your activity.

Carefully select a volunteer opportunity that will achieve specific objectives.  To get started,  ask yourself some questions that will clarify your reasons for volunteering,  help you choose the right organization and assess how much time you can contribute:

  1. Decide what you would like to achieve.  Do you want to showcase certain talents,  develop or strengthen certain skills or boost referrals?
  2. Decide who you’d like to meet and interact with.  Do you want to develop relationships with industry peers,  or promote a cause while you meet prospects?
  3. Decide your preferred time commitment.  Can you appear at monthly meetings over a two or three year period and serve on a board of directors,  or is a short term commitment on a special project committee more suitable?

Next,  identify volunteer opportunities that will produce the desired ROI.  Whether you are most interested in professional associations or not-for-profit organizations,  investigate and ask questions.

If you are not yet a member of the professional group that has captured your interest, visit its website,  learn the purpose of the group and the types of programs it sponsors.  Attend a program,  meet members and officers and ask what they value most about membership.  Make discreet inquiries about committees/subcommittees to figure out which would best showcase or build your skills.

If you are drawn to the NFP sector,  be sure to choose an organization whose mission aligns with your interests and values.  Visit the website to find out who is on the board and check out past and upcoming events.  Attend one and meet the staff and board members you’re thinking of working with.

It’s good to first test the waters by serving on a short term special project committee,  so that you can learn useful information such as upcoming available slots on the board,  the expected financial contributions of board members and if its members are expected to sell tickets to events or recruit financial donors.

Once you’ve started your volunteer journey,  be sure that your level of participation is in line with that of other board or committee members and that the benefits you’re receiving are fulfilling your objectives.  Strategic volunteering means that you recognize volunteering is a two way street and you exchange your time,  talent and money for opportunities to highlight or strengthen your skills and make some useful contacts while you do it.

So are you meeting the right people?  Do you work on projects that interest and showcase you?  Are you having fun,  or feeling frustrated?  If it’s the latter,  do not be ashamed to resign.  There are numerous volunteer opportunities available and one,  or perhaps more,  will be a good fit for you.

Thanks for reading,

Kim

Marketing , 2 Comments

Key Words, Long Tails and DIY SEO

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Let’s take a look at what the average Freelancer may want to consider before taking on a do-it-yourself search optimization project.  The hard part is to identify the key words that will cause your business name to appear in an internet search.  The easy part is to embed those beneficial key words into your website, newsletter or social media.

We know that key words are popular search terms and that they are often general: shoes–hotels–flowers–books.  General,  single,  key words are dominated by the corporate whales and they do not favor the Freelancer or small business owner.  When such key words are used,  the little fish land on something like page 32 of a search,  drowned by the likes of J.C. Penney,  Barnes & Noble,  FTD and Sheraton.  Little fish need key words with long tails,  that will help us swim to the top of the page.

Long tail key words are actually phrases,  ideally 3–4 words in length.  The term was coined in 2004 by Chris Anderson of Wired Magazine.  Long tail key words tend not to be dominated by the big guys and using them sometimes allows little guys to appear on the first page of a search.  They are less popular because they are more specific and those who embed those phrases will attain a more favorable page rank.  Think quality over quantity.

The trick is to figure out which long tail key words generate adequate search volume.  You need that tail to be long enough to pull in prospects who are searching for what you sell and so they’re typing in those key words.  ComScore reports that in the month of April 2010 alone,  Americans conducted 15.5 billion internet searches.  At least a few of them are your target customers.

Google data shows that the top five names listed in a search receive 75% of the clicks.  Page one listings in total receive 98% of the clicks.  But how might your prospective clients express what they want when searching for your product or service?  To find out,  check out two free Google tools: Key Word Tool and Wonder Wheel.

To begin,  bring up Google,  search key word tool and click on Adwords Key Word Tool.  Scroll down,  type in a phrase that describes your business and click search.  You will receive perhaps 50-100 variations on your description,  each one a potential long tail key word.

