Archive for the ‘Boundaries and Standards’ Category

Dear Danielle: “God’s Work” is Not Getting Me Paid

Dear Danielle,

I’ve been struggling really hard with determining what target market I would like to cater to with my administrative consulting business. I have gone back and forth about it for awhile now. It is so tempting to take work where you can get it, but I know that is not the correct way to go about building a business. My industry experience has been in working with nonprofits, but for business purposes I would like to target start-up nonprofits because I know how much it takes to get a nonprofit off the ground and I can see how I can easily be retained in this case as well. My concern is that I won’t be fairly compensated for my work. I worked with a ministry and I didn’t get paid a dime because sometimes with entities like this, you get caught up in doing “God’s work.” Can you please give me some guidance with this issue? I would really appreciate it. —JS

Thanks so much for submitting your question. I would love to help give you some guidance on this.

First, I want you to download my free guide, Get Those Clients Now!  When it comes to getting clients more quickly and easily, it’s all about the target market. This guide will help you get more clarity around that.

It’s great that you have an idea of who you want to target. Now, you just want to do your homework about viability. Nonprofits can be tricky. While it sounds like you’ve got a great background perfectly suited to support them, you’d just want to make sure you are targeting a niche that actually has money. Because if they can’t afford professional fees, all your wonderfulness isn’t going to help you if they simply can’t pay. I’m not sure how financially secure and solvent start-up nonprofits will be, but that, of course, will be your homework to research and find out.

That said, if you can determine there’s a viable niche in there for you, your marketing message can make all the difference in the world. If you can help them understand how your strategic administrative support will actually help them operate more cost effectively and profitably, and how it will help them accomplish a whole heck of a lot more than they could otherwise, that’s half the battle.

So download the guide; it’ll help you go about that whole process.

Now, may I give you just a little bit of tough love? Please know it’s said with hugs and a heartfelt desire to help you turn things around.

You mention being concerned about not being fairly compensated. Maybe it was just poor phrasing on the fly, but the way it was worded made me wonder if you were maybe taking too passive a role in leading your own business.

Because, it’s not up to clients whether you are “fairly compensated.” YOU are the one who decides what you will charge, how you will be paid and when you will be paid. Your job is simply to inform clients how it all works. If they had gone through a proper consultation process and signed a contract, how did they not know they were a client and were supposed to be paying for your services?

So, if clients were manipulating you into working for free, you want to realize that they didn’t do that to you; you allowed that to happen.

To change that, what you want to do is get more intentional about your business and consultation processes as well as who you take on as clients. Be sure to clearly separate business from any volunteer work you are doing. So, for example, if you had gone through your normal consultation process with this ministry, they should have been clearly informed that you charge a fee for your work, and how and when and what you will be paid for that work. If there was any misunderstanding or ambiguity there, that’s a sign that you need to improve those processes and communications in your business. None of that happens without your passive or active consent. You see?

So if we need to tighten up and intentionalize (my made-up word, lol) your consultation process, I highly recommend you check out my client consultation process guide.

I hope that helps! Let me know in the comments if things improve for you with this advice moving forward. :)

Dear Danielle: Web Design Client Balking at My Contract

Dear Danielle:

I purchased the web design forms set about a year and a half ago (maybe longer). I have a potential client who read through them and called me (very defensively) and said there was nothing in the contract to protect him, that it was one-sided and there was nothing in there if I didn’t deliver on the project. I have only had one other person reluctant to sign a contract and she turned out to be a very high-maintenance client. Do you have any advice about how to deal with this sort of situation? He wanted to go through the contract and send me his suggested revisions. I am subcontracting for him. He had the client and I am the web designer. I have already spent about six hours doing comps. Can you help with some advice? Are there contracts out there that would protect the client or is the fact if I didn’t deliver, I wouldn’t get paid enough protection for him? Pamela C.

Hi, Pamela, and thanks for the question. Let me see if I can help you think this through. :)

My first bit of advice would be to never begin working without a contract and being paid, at least partially, upfront. Stop with the comps and do not continue further until the contract issues are ironed out and you decide whether or not to even proceed further with this client. If you do proceed, my advice is always to get a deposit toward the full payment before any, any work begins. It’s just good business (particularly with a client who is already demonstrating certain tendencies, shall we say, lol).

It’s never in your best interest as a business owner to work without a signed contract in place. Business is business only when there is a fair and equitable exchange of benefits and interests. Essentially, the client pays for work to be conducted or executed on his or her behalf in exchange for a fee that you determine will fairly compensate you for the value of your time, skill, knowledge and expertise. If everyone were mindreaders and always remembered exactly what they promised to do, we could simply do business on a handshake and a promise and we wouldn’t need contracts.

