Fear Factor: Why this emotion is necessary for success

The inspiration for this week’s blog post comes from one of the world’s best-known thinkers who I happen to find absolutely fascinating—Plato. He’s credited with this wisdom, “Courage is knowing what not to fear.” Like most philosophies or proverbs, they’re simply stated, but the endless possibilities of meanings and applications run much deeper. I liked this quote from the first time I heard it, but now as a business owner and entrepreneur, every quote I see or re-read seems to also be applicable to business and success in some way. This one is no exception.

I wrote not too long ago about fear and inspiration as being the two ultimate motivators. In this breakdown I examined how each motivator results in very different types of actions. What this topic did not allow me to expand upon is how fear, though not the preferred motivator, is still an essential part of success. We should never be without at least some fear in our lives for the same reason we should never be without pain. These are the emotional and physical indicators that we’re doing something that’s stretching our limits – it can be a good feeling when it’s that of growth. Once we move outside of this “good growth” area of pain and fear, they then become the indicators that we shouldn’t go any further. This is what keeps us from destroying ourselves (or our business or our relationships). Thus, the goal shouldn’t be to overcome every fear; it should be to overcome the unnecessary fears.

When NOT to fear

“Courage is knowing what not to fear.” But how do we know what is fear-worthy and what we should push to overcome? This differentiation might be the most critical component to ensuring we’re exhausting our options and not ourselves. Unfortunately, Plato didn’t go on to further describe how we might know what to fear; he left that for us to figure out on our own. During my experience of quitting my job, taking a chance on starting a new business and overcoming the expected ups and downs of entrepreneurship along the way, I’ve had to face quite a few of my own fears. In the beginning I feared losing any client or getting turned down for any project. I’ve since realized that this is something I should not and cannot fear if I wish to excel in this industry. The possibility for rejection and change are around every corner, but this does not stop me from continuing to seek new clients and put my hat in the ring for proposals. The fact is, if I got every client I created a proposal for and kept them ongoing, I would be very overwhelmed and my business would not have the same opportunity to re-evaluate and refocus its client base every so often. That same rejection and change that I once feared is now my natural business cleansing process that I’ve come to appreciate. In this example, I found courage not by eliminating this fear or avoiding it, but by learning that it’s something I should not fear at all.

 When to fear

In contrast to knowing when not to fear, it’s just as important to know when a fear is reasonable, logical and a valuable safety mechanism. Again to provide an example from my own experience, I’ve become very in tune to the fear of sacrificing my standards or quality of work to accommodate a client. When business is slow and you’re looking to just pay the bills, it’s a natural instinct to go into survival mode. It’s OK to work for reduced rates or take on less than ideal clients for a short period of time to help pay the bills until your business is again revived. But fear rises up whenever I feel as though I’m lowering my standards or providing sub-par work to meet these reduced prices. I would rather turn away a client if it’s not a good fit than to squeeze and stretch to make it work and have us both be supremely dissatisfied in the end. In this case, my fear helps me to protect my personal reputation and to stay focused on the direction I want my business to go. It keeps me from digressing into offering services more aligned with a personal assistant or data entry and to protect my time for future clients that require the PR services in which I specialize.

Being courageous

I would like to believe that “courageous” is a term that has become synonymous with “entrepreneur.” It’s no easy feat to go against the grain, open your own business and pursue your dreams. It’s hard to watch peers continue down a path that’s well-beaten and easy to see miles into the future. Entrepreneurs don’t get that. We blaze our own path and often have the scars and exhaustion to show for it. But this is all with the hope that the path we choose to follow leads us on a better journey – a journey we control and can change at any moment. Ultimately, this takes courage and because “courage is knowing what not to fear,” we have to make the effort to look within and separate true fear from perceived or imagined fear. This is a critical step in both personal and business development. So, get to know your fears – intimately – especially the ones that can become your moral compass and business instinct.

 

A Price For Passion: Being smart and fair when pricing your services

As a business owner and entrepreneur, one of the hardest challenges is figuring out a consistent pricing system for your services. Even with almost two years now under my belt, this is one area of my own business which can still be overwhelming and stressful at times – mainly because it also carries so much weight. How you price your products or services has a direct impact on the money you make or the clients you turn away. There are many reasons to want to undercut competitors and to offer the cheapest bargain around, but then there is the challenge of putting a price on passion. As entrepreneurs, we are much like artists and inventors.  It’s hard to keep an unbiased perspective on something we quite often view as priceless.

A quote by Henry David Thoreau that I truly love is, “The Price of anything is the amount of life you exchange for it.” Though I appreciate the underlying message of valuing our time, this mindset would make it impossible to ever set a price for my writing and creativity that was fair to both me and my clients. But luckily, just as much as I am an artist with the pen, I am also a businesswoman. This balance has allowed me to build a smart and strategic method for pricing my services without undervaluing my time or talent. Here are just a few of the guidelines that I’ve come to rely upon when placing a price tag on my passion:

Determine your hourly rate

The first hourly rate I set for myself when I was still freelancing my services in college is a mere fraction of what I now charge. However, it was a price that was fair for both me and my clients at that time. It was a nice increase over the minimum wage I was making at my other side job and to my clients, although they were working with a college undergrad, the price was a steal for the quality of work they received. After graduation, I was able to increase this price because of the formal degrees I had earned. I was sure to communicate this with existing clients and positioned it as a “value added” to my work and professionalism. Because it still remained well under the industry’s going rate, I received no negative kick-back from this increase. With the start of every New Year, new contract or new client, I have the ability to adjust my pricing. For clients who remain with me over the months and years, I offer them the loyalty benefit of “grandfathering” them into their starting prices so long as the scope of work remains the same and it’s not a significant opportunity cost.

Your years of experience and education/degrees will have an impact on how you price your services. I’ve found that remaining even just $5 under the hourly rate of the “industry norm” gives you a sizable advantage. While I don’t dismiss that this small difference in hourly rate can certainly add up over a large project, a small discount still earns you far more money than not being selected to complete the project at all. The best way to get a feel for the pricing of your competition is to talk with clients and people within your network who have worked with other similar contractors – they can also give you their honest opinion of what price range they are most likely to hire within.