On the right,  see two columns of numbers.  The inner column gives the number of monthly searches  for each phrase done globally and the outer column gives the number of monthly searches for each done locally.  It’s the local column that you want.  Do the math.  If a phrase gets 2000 searches each month,  I recommend that you avoid it.  If a phrase gets 200 searches each month,  I recommend that you give it some thought.

You’re looking for your sweet spot: long tails that get adequate action,  but for which there is not competition that will overwhelm your page rank.  BTW,  if you’re thinking of adding a new service or product to your line,  this is a good way to measure the demand in your locale,  because you’ll learn how many prospects are searching for it.

To access the Wonder Wheel,  bring up Google and type in your proposed long tail key word phrase.  When you get the results,  look to the left column and see the Google name.  Scroll down, see “Wonder Wheel” and click.

You will then see a graphic shaped like a sun with rays.  Your phrase will be in the sun and the rays will contain your variations.  Click on a variation and that will become the sun and you’ll get more variations. 

Once you’ve chosen your preferred long tail key word,  own it.  Incorporate that phrase into your elevator pitch,  advertising,  LinkedIn page,  website,  blog and newsletter.  But always remember that good content rules,  so think sprinkle and not slather.

What will identifying and embedding a long tail key word actually do for your page rank?  No one knows until it’s done,  not you and not the SEO experts for hire.  If nothing else,  you’ll find a better way to describe your services and that’s a plus.  So if you have the time and inclination,  why not DIY and find out?

Thanks for reading and good luck,

Kim

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The SEO Algorithm Rhythm

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Maybe you’ve heard about the Google page rank scandal that venerable retailer J.C. Penney perpetrated over the past Christmas season?  The company hired search engine optimization experts to put Penney’s first in nearly all Google searches in the apparel and retail categories,  for everything from athletic wear to little black dresses.

The SEO company certainly earned its consulting fee,  because Penney’s had excellent online sales over the Christmas 2010 season as compared to competitors and its own 4Q 2009 online sales.

The fly in the ointment was that the SEO company allegedly used what are called  “black hat”  techniques that unfairly manipulated the algorithm that Google uses to determine the page rank that businesses in a given search category will receive.  The algorithm is quite mysterious,  has been reported to contain 200+ factors and is said to change frequently.

What is known about the algorithm is that Google counts the number of web pages that link to a particular site.  Links to a website are treated like votes.  The links reflect what the online community at large views as the most relevant websites associated with a search category.  Penney’s SEO consultants managed to create 2000+ links to dubious sites and that allowed the retailer to be the king of all searches in numerous apparel and retail categories.

The function of SEO is to massage Google’s algorithm so that a business will land on page one of a search and as close to the top as possible.  The quest to obtain a number one,  or at least a top ten (10 listings = 1 page),  page rank placement is very intense.

Businesses that reach number one page rank are positioned to rake in the most dollars.  For internet retail searches,  several studies have shown that one-third of searchers click only on the first business listed.  Another third will also click on the second through fifth listings.  If a business does not appear on the first page,  it is literally out of the picture and may as well not be listed at all.

Hence,  a plethora of SEO experts have come to the rescue,  to scoop billable hours from nervous business owners who are scrambling to remain competitive in a troubled economy.  Bringing prospects to your website is the name of the game and with some luck,  a few of them will become your clients.  But should you pay someone to do this for your website?  Maybe,  maybe not.

To sort this out,  think about how those in your industry usually get clients.  Is it standard for prospects to conduct searches,  peruse the websites of those with whom they are not familiar and make inquiries that sometimes create the trust level that leads to a sale?  Or do clients usually come in as the result of face to face meetings and recommendations?  Or all of the above?

Of course,  whether or not online business is significant,  a strong page rank can only make your business look more substantial,  no matter how clients find you.  Even those who come in through referrals may do a search to find out how you rank,  just for the heck of it.