But that’s not reality. And it can be argued that it’s you as the service provider who has the greater burden of risk and liability in this exchange. This is why we use contracts in business: to formalize in writing all the expectations and terms of the relationship so that everyone knows (and remembers) what their obligations and considerations to each other are, as well as their rights and recourse. It just helps keep everyone honest and on the same page. In case anyone’s memory fails them, a written agreement is there to remind and legally uphold those promises and understandings made to each other. In a worst case scenario, a written agreement is easier to legally enforce than an oral agreement.

The scenario you describe, however, generally boils down to one of ideal and unideal clients. There is nothing unusual or slanted any more in your favor with our contracts than any other typical contract of this nature. What is happening is that this client is expecting you to draw up a contract for him and his business and it’s simply not your job to do that.

What you have to decide is whether this is someone you want to deal with or not. Is this client one who may end up being another PIA, high-maintenance client? You both have the same legal recourses as everyone does who breaches a contract, which is the right to seek legal remedy through the courts. What more does he want? The blood of your first-born?

I’m being silly, but there are actually clients out there who are that unreasonable in their expectations. They would want you to guarantee that the sun won’t set for the next 60 days if they could get you to agree to that. And you are entitled to be paid for work you were engaged to do whether they end up liking the site or not. But that’s a whole other blog post.

So the first step is to have a conversation with the client in order to better understand the concerns and find out what he would like changed or added to the contract. It doesn’t hurt to listen and find out more. From there, you can decide whether what he is proposing is reasonable or unreasonable for you in your business.

Maybe you find that there is room for some additional considerations or compromises. Heck, just having the conversation might allay his concerns.

(A word of caution, though… since you aren’t an attorney, you might be changing things that negate a whole host of other important legal protections in your contract so never accept changes willy-nilly. Always consult with an attorney to make sure you don’t invalidate your contract in any way).

On the other hand, you might simply decide it’s not worth the angst, that the client has trust issues beyond what you can help with, and “my contract is my contract.” Obviously, you would put it more tactfully to the client, but you get my drift. You do not have to work with anyone you don’t want to, particularly if they can’t agree to your terms. YOU get to decide what is reasonable and right for your business and not accept any clients who ask for things beyond those boundaries and standards.

Now, being a subcontractor just complicates the whole mess. Back when I still had a web design division in my business, I did the same kind of thing for one of my clients. He had a web design business and I was the one designing the sites as a subcontractor. We both had to sign each other’s agreements.

It sounds as though your client hasn’t bothered to come up with his own contract. But that’s not your job to do for him. He need to consult his own attorney. But yes, it is definitely more of a problem scenario because you both need to have terms that are working seamlessly and aren’t in conflict with each other. Because, in a worst case scenario, if his client who gets the site decides to sue him, he’s the one stuck holding the bag. It’s just a whole big can of worms.

It goes without saying that the goal is to do good work and have happy clients. We all want clients to love what we’ve done for them. It’s just our natural inclination. A client has to be pretty egregiously unhappy before they go to the trouble of suing, so I’m just pointing out possibilities.  It’s really not an ideal situation, but if you want to be in it, you might want to find a polite way of letting him know that the onus is on him to talk with an attorney and come up with his own contract for you to sign.

Crappy Clients Will Drag You Down

I came across something recently that had me reflecting on some of the bad clients I took on in my early days of business. I was reminded that it wasn’t until I let go of all unideal and (let’s be frank) crappy clients that I really started making serious money and having more joy and happiness in my business.

There are so many ways that bad/unideal clients drag you and your business down. They create negative energy. They demoralize you and lower your professional self-esteem. They zap your energy. They deprive your ideal clients of your quality time and attention. They keep you from making more money. Oh, we’d be here for days if I tried to list everything, lol!

This is a huge problem in our industry. There’s a sort of subtext that instills and encourages the harmful mentality that “you had better be grateful for whatever clients you can get.” And it’s precisely because of this thinking that so many in our industry are just struggling to get by.

You can’t change what you don’t acknowledge, as Dr. Phil likes to say. And so we have to have the conversation in order to learn from it and get to a better place.

When we’re new in business, we often aren’t conscious about the clients we take on (“any business is good business; I need the money!”), and even if we are somewhat aware, it can be a bit of a learning curve to start getting clear about what we want and who we prefer to work with. Things aren’t always clear. We don’t always recognize the pitfalls or see the consequences. And often, we feel like (because we are new), maybe it’s something we are doing that is the problem.

