Archive for the ‘Financial Success’ Category

What Is Your Talent Worth?

What Is Your Talent Worth?

Not sure where I first came across this quote, but it’s a sentiment that always bear repeating.

To an extent, value is relative. Which is why it’s important to work with the right, well-chosen clients, clients who need what you have to offer and will therefore appreciate (i.e., value) it more highly.

That said, at a fundamental level, if you don’t value what you have to offer (and price it accordingly), no one else will either.

Does this resonate with you? I’d love to hear why.

Dear Danielle: Is There a Formula for Raising My Rates?

Dear Danielle,

Happy New Year!  I hope all your dreams will be actualized in 2019! My question relates to raising rates with current clients and if there a formula to follow. In the past I have used the script you provided in your blog post Raising Your Rates, and I must say it has worked like a charm. I love all the advice you provide on the blog in this category, especially about not letting fear get the best of you when you offer high quality service. Over the last couple of years, I have restructured my administrative consulting business. I offer a core service in two niche markets. During this time, I have retained five clients and have had great success. With each new client,I have incrementally raised my rates. This gets me to my question: The first client I retained almost two years ago is THRILLED with my service. Not only did I meet the contractual obligations, but went above and beyond. I really hit the ball out of the park with this client. They are often singing the praises about my administrative consulting firm. Since their two-year anniversary is approaching, I was planning on raising their rates. Is there standard protocol to follow (like tipping a server at a restaurant)? I thought I would raise my rates (REMOVED)%. This is a number I picked because when I see a vendor, utility, or dental plan increase by this amount, I think, “that’s fair,” but any higher, I feel like I am being taken advantage of. Next, I looked up the cost of living increase on Google. It is 3% each year for 2017 and 2018. That makes me wonder, would I be undercutting myself with a (REMOVED)% raise and should I increase to (REMOVED) %? Vacillating to the other end of the spectrum, I am obsessed with client satisfaction. I don’t want to raise the rate so high they feel taken advantage of. We have a dynamic relationship. Would seeing the numbers help? The client’s current retainer is $(REMOVED)/month. As I solicit new clients, they will pay $(REMOVED)/month for this service. However, I am not ready to lose this client. I truly value your guidance in this situation. Thanks again for all you do for our community!Name Withheld for Privacy

Thank you, and happy new year to you as well! And thanks for the great question which I’ve been chomping at the bit to answer for you.

First, congratulations on your well-earned growth and success. That is absolutely wonderful to hear!

I also want to let you know that I am keeping your name anonymous and removed certain info from your question for reasons I will explain below.

The short, quick answer is that there is no formula for raising your fees. I know people love to be given formulas, but it’s not that simple.

It’s also highly illegal for members of a profession/industry to discuss rates or setting standards or minimums or formulas when it comes to pricing as these things violate antitrust laws. Those kind of conversations constitute what is termed “collusion.”

The state and federal agencies that oversee these laws take violations very seriously so we never want to run afoul of them.

It doesn’t matter how big or small a business is, whether they are sole proprietors or big corporations, or how much money they make, we are all subject to these laws.

As they will tell you: ignorance is not a defense. This means you can be prosecuted for violations whether you were aware or not.

This is why I am always trying to educate our industry on this topic. Read this post for a bit more in-depth info: Dear Danielle: Why Can’t You Just Give Us a Ballpark Figure When It Comes to Pricing?

So for all the other colleagues out there, the bottom-line is this: STOP asking others what you should charge!

Not only are you putting yourself in danger, you are putting others as well as our entire industry in jeopardy. Your pricing is for you and you alone to determine.

The good news is that we don’t have to discuss specific numbers to help each other learn and grow in our business smarts and profitability.

Here are the things I would want you to give some thought to:

1.

Don’t compare what you do to a utility. You are not a commodity; you are a professional service provider.

Your value is relative to how you improve the life and business of each of your clients, not how much they pay for a box of cereal on a shelf.

Here are a couple of posts to help people better understand and remember what their real value is to clients (hint: it’s not how much/little clients pay or how much money you save them):

How has your work helped them advance, grow and improve in their business? What goals has it helped them achieve or get closer to? How much more time and freedom do they have since working with you?

When it’s time to raise your rates, be thinking along these lines and taking note of them, not just how much your workload may have increased, although that is certainly relevant as well.

People know that when they get more, they pay more. The benefit of connecting what they have gained by working with you, however, is that it helps keep them in a positive mindset toward fee increases, particularly when they are increased for more abstract reasons (such as cost of living) and not necessarily increased workload.

How you determine your fee increases and how much to increase them by is entirely up to you. There is no right or wrong way to do it.

2.

I’m concerned that you have one-price-for-all.