But the question remains about paying someone to put your business on page one.  If you’re holding a few extra dollars,  then why not,  I suppose ?  However,  hiring an SEO expert does not necessarily mean that your page rank objective will be achieved.  There is no shortage of SEO practitioners,  but there is a significant body of anecdotal evidence that suggests the outcome of their work can be underwhelming.  Caveat emptor.

My big question is,  if it is true that Google changes the algorithm frequently,  then what is the shelf-life of prime SEO placement for the average Freelancer,  whose budget for the project is likely to be less than $1000.00?  How long will that keep me on page one? Also,  can I do my own SEO work by using key words and phrases that will capture the attention of Google?  More on this topic next week.

N.B.–Because the February – March session sold out,  I have been invited to reprise  “Become Your own Boss: Effective Business Plan Writing”  at Boston Center for Adult Education 122 Arlington Street in Boston on three successive Mondays,  May 9, 16 & 23 from 5:30 PM – 7:30 PM.  For more information or to register please visit http://bcae.org or call 617.267.4430.

Thanks for reading,

Kim

Marketing , Leave a comment

Press Release Primer

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What you need is a media event.   Along with positive word of mouth generated by satisfied customers,  there’s nothing that will enhance your business cred like a nice mention in print,  online,  social,  radio or television media.  Even if your phone doesn’t ring immediately,  you are guaranteed to take that good publicity straight to the bank.

You must get the ball rolling.   Keep your eyes and ears open for a newsworthy event to which you can attach yourself.   School boy or girl sports events,   health fairs,   neighborhood clean-up and flower planting initiatives or art fairs  are potential publicity opportunities.  

Or brainstorm a way that you can turn a spotlight onto something interesting that you will do.  Maybe you can nominate yourself for a professional or volunteer service award and figure out a way to win?  You must get creative and get involved.

You will send a press release.   A press release is a standard way of communicating with journalists.  Providing content is the most important function of the press release,  in addition to grabbing attention.  If written well,  your press release will pique the interest of the target journalists at your chosen media outlets.  Your press release will convey the essentials of your story.  It will make things easy for the journalist and increase the chance that you will receive coverage. 

You must identify the appropriate media outlets.   Get familiar with local business oriented radio and television programs,  bloggers and community and business newspapers and magazines.  Watch the programs,  listen to broadcasts,  follow the blogs and read the magazines and newspapers.  Learn which journalists cover stories like yours.  Take notes on stories they’ve written or reported on.  Obtain their email and phone contacts from the media outlet website,  or call and ask the receptionist.  Make special note of issue deadlines.

Send press releases 4-5 weeks in advance of your event.   Give target journalists adequate time to evaluate and plan to cover your story. 

Send the press release in the body of the email.   If there will be a good photo opportunity at the event,  inform  the journalist.  If you have an event press kit photo, attach to the email.  In your introduction,  mention that you’ve listened to or read certain of his/her stories and that you wonder if there could be some interest in yours.

You must follow up with a phone call.   Ask the receptionist for the best call times,  or ask the journalist in your voicemail.  Confirm that the press release was received.  Ask if your story merits coverage.  Ask if additional information would be helpful.

  • Your email subject line should read FOR IMMEDIATE RELEASE,  so the journalist will know that a press release has arrived.
  • In the upper left corner,  the press release sender gives contact info: name,  title,  company name and address,  email,  telephone and fax.  If you are alerting journalists to a particular event,  provide the organization name,  address,  website and other contact info in the upper right corner.
  • In BOLD CAPS,  state your press release headline.  Make it straight to the point,  a title for your story.  Above that give the press release date,  also in bold.
  • Below the title,  you may also provide a 3-4 sentence summary overview of the press release subject.
  • Next,  provide the body of the press release.  Write in the third person and include the relevant who,  what,  when,  where and why of your story or event.  Give an unbiased and factual account that communicates why the journalist and his/her audience will find your story newsworthy.
  • If your press release is longer than one page,  you may choose to include bullet points to detail key story elements.
  • Conclude with 2-3 sentences about your company,  your product/service and website link.  Also include links to any related or relevant articles in which you have been mentioned or profiled,  as well as applicable video links.