Bundle your services

It’s standard – and smart – to have a set hourly rate because this is a common question clients potentially seeking your services will want answered. While I do have an hourly rate, I rarely charge by the hour on my proposals. Most often, I use this hourly rate to estimate the maximum cost for a project, but aim to lower this significantly for a client by offering service bundling. With bundling, I discount my rate in exchange for a client who chooses to hire me for more than one service. For example, I may offer a proposal with several communications strategies including writing web site copy, newsletter content and updating their social media profiles. When contracted separately, these services would be higher than if a client should choose to do them all together. The benefit to the client is of course the cost savings and the benefit to me is the security in work. Often clients will just want to know your hourly rate before you discuss much else, but I am sure to include that my hourly rate is discounted when combining multiple projects. This also helps me to create a more cohesive and effective communications strategy than just one project alone. The service bundling is an incentive to do more for the best price possible.

Reward efficiency

When providing my clients with a proposal for my services, I emphasize that the price I quote them for is the guaranteed maximum that will not increase so long as the scope or size of the project remains as we discussed. This is important because all too often we’re hit with unexpected price increases from every angle in the form of electric bills, cable and internet and the list goes on. It’s nice to offer clients something that’s a bit more stable which allows them to better budget. Also, once I provide my clients with the best possible price (bundling services, maximum price guaranteed, etc) it’s now to my advantage to work efficiently. If I estimate a project taking me 8 hours, I certainly don’t want to procrastinate and stretch this project into 14 hours. That’s a waste of my own time and earning potential! Instead, the way I price my services encourages efficient work which means my clients often receive their project days if not weeks before our agreed upon deadline. When pricing your own services, I suggest structuring this in such a way that you reward your efficiency while offering your clients stability. This is a great way to earn respect and trust while earning the most money for your time.

What are your thoughts on pricing your services? Where do you most struggle or what are some ways to make this less of an overwhelming task? Share your comments or questions and let’s get this important discussion going!

 

The Size of Success: A Profitable Business Doesn’t Require a Big Business

Whenever someone asks me what I do for a living, I’m finally at a point in my life where I’m excited and proud to tell them about my entrepreneurial journey and some of the great experiences it has provided along the way. When I held previous jobs and was asked this same question, I always felt as though I was making excuses, downplaying my position or glossing over my current career to talk about the career I one day aspired to have. It’s an incredible feeling to be living your passion every day as a small business owner, but I believe some misconceptions still exist about our measure of success. This most often rears its head when the inevitable follow-up question to owning my own business is, “How many employees do you have?” The unexpected truth is, it’s just me. I’m a sole proprietor, or S-Corp, and I’m small by my own design.

Small By Design

Not every business will or should follow the template of growing by X number of employees every year. The fact of the matter is that it’s not every business’s model to grow in this direction. Depending upon the service or product, it’s simply not necessary. And if it’s not necessary to have this many employees, why carry the extra overhead and liability? Outside of my residual monthly clientele, new or one-time projects for which I’m contracted are very unpredictable. In one day I can receive multiple new leads or things can be quiet for weeks. As a business of one, I’m able to tuck my tail and reduce my overhead to nearly zero when I’m in a business building phase. And when I’m swamped with work and requests for services, I can easily call upon my network to contract out certain work that’s more efficiently handled by their expertise. I love contractors and freelancers for the very same reason I am one to so many businesses. When times are great you can go full steam ahead and as soon as work slows down, you can cut back and preserve precious capital. Bigger businesses can’t do this as easily. They’re stuck with fixed expenses like rent and salaries that need to be paid regardless of cash flow. Another major benefit I see to being a business of one (at least for right now) is that I am accountable to my clients and that’s all. I don’t have to worry about keeping regular office hours to also be accountable to employees. I can travel as I please, work from home, set my own schedule and take vacation without the slightest sense of guilt so long as I maintain my work for my clients. While being small by design is not a luxury every type of business can afford, I highly recommend enjoying it for as long as you can. So long as you don’t measure your success by the size of your office or staff, this is a very strategic and enjoyable model for an entrepreneur.

The Measure of Success

What do you commonly use as the measure of success for a business? I know before I began my own, I was guilty of asking the common questions of “How many employees do you have?” or “Where is your office located?” to judge the legitimacy of a business. I’ve since had my eyes opened to the endless varieties of business structures that exist and most surprisingly is that I really have not found a strong correlation between size, structure and success. What I have found is a strong correlation between success and the type of leader running the business. Having been down a similar path, I’m now profoundly more impressed with a small business (especially consisting of one person) that provides the same perception and level of service as a firm two or three times its size. At the end of the day – or the fiscal year, rather – the profitability and success of a business is not determined by the number of employees or square footage of your office space. What it is determined by is your drive and dedication to seeking out new clients, providing exceptional service and functioning above the level of your competitors. And for me at least, I can efficiently and comfortably accomplish this right from my home office!

Have you ever owned or worked for a business that was small by design? How did you measure your success if not by the number of employees or size of your office? Share your thoughts with us by commenting below!

 

So You’re Different…Just Like Everyone Else

As I continue to define the scope of my Public Relations work – particularly the emerging trends and most effective strategies for my clients, I’ve been confronted with one reoccurring scenario. Every business wants to share the message of why they’re different from all the others. But so often the differences they provide me with read like every other brochure, billboard or tagline I’ve seen time and time again. “We care….We put our customers first…We provide you with the best quality of service.” If you’ve already tuned out while reading that last sentence, you’re not alone. In fact, your reaction is the same reaction such statements receive when they’re placed on any plethora of marketing materials. Either the message is forgotten as soon as something else catches our attention or it’s glazed over altogether, never standing the chance to be absorbed into our subconscious. Neither result is desirable for the businesses who are trying so hard to differentiate themselves.

What makes a business truly different?