If you are providing administrative support, you are providing a variety of tasks, functions, and roles for each client, each of whom is unique and whose support areas, needs, levels, and objectives are all going to be different from the next client.

When you are providing a value-based service, there shouldn’t be anything cookie-cutter about your pricing. Each client’s needs and support plan should be evaluated and determined on an individual basis. This is something I show people how to do in my Value-Based Pricing Guide.

It doesn’t tell you what to charge or give you a formula. It will show you what factors to take into account, how to identify/categorize support plan areas and set parameters and boundaries, and give you as systematic an approach as you can get for determining your pricing around your support plans that is fair and profitable for both you and your clients.

3.

Capture their “before” picture at the start of every new client relationship.

When you consult with potential clients and onboard new ones, be sure to include a step where you obtain as complete a picture as you can of their current challenges, difficulties, pain points, and obstacles, as well as their desired objectives and outcomes BEFORE you start working together.

(If anyone reading this doesn’t have a consultation process in place, you NEED one now! Get my Consultation Guide for an easy, step-by-step plan that shows you exactly what to do before, during and after.)

Not only does this help you create case studies/stories for your website, it’s also incredibly useful insight to have when it’s time to raise your fees.

By better identifying what each client actually values and what they’re trying to accomplish through your work together, you can use that information to set benchmarks and emphasize those accomplishments.

They also inspire clients by helping them remember what life was like before they had your support and how far they have come and what a smart decision they made in choosing you.

4.

Survey clients for their feedback and suggestions on a regular, consistent basis.

This is something else that is useful when presenting fee increases as it can help you connect the dots from your work directly to what the client’s values, goals and objectives are.

I recommend getting client feedback at least every year for established clients, and more frequently (e.g., every three to six months) for new clients.

One caution, though: Don’t raise fees at the same time of year that you survey clients for their feedback and suggestions. Do these two things at different times of the year.

5.

Similarly, if you have my Value-Based Pricing Guide, you know that I also recommend reviewing every client’s support plan at regular intervals.

For new clients, you are going to do this more frequently because there is a lot of ramping up and getting to know the work and each other and fine-tuning of things in that first year of working together.

For them, I suggest reviewing their support plan internally every two to three months initially in that first year.

You want to make sure you are honoring the parameters you both agreed to and identifying any scope creep that you have not have taken in account and then adjusting accordingly at the next fee increase.

With established clients, you may decide that an annual support plan review is sufficient for your purposes.

6.

Keep clients informed upfront all along the way with plenty of notice.

Let new clients know that there may be a period of adjustment in the first months/year of working together and that you will be reviewing their support plan every so many weeks or months.

If there are areas that have been or need to be added on or increased (or been eliminated or significantly decreased, for that matter), let them know that the fee they pay may be affected.

And let established clients know that their support plans are reviewed regularly as well (e.g., annually or every six months).

The key is to inform all clients upfront that their support plans are reviewed at specific intervals and that there will be periodic fee increases as you deem necessary or appropriate

You want them to understand that what they pay is relative to the support areas and parameters you have agreed to, and as those change and evolve or increase, you will be examining them and adjusting pricing accordingly.

At a very basic level, all I can say is this: You know your clients. You know what you do for them. You know when you feel like you are doing more than what you are charging for. You know how they are benefiting from your work. And you know when it’s time for raise fees for the profitability of your business and in keeping with the value you are providing.

When you start to feel those nigglings, that is always the correct time to review and adjust.

Always be reviewing and evaluating internally, and then on whatever regular schedule that you determine, implement your fee increases.

For Example

Let’s say you like to go through your annual feedback process with clients around May or June when business generally tends to slow down somewhat for everyone and they have more time to reflect.

You could then time your annual fee increases for January.

Whenever you time these events, I suggest you always give clients 30-60 days’ notice of any support plan adjustments/fee increases.

This gets them used to the idea, gives them time to ask any questions they have, and ensures no one is surprised or caught off guard. That’s the only thing that would really create ill will.

By giving courteous notice, it’s only going to help you adjust things in the best way possible for both you and each of your clients.

The bottom-line: Never surprise clients with things coming out of left field.

Everyone appreciates a heads-up so they can plan and budget accordingly, and your fee increases will be far more well-received.

Just Because You Can Doesn’t Mean You Should

Just Because You Can Doesn't Mean You Should

Just because you can do everything doesn’t mean it’s a good idea.

People who are new in business don’t tend to understand this at first. They are too eager and excited to get those first paying clients.

But once you have more than one client, you begin to get an inkling of this truth: you don’t want to bog yourself down doing too much stuff and trying to do every. single. thing. for clients.

You’re going to come up against a wall of overwhelm real quick if you don’t get clear and focused about what you do (and what you don’t) in your business.

Focus — on who you cater your support to and what you do for them — is key.

