How to Hire a Freelancer

 This week,  we flip the script and examine the thought processes and procedures that ought to be followed when we are hired for a project.  How do ya  like them apples?

1.)  Determine what work needs to be done.  This  should be obvious,  but a surprising percentage of  project managers do not have a clear idea of the scope of the job.  They may furthermore have an unrealistic  view of the time,  resources and information needed for successful project completion.  These are the managers who hire a Freelancer to work 10 hours /week for 4 weeks,  when 20 hours /week  for 8 weeks is what the project requires.  This information is imperative for accurate project budget development.

2.)  Determine the relevant qualifications most likely needed to successfully perform tasks associated with the project.  Resist the temptation to gratuitously demand degrees and certifications  simply because in a tight economy it is possible to do so,  under the mistaken notion that this will ensure that the best candidate will be hired.  Pieces of paper are not necessarily an indicator of ability.  Experience is  a  much more reliable indicator of competence and therefore should be the primary qualification sought.

3.)  Research the price range for consultants within the  specialty.  This information is also necessary for accurate budget development.  Verify that adequate funds will be in hand,  so that Freelancer invoices can be paid on time.

4.)  Interview three or four candidates if  this project has not been outsourced previously.  First,  gauge what level of talent is available.  Second,  learn to recognize candidates who are  able to do the job.  In this economy,  there is  a large pool of  high quality talent available within most specialties.  These  individuals can bring skills and insight to a  project that  a  hiring manager may not have considered and they may be able to effect a better outcome than was originally envisioned.  Some candidates  may have a better understanding of what is needed to successfully complete the project than the manager.

5.)  Clearly describe the project scope to those who are interviewing and review again for the Freelancer who is ultimately hired.  Again,  this seems obvious,  but a disappointing number of project managers fail to disclose certain specifics of the project.  Inevitably,  this results in disappointment and frustration for all concerned.  Failure to accurately describe project specs is most unfair,  because whose   “fault”  is  it when expectations are not met?

6.)  Confirm the availability of the Freelancer most likely to be hired and speak with one or two of his/her clients as  a  reference check.

7.)  Develop a written contract/proposal  that clearly details project specifications and expected outcomes or delieverables,  hours /week,  project start and end dates and pay scale.  In some situations,  the Freelancer hired will provide this document.  Both the project  manager (or responsible organization representative) and the Freelancer should sign the contract/proposal,  with a photocopy given to the Freelancer.

8.)  Require that the Freelancer hired signs a confidentiality/nondisclosure agreement.  This will allow staff to feel comfortable to candidly discuss pertinent business matters in the presence of the Freelancer.  Find a template online or ask an attorney to prepare a standard template that can be generally used for consulting needs.

9.)  Introduce the Freelancer to staff,  starting with those with whom he/she will regularly work or encounter.  It is  a  good idea to inform staff that  a  Freelancer will  be hired for the project.  It is a better idea to verify whether there are staff  in-house who have both the ability and time to take on the project,  if only the  manager was smart enough to ask! 

Thanks for reading,

Kim

The Living is Easy…

And so we are drifting through the summer doldrums.  As heat and humidity rise,  our focus and motivation fall.  Summer is the slowest period for Freelancers and most others,  with the exception of  landscapers, building contractors, wedding planners and those in the tourist industry.

For the majority,  summer means billable hours  that evaporate like the morning dew on roses.  But who can afford 10 weeks of idleness?  Savvy business owners know it is wise to make hay while the hot sun shines and use the summer months to position themselves to create business in the fourth quarter and beyond.  A business slowdown need not mean no business activity.  Summer is the perfect time to pick up the thread of what slipped off the radar screen earlier in the year.

You may start this productive cycle by reviewing your business model.  How efficient is your operation?  How much does it cost to make a sale?  Just how profitable is your business,  anyway? What processes could be streamlined?  What technology could make service delivery,  customer contact and/or administrative functions easier,  faster or less expensive?

By the way,  did you meet your sales projections for the first half of the year?  Might it be time to hire help,  so that productivity can increase,  customer service improved or administrative functions executed in a more timely fashion?

What emerging  priorities and concerns  are on the horizon that may excite or agitate your clients and how might that impact your business? You have the next few weeks to catch up on industry magazines,  websites,  white papers and blogs and find out what you need to know to stay competitive and understand  what may change in your marketing message or service options and delivery.