Truthfully, at the end of the day…very little. For the most part, products and services can be replicated (even with the best copyright laws and patents in place). There are millions of family-owned businesses with “small town values” representing every size and industry. And words like loyalty, honesty and quality – while all very good things for a business to have – are often read as ambiguous marketing fluff by customers. In very rare cases, a compelling story of how you overcame mountains of adversity to start your business may draw a unique spotlight your way, but inevitably the light will fade and a story of such depth is hard to convey on a billboard or Facebook ad. By focusing your marketing and public relations on answering the question “What makes me different?” you’re missing the question that really matters which is “How can I get remembered?”

Recognize your lack of differences with honesty.

Simply put, people appreciate honesty. The initial and obvious reaction to this fact is to position a company’s honesty and integrity as a “unique value.” But I beg of you to take at least one step outside the box. Customers aren’t easily fooled into thinking that you’re the only honest business on the block. They likely do business with many other people who they would also classify as men or women of integrity. So instead, make yourself memorable by evoking an unexpected emotion or reaction from your audience. With the right communications strategy you can make them laugh, make them think or even make them blush. You may be bold enough to directly say “We’re actually not that different from the other businesses out there,” and catch your audience completely off guard. Being remembered is the end goal and by going against the grain just a little, you’ll have a much better shot at achieving this. So long as you remain honest and genuine with your customer base, the sky’s the limit for creativity!

Actions (and brands) speak louder than words.

Nike is far from the only company that makes and sells athletic apparel. This is a huge industry and really no advertisement or marketing that I’ve seen has fully convinced me that any certain running shoe or t-shirt is all that different from the rest. Even when a seemingly revolutionary product is launched, it’s only a matter of weeks or months until 10+ other companies release their own version of this product, claiming the same technology and benefits. So what does Nike focus on to position themselves as a leader in the industry? Their brand. It’s the swoosh, the “Just do it” tagline, the distinct style of commercials and the carefully chosen celebrity spokespeople who create this solid brand. Instead of contributing to the white noise of long-winded and confusing advertising jargon, Nike has instead chose to build a brand that is so powerful and well-defined that a big white smudge on an all-black billboard is enough for anyone to recognize that as the Nike brand. While they still strive to be “first” and “different” in many aspects of athletic apparel, they know this will only every last so long until the next big thing hits. So instead, they focus their communications efforts on building up what can’t as easily be knocked down – a timeless brand.

You may not be the only one, but you can still be the best one.

Finally, there is one area where you can truly stand out and that’s at the top. By being the best at something, you leave no room for a competitor to join you on this stage. However, in communications the term “the best” is overused, misconstrued and there’s really no form you need to fill out or ribbon you need to receive to make this claim. At all levels and in all industries, there are certain awards that can help back up your claim to fame and provide a great point of differentiation for your business. But regardless of whether you’re hoping to use this title as a future marketing campaign, you should strive to be the best for no greater reason than to serve your people and your business well. There may be many other businesses out there just like yours, but if your customers truly feel like you are the best based on the quality of your service or product, I promise you that they will be back for more!

Whether you’re trying to differentiate your business or yourself, remember that for no other reason than the sheer volume of competitors, being truly different is not always possible. Instead, focus your communications efforts of getting remembered. And with this thought, I’ll close with a final inspiration:

“People will forget what you said. People will forget what you did. But people will never forget how you made them feel. “—Maya Angelou

 

D’oh! The 5 Most Common Public Relations Mistakes

Even as a professional in the field, the term “Public Relations” can sometimes feel ambiguous and is easily misused. I often hear phrases like “All you need is some good PR to boost your business” or “Wow, that’s a terrible PR move.” But what does any of this really mean? I suppose like any word, the meaning is all in how you define it and the way I define Public Relations is the way you communicate, interact and serve your customers (aka or your public). So really, I’m in the business of managing and building good customer relationships and there’s a ton of vehicles which can be used to achieve this.

Most usually the businesses I step in and help simply have no public relations focus whatsoever. I like this. It’s a blank slate, people are usually open to trying anything and the things we do try tend to make an immediate impact. But what’s a bit more cumbersome is stepping in and fixing mistakes – especially easily avoidable ones. I always think that it’s so unfortunate that the business simply didn’t know what not to do and have now wound up in a mess because of it. So instead of just thinking, I got to writing. For this blog post I decided it’s about time that I express the 5 most common PR mistakes I see weekly if not daily to hopefully help even just one business owner avoid them. The good news is that for the most part, these mistakes are easy fixes that can be implemented in your own business almost immediately – or simply avoided altogether:

Mistake 1: You have no core values statement

When a customer does business with you, very rarely did they make this decision based solely off of the product or service they’ll receive. It’s a much deeper emotional decision than that – even if they’re not aware of all these factors that ultimately influenced them. As a business you never just sell a tangible item, you sell your values, your level of quality, your years of experience and your expertise along with it. This is what customers are really paying for after all and highlighting these core values is a critical way to helping your business stand out among competitors.

So what’s the best way to clearly and succinctly highlight these values? Have a defined core values statement for your business. This can be as short as a tag line below your logo or as much as a small paragraph on your web site, but it needs to be used. One of the biggest mistakes I see in Public Relations is businesses who overlook the power of creating this type of statement. The majority of customers will never take the time to read your full business biography and compile this for themselves – so do it for them! Make this statement your go-to description when introducing your business to someone. What do you offer beyond your product or service that makes you different? Maybe you’re a 5^th generation family-owned business, maybe you use only locally grown and manufactured products or maybe you donate 10% of proceeds to a charity. This unique statement is what customers will remember and what will resonate with them emotionally. And I’m not sure much else can compete with the powerful role emotions play in decision making.

Mistake 2: You have no distribution of your message

Once you’ve developed your core values statement, this should be a message that you communicate consistently throughout all of your channels. Website content, social media profiles, monthly newsletters, business cards and promotional materials should all include this message somewhere. Sure your customers will become used to seeing this message and when they do they will subconsciously associate it with your business name, logo and brand. Also, by keeping these channels updated and in use, you will build a community and create a platform to distribute future messages – like a special announcement, promotion or opportunity to your customers. Another one of the biggest mistakes I see in PR is not taking the time to create and build your communication channels until you really need them – and by then it’s too late to broadcast your message to everyone you want to.