I see a lot of people in our industry really enamored with the idea of doing anything and everything.

It’s an idea they are hit over the head with when they first enter the industry at large, almost as if there is something virtuous about it.

NOTE: It’s not virtuous; it’s misguided. In fact, I am here to tell you it is keeping you from providing a superior level of administrative support and service that clients will pay well for. Doing every little thing is keeping you small and under-earning.

Most of the people who come to me for help in our industry are those who fell for the BS of doing anything and everything only to realize later just how much it is keeping them from being able to develop, from making more money, from having time for a life, and from having a business and clients that actually make them happy.

Sometimes there’s a bit of “savior complex” rooted in this notion, which also isn’t good for you or your business (or ultimately your clients).

Sometimes it’s a lack of professional self-esteem (again, common in people who are new in business). They don’t yet have a sense of confidence in their value and think they need to “prove” their worth by offering to do anything and everything.

Most of the time, though, the folks trying to do anything and everything are those who have not chosen a target market (which is simply a field/industry/profession you cater your administrative support to).

That’s how the cycle starts.

When you don’t know who you are talking to, it’s difficult to form a clear idea of specifically what you do and how you help.

That’s because having no clear idea of who you are talking to forces you to think in a manner that is too broad, vague, and generic.

And so they end up offering anything and everything they can think of that might be of value to someone, somewhere (anyone? pretty please?).

What ends up happening, though, is you become a garbage disposal that clients toss any old thing at, making up their own rules and expectations in your business in the process.

This is what Seth Godin calls being a “meandering generality instead of a meaningful specific.”

When you get specific about who you work with (i.e., target market), you’ll be able to more quickly, clearly, and specifically identify exactly what you do and don’t do that helps clients.

(HINT: And that’s NOT everything and the kitchen sink.)

Here’s an example of avoiding the constant busy-ness of certain work that keeps you from really developing your business into a more powerful revenue and freedom-generating machine.

I’ve long advocated that colleagues never manage any client’s email in-box:

  1. You are not their personal, on-call employee/assistant. (What, do they need you to wipe their ass for them when they go to the bathroom, too? Look, there are just some things that grown-ups need to do themselves. You didn’t go into business to be someone’s lackey, did you? You can get a job for that. Just say no to work like that. It’s not the kind of thing you need to be doing in business.)
  2. You have enough of your own emails to manage to take on anyone else’s; and
  3. In-box management is drudge work that will keep you in the reeds on a daily basis, never able to get beyond the busy-ness to work on higher-value, big-picture stuff, both in your business and theirs.

This is a good example of “you don’t have to do everything to be of value” because even though in-box management isn’t something you do, the time you free up for clients by doing the other things you DO do allows them to better manage their own in-boxes.

What you can do instead is share your tips, advice, and guidance with clients on how to better manage their own in-boxes.

You could do that by writing an ezine article and/or blog post, creating an info product for purchase, putting together an instructional video or DIY email training, or perhaps do a paid online class a couple times a year.

(And by the way, inviting people to sign up to your mailing list to get any one or all of these will help you grow your list and continue to keep in touch and nurture those relationships.)

Dealing with it like that, you are providing additional value without bogging yourself down in that kind of work.

You don’t have to do everything to be of value. Let that sink in.

(If you need help finally choosing a target market, get my free tool that helps walk you through the process.)

The Real Skinny on Being a Digital Nomad

The Real Skinny on Being a Digital Nomad

This is a REALLY good article on the “digital nomad” BS, that (once again) internet marketers are trying to cash in on in recent years on by preying on the fantasies of those living in La La Land.

And I say that as someone who is about to embark on some roadtripping where I will be a semi digital nomad, and also as someone who lived in Europe while continuing to run my business.

That shit was hard!

That is, since ours is an online business, it was relatively easy technologically, but difficult from a mental, logistical, and practical standpoint.

I work MUCH better running things from my home office in the U.S. where my regular set-up and all my stuff is located and I have a regular routine and things-in-place.

I wouldn’t trade the experience of living and working in Europe for the world, but I also wouldn’t advise anyone that it’s a good idea to try to escape your life under the misguided thinking that it’s going to solve whatever you are running from.

Let me tell you, it is not all it’s cracked up to be (no matter what kind of rainbows and puppy dog tail pictures the internet marketers try to paint).

Yes, there are lots of unique experiences you can have (maybe… depending on how intrepid you are).

But it can be very difficult trying to do ACTUAL WORK FOR REAL, ACTUAL CLIENTS on the road.

A lot of the work I see many of these so-called digital nomads doing is fluff (mixed with a lot of BS).

The article has what I consider to be a very realistic, no-nonsense list of what is needed for those who might be considering the “digital nomad” life (I even detest the term; so stupid).

I’m going to venture to say that most of us fare better in our lives and businesses when we have a home-base.

