How Freelancers Scale Up

According to the Small Business Association in 2018, there were 30.2 million small businesses (< 500 employees) in the US and 80%, 24.3 million, were one-person ventures, i.e., Solopreneurs. Although just under 6 million small businesses have paid employees, those businesses nevertheless employ 47.6% of private sector workers, 59 million of 124 million employed Americans (factoring out government and not-for-profit organizations—schools, hospitals, social welfare agencies, the arts, religious institutions). BTW, there are fewer than 20,000 large businesses in the country—19, 464 in 2018. 2017/08/04125711/Frequently-Asked-Questions-Small-Business-2018.pdf

I suppose it can be said that in American business small is beautiful, or perhaps more accurately, small is the reality. Many of those 24.3 million Solopreneurs attempt to turn what could easily be called a Weakness in the SWOT (Strengths, Weaknesses, Opportunities, Threats) strategic planning matrix into a Strength (me!) and use terms such as “boutique” to describe our business, along with marketing-spin phrases such as “personalized service” to communicate to prospective customers that the experience of doing business with us will be very positive and that no one is treated as a commodity.

Operating a boutique business is all well and good, however “boutique” can easily turn into “broke” if the proprietor continues to just scrape along, trying to bring in enough customers to pay the rent and keep the lights on. In order to make a go of being a business owner/ operator, it is necessary to scale the business. A business has successfully scaled when it can deliver its products and services to a significantly larger customer base while maintaining or improving operational efficiency and quality control. Good strategy and execution are needed to scale, but it’s often do-able. Read on and learn tactics and inspiration that will help you decide how to scale your venture.

Scale the Brand

The process for scaling your Freelance business starts with knowing, articulating and communicating your Brand. To attract more clients so that you can double or even triple your roster over a 3-year period, for example, you must communicate in various ways—client testimonials, case studies, LinkedIn recommendations, social media, company website, your newsletter or blog and other marketing channels—that you are highly competent, trustworthy and dependable. You deliver every time and you meet and often exceed client expectations. You bring value. Invent a Branding tagline to help yourself stand out from the 24 + million Freelancers in America and add it to your email signature block.

Be advised that Branding doesn’t simply refer to the colors you use for your business card or logo. Branding encompasses all client touch points during which your client encounters or interacts with you and your company, from the initial contact with you, interaction with employees, the tone of emails, visiting and navigating your website, your payment and billing systems, social media posts, advertising and everything in between. Articulating and communicating your Brand not only enhances the perception of your know-how as a Freelancer, but also makes it easier to scale your business in the future.

Scale client acquisition

Freelancers tend to get stuck in a rut of competing for projects in the same way over and over. We find a tactic that works, whether it’s cold emailing potential clients or applying for jobs posted on sites like Upwork.com and Guru.com. One will eventually figure out how to get hired on those sites, but you’ll still leave a lot of work on the table. It’s been reported that 27% of Freelancers find assignments via referrals made by friends, family and clients; 24% find projects through online job boards, email marketing and social media platforms like LinkedIn ProFinder. How can you make the most of these sources?

You don’t have to chase down all possibilities but do get into the habit of exploring alternative client acquisition methods, to get your name and expertise in front of a wider audience. Your current clients are also a potential source of referrals (I’ve been lucky enough to have that happen). Get the ball rolling by making a referral for your client first, so that you will come to mind if one of the client’s colleagues could use your services. BTW, unless you’re in IT, job boards attract clients who low-ball the money. Not only that, but Upwork now requires Freelancers to pay to submit a proposal and then pay again 20% of the fee when one is hired. I will not pay to apply for a job and that service is off my list.

Scale your network

Networking can potentially deliver significant benefits that accrue from the relationships you build. Networking helps us meet new friends, find a future spouse, get invited to join a board, learn of a house for sale when we’re looking to move, or get a job referral. Networking will also bring to you potential collaborators, for those times that you need to bring in a Freelancer colleague in order to take on a bigger project, or the gift of community support when it would be helpful (and when is it not?).

Start building your professional network ASAP, compiling connections who are Freelancers themselves and maybe also potential clients. Try connecting with fellow Freelancers in the comment section of industry blogs and industry-related LinkedIn and Facebook groups and participating in relevant Twitter discussions.

Scale your skills

Whatever one does for a living there is always training and development involved, that is, if one is lucky, because professional development is an investment in you and no one can take it away once you have it. In order to find work, the Freelancer must be considered a trusted expert. To be considered an expert, one must be better than the rest and that means your knowledge and skills must be bleeding edge current.