But more than just distributing your message externally, there is also the internal distribution of your message which is equally important. Your employees can act as ambassadors for your business if you empower them with the right information to do so. Every employee should be able to tell you the core values statement of the business and demonstrate it with their actions every day. If you know what you’re working for and what makes your business special, it makes you want to work harder and better. Also, the internal distribution of your message will help guide you whenever a tough decision must be made. Do you need to raise your prices? Are you considering merging with another business? These both have pros and cons, but the key to which decision is right for your business lies in your core values. With the regular distribution of this message, you and your employees will understand the foundation of the business and these decisions can be made methodically to preserve this foundation. For example: if your core value is to offer the absolute best quality of service, raising your prices might be necessary. But if your core value is to offer the absolute lowest price, a merger might better help you to continue to offer this to your customers. No matter the decision, a well-known core values statement will help guide you toward the right answer.

Mistake 3: You have no crisis plan

Plain and simple – bad stuff happens to even the best businesses, regardless of product, service, size or industry. And when it does, it’s too late to begin outlining your crisis plan. “By the time you hear the thunder, it’s too late to build the ark.” This is why one of the biggest PR mistakes is not having the faintest idea of your crisis plan until the flood waters have raised well over your head. The good news is that this is completely avoidably with just a little effort right now. A crisis plan does not need to be as intensive or consuming as a business strategy or marketing plan (though it could be). This is just a part of your overall Public Relations plan, but if you ask me it’s by far the most important since it could be the plan that saves your business entirely. A crisis plan can be as simple as answering the question, “Who will be my point person in overseeing a crisis?” And the best answer is not always “me.” Think of the other responsibilities that will likely fall on you during the time of a crisis. If it’s due to a break down in internal operations, you’ll need to focus on correcting this right away. You won’t have the time or capacity to deal with social media, customer service calls/emails or the press. Also, are you the best communicator in the business? Just because you have the most insight, doesn’t mean you’re the best person to communicate this insight and make it relatable to your customers. Think of the most professional and responsible communicator you have in your business and have that direct conversation with them about their role in a potential crisis – now.

Another highly confusing, but critical part to your crisis plan is the timing of your communication. There have been disastrous examples of people speaking too soon or not soon enough and both scenarios have the power to produce equally damaging consequences. You want to be the first to speak and tell your story, but this should not be the result of a knee-jerk response. My rule of thumb is to speak as quickly as accurate information is available. There are three components to the initial message you should communicate in response to a crisis. First, admit to the mistake (if it was indeed a mistake in any part related to your business). Second, express how you are working to fix it quickly and fully (are you offering a recall, refund or changing your operations). Third, let your customers know exactly what they can do to avoid feeling any further impact from this error (should they return a product or discontinue use).

By having a solid crisis management plan in place before a crisis strikes, you are in a much better position to recover quicker and stronger than otherwise. The bottom line is that you don’t want customers to remember the crisis; you want them to remember how well you handled it.

Mistake 4: You attempt to erase mistakes

It’s a common analogy for a commonly made PR mistake, “Deleting a comment on social media is like hanging up the phone in the middle of a customer service call.” Social media is a powerful tool that businesses have openly embraced all across the globe, but as soon as a comment turns negative, the first reaction always seems to be to hit delete and make it all go away. The truth is that it won’t go away. Once it’s live out there in cyberspace, you can rest assured that at least one other person has seen it or shared it. Because of this, it will never fully disappear and so deleting this feedback is only going to flame the fire. Whether the negative comment is the result of a crisis or a single unhappy customer, it’s an opportunity to communicate your side of the story and show how much you do appreciate your customers. Much like the crisis communication plan, this is your critical moment to turn a negative into a positive.

Some businesses have even taken this mistake one step beyond just erasing the error or deleting the comment. They have deleted the entire communication channel (for example their Facebook fan page). If a comment goes viral or your business is being bombarded with questions regarding a concern or crisis, the task of managing all of your communication channels may be overwhelming. But it couldn’t be more important to keep it active. Don’t delete any communication channel solely as the result of a negative comment or mistake. Just as you wouldn’t discontinue your customer service call center or shut off your email account, don’t tune out and turn off thousands of customers by shutting off an important means of communication.

Mistake 5: You use too much “fluff”

So often Public Relations is associated with fluff, flack and spin. All these words – in my mind at least – conjure up a negative and even dishonest connotation. It’s certainly acceptable to toot your own horn, but you must keep a level of honesty and believability in your content to prevent the risk of having customers simply tune you out. A big PR mistake I see made in web site content, social media statuses and press releases is the use of too much “fluff” language. This makes the business look and sound like an infomercial, stuffed to the gills with buzzwords and hype. There’s nothing relatable or memorable about this type of content and people tune it out just like they would flip the channel from an annoying commercial. Most distressing is that some people think this is an example of very effective Public Relations strategy. “Hey, doesn’t our business sound awesome? This here says we’re the best at everything so you know it’s true!” Just because you plug a bunch of sugary sweet phrases into your content doesn’t mean your customers will eat it up or even enjoy the taste. Instead, engage your customers through content that is more relatable, more human and maybe even a little bit vulnerable in the right places. Public Relations should tell an interesting, honest story and build meaningful relationships with your customers. Aim to engage your customers with your content, not put them into a sugar coma.

So, which of these 5 common Public Relations mistakes would you say is the most detrimental to a business? Or maybe you have a few other examples that should be included on this list. Be sure and share your comments below so we can all benefit from being aware of these mistakes and make the effort now to avoid them in the future!