I will even say that for most people, you will have more chance of success in your business if you aren’t trying to start and grow it while being essentially home-less and without the structure and stability of a steady home-base.

And you don’t have to be a “digital nomad” to travel and have life experiences.

What might be better is to build a financially solvent and successful business with smart policies, procedures, and systems in place so that you CAN pick up and travel when the urge strikes you.

Ask any traveling business or salesperson. Living out of a suitcase and hotel room (no matter how adorable that AirBnB may be) gets real old and real inconvenient fairly quickly.

Instead, think about having the best of both worlds by setting up your business smartly and profitably so that you can live and travel when and where you fancy while always having a home and community to come back to.

Have you ever thought about living and working on the road? What would be the pros and cons for you?

Interview with Danielle Keister, Founder of the Administrative Consultants Association

Interview with Danielle Keister, Founder of the Administrative Consultants Association

Last month a colleague asked for an interview with me, and I thought I would share my answers with you here as well.

Your Name:

Danielle Keister

Name of Your Business:

I am the founder of the Administrative Consultants Association (ACA), a professional organization for those running administrative support businesses. I also run my own administrative support business supporting solo attorneys who practice in the areas of business, intellectual property and entertainment law.

Years in Business:

I’ve been in business since 1997 when I officially took out my business license; longer if you want to include the years I did this work on the side informally. I originally started the organization now known as the Administrative Consultants Association (ACA) in 2005.

Q1. Tell me about starting your business. Why did you start it?

My husband died without warning in 1995, leaving me a young widow with a daughter to raise on my own. An unexpected loss like that really makes you question life and what you want out of it, how you want to live, what you want for yourself and your children, etc.: Are you living life on your own terms? How happy are you in the 9-to-5 grind? Is my child really getting the best of me if I’m tired and working all the time just to make ends meet? What kind of life am I providing for her? Is this really all there is?

I had previous forays into a few side businesses that I never really took anywhere. It was after the loss of my husband that I decided to get serious about taking the skills I had and turning them into a real business I could make a viable income from to create a better quality of life for myself and my daughter. I didn’t want to be a 9-to-5’er the rest of my life.

Q2. What is your role/job? What sort of responsibilities do you have?

I would say “job” is the wrong terminology to be using here since we are business owners, not employees. Some people may think that is pedantic, but consciously understanding the difference between employment and business ownership and having a business (not employee) mindset begins with using correct terminology.

In all my years of mentoring, what I’ve found is that those who never truly get over employee mindset and continue to work with their clients as if they were still employees don’t survive long in this business.

This is why I continue to clarify the distinction and make sure everyone I come across “gets” it. I want people to succeed in this business, which really starts with developing that all-important business sensibility.

As a solo business owner, I wear three hats: 1) I’m the CEO responsible for the development and direction of my business and making important decisions about the business; 2) I’m the manager responsible for managing all the moving parts and taking care of administration of the business; and 3) I’m the service provider — the craftsperson whose skills are the stock and trade of my business services.

Q3. What is your typical day like?

Very generally speaking, on a typical day, I wake up according to my own internal clock (I haven’t used an alarm clock in years).

Once I get up, I do a little yoga and stretching, eat, and then get cleaned up and dressed for the day. I fully admit to working in my bathrobe every once in awhile if I don’t have any plans to go anywhere that day, lol. But most of the time, leggings or long skirt with a comfy but stylish tee is how I roll.

I don’t like to rush into the day and prefer to check emails and get things sorted in my in-box as the first thing I do.

There is a lot of talk in many online places that discourage this, but I prefer the opposite and find this email clearing and organizing step much more conducive to my productivity for the rest of the day.

I then tend to dive into client work around 10 or 11 am (I always joke with people that my brain doesn’t get juiced up fully until around 11 am).

Depending on what’s on my plate for that day, I may work until between 4 and 6 pm. But it really varies, depending on the day’s workload, what priorities are in the queue, and what else I’ve got going on.

If the work in my queue gets done early, I don’t jump into the next day’s pile. I go enjoy life!

It does take discipline, though, not to fill your free time with work, work, work.

I think for most of us, our first instinct is to get as much done as quickly as we can. But that is really counterproductive and keeps you on a hamster wheel. It’s not good for you and ultimately it ends up not being good for clients.

You have to be diligent about respecting your own boundaries (which in turn trains clients to respect them as well) and give yourself lots of breathing room so you don’t burn out in this business.

At some point around noon or 1 pm I’ll knock off for lunch, maybe go somewhere to eat.

I also try to get a good walk/hike on most days (try being the operative word here lately). Depending on the weather, sometimes that’s first thing in the morning, sometimes it’s around midday, sometimes it’s later in the evening.