Summer is also a great time for professional development.  Look for certifications to pick up,  or courses and workshops to attend.  If you can budget it,  use this time to boost your skill set and  make yourself  appear more of an expert to clients and prospects.  Along the way,  you’ll meet a few people you should know.

Summer is a time of more flexible schedules and despite vacations,  it’s a good time to collar people and arrange those meetings that no one had time for between January and June.  So go back through your notes and remind yourself of whom you wanted to meet with and send out a few emails.  What intriguing and mutually beneficial proposal will you present?

Finally,  summer is an excellent time to do the prospecting that you’ve been putting off  for six months.  Ask colleagues for introductions and maybe do some selective cold calling.  Make it a point to make inroads on new business development.  I’ll bet that slippery someone whom you’ve been chasing since last year is more available in July and August.

By taking the initiative,  you will see that  summer is the best time to evaluate, investigate and create business opportunities that will give you a cushion of revenue that will get you through next year’s summer doldrums!

Thanks for reading,

Kim

Kill the Deadbeats!

“Businesses don’t fail because they are unprofitable.  They fail because they get crushed on the accounts receivable side.”  Brian Hamilton, CEO  Sageworks, a  financial research firm in Raleigh, NC

A  2005  survey of American Express  small business customers found that  49%  had cash-flow concerns, with accounts receivable as the primary concern,  and  9%  of  that group worried that their cash-flow troubles were sufficiently serious to impede their ability to compete for new business.

A  2007  survey of  2000  Freelancers found that  77%  of us have had trouble getting paid at some point in our careers as independent workers.  Of  the  77%,  late payments have been endured by  85%  at least once;  42%  have been stiffed at least once;  and  34%  have received less than the invoiced amount at least once.  The survey also found that Freelancers  spend 4 hours/month on average pursuing late or unpaid receivables.

Since Freelancers are  excluded from the Fair Labor Standards Act (FLSA), which would require  the Department of Labor to assist us by investigating claims of involuntary unpaid labor (slavery!) and would authorize the Commissioner of Labor to bring criminal proceedings to recover wages owed,  we are more than a little vulnerable to this growing phenomenon.

Our options are weak.  Hiring an attorney is costly and does not guarantee payment of monies owed.  Small Claims Court is time consuming and winning a judgment does not guarantee payment.  Writing a  thorough contract,  which specifically details  services requested,  pricing,  invoice due dates and late fees doesn’t help much either if  a  client lacks the ability to pay,  or simply refuses to pay within a reasonable time frame (big corporations are infamous for this).

Smaller businesses may be caught between a rock and a hard place:  they can’t pay you until someone pays them.  Big corporations have the power to dictate payment terms favorable to their own cash-flow objectives.  Over the past several years,  including the so-called  “booming economy”  years,  many big corporations brazenly increased the turn-around time on accounts payable to their small vendors —because they could.

So what’s a Freelancer trying to maintain respectable cash-flow to do? Take every precaution and watch for signs of problem clients.  Before taking on a new client,  maybe ask around and find out if you know who’s done business with the company.  Maybe check out the BBB and find out if  a complaint has been filed and its resolution.

Milestones and money

Establish project milestones and attach an invoice to each one.  First,  discuss your project with the client and get agreement on the scope of the project and the time table.  At the contract signing,  get a deposit of 10-25 %.  At key junctures in the project,  get another 20-25% payment,  if possible.  The goal is to avoid the trap of  waiting for a large sum of money at the project’s completion,  when the client possesses the complete deliverable.  Hint:  if  the client is unable to make the initial deposit on time,  brace for trouble!

Deadbeat radar

Pay attention to client motivation—are they looking for quality work,  or the cheapest price?  If  a customer comes to you primarily for price,  then price is what will make that client leave you.  Moreover,  they will use price to manipulate you.  So do not be desperate!  It’s hard, I know, when you’re just trying to be solvent.  But customers like that pay the least money,  cause the most headaches and may not pay what they owe,  on time or otherwise. They are best avoided.

Beware the client who is in a big rush, frazzled and frenetic.  This person will appear suddenly and may also be overly concerned with price.  Once the deliverable is in hand, your invoices will be ignored,  as he/she is always  “too busy”  to deal with annoying things like paying you.  Insist on receiving as much payment up front as you can (try 50% down, including a premium for speedy delivery). You may never see the rest of the money,  or you will have to chase and wait.