 

Turning Freelance into Fulltime: Taking the Leap

This blog completes a series of 5 posts which outline and address a very valuable lesson for any industry or any career – how to turn your freelancing into a fulltime business. If you’re currently contracting out a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

In case you missed it, read:

Establishing Professionalism

Getting Your Name Out There

Moving Away From One-Time Clients

Building a Client Base

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Taking the Leap

Last December when I wrote the post “Entrepreneurial Survival Mode,” I talked about how sometimes you have to give yourself no option but to sink or swim in order to find that inner fire to make your business a success. I still believe this. But during my own journey from freelance to fulltime, I didn’t tie a blind fold and allow myself to walk off a cliff. Instead, I carefully calculated the jump before I ultimately made the leap into entrepreneurship. The most important concept I want you to take away from that previous post and now this one is that when you can take the leap – do it without hesitation and get ready to work for all you’re worth. It’s a bold and risky move, but it holds the possibility of the most rewarding career experience…creating something that’s all your own.

Here are the key steps I recommend to every almost-entrepreneur contemplating a leap of faith:

Crunch the numbers.

I still have the first spreadsheet I created with all of my expenses versus the meager income I would make if I turned my freelance business into my sole income. It’s a great reminder of where I started and where I’m never too far from to return. But most importantly, it was the assurance I needed to know that I could make ends meet even if everything about my business stayed the same (which of course I hoped that it would improve). When I reflect on this spreadsheet now, it still offers that same assurance that if all came crashing down, I could stay afloat. At this point in my entrepreneurial journey, I learned the skill of minimizing costs. On my spreadsheet I listed all of my current expenses with my fulltime job. I was paying for internet I never used, far too big of a Comcast package and a reserved parking spot at my apartment. Before I took the leap, I really crunched these numbers. I cancelled internet and began sharing with my neighbor for a fraction of the cost. I downgraded my TV (anticipating 80+ hours a week of work on my new business didn’t leave me much time for such luxuries anyhow). I discontinued my parking spot and as a city resident was able to get a parking pass right across the street for just $5 a year. I wasn’t as surprised with my ability to minimize costs as I was shocked with why I was ever throwing this money out the window to begin with.

When you first start your own business, don’t let anyone convince you that you immediately need to rent an office space, pay for a separate phone line or upgrade the speed of your internet. There are many ways to achieve the same results for little to no cost. Separate business needs from business wants. Later down the road when money comes, so will the corner office, fancy business cards and personal assistant. You simply don’t need these things for the first year…or first five years. How much money you have in the bank isn’t just about how much money you made, it’s about how much money you didn’t spend. Minimizing your expenses will help supplement a smaller income and make your leap less of a stretch.

Consider everything that will be affected.

A salaried, fulltime position has many benefits beyond the stable paycheck. Remember that as an entrepreneur your healthcare, 401K and taxes will become something you actively worry about. These will take research and a critical eye to determine the best option for you. For healthcare, I got lucky with my age. Until 26 I’m able to stay on my parents’ insurance plan for a very minimal cost each month. After that dreaded birthday, I’m not sure what I’ll do next but I do know there are more and more options every day for entrepreneurs and small business owners. I will likely talk to a local independent healthcare provider and outline my options. For retirement, I rolled my existing 401K into a Roth IRA. Again, it made the most sense for me for a variety of reasons, but do your research and talk to several people before landing on a plan. Finally there are taxes. I dread them more and more every year as what I pay goes up in proportion to my income. As a business owner, it’s your responsibility to claim your earnings and pay taxes on them accordingly. For the first several years you may be able to get away with claiming your business as a loss or have enough deductions that you still get money back. But that can only last so long. Eventually you should consider paying taxes on a quarterly basis to lessen the blow come March  (which is by the way when business owners must file taxes—note this now and avoid a nasty letter from the IRS later).

My dad gave me the best advice when I first started making freelance money, “Spend only what you need and keep the rest in savings.” He meant this so I would always have enough to cover my taxes, but wouldn’t it be great if we all handled our money like this all of the time?

Have an emergency backup plan.

For some, a backup plan may seem like a way out. I’ve heard, and at times agree, with the theory that a safety net is only an excuse to fall. But for large enough leaps where you are risking your income, career and possibly all of your worldly possessions (not to mention sanity), a safety net is warranted. For me, my emergency backup plan came from solid relationships with past employers and key contacts who said that if I should ever decide to be available for fulltime hire, I have a standing offer for a position with them. This verbal reassurance from people who believed in my skill set was the emergency backup plan I am grateful to have never used. More than just the ability to find fulltime work should I need it, I also keep a financial “runway” of at least 3 months. By this, I mean I aim to keep enough funds in savings and in my business that if one day absolutely all income should go to zero, I would be able to continue living and spending in exactly the same way for 3 months. This is a substantial amount of time to find additional income, cut back on spending and make other adjustments to prevent depleting this runway, but it’s a comfort to know it exists.

The idea of having an emergency backup plan in place reminds me of the quote by Robert H. Schuller. “What would you do if you knew you could not fail?”  This plan is not to give you an easy way out should things get too hard; it’s to give you the confidence to move forward fiercely and passionately. When you know your next step is not doomed to be your last, you can keep moving forward with courage.

Do it right – and don’t look back.

Once you outline a tight budget, decide how you’ll handle your healthcare, retirement and taxes and setup and emergency backup plan, you’re ready. As tempting as it may be to go out with bang, scream “I quit!” and throw everything off your desk onto the floor, resist the temptation. Your grand finale should be one with grace and professionalism that demonstrates to your employer and everyone else that you are destined to become a great entrepreneur. First, speak directly to your boss. Give them the honor of being the first to know your passion for your side business and plans to take it fulltime. Whether you hate them, don’t want to disappoint them or have no relationship with them, they deserve this respect. Once they’re on board, they can become your advocate and guide you through the process of leaving. Depending on the structure of your business, you may need to speak with the Human Resources Director to place your 2-weeks’ notice. For me, I was also required to write a resignation letter (which felt absolutely wonderful to sign). Going through the proper process of resigning from your job allows everyone to be aware of why you’re leaving and to celebrate with you. It also allows you to take advantage of things like using vacation days, selling back sick days and getting that final pay check 2 weeks after you finished working. By leaving on the right foot, you’ll also start your new business on the right foot. And if you haven’t learned already, this world is a small place and you never know who you’ll see (or have to work with) again.