It really all depends, and this is the beautiful thing that I’ve created in my business: the freedom and flexibility to be able to listen to my own natural rhythms, structure my business around my life, and do what I want, when I want, while still taking great care of my clients. (I never sacrifice their needs; it’s all a matter of setting proper expectations and boundaries.)

I’ve also created what is essentially a 3-day work week (you can get my entire business management system here):

  • Mondays are my Admin Days where I take care of the admin in my own business or working on my business.
  • Tuesdays are my meeting days that I reserve for telephone meetings and appointments with clients and others.
  • Wednesday through Friday is when I do client work.

For the past few years, my life has been extra stressed caring for a sick, elderly dad. In full disclosure, I’ve really let my own self-care down. I’m beyond grateful I’ve built a business that allows me to do this for my dad, but it’s not easy and still comes with a cost that has taken a toll on me. Making my own self-care a priority again is something I wrestle with on a daily basis and am currently working to improve.

(For a more in-depth snapshot of my typical day, check out this post.)

Q4. What is the best thing about owning your own business?

As touched on above, the freedom and flexibility to live a less rushed/forced life; the ability to live according to my own natural rhythms and internal clock; and the ability to structure my business and its policies, procedures, and protocols so that I have plenty of time for life (or whatever is most important at any point in time; for me, right now, that is my dad).

I never ever want a business where I am living to work instead of working to live.

One of the things I’m always saying to my clients and colleagues is that your business should support your life, not suck the life from you. It took a lot of fits and starts, trial and error, and course correction, but I’m very proud of the business and income I’ve created today.

I also love that my daughter was able to see that self-sufficiency and determination modeled and be a part of my business journey.

Q5. What is the hardest thing about owning your own business?

Well, I’ll be frank with you: business ain’t for sissies, that’s fo sho!

I was extremely fortunate to have had some opportunities come up that gave me the financial means to take care of myself and my daughter while I started my business.

And later I was also fortunate to have a significant other to lean on during the rough spots, of which there were many, make no mistake.

It takes an extreme amount of perseverance, determination, self-motivation — and time —to get a business to a point where it’s actually solvent and sustainable and eventually profitable.

And, of course, everyone’s mileage and set of circumstances will vary. You just take advantage of everything you’ve got going for you, figure out the rest, and if you can get past all that, the rewards are amazing!

Q6. What advice do you have for someone wanting to start a business? What do you know now that you wish you had known when you started?

One of the reasons I started the ACA was to provide others with the knowledge and easier path in starting their own administrative support business that I didn’t have way back when. I did it all without knowing there were others doing what I was attempting to do.

One thing that was pivotal in my success was realizing that a secretarial service is not administrative support.

Secretarial services are project-based businesses where the person does something here and there for drive-by clients.

It’s an inherently volume-driven business, one that requires you to always be on the hunt for your next clients and projects, even while you try to complete the work in front of you.

It’s a plodding, exhausting way to try to make a living and extremely difficult to get profitable.

Once I realized that, instead of project work, I could provide administrative support being an ongoing right-hand to a handful of regular clients on a monthly basis instead of a constantly revolving door of one-time or sporadic clients and rinky-dink projects, that’s when I cracked the revenue code.

But it took me a few years to get to that realization and figure out how to structure things properly.

Now, I base all my training and business education products around that basic tenet so that others won’t waste so many months or years.

I show them how they can build a business based on retainer clients (which is where the bread-and-butter is) while still taking advantage of project work that comes along that is of interest to them (which is gravy).

Another bit of advice I have for folks is not to take shortcuts with the business startup process. Every step helps build your business mindset and sensibility.

People get impatient with the process and want to jump ahead of themselves and it’s really to their detriment and that of their clients.

I’ve seen more businesses shutter their doors because the owner didn’t put the proper foundations in place before taking on clients.

Don’t rush things. There is a little bit of back and forth involved as you figure things out, but beyond that, there is a basic step by step process involved in any business start-up. Don’t skip those parts:

  • Do the business plan.
  • Learn how your local, state and federal taxing and licensing works and what your responsibilities/obligations are.
  • Don’t take on clients before you’ve got at least a basic website up and mapped out a rudimentary set of policies, procedures and protocols. Your website is an incredibly important tool in properly educating clients about the nature of the relationship and bridging understanding so that you attract your right, most ideal clients. You will find that having something there to start with is going to be incredibly helpful in building, growing, and honing your business from there.

These are all exercises that help you create the strong foundations you need to be able to get — and keep — clients. The problems with clients and not getting the right ones happen when those things are absent.

If you were interviewing me, what other questions would you have for me? Let me know in the comments!

Why Being a “One-Stop Shop” Is BS

Why Being a "One-Stop Shop" Is BS

I think the idea that very commonly travels around our circles that we should be “one-stop” shops is dangerous.