If I’d had an industry to turn to back then (I didn’t discover the industry until several years after I’d already been in business), I’m sure I would have gotten a lot clearer and conscious about this MUCH sooner.

Oh my gosh, I remember the client/ex-friend that I had to sue in order to get the thousands of dollars she owed me. I remember the client who was really nice, but thought the world revolved around her and constantly kept me waiting when I had an onsite appointment with her. I remember a few bookkeeping clients who it would sadden me to learn were pilfering employee funds (e.g., tax monies and child support withholdings) to buy themselves expensive toys while not paying the tax man.

And yet I would still bend over backward trying to be helpful and make a fit out of them. For some reason I had the idea that the “client is always right” and superior customer service was the ultimate responsibility I had as a business owner, which I prided myself on. Who cares if they walk all over you! If someone had just simply said to me, “You know what, bad clients are bad clients. You are not a failure if you kick them to the curb. Lose the losers!” I could have saved myself SO much time and heartache.

Of course, as with everything, there’s always a positive side to every bad experience. From these bad experiences, it brought about my thinking and consciousness about the kind of clients with whom I truly wanted to work.

And I learned many tough, expensive, but ultimately invaluable, business lessons. For example, my friend/client I had to sue to get what she owed me? Well, my part in that was that I was being a pushover and teaching her to disrespect me and take me for granted by giving her “friend” discounts and letting her get into debt with me for my services. You can bet I don’t do that anymore.

I learned to insist that clients respect my time and to let go of anyone who consistently missed appointments or otherwise wasted my time. Once I quit doing onsite visits, I had more time and energy for “virtual” clients and made more money because of it.

And I learned to immediately let go of any client the minute I found them lacking in character, integrity or honesty. (Spending child support payments withheld from employee paychecks is one of the most despicable acts I can think of.) Trust your gut. Don’t let your desire to give benefit of the doubt cloud your better judgment. It’s not a “mistake,” isolated incident or lapse in judgment as they often try to make you think (especially after the “mistake” has been pointed out to them several times). People like that just don’t change their stripes. It’s best to get them out of your life (the sooner, the better) and leave them for the universe to deal with.

Once I started becoming more aware and conscious about these things is when my business and happiness really started taking off. Nowadays I work with people who value and respect what I do for them. They’re grateful and appreciative. They’re smart and funny. We have great conversations and fun working together. And they care about me as a person as much as I care about them.

And so I say now for those of you who are newer in business, you absolutely have the permission, right and even obligation to lose the losers! You and your well-being are no less important than that of your clients. In fact, your success and attentive client care DEPEND upon your happiness. It’s simply impossible to have space for your most ideal clients if you are keeping it occupied with poorly fitting, unhappy-making ones.

Be more discerning about the clients you take on. Have a consultation process. Start an ideal AND UN-ideal client profile that you continue to hone and update throughout the life of your business. Begin formally documenting your standards and boundaries now, if you haven’t yet, and honor them, always. Read your UN-ideal client profile anytime you are tempted to ignore them. Never take on any clients without any regard or due diligence (that’s your consultation process). I promise, your business will become better and more profitable and prosperous for it!

Dear Danielle: How Do You Cope with Holidays?

Dear Danielle:

I have a question for you. How do you cope with holidays? I’m about to go on holidays for a month. The first year I was doing this full time, I actually worked while I was traveling. Last year I had a friend fill in with a couple of my clients doing some of the work and other parts were left until I returned (mainly database entries). However, this year, I am requiring my friend to take on a lot of my clients (about six of them). One particular client requires my friend to take over everything I do which has required me writing a very long and extensive manual and take the day to train her tomorrow (only part will be for this client). However, when I asked if the client was willing to pay for some of the cost of my time in preparing the manual and for training, they have baulked. It has taken me approximately 8 hours to write the 60 page manual plus there will be another 3 or so hours training tomorrow for just this client. Who do you think should be responsible for paying for this? Sarah Munro, Sarah’s Office Services

Two questions for the price of one! lol

Let me preface things by saying there’s no right or wrong way when it comes to how you want to handle things in your business. So I’m just going to offer my own personal thoughts on this.

As far as the manual goes, to me, that’s just the cost of doing business. The client didn’t ask you to go on vacation and they didn’t ask you to develop a manual so you could have your support step in to do things. They just want to have the support they are paying for each month. If it were me, I wouldn’t charge the client for this as I initiated it as something to make things go smoother for me while I’m away.

And even if they had asked for the manual, I would still include it as part of our relationship retainer. Of course, you may not be pricing and packaging things the way I do, so that makes a difference as well.  I charge and get paid well enough that things like that don’t even need to be a blip on the radar, so to speak.