Once you properly end your fulltime job, that’s it. It’s all you now. During your first year it’s natural to be reminded of your old job by every season, holiday or co-worker’s birthday that would have been a special mile marker. But you have new mile markers now. Don’t look back or keep track of where you might have been had you not taken the leap. The fact is, you did take the leap and every ounce of you should be focused on sticking that landing rather than trying to backpedal mid-air.

Have you enjoyed the 5-part series, “Turning Freelance Into Fulltime?” If so, share this with a freelancer or entrepreneur you know! This wisdom was gained through my own rough and wild personal experiences and I only wish to use it to help others navigate their similar journey. Thank you for reading along.

 

Turning Freelance into Fulltime: Building a Client Base

This blog continues a series of 5 posts which outline and address a very valuable lesson for any industry or any career – how to turn your freelancing into a fulltime business. If you’re currently contracting out a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

In case you missed it, read:

Establishing Professionalism

Getting Your Name Out There

Moving Away From One-Time Clients

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Building A Client Base

The two previous posts, “Getting Your Name Out There” and “Moving Away From One-Time Projects” are both aimed toward the ultimate goal of building a solid client base. Reaching this goal is more than just having your business known in the local community; it’s taking it to that next critical level of getting people to actually hire you. While many aspects about taking your business from freelance to fulltime will be about building a professional brand, this particular component will most directly affect your business’s bottom line – or more accurately, its “life line.” You need to have a core client base which can provide you with a stable income while so many other aspects of your business are fluid and ever-changing. So how do you begin to build this base of paying clients? It only needs to begin with one. From there you can implement these following steps to turn this single brick into a solid foundation for your business.

Ask your existing client(s) for leads.

Your first one or two clients are much more than a desperately needed paycheck. They are a source of potential leads for new clients. Not only can they speak to your business from a firsthand experience, they are also likely to have connections in similar situations where your services could be of great value. If you are a freelance writer and one of your clients is a commercial video production company that often hires you for script writing, they are likely also connected to other video production companies that could use a freelance writer. My own client base was built in a similar way – through word-of-mouth recommendations from current and past clients. Because of my background in political campaigns, I secured my first freelance political client who I helped with public relations and planning fundraisers. At the fundraiser, many of his fellow colleagues who are also elected officials were fascinated with the services they could contract out to me. This single client helped me break into a unique area that has consistently grown my business ever since. I am also lucky that it’s an area I truly enjoy. When I first began my freelance Public Relations business during my senior year in college, I knew little to nothing about political campaigns nor did I have an interest in them. Yet with a single client, I established a whole new branch of my business. When looking to build your own client base, don’t overlook the obvious or easy. Ask your existing clients for leads from their own network who might be interested in your services. Better yet, ask them to connect you directly by personal email. If the initial introduction to your business is made by someone that the lead knows and trusts, it won’t be as easy to brush it off as a cold sales call and will speak volumes for the quality of your work.

Identify your niche.

When using existing clients as a building block for new clients, it’s natural that a pattern of businesses with whom you work most frequently will emerge. Allow this to build organically for some time before taking a critical look at what these patterns mean for the direction of your business. Essentially, you will now need to identify your niche and embrace it. Identifying your niche is not a limitation or a blinder for future business. You can and should seek out projects from all directions as you never know when this could tap into a new reservoir of work. But a niche will allow you to target many aspects of your business’s branding and marketing to appeal to this niche and establish your expertise within it. Say you make custom invitations to sell on Esty and begin to track that the most orders you receive are for wedding invitations. You can focus your web site content, social media and portfolio on wedding-related stationary. You may also choose to attend more bridal shows and advertise in bridal publications or on wedding web sites. This focus will allow you to place your time and effort in the area in which you are most likely to secure future clients. In the client building process your focus may form a spotlight on your niche, but don’t completely turn out the lights on all other categories of services. Remember that the bride you created invitations for will someday be interested in birthday and baby show invites or holiday cards. Make sure even current clients are aware of the full scope of services you offer.

Introduce and incentivize.

Once you’ve reached out to your existing clients for recommendations and have focused on your niches, next comes strategically introducing your business to potential clients. There are various ways in which you can accomplish this and the method will depend upon your type of business and the clients you’re trying to reach. One common method is a letter written to the business owner which serves as a friendly introduction to you are and what you do. This should go out to all businesses which fall within your niche or with whom you’d like to work. The letter should close with a realistic call to action. This can be as simple as inviting them to visit your web site or alerting them that you will be following up by phone in the coming weeks. If you’re in the position to do so, including an incentive such as a discount or free trial for one of your services is a very effective way to get a response. I’ve written such letters for several clients and we’ve seen some amazing results. The more personal you can make it (add in details specific to the person or their business) the more likely you are to receive a response. People want to feel that it’s genuine and not a form letter sent to hundreds of other businesses. Finally, by providing an incentive to try out your services, you reduce the risk of the unknown and take one step closer toward gaining a new client.

Stay tuned as the “Turning Freelance Into Fulltime” blog series continues with: Taking The Leap

 

Turning Freelance into Fulltime: Moving Away From One-Time Projects

This blog continues a series of 5 posts which outline and address a very valuable lesson for any industry or any career – how to turn your freelancing into a fulltime business. If you’re currently contracting out a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

In case you missed it, read:

Establishing Professionalism

Getting Your Name Out There

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Moving Away From One-Time Projects

Often freelancers are hired for a single project that is pre-defined in both scope and pay. If the project was ongoing or needed regular maintenance, that business would just hire a fulltime in-house employee instead, right? Not always. Some businesses still have the need for a fulltime employee but may lack the office space or sizeable pay to do so. This is where being able to offer a contracted service is so valuable. You can provide as much time and skill as a salaried employee, but at a much lower cost because you don’t require a workspace, benefits or consistent 40 hours a week of work. To turn a freelance business into a fulltime career, you need consistent pay or in other words, consistent work. Instead of living on a hope and prayer from one project to the next, begin building a reoccurring client list to add stability to your income.