Dangerous in that it sets you up for failure and mediocrity.

Dangerous because it’s rooted in employee mindset.

Dangerous because it stems from an underlying lack of healthy professional self-esteem that who you are and what you do is ENOUGH.

And dangerous because it teaches clients and others to devalue the expertise you ARE in business to provide.

It is ENOUGH to be in one business, not a million different businesses at once (i.e., administrative support… not administrative support AND web design AND graphic design AND bookkeeping AND marketing AND social media AND writing/copywriting, and any and every other hat you can find to put on).

That BS is something employers pulled on their admin staff because they could get away with it (i.e., dumping every kind of work and role onto them beyond their job description without any promotion in title or pay).

You don’t need to carry that wrong and negative influence over into your business. And you shouldn’t.

Because you are not a human garbage dump.

Because business and employment are not the same thing.

And because running your business and working with clients as if you were still an employee keeps your business from really flourishing.

It is ENOUGH to keep your eye on your one focus and discipline.

In that way, you beat mediocrity and can be the very best you can be at the particular thing you are in business to do.

Trying to diversify and be all the things to every body keeps you unfocused and dilutes the time and energy needed to do any one thing particularly well.

People who specialize in mediocrity don’t make the big bucks, are tired and scattered all the time, and never gain traction in their businesses.

You DON’T have to solve ALL problems for clients. You only have to solve the problem your business is set up to solve.

You DON’T have to be all things to every body.

Dear Danielle: Client Wants Me to Cut My Fees By $200 a Month

Dear Danielle: Client Wants Me to Cut My Fees by $200 a Month

Dear Danielle:

I recently had a contract client who could no longer afford to pay me the regular contracted amount because of a slowdown in her business so she asked that I drop my price about $200 until she was back on her feet. How should I deal with that? She’s been my client for 3 years and she’s always paid on time and every penny. I agreed to the cut but not sure for how long. Any words of advice? —KP

It sounds like this is a good client with whom you’ve had a happy, healthy business relationship thus far.

It also sounds like this client is paying some sort of monthly fee, if I am surmising things correctly.

And there’s no reason to throw all that away.

BUT there’s also no reason why this client’s financial woes should be your problem. Especially since you aren’t sure how long it will continue.

There IS a compassionate, client-centric way you can offer to help this client out during what I assume is only a temporary predicament without sacrificing your own business needs and well-being.

And it starts with this handy phrase: You don’t get what you don’t pay for.

That’s obviously not very client-centric the way it’s phrased, but the solution in its meaning is, very simply, to take something off the table.

What that means is, if you are selling hours, take $200 worth of hours away from their retainer. Only work up to the number of hours they have paid for.

If they can only pay for 15 hours instead of the usual 20, then they should only get 15 hours of support, not 20.

Alternatively, if you are using my value-based pricing methodology (which is a faster, more effective way to make an impact and give clients more readily apparent, targeted results), take a $200 task/function/role away from the monthly support plan.

Have a conversation with the client, identify what the most important functions are to their operations during this financial lean-time, and then offer to remove/temporarily suspend a $200 value task/function/role that is least necessary and will have the least impact on their continued smooth functioning and profits.

Give them two or three options of what could be removed for $200 less a month, and let them decide which one to sacrifice.

It’s also possible during this discussion that the client realizes even more the value of what you do for their business and decides to find the money to keep paying your full fee for full services to continue.

If this were me, I would also be curious about the reasons for this client’s financial down-turn.

If they were open to sharing, it’s possible I would have some ideas and insights on what we could do and where we could focus our work to create some new/fresh revenue.

Perhaps you even saw this coming, but the client had previously been resistant to exploring your ideas, trying something new, or doing things a little differently than they were used to that might have helped them improve financially. They might now be a bit more receptive to hearing you out.

I would, however, certainly expect to be paid for any additional work/consulting I provided. It’s up to them to decide where their priorities are.

No reasonable client would expect you to work for free.

And despite any client’s best (or unrealistic) intentions, they don’t have a crystal ball no matter what grand promises they make.

So the best policy is to go about things in a way that serves your business interests.

Keep in mind that you have an obligation to safeguard your financial well-being and business profitability not only for yourself, but for your other clients as well.

It doesn’t serve them for you to be giving away time, energy, and work for free to someone who isn’t paying fully for it.

And don’t even think about letting this client pay on credit (a la “I will gladly pay you tomorrow for a hamburger today”).

You won’t be doing them, yourself, or your other clients any favors by letting them go into debt to you.

If they are already in financial straights, owing you or anybody else more money is only going to bury them further.

Remember, you teach people how to treat, value, and respect you.

Lower your fee for this client if you want to help and keep them on your roster; just make sure you also take away an equal amount of work from what you provide them with.