Persuading the media to publicize you,  your work or your community involvement is always much more compelling to current and prospective clients than any advertising you could ever buy.  Third party endorsement is always perceived as more credible.

If packaged correctly,  what you do in your professional and/or personal life could be considered newsworthy by any number of local (or national) media outlets.  Put on your thinking cap and identify how you can contribute a story that will pay dividends for your professional reputation. 

Thanks for reading,

Kim

Sales , 2 Comments

Use Case Studies and Make More Sales

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If you read last week’s posting (and I hope you did),  you probably figured out which selling style you tend to use.  I’m the Consultative type and I hope to catapult myself into that invincible Expert group sometime soon.

However,  as the description of my selling style accurately points out,  I’ve got some remedial work to do.  I am not a natural when it comes to either telling a good story or rolling out a case study when in a sales conversation.  My strength really is to function as a problem solver,  describing to the client how my expertise will ensure that their objectives will be achieved.  So I wondered if perhaps readers of this column might also appreciate a primer on how to introduce case studies or useful stories when trying to sell a prospect?

Think of a case study as a formal and more detailed version of a good story.  Case studies examine how clients have successfully used your product or service.  While a story is an informal telling of what motivated the client to use your product/service and the outcome of that decision,  the story can be just as compelling and persuasive.

Consulting firms make excellent use of case studies and they are often featured on company websites.  Cases detail the challenge a particular client faced,  how that challenge impacted business,  how it was identified,  how the decision to address it was made,  who made that decision and (most importantly) how the consulting firm’s services were implemented to effect a successful resolution.

You can do that,  too,  by documenting your own successful projects.  You can write up a couple of cases to feature on your website or in your newsletter.  If you choose to give actual client names,  remember to obtain written permission.

The beauty of case studies is that they encourage prospective clients who read them (and there’s a fairly good chance that they will) to envision themselves hiring you to meet the need or solve the problem.  Write your case studies so that they paint a clear and compelling picture of the project or dilemma that the organization faced and how the situation was resolved,  with your expert intervention.

Case studies and stories engage prospects because they add flesh and blood to your sales pitch.  Now the two of you have something to talk about and you can speak not merely in the abstract,  but in the sometimes messy reality of how business really gets done.  The sale becomes personal.

The features and benefits that you discuss have life in them.  The prospective client  identifies with what you offer and how that fits into his/her agenda.  Your perhaps nebulous sounding array of services appear tangible and useful.  Now that prospect is much more likely to join your client roster.

Thanks for reading,

Kim

Sales , , , 6 Comments

What’s Your Selling Style?

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I will teach  “Become Your Own Boss:  Effective Business Plan Writing”,  a three part workshop  (total 6 hours)  held at Boston Center for Adult Education 122 Arlington Street Boston MA on three consecutive Thursdays 5:30 PM – 7:30 PM February 17 – March 3.  Register at http://bcae.org, course #420174 or use the direct link:

http://tinyurl.com/BCAE-business-plan

Like it or not,  every business owner and self-employed professional is in sales.  Selling skills are survival skills and they play a pivotal role in keeping one in business.

A Freelancer’s sale has two discrete parts.  In the first part of the sale,  it is necessary to sell oneself: credibility,  expertise,  dependability and agreeability.  We must convince prospects that we are capable professionals who are trustworthy and therefore eligible to be considered for hire.  In the second part of the sale,  our objective is to persuade said prospect to actually hire us for a specific project and award the contract (and pay on time, too!).