When preparing to scale your business you have to grow as a person and a professional and that means learning new skills, keeping up with the newest trends and learning to use applicable tech tools. This can be challenging, as well as time consuming, but what you learn can perhaps lead to new business ideas, smarter planning for the future and implementing new systems and approaches. Online education sites like Coursera, Udemy and Codecademy are a good place to start. Serving on a board, teaching and even judging a business award (I’ve judged the Stevie Awards/ Women in Business category https://stevieawards.com/women for 6 years) are other ways to keep skills current and learn new competencies (and network as you do).

Scale your creativity

To effectively scale your Freelance gig and transform it into an enterprise, you need to break out of your service-based mentality and the best way to do that is to create a product to sell. Think about it—once you’ve created your e-book, course, or physical product, you can sell it over and over, whereas you’re limited to providing a certain amount of services per week to clients.

Not only does a product give you the ability to reach many more people, but creating a product also provides you with passive income, giving you more time to work on other areas of your business. Put on your thinking cap and see what you can dream up. An e-book or online courses are probably the most accessible products for B2B service providers to produce. I don’t have an online course to sell (yet), but I’ve been teaching business-related subjects for more than a dozen years.

Scale your systems

In order to grow, one needs the tools to keep revenue consistently coming in at a steady and abundant pace. To support opportunities for that business growth, it pays to systematize certain business functions and responsibilities. Outsourcing gives you the pleasure of employing a fellow Freelancer as you devote more time to the pursuit of lucrative clients or identifying another product to sell.

Invoicing, bookkeeping, newsletter or blog editing and social media account management are popular outsourcing functions because they do not require a deep knowledge of your business. Outsourcing (or automating) routine tasks gives you the time you need to work on your business, not in your business and that will enable you to scale.

Thanks for reading,

Kim

Photograph: (Reuters) Master Baker Bartolo “Buddy” Valastro, owner of Carlo’s Bakery in Hoboken, NJ and star of the reality television show Cake Boss (TLC)

6 Questions to Ask a Prospect

Woo-hoo, you’ve got a live one here! You’ve stumbled upon a prospect and you do not want to screw up and lose what might be an opportunity to get paid. You want to keep this fish on the line and figure out 1.) if s/he is serious about hiring a Freelance consultant to work with and 2.) if the project is something you can handle. A series of easy-to-remember questions that help you to encourage the prospect to open up and tell you what s/he needs and also move the process toward a commitment for further discussion are essential. Your goal, of course, is to obtain a project that will both enhance your revenue and if possible, enhance your CV as well.

Picture this—you and the prospect have each given the meet’n’greet (short) versions of your elevator pitch and the prospect is showing an interest in your offerings and would like some details. You’re asked if you’ve ever worked on a particular sort of project, or provided a solution for a certain kind of challenge or problem. Presented below are questions designed to make it easy for your prospect to share information and allow you to position yourself as a good candidate for hire if a project actually becomes available.

  1. How can I help you?

“A customer’s time is valuable, so that first question must be impactful while still respecting their time,” advises Eng Tan, Founder and CEO of Simplr, a customer service and customer experience start-up. ‘How can I help?’ is open-ended enough to invite feedback, but also show that the customer comes first.”

2. What is the problem or pain point?

You cannot jump into a sales pitch until and unless you hear the prospect describe the matter that must be resolved or challenge that must be overcome. Only then can you determine if you have the expertise and resources to provide the desired solution. Allow your prospect to tell you what s/he would like you to do.

3. What is your goal?

Get the prospect to articulate the purpose of the proposed project and what the resulting deliverable means to the organization. Determine if this is a mission-critical goal and the date that the deliverable must be received. It is to your benefit to understand why the prospect feels it’s worth paying outside help to get the project done. The proposal you write and your pricing structure, if negotiations get that far, will be impacted by this information.

You must also understand what will happen if the client does nothing (and nothing is precisely what most of them do anyway, am I right?). So do your best to find out what it all means to the prospect and the company and how the proposed project fits into important goals.

BTW, not every project that gets funded is tied to a meaningful goal. I know someone who probably makes 3x what I make in a year by producing an ultimately ridiculous vanity-driven deliverable for well-known for-profit and not-for-profit organizations. Enhancing reputations can be big money, it seems.

4. Have you done anything about it so far?

With this question, you’ll learn if the prospect has worked with a competitor. You can follow-up and ask if there was dissatisfaction with the competitor’s deliverable, price, or customer service. If the matter has so far been handled in-house, you can follow-up and ask why outsourcing looks like a good option now. In short, you’ll learn why your decision-maker or stakeholder/ decision-influencer prospect is motivated to talk to you about the problem and inquire about how you might resolve the problem or produce the deliverable.

5. Is it you who decides how this matter gets resolved?

At this point in the conversation, it is both prudent and politic to ask who makes the decision to bring in someone from the outside, i.e., a Freelancer. You will have earned the right to know if the individual with whom you are speaking has the authority to green-light a project on his/her own, or in concert with a select group of stakeholders. You need to get a sense of how superiors, colleagues, or stakeholders feel about bringing in a Freelancer and I recommend that you get an answer before proceeding with the conversation.