And have another conversation with this client to reset the expectations around what they will and won’t get for the reduced monthly fee.

I also suggest giving the client a definite time limit on this special arrangement.

Give it a month or two and inform the client that you will need to review and discuss things again at that time to determine whether or not it’s still feasible/profitable/in your business interests to continue the arrangement.

If there’s no improvement in sight, you may even decide that, while you wish this client well, keeping them on your roster is no longer profitable for you.

If any of this is helpful, one way you could return the favor is by letting me know in the comments. I would truly value that.

And if you or anyone else has more questions on this, please feel free to ask in the comments, and I’ll be happy to continue the conversation and share my further insights and advice.

If You Do Nothing Else, These Are Words to Live By

If You Do Nothing Else, These Are Words to Live By

I was reading Brit Marling’s article about Harvey Weinstein yesterday morning. In the first paragraph, she relates some powerful wisdom her mother imparted to her when she was a little girl:

“To be a free woman, you have to be a financially independent woman.”

It’s akin to something Suze Orman always reminds women of: “A man is not a financial plan.”

This is one of the most important reasons I work to help other women in this business earn better, to better understand the economics of business and how the business-to-business relationship with clients works, and teach them the important business skills that are integral to being able to ask for and get professional fees and how to navigate those business conversations: the consultation, pricing, your marketing message, chief among them.

Even if you are not your family’s primary breadwinner, life can change in an instant.

Divorce, illness, death, accidents, acts of nature… there are any number of unforeseeable events that can befall any of us at any moment and put us in the position of having to be the sole provider. Being a single mom is perhaps one of the most important reasons.

This is why my goal is to always show other women how to build a business that can take care of itself, to show them how to create the kind of income they can actually live on whether they are or need to be or should become the primary breadwinner; to establish a business that runs like a business and can scale at any point in time, even if right now you only want to work with one or two clients.

Being financially independent and creating a business that can take care of you and your family if need be is one of the best things you can do for yourself and those you love.

How NOT to Choose Your Clients (and What to Do Instead)

How NOT to Choose Your Clients (and What to Do Instead)

One of the best investments you can make in the long-term sustainability of your business, happiness and peace of mind is choosing your clients wisely.

As you grow in your business, your selection process will evolve and your discernment skills will improve.

No matter how young or inexperienced your business is, though, having clients meet at least some minimal criteria before you allow them on your roster will always serve you well.

That’s because choosing to work with shady or otherwise unideal clients will come back to bite you in the butt, one way or another, either sooner or later.

I was reminded recently of a colleague who reached out to me after being approached by a client who raised all kinds of red flags with her.

Being new in business, she asked me what I thought she should do, and I gave her the advice I always give in this situation: trust your gut.

And she, as new people often do, ignored her own wise counsel and all the telltale signs indicating that this was a bad idea and took the client on anyway.

While she found this client’s honesty and integrity questionable, she wanted the experience and was too eager and impatient for clients to let this first one go.

She rationalized this decision by telling herself that it wasn’t her place to judge, that everyone deserves benefit of the doubt, that she would just put blinders on and do whatever honest work she was given and not involve herself in anything beyond that, and that it wasn’t her place to question things.

She wouldn’t engage in anything illegal, unethical or dishonest, she told herself, and what she didn’t know beyond that wasn’t any of her business.

But here’s the thing: It IS your business to question things. You are deluding yourself if you think you can keep it separate and not be complicit.

Well, long story short, this did come back to haunt her, as all her instincts about this client (the ones she chose to ignore) turned out to be accurate.

It came to light that this client was engaging in some disreputable and unethical practices and ended up being sued by several parties.

She was forced legally into all the drama which caused her a lot of stress and anxiety, not to mention diverted her time, attention and energy away from her own business.

Ultimately, this client lost his business and because she had put all her eggs into this one basket, she was left with no client and no income at all. Back to square one.

These were very painful lessons she learned from this experience that caused her serious damage and could have been avoided.

It took her more than a year to start over. But I don’t think she ever gained any confidence back in herself, and it wasn’t long before her enthusiasm for her business petered out and she closed up shop.

The takeaways I hope people can glean from this are:

  1. You can’t separate your values and principles from your business. They are each a reflection of the other.
  2. You can’t associate with dishonest, unscrupulous people and expect to come out unscathed.
  3. You can’t afford to work with shady or otherwise unideal clients. It will cost you in far more ways than you realize with potentially disastrous results you may not be able to recover from. It’s an unwise, unshaky platform on which to build your business and reputation.
  4. All good things come to those who wait. Don’t be so desperate to take on the first client who comes along if they are not a good fit.
  5. Always trust your gut. It won’t ever steer you wrong.
  6. It’s okay to make mistakes. Just be aware that the damage bad clients can do to you can sometimes be devastating. Walk away from any client, immediately, who doesn’t seem like a good fit.
  7. Maintain an abundance mindset. This is not the last or only client in the world. Walking away from problem clients opens you up to attracting better, more positive and ideal ones.
  8. Never put all your eggs in one basket. A good rule of thumb is that no one client should make up more than 20% of your business and income.