You actually have me somewhat stumped on the month-long vacation, lol. I mean, I have never taken an entire month of vacation away from my business. But I also don’t feel deprived in any way because I’m not working like a slave the rest of the time either. I don’t ever have feelings where I need to escape, which I know a lot of people do have (not saying you do, just saying in general).

My business is part of me, part of my life, so when I go on vacation it doesn’t bother me to keep a certain amount of tab on things and keep up with the most important things and delay or reduce others to half-mast.

In fact, maybe it’s just me, but one of the things I really enjoy when traveling or going on “vacation” is (for example) sitting in front of the ocean and doing a little work or checking emails on the laptop and aircard. When I lived in Europe, one of the things I absolutely loved to do was “set up shop” at my favorite cafe and do work while savoring the sights and sounds, people watching and soaking all the atmosphere in. Cafe society in Europe is so delicious!

Of course, that doesn’t mean I’m going to actually deprive myself of a real vacation either. What I do is let clients know at the beginning of our relationship my policies and standards when it comes to the fact that I will be closed at times and even go on vacations. I don’t want them to be taken by surprise (which they really shouldn’t be anyway, but still it’s helpful to have those conversations upfront so they expect it and know exactly how things work).

I let them know how and what things will still be taken care of during that time (or not, as the case may be) and how/when they may need to step in and do things themselves. Yes, clients should never be dependant upon you! It’s their business and they should be able to step in when they need to.

I want clients to view our relationship as a whole, in the context of ongoing, so when they pay by monthly retainer, it’s more of an installment type of thing, in an abstract way of thinking of it. At the same time, I can’t justify for myself being paid a full month’s retainer if I plan to take an entire month off without giving them any level of support whatsoever. If I were to ever do that, and really and truly not work at all (and I’m just speculating here because I’ve never fully taken an entire month off), I would probably make sure there is some kind of support still available while still being half mast and/or maybe give them some kind of reduced retainer rate.

The whole vacation thing is one of the reasons I advocate for Administrative Consultants partnering with their own Administrative Consultant in the same kind of ongoing, monthly relationship that our clients have with us. When you do that, you have someone who gets to know you far better than someone stepping in off the cuff, who learns the ropes of your business and is a partner to you, not a subcontractor. This makes it much easier and more fluid for them to step in and take care of things when you are away.

I hope you have a blast on your vacation. And if I do ever decide to take off a whole month, I’ll be coming to you for advice!

Flexibility for Flexibility’s Sake is No Flexibility At All

Hey, that sounds like a song. But really, it’s an important idea to examine if you are a self-employed business owner.

Here’s a common scenario that happens with new Administrative Consultants as well as many other self-employed service providers:

You’re a self-employed service provider. You don’t want to run some big business or become a manager of people. Doing the hands-on work is exactly why you went into business for yourself. It’s as much about meeting the needs of your soul, having an outlet to express your talents and skills, and finding meaning and purpose in your work as it is having more control over the quality of your life and income. And that makes you perfectly happy.

But you’ve never run a business before in your life, and are blissfully unaware at this point what you are really in for.

You go about trying to get clients, any clients, any way you can. And because you’ve never run a business, you go about this as if trying to land a job instead of clients. You don’t know any differently (yet).

So you get a client. Yay! You’re so excited! Every thing is hunky-dory… at first.

But then this client starts “bossing” you around, and asking you to do things that weren’t part of the bargain. You do them anyway–you’re nothing if not flexible! But soon enough you start to feel the inklings of resentment. You don’t like the way you’re being addressed. This client doesn’t seem to respect you as a fellow professional. More and more, this client seems to think you aren’t even worthy of complete sentences, only orders barked or grunted at you.

Eventually, you attempt to get things back on track and salvage the relationship. The client on the other hand doesn’t appreciate that you’re “getting uppity” with him; after all he’s paying you to do his bidding (at least that’s his understanding) and doesn’t want any flak.

This client also has no sense of boundaries. You’ve been so “flexible” with him that he now pretty much thinks it’s okay to call you at all hours of the day or night, intrude upon your personal life, and that no matter what hoops he asks you to jump through, you supposed to  simply ask “how high?” And he expects things to be done as soon as he’s barked out the order. After all, you’ve based your whole brand identity on “flexibility” and “instant, on-demand assistance.”

So now this client is putting demands on you that you never bargained for. In an effort to ever be the people-pleaser, you try to accomplish his every command and expectation. And that’s another thing–this client’s attitude has become one of self-entitlement. You rarely get a thank you or good word on a job well done. And now he is starting to ask you to do stuff that isn’t even administrative, much less part of the scope of support that were outlined when you first started working together.