Selling skills are quite individual and each of us has a signature style.  Experts claim that only three selling styles consistently produce successful sales.  In fact,  based on observations of 800 sales professionals engaged in various types of selling situations,  63% of selling styles are prone to undermine the sales process and result in fewer successful sales.  Ouch!  Let’s take a look at some typical sales approaches,  some top-notch and some deadly:

THE BEST

The Expert

These pros know how to make selling seem effortless.  They have superior product knowledge.  They are on top of what is happening in the marketplace.  They know how their product stacks up against the competition.  They know the customer they’re selling to and they understand that customer’s objectives and concerns when using their product.  As a result,  they know which features and benefits to highlight,  how to best answer questions and objections and how to generate more sales.

The Closer

Depend on the Closer to snatch victory from the jaws of defeat.  They’ve got the magic words that can salvage a sale that is in danger of going down the tubes,  because they are particularly adept at finessing objections.  On the flip side,  their smooth-talking style can sometimes turn off clients.

The Consultant

Salespeople who employ this style are known for their superior listening and problem solving skills.  Consultants excel at positioning their product as a solution that will meet client needs.  Their shortcoming is that they tend to neglect valuable case studies and client success stories that can help clinch still more sales.  This type has the greatest potential to ascend to the Expert group.

THE REST

The Storyteller

Storytellers love to provide case studies because they are talkers and they love a good story!  Problem is,  they often talk past the sale and waste much valuable time in unproductive sales calls.

The Focuser

Members of this group are earnest,  enthusiastic,  know their product inside-out and believe in it deeply.  Typically,  Focusers are new to sales and therefore lack the experience that promotes confidence.  Focusers often exhaustively detail every product feature and benefit,  because they haven’ t yet learned to ask the customer questions about his/her priorities.

The Narrator

Narrators know the product cold and they’re well-versed in the nuances of the competitive landscape,  but they are overly dependent upon a sales  script,  so they deliver  the dreaded  “canned”  presentation.  Many (but by no means all) Narrators are new to sales.  They,  too,  lack confidence and cling tenaciously to marketing materials as they present.  Members of this group do not respond well to challenging questions or objections.

The Socializer

Socializers may initially charm clients with friendly banter about various interesting and amusing subjects,  but these folks forget their objective and don’t know how to get down to business.  They make few sales.

The Aggressor

As far as practitioners of this selling style are concerned,  a sales call is primarily a price negotiation.  They are sometimes able to score big wins and they rarely concede much.  Unsurprisingly,  clients can be turned off  by their often combative approach.

So how can you join the Best Salesperson group?  Incorporate these strategies into your next sales presentation:

  • Stay on message.  Every sales presentation should convey a single major theme.
  • While conveying that key product message,  limit yourself to three main points that focus on customer priorities and preferences.  Let your words paint the picture of how your product/service can deliver what the client values most.
  • Use case studies or a story that illustrates how a client with a similar profile and objectives successfully uses your product/service.  Present a case study that is clear,  concise and compelling.  Use the story to encourage the client to envision building a successful business relationship with you.

Thanks for reading,

Kim

Business Plan , , , 1 Comment

Business Model Guideposts

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I will teach “Become Your Own Boss:  Effective Business Plan Writing” , a three part workshop (total 6 hours) held at Boston Center for Adult Education 122 Arlington Street Boston MA on three consecutive Thursdays 5:30 PM – 7:30 PM February 17 – March 3.  Register at http://bcae.org, course #420174 or use the direct link:

http://bcae.org/index.cfm?method=ClassInfo.ClassInformation_class_id=4967&int_category_id=48&int_sub_category_id=13&int_catalog_id=0

The business model defines the method by which an organization creates and delivers value through products and services offered and the way in which it persuades customers to pay for that value.  The business model encompasses the manufacture and marketplace delivery of products/services,  how best to access prospective customers,  where and how business transactions take place and customer service.  The business model is the blueprint for how the venture operates in real time and makes a profit.

The business model reflects what the business owner/management team believe about what customers value,  the way in which customers want that value delivered and what they will pay to obtain it.  The business model can also function as an analytical tool. 