It is possible that your prospect is alone in thinking that an outsider should be brought in to manage the project and his/her opinion may or may not prevail. Now is the time to get a sense of whether outsourcing this project is wishful thinking or a possibility.

6. What would you like to see happen next?

With this question, you invite the prospect to commit to follow-up, be it a face-to-face meeting, an email, or a telephone call. The prospect will be able to reconfirm his/her confidence in your capabilities as s/he shares more information about the proposed project and digs deeper into the how and why your product or service can address pain points and facilitate realization of the company’s goal.

This conversation will determine whether you are considered a serious candidate for managing the project and if the company is serious about hiring a Freelancer. You could very well be invited to submit a proposal and if that is the case, it is a big vote of confidence (but alas, still no guarantee).

If asked upfront about pricing, you might like to respond “What’s your budget?” If it’s smaller than you hoped, work with the prospect to provide the project must-haves, minus the too-expensive extras, at a price the organization can afford. Then again, they could surprise you and appropriate more money. You just never know!

Thanks for reading,

Kim

Photograph: The Fuller Brush man visits a prospective customer (circa 1950)

Harnessing the Cloud: You’ve Got an App for That

Freelancers and other business owners are nearly always pressed for time and we need to get things done, quickly, efficiently and accurately. Advances in technology have yielded many apps that can make our lives easier and make us look good as we take advantage of their features. Below is sampling of free to low cost apps that will help your business.

 SIMPLIFIED GRAPHIC DESIGN

Canva. If you’re in need of professionally-designed marketing materials for your business but don’t have the budget to hire a graphic designer, you can successfully DIY with Canva https://www.canva.com. This useful app features attractive design templates that allow you to create beautiful visual content for the images that are the core of social media marketing. You can also design logos, brochures, infographics, business cards and templates for Instagram, Twitter and Facebook posts. Canva will also allow users to crop images and enhance photos. The website provides good support, including tutorials on how to use Twitter for marketing. The free version of Canva offers most of the features a Freelancer or business owner will need and an upgrade to the Pro version costs $9.95/ user/ month.

MANAGE RECEIPTS AND EXPENSES

Expensify. All those who travel for business must collect and organize a stack of receipts very soon after returning, whether you’re a Freelancer who must save them for quarterly taxes or an employee who must submit receipts to your boss.  Expensify makes an onerous task much more bearable by automatically scanning the printed paper receipts and adding them to pre-designed templates that facilitate a seamless transition into your electronic records. Other features include reimbursement calculation based on the number of miles travelled, hourly billable amount or wage, a choice of four currencies for calculation and synchronizing directly with your bank account. Free  – $4.99/ month for most users.

ACCOUNTING AND INVOICING

FreshBooks. If you operate a B2B knowledge economy service business that doesn’t need a high-powered accounting solution, then FreshBooks  will give your organization a user-friendly option that offers a lot of functionality. You can track billable hours here as well and also log receipts and send invoices from your smartphone or tablet. The service integrates with several others, including Basecamp, PayPal, Google Apps and ZenPayroll.  The basic plan starts at $15 a month and allows management of up to 5 clients. More fully featured versions allow unlimited clients for up to $50 a month.

NEWSLETTERS AND EMAIL MARKETING

Mailchimp. This easy-to-use email marketing tool is a go-to for Freelancers and small businesses. It offers easy-to-use templates and intuitive drag-and-drop email building that anyone can use to create a professional-looking email that will enhance your company’s reputation. It also allows you to automate your email campaigns and track subscribers, so you can make the most of your communications campaign. Plus, Mailchimp https://mailchimp.com offers easy integration with many popular e-commerce tools. The basic service is free, but many will want to upgrade to either the $9.99/ month plan, which provides custom branding email design or the $14.99/ month option, which gives users custom newsletter and email templates and marketing automation.

SCAN BUSINESS CARDS

ScanBizCards.  Rather than taking a card from someone with whom you’d like to follow-up, it’s much more efficient—and cooler—to scan the business card or even a conference name tag and know you have that important person’s information will be saved automatically in your phonebook. ScanBizCards

VIDEO CONFERENCES

Skype for Business. The classic video conferencing app is owned by Microsoft and the functionality of its infrastructure is versatile, powerful and seamless. The service offers free online meetings for up to 10 participants, set-up from any device, PC or MAC, Android, iPad, or iPhone and PowerPoint upload capability, Instant Messaging and a white board feature. Unlimited free video conferencing, instant messaging, conferencing and audio calling are also offered and  Skype for Business runs ad free and without interruptions— excellent for a business interview or discussion.  Explore the premium features through Microsoft Office 365—$6.00 / user/ month – $15.00 / user/ month.