What can you do to avoid this trap in your administrative support business?

  1. Sit down now and list the values, standards and principles that are important to you in life. The act of writing things down formalizes these standards and makes them more concrete and tangible. Continue to add to this list throughout the life of your business. Then devise your policies, protocols and procedures around these standards and values.
  2. Create ideal and unideal client profile lists. These lists, again, are extremely useful tools that help you formalize your intentions around choosing ideal clients and avoiding bad ones. As you go along in your business, use these lists to note those traits, behaviors, conditions, etc., that are and are not a fit for you. This will help you be more and more conscious about who you do and don’t want to work with. Any time you are tempted to ignore your standards and gut instincts, pull these lists out for a jolt back to reality.
  3. Always conduct a thorough, formal consultation with each and every client. Don’t take shortcuts with this process. It’s an incredibly important and useful step in helping you identify and choose the most ideal clients for you and your business. (And if you aren’t sure how to conduct a good consultation, you can get my complete, step-by-step guide that will show you exactly how to do it as well as beef up blind spots and make improvements to your existing process.)

You’ve heard some version of the fable of the scorpion and the frog, I’m sure. The bottom-line is this: A slippery eel is a slippery eel. Don’t let one sweet-talk you out of your better judgment.

How about you? Have you ever taken on or been tempted to take on a client you had reservations about? How did it turn out? How did you resolve to do better the next time around? What insights do you have to share with others on this topic?

Dear Danielle: Should an Administrative Consultant Have One Specialty?

Dear Danielle: Should an Administrative Consultant Have One Specialty?

Dear Danielle:

In your opinion should an Administrative Consultant have one specific specialty, or should you specialize across a few specialties to maximize profitability. My idea is to focus on providing admin services to local small bankruptcy law firms, who may not have a paralegal on staff, as I have extensive work experience as a paralegal. Any insight on this would be most appreciated. Thank you an advance for your help. —TR

Thanks for the question… because it’s something I see a lot of people confused about in the administrative support industry at large.

In an Administrative Consulting business, you already have a specialization: administrative support.

What you’re in business to do is already your specialization.

What I see a lot of people not understanding is that administrative support is a specialization in and of itself.

They confuse being an administrative assistant when they were an employee (who very often had everything-and-the-kitchen dumped on them without any say-so or proper additional compensation) with administrative support as a business.

One is a role of employment while the other is a specific expertise. They are not one and the same thing.

And what you don’t want to do under any circumstances is run your business and work with clients as if you were their employee.

First of all, it’s illegal. Second, because it’s unprofitable and unsustainable.

When we talk about specialization in the Administrative Consulting business, we’re talking about having a target market, which is simply a field/industry/profession you cater your administrative support to.

You provide a good example: Bankruptcy attorneys is a target market.

Generally speaking, attorneys is a target market and the practice area of bankruptcy attorneys specifically would be called your “niche” or “specialization.”

My target market is attorneys as well, but specifically intellectual property/entertainment law attorneys.

See what I mean?

The reason this is the useful thing to focus on is because (in the case of our example of attorneys), one practice area can do such drastically different work from another practice area, that the administrative support would be completely different as well.

The marketing message you would need to come up with if you worked with estate law attorneys would be very different from the one you’d create if you were speaking to criminal law attorneys.

I have a number of blog posts that elaborate on this topic. Dig around in the Target Market category and I think you’ll find some that hit this right on the nose for you.

As far as profitability goes, I would need a bit more information about what you are worried about. I think it does, however, pinpoint a fear that a lot of people new to business in our industry have.

They think if they focus on a target market they’ll miss out on opportunities. In fact, focusing on a target market makes marketing your business and getting clients vastly easier.

That’s because instead of being a meandering generality, they become a meaningful (and more compelling and attractive) specific.

The market expects to pay those with a specific expertise (like that of administrative support) much more than those they perceive as merely gophers and jacks-of-all-trades (e.g., the person who will do anything just to make a buck, from whose website it isn’t clear what exactly they do, whose marketing message is all over the map).

Plus, there is so much constant mental switching of gears when you try to be this, that and the other. That in itself is unprofitable (Been there, done that.)

So I would tell you: focus your business on the one thing. You’ll be perceived as someone with a specific expertise (in our case, the expertise of administrative support), your business will be easier to run and the work easier to do (which makes it more profitable), you’ll get clients much more easily, and you’ll be able to command higher fees that allow you to make more money working with fewer clients.