Beware also the OCD type who is hyper-controlling and fussy.  If you must go there,  be excruciatingly clear about the project scope,  deadlines,  expectations,  project milestones, etc.  Put everything in writing and make sure they agree,  sign off and are prepared to make all milestone payments.  This client will be tough to satisfy and will pick you apart,  demand revisions and may withhold payment,  claiming that you haven’t delivered satisfactorily.

Put into writing how many revisions are included in the project base price plus the price for revisions.  Consider adding  25-30%  to your usual quote to make up for the time you’ll spend responding to incessant emails,  phone calls,  criticism and demands.

Recurring nightmare?

If collecting receivables is a persistent problem for you,  then it is likely that you are not qualifying clients properly or your product is considered deficient.  Clearly define your deliverable.  Set expectations for your services and make sure that you understand what the client wants and the client understands what you will deliver.  A verbal agreement should precede a written proposal/contract that specifies the work you will do,  the timetable and payment due dates and should be signed by both you and the client.

Thanks for reading,

Kim

Keep Your Competitors Closer

Freelancers get business by three methods:

1). Proposals, ideally submitted by invitation and not “cold”

2.) Referrals, made on our behalf  by a source the client trusts

3). Reputation, meaning repeat business from our client roster

The most successful Freelancers skillfully promote the urban legend that we provide exceptional services, solutions and expertise that clients can absolutely depend upon. That perception creates trust and  gives our clients the confidence to bring us in when a project is approved for outsourcing.  Your client is convinced that when you are on the scene, an excellent job will be done and with a  minimum of fuss.  You will make them look good.

Competitive intelligence will provide important building blocks for your story.  One must periodically assess the strengths and weaknesses of  major competitors:  compare and contrast products and services offered, observe how they market themselves,  make note of selling points that are emphasized  and learn how you stack up.  It helps us to look from “outside in”  at how our services and business practices might be perceived by clients.

Analyze and benchmark

• Compare your services to those of competitors:  what do they do sufficiently well that  motivates clients to hire them?
• What do they do incompletely or perhaps poorly?
• Who is on their client roster and which are their target markets?
• Who are the front runners among your competitors and how did they get there?
• What relationships and/or competitive advantages do they leverage to get business?
• What is showcased on their websites and in other marketing materials?
• Where do they advertise?
• Does an internet search bring up good PR or anything noteworthy?
• With whom do they collaborate or partner?

Define your competitive advantages

• Catalogue what you do that clients  value
• What services do you offer that your competitors do not and what value do your clients place on those services?
• Audit your customer groups—have you ignored a possible niche market?
• What relationships might you leverage to give you the edge when submitting  bids and obtaining referrals?

Create the spin

• What common themes do you see in the marketing messages of your competitors? What do the front runners say to clients?
• Where do you see yourself as offering the better value proposition? How can you most effectively communicate that to clients?
• How can you  retool your message to highlight services or buzzwords that grab the clients? Reflect those in your marketing materials, advertisements and on your website.  Incorporate into your elevator pitch and sales talking points.
• Build a PR campaign around an event that features you—a speaking engagement,  a workshop you will present, the relaunch of a service.  Send out press releases and follow up with phone calls.  Develop relationships with the business press by taking the right person to lunch or coffee and talk over ways to get your name mentioned.
• Advertise,  however modestly,  in publications that your target audience follows.  Advertisements should lead to editorial,  however brief,  being written about you.
• Cultivate relationships within the industries that you service,  either directly with those who may hire you,  or with those who can influence decision makers.

Keeping an occasional eye on competitors will yield many benefits.  Competitive intelligence  keeps us in the loop about which clients are hiring and the demand for workers within our field,  keeps us abreast of the activities of our professional peers,  makes benchmarking possible and helps us to sell our services more effectively.  Competitors help us to sharpen and clarify our approach to business.  They make us better.

Competitors need not be sworn enemies, despite the adversarial position that must be assumed when vying for market share.  Competitors have much to teach us about doing business.  In fact,  judiciously cooperating with competitors is good business.  There may even be occasions when competitors will collaborate.  Frenemy is perhaps the best way to describe the ideal relationship to our competitors.  Use them as you strategize to grow your client list.

Thanks for reading,

Kim