Identify An Ongoing Need.

When you want to move away from a pay-per-project basis, sometimes you need to be one to identify an ongoing need in which you can address. Essentially, you need to put yourself in the position of that business owner. Ask, “What are their long term goals, reoccurring problems or limitations?” Once you’ve uncovered these valuable issues, look for areas in which the services you offer can align with resolving them. For example, a graphic design artist doesn’t have to wait around for the next client who needs a logo or promotional material put together – these tend to be isolated, one-time projects. With some creative thinking and researching you might discover that the client also updates their website homepage graphic on a monthly basis or regularly includes infographics in their weekly blog posts. This presents the opportunity for an ongoing contract in which you can provide these services on a reoccurring basis. No matter what your freelance business offers, there’s almost always the opportunity to become a regular contractor if you look closely.

Create Your Own Position.

Once you’ve identified a client’s ongoing need, you’ll next need to package your services in such a way that they create a valuable position that your client will want to fill – and do so by hiring you. Start organizing your ideas by writing them down. What can you offer on a regular basis? If you’re a freelance writer, this could be weekly blog posts, website content writing and formatting a monthly email newsletter. Be specific in what you’ll bring to the table and remember to include things like monthly client conference calls, unlimited email communication and projects guaranteed to be completed by a certain deadline every month. These will help to make the position look less like a freelancer and more like a real employee. By doing this, you will have essentially created a proposal in which you will need to pitch. For any freelancer, the first time you pitch to a client can be role reversal that takes some getting used to. Often you’re the one being pursued for work, now you’re the one pursuing a client for work.

Learn to Pitch.

You identified a need, you created a job proposal, now you need to pitch it – and hope you hit it out of the park. First, be sure your client is expecting a proposal for your work. If you’ve worked with them on several projects before, you can easily initiate a conversation in which you explain what you’d like to do. You want to offer them your services on a reoccurring basis to maximize their business goals. Once they’re aware of your intentions and are expecting your proposal, schedule a time to meet with them in person (if feasible) or a time you can connect for a conference call. In either scenario, email them a PDF of your proposal before your meeting so they can review what you’re offering and bring up any questions they may have at that time. This simply removes the back and forth that can often occur later. After your meeting, set a time frame for follow-up that works for both of you. This can be another call or just an email. This follow-up should confirm whether or not they are interested in hiring you as a regular contractor. During the whole pitching process, answer any phone calls or email within one business day. This sets the first standard for how responsive you would be if hired and clients will take this into consideration. Once you’re comfortable with the proposal and pitching process, you’ll be well on your way to securing more ongoing projects and this will also become a very useful skill once you take your business fulltime. Want more information? Click here to read the popular Bennis Inc Blog post, “Protecting Your Pitch.”

Think “Value Added.”

When turning one-time projects into reoccurring clients, your energy is best spent answering the question “What can I gain by hiring you on a regular basis?” Depending on your services and the situation, the possibilities are endless. Most commonly your answers will be among the following. A client will be able to focus more time on running their business by not always looking for freelancers every time a new project should arise. They will save money by using multiple services from one person. You will both develop a working relationship that will allow you to understand each other’s communication style and work together most effectively. I refer to this as “value added” or the value that is above and beyond the services in which you’re being paid to perform. If a client can understand the value you bring to the table that is at no extra charge to them – but can often become invaluable – then you are far more likely to secure them as a reoccurring client. Because there really isn’t a place to emphasize the value added services in a proposal, they’re best communicated when you’re pitching to your client. Make a strong case for yourself! Think of every client as one step toward taking your freelance business fulltime and put this passion into your proposal.

Stay tuned as the “Turning Freelance Into Fulltime” blog series continues with: Building a Client Base

 

Turning Freelance into Fulltime: Getting Your Name Out There

This blog continues a series of 5 posts which outline and address a very valuable lesson for any industry or any career – how to turn your freelancing into a fulltime business. If you’re currently contracting out a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

In case you missed it, read:

Establishing Professionalism

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Getting Your Name Out There

Getting comfortable with confidently talking about your freelance business can be awkward and challenging, but is an essential part of getting your name out there. Often this also means opening yourself up for rejection or dismissal – after all, you’re not yet a “real business” in the eyes of many. If you wait to build a network, you’re only putting yourself months or years behind when you do take your business fulltime. It’s never too early to begin. So how can a freelance business establish a name and a reputation strong enough to compete among the best? The following steps are what I stumbled upon as the most effective way to establish my name in the local market when I was still freelancing:

1. Weave it naturally into any conversation you can.

People can’t know what you don’t tell them, so don’t be shy about sharing the skills you offer on the side. Whether you’re at a dinner, the bar or the bank, if you see an opportunity to connect with someone who could be a potential client or put you in contact with some, it’s worth mentioning what you do – even on the side. You never know who is listening or what you’re saying that could resonate with someone. Be sure to practice a smooth 1-2 sentence explanation as to what you do that you can delivery clearly and confidently. Also, think of adding in a unique or memorable tidbit like, “I first began my side business in college and have since worked with clients from several different states,” or “I just opened a shop on Etsy and custom-make every product.” This not only qualifies your business, but makes you stand out. As a note of caution, be sure to look for natural segways in the conversation that allow for the topic to be brought up. An unnatural insertion can make you look desperate or unprofessional. Start with asking them what they do and when they ask you in return, there’s your green light.

2. Join local networking groups, but limit them to ones that best serve your business.

There a myriad of networking and business development groups at the local, state and national level. Don’t be tempted to join every single one. Think quality over quantity. As a freelancer your time is more valuable than ever – trying to juggle a fulltime job, side business, family life and everything in between. The time you can dedicate to joining networking groups is best spent divided between 2-3 groups maximum. If you pay the dues but are spread too thin to attend any of the meetings, this is a waste of money and potentially a bad reflection on your business. I was fortunate enough to be introduced to category-specific networking group in my area right around the time I went fulltime. This type of networking group is unique in that only one business can represent a category. What this does is create a small “community” of businesses who feed clients to each other. Without competing businesses in the same networking group there’s no conflict of who gets what recommendations. These are often non-dues paying with the idea that you earn your membership by sharing leads. This group meets weekly and has better turnout than most monthly groups with a membership 4 times its size. It’s a large time commitment but also produces consistent results for my business. Because of this, I am only a member of one networking group – and I give it my all. Depending upon your business and what’s offered in your area, a different combination of networking groups might make more sense. The bottom line is to do your research, give each of them a try and know when to stay or when to leave.