 Its examination can help the business owner effectively address challenges such as client retention problems,  insufficient new business development,  or persistent customer service snafus.  It can urge the management team to find a way to lower the cost of goods sold,  add or delete services, or  rethink sales distribution channels.

How’s your business engine running these days?  Might a tune-up be in order? Here are some questions to ask yourself and guideposts to follow as you build or refresh your business model:

  • Who are the target customers?
  • How can your organization best attract,  acquire and retain the target customers?
  • What need does your product/service fulfill or what problem does it solve?
  • What perceived value does your product/service provide?
  • How can you differentiate your product/service in ways that resonate with the target customers?
  • How will you generate revenue?
  • Where will business take place,  how and when will customers pay?
  • Identify and locate customers with sufficient money and motive to do business with you,  preferably on a regular basis.
  • Verify that there will be enough paying customers to allow the business to make a profit.
  • Identify which product/service features and benefits that target customers value most highly.
  • Identify the least costly source location and manufacturing process for your products/services.
  • Use the most cost-effective product/service delivery system that customers will accept.
  • Identify product/service add-ons and upgrades that are easy and inexpensive to provide and for which customers will pay a premium to obtain.

Thanks for reading,

Kim

Business Plan , , , 7 Comments

Business Model Nitty-Gritty

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Business experts view the development of a strong business model as an essential component of business planning and I would agree.  The business model ranks near the top of the list of business planning responsibilities.  I teach business plan writing for an SBA affiliated organization and I’ll place the business model fourth in line,  after one gauges demand for the product/service,  defines the primary customer and evaluates the competitive landscape.

The business model is the roadmap within the roadmap that is your business plan.  It is the blueprint for the process by which a company will make and sustain a profit.  It is therefore necessary to do thorough market research and put the pieces together carefully.  If you expect to make any real money,  you had better get your business model right.  Unfortunately,  too many aspiring entrepreneurs do not roll up their sleeves and hash out the gory details that are the building blocks of a viable business model.

The business model shows you how to make your business work efficiently.  The first big question the business model asks you to examine is,  how will you and the clients connect?  Will they find you via your website?  If so,  how will they know that your website exists?  What should you do to drive them to your site and what do you want them to find and do when they get there?  The type of website that you design and your call to action are business model issues.

Or maybe you will connect with clients and prospects via referral.  Who, then, will refer to you and what will motivate that behavior?  Do you have,  or can you create,  referral relationships that will feed you a steady supply of prospective clients? 

For example,  if you are a florist,  do you have relationships with wedding and other event planners? Perhaps you worked in a busy floral shop and know a few people who will send brides and others to you.  Or do you think you can depend on networking to connect you with enough prospects to get the ball rolling on sales?  Who knows,  maybe you are that lucky.

Where business will actually be conducted is another business model issue.  Will customers visit you at your floral shop,  or will you operate as a Freelancer and go to them, toting a binder or iPad that shows examples of arrangements you can create?

For those who sell other types of products,  will you sell from a physical location,  will you place items into the  stores of others on consignment,  or will all be sold via your website?

Providers of intangible services must first know how clients expect to engage in the type of transaction offered and whether you should open an office  (accounting or law),  or go to the client’s location  (PR services or business consulting).  Your business model will explain it all and tell the reader (and you) why it makes good business sense to sell in the way you’ve chosen.  As your business grows,  the business model will change accordingly,  to accomodate increased demands on resources and client expectations.

Remember also to address customer service issues,  like your return/replacement policy,  in the event that a few customers are not satisfied with a product,  or if something breaks while being shipped.  If you will sell from your website,  the shipping process will be addressed in your business model.

So the business model impacts many facets of your business plan and its fine points deserve careful consideration before you take the plunge and start spending time and money on a concept that you cannot make work.  Next week,  we’ll take a look at questions to ask yourself and some guideposts to assist you as you develop a business model for a new enterprise,  or revamp the one you’re in now.

Thanks for reading,

Kim