You now  dread dealing with this person and find yourself avoiding answering the phone. This client’s work is piling up. You keep procrastinating out of resentment and overwhelm. He’s piled so much on your plate that you are completely miserable and stressed out by it all.

You (finally!) get a clue that this client thinks he’s your boss, not your client! A lightbulb goes off and you realize this is really your own fault because that’s exactly how you marketed yourself and your services and how you’ve been delivering them. Like an assistant… an employee… an employee who has no say in who she works for, what work she will provide and in what way and when that work will be accomplished and delivered. Like spoiling a child, you’ve created your own monster client by setting no limits or parameters for working together. And like a spoiled child, this person has become obnoxious and intolerable to be around.

You’re also not making any money because you’re spending a ton of unpaid time trying to please this one spoiled, demanding, self-entitled client. You’re definitely not charging enough. You haven’t earned a penny’s profit, and this client is sucking the life right out of you.

Miracle of miracles, you do manage to land another couple clients throughout everything, but you’ve got absolutely no control over your schedule, the work nor the demands placed on your time because you’ve established no control and no boundaries. Your every waking hour is now spent trying to keep up with everything, putting out the biggest fires first, and succeeding well in neither. You also now find yourself spending your weekends, evenings and family time on work, and still missing deadlines.

Your newest clients are much more ideal for you–hey, at least you learned a thing or two about choosing who to work with! They’d be dreams if you didn’t have so much darn “flexibility” in your life, but now they, too, are getting frustrated with you because you aren’t living up to the promises you made. You try to hide it, but deep down you know you aren’t doing good work for them because of the way things are in your business, and it wouldn’t surprise you if they bailed on you tomorrow.

Forget taking on any other clients. You’re unhappy. You’re existing clients are unhappy. You have zero room on your plate for anything else. Ironically, in trying to be totally flexible and make everybody else happy, you now have no flexibility (and no life) whatsoever. And none of the reasons and rewards of working for yourself exist anymore because in trying to chase this “flexibility” ideal, you haven’t taken care of your needs and those of your business first.

This is what happens when people don’t have a deeper understanding of what “flexibility” is really about. Flexibility comes with boundaries, standards, processes, and thinking things through. What kills flexibility is not having that kind of infrastructure in place in your business. Sometimes, in order to do best by your clients, you have to say “no” to ways of working together that are ultimately going to zap your ability to be flexible.

You will have flexibility to give if you instill a foundation that actually creates it. But flexibility for flexibility’s sake is no flexibility at all. It’s a precurser to chaos, unmanageability and unprofitability in your business. Taking heed and learning what that really means in your business is going to help build a foundation upon which you can get the right kind of clients, do the work you enjoy and do well, and have space and flexibility to delivery the absolute best services to clients that you can.

What can you learn from the scenario I painted above? What boundaries and standards will you set in place to avoid this from happening in your business? Will the way you are doing things now work as well and maintain your sanity once you have more than one client? Are you thinking about about how your business, how your day, will look and then devising policies and procedures that will fit with your future business?

Dear Danielle: Should I Get Upfront Payment?

Dear Danielle:

Do you suggest requiring an up-front payment of any kind from clients? –CM

Absolutely!

Does your supermarket let you take your groceries home and eat them before deciding whether or not to pay for them?

Okay, I’m being a little flippant, but, seriously, this is business, not charity. Allowing folks to pay after the fact not only leaves your business unnecessarily vulnerable, but it amounts to extending credit, and credit is something that must be earned, not expected. I don’t know about you, but I’m not in business to subsidize or finance someone else’s business.

I’m not sure why the Virtual Assistant world continues to have a problem understanding this, but it’s actually very common for businesses to expect 100% payment upfront.

If you are doing project work, I really recommend you require 50% payment upfront or the per-hour minimum you have established in your practice (whichever is greater), with the full balance due in full upon completion and prior to delivery. You could even bill in other percentage increments throughout the project to correspond with completion of certain phases.

Requiring deposits and upfront payments (such as retainers) helps your business in a few ways. First, it weeds out anyone who isn’t serious about having the work done and might end up stiffing you (with a deposit, at least part of your business interests are covered). Your business cash-flow is improved, and administrative time reduced. And you end up getting a whole other (better) kind of clientele.

With new clients on Pay-As-You-Go (PAYG) plans, who pay by the hour rather than on retainer, I would require a first-time deposit in the order of something equal 3-5 hours work or your smallest retainer fee. It’s sort of like earnest money, and helps weed out those who aren’t going to be committed to working together.