3. Ask close family and friends to spread the word.

This may seem overly obvious, but often the best ideas are. Your family and friends have a vested interest in seeing you and your business succeed. They can also speak intimately about your character and skill set. Let them be your mouthpiece and plug your business for you. Even just 4-5 people talking to their networks, increases your network exponentially. I remember creating a little half-page handout for my mom to share about my business. She knew a lot of fellow business owners back in my hometown that could benefit from my consulting work and she did as any mother word – she promoted it. Also, whenever anyone asked what I was doing or where I was working, she remembered to mention that I was also running a side business. Prompting your family and friends to do the same will help the word spread in many different directions and to many potential clients.

Stay tuned as the “Turning Freelance Into Fulltime” blog series continues with: Moving Away From One-Time Projects

 

Turning Freelance into Fulltime: Establishing Professionalism

This blog begins a series of 5 posts which will attempt to outline and address a very valuable lesson for any industry or any career. To say I’m excited to share this information is a gross understatement. Reading any post on my blog, you will see I’m passionate about sharing my life experiences with as many other entrepreneurial hopefuls as I can. This special series “Turning Freelance Into Fulltime” could very well one day become a best-selling book or feature article in Fortune (we can all dream, right?), but for now it’s solely for your benefit and inspiration.

If you’re currently freelancing a set of skills or have at least thought about it, this can be the critical first step toward starting your own business. I invite you to join me each week as I share the 5 most important components needed to prepare for a successful transition from freelance to fulltime.

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Establishing Professionalism

Launch a web site.

As a freelancer, you’re often caught in the awkward limbo of working a fulltime job while living this second life on the side. How much time and energy should you spend on creating a professional image for your freelancing work when it’s not yet your bread and butter? My advice is – a great deal. When a prospective client asks for more information or a sampling of your work, it’s easy and convenient for you to send them a link to your web site. When I first started, I used an extremely clean and simple template on Weebly.com. The web templates are as easy to create as a word document and Weebly hosts your site completely free (which was right in my price range when I first started). Although I’ve since outgrown Weebly as my business grew, I highly recommend it as a starting point for any other freelancers. When you’re ready, you can purchase a domain name to personalize your site further. The bottom line is that a web site shows prospective clients that you’re serious about your side business and the quality of work you put into fostering this business is a good indicator of the level of work you’ll also put into their projects. Once you’re ready to take the leap into fulltime entrepreneurship, you’ll be that much further along in your process of developing a business web site.

Create business cards.

It’s never too soon to have a professional looking business card for your freelance business. When you have the opportunity to talk to someone about your business and they show an interest, you want to be able to give them something that allows them to be immediately in touch with you or to find out more about your work. A business card does just that. It’s also discrete in that you can easily slip someone your card and shift the conversation so you’re not stuck feeling like all you do is talk about this “side job” you have. I remember the first business cards I created. I ordered the minimum amount from VistaPrint.com using one of their pre-made designs. When they arrived in the mail and I saw my name alongside my business’s name on that little card, I felt that first jolt of energy that entrepreneurs live the rest of their life for.

Designate a professional email.

Once equipped with a web site and business cards, you’re now in need of a professional email designated for your freelance work. I still encounter many well-established businesses that skip this step and it’s noticeable. If you bought a domain name for your web site, you can usually create an email at this same address such as John@JSmithDesigns.com. First, this type of email address is both neutral and easy to share in that it uses your name and your business and not something awkward like 2Hot2Handlexoxo@yahoo.com. I can’t imagine a perspective client could overlook this red flag and not question the professionalism and legitimacy of your work as well. Second, a professional email is a nice accompaniment to your business cards. Finally, if someone misspells or misplaces your web site URL, they can easily find it by following what’s listed after the @ (I use this technique quite often to verify web addresses even now).

Include freelancing on your resume and Linkedin.

Even though your freelancing business is only a side job at the moment, there’s no reason to exclude it from your work experience. It says many valuable things about you. First, you have a specific skill set of a high enough level that multiple people are interested in contracting you just for this work. Second, you are organized and proficient with time management to be able to juggle a side business along with a fulltime job. Finally, you’re a leader and an entrepreneur to not only get a side job, but make a side job – which could very well become your sole business with enough time. Be sure to include this wherever relevant. I added my freelancing Public Relations work to Linkedin profile and my resume and received quite a few connections who were intrigued by this work. They key is to find the balance between promoting your work but not in such a way that it becomes a conflict of interest with your fulltime job. I assure you, there is a balance that can be reached!

An Extra Snippet: Do you need to incorporate?

While we’re at the very beginning of how to turn your freelance business into a fulltime career, now is an important time to cover the issue of how and when to incorporate. I waited about a year and a half into my own freelancing before I woke up and did this. And it was only after a brutal tax return that I saw the value in doing so. Once you start bringing in frequent income from clients that averages over several hundred dollars for each project, I suggest talking with a CPA or a tax attorney in your area. I was connected with a very sharp tax attorney who saved me from a bad tax year and set me up right away as an S-Corp. There is a cost associated with incorporating your business (especially if you do it the right way) but you easily earn that back the first year you file this side income as a corporation rather than an individual. Yes, there are online programs like LegalZoom.com that can get you started, but it can be a complicated process and I wouldn’t mess around with the IRS. Talk in person with a local professional who can advise you and apprise you of all of the decisions that will come your way as a new business owner. Never once did I hear of someone who regretted this extra effort!

Stay tuned as the “Turning Freelance Into Fulltime” blog series continues with: Getting Your Name Out There