TEAM COMMUNICATION AND COLLABORATION

Slack. There are several real-time messaging and file-sharing apps available, but Slack prevails as a result of its simplicity. It has DropBox, Asana, Google+ Hangouts, Twitter and Zendesk compatibility built into the app and the platform is very responsive and user-friendly. Every message is archived, so searching is quick and easy.  Free – $15.00/ month / user for premium services.

BILLABLE HOURS MANAGEMENT AND INVOICING

Toggl.  This timer tracks how you spend your time, making it an ideal support system for those who must record billable hours in order to accurately and quickly prepare invoices so that they will get paid, Freelancer friend. You can track as many projects or clients as you want and assign your hourly rate to each project, so that you can quickly calculate what you’re earning, export timesheets and sync your numbers with several project management apps. Toggl is priced from $9.00 / month /user for the basic service to $18.00/ month/ user for team time tracking and other premium services.  

Thanks for reading,

Kim

Photograph: Kim Clark September 7, 2018. Fog x FLO, a “fog sculpture” installation by Fujiko Nakaya (Japan) that appeared in five Boston locations from August – October 2018. Every hour from dawn to dusk, a blast of steam would be emitted by a special mechanism and the fog would appear—and disappear in a minute or two, depending on how the wind blew. The fog sculpture pictured here was across the street from the Isabella Stewart Gardner Museum.

Pricing B2B Services

According to Dorie Clark (no relation), Adjunct Professor of Business Administration at Duke University’s Fuqua School of Business and author of Entrepreneurial You (2017), there are four pricing strategies that Freelance consultants might use, depending on the project at hand and the relationship you have, or would like to have, with the client. It is crucial to follow a pricing strategy that will support your objective to persuade the client that your prices are fair, your solution will be effective and you are the right person to hire.

Hourly billing. The most straightforward pricing strategy is to bill clients by the hour. When you are unsure of the number of hours it will take to complete a project, perhaps because your responsibilities will vary from week to week or month to month, then an hourly rate pricing strategy is reasonable. On the other hand, if you do have a good idea of the number of hours that should be necessary to complete the job, an hourly billing strategy is also reasonable, particularly for one-off assignments or sporadic work with the client.

You can then provide a reliable project estimate, based on your hourly rate for the work proposed and the anticipated number of hours, and that information will be reassuring to the client. But if you underestimate the time needed to complete the assignment the downside of this strategy will emerge, because your final price will overshoot your estimate and your client may not be thrilled.

Another potential downside to hourly billing is the level of scrutiny that it invites. Some clients may challenge the number of hours you record for the tasks involved and that is uncomfortable.

Set fee for services. This pricing strategy requires the Freelance consultant to develop a standard suite of services, where all related tasks are included and there is one price for the whole package. “Productized services” is the term pricing experts use for this strategy. If certain of your services are frequently requested, make life easier for yourself and your clients and create a standard rate sheet for services you perform most often.

For example, if you often conduct half or full-day workshops, billing a flat fee for all tasks involved is a more favorable strategy than billing separately and hourly for the associated tasks. Clients are comfortable accepting a flat fee because the project price is all-inclusive, predictable and transparent. Furthermore, the project specs describe your duties and discourage “scope creep,” those extra unpaid tasks that some clients like to sneak in. If the client would like an extra service or two, then you’ll price those separately and not be tricked or coerced into giving away free labor.

Value-based pricing. Evangelized by Alan Weiss, elite management consultant to multinational companies such as Merck Pharmaceuticals and author of dozens of books, including (Million Dollar Consulting [1992]), this strategy hinges on what Weiss calls “a value-based project fee structure.”

You begin by having a detailed conversation with the prospect so that you will understand the project requirements and the project’s relevance, urgency and impact on the organization. In other words, you and your prospect will achieve mutual agreement on the value of the project to the business. Weiss says that it’s useful to ask questions such as, “What would be the value to the company if this weren’t a problem?” or “What impact would it have if you could do XYZ better?”

Dorie Clark recommends the value-based pricing strategy for Freelancers who work with Fortune 500 companies, because value-based pricing is a way to help the prospect envision and appreciate the value of the right outcomes delivered at the right time. Clark feels it is appropriate to charge a higher project fee when working with big-budget clients because the stakes are so much higher.

Your work for a Fortune 500 company might, for example, create $10 million in new value, whereas even a dramatic improvement for a small not-for-profit organization may only enhance the bottom line by $10,000. Once the prospective client understands the full value that your work will bring to the organization, your fee — a tiny percentage of the overall gain — will in theory seem trivial in comparison.

Retainer agreements. These are an excellent arrangement because predictability is a wonderful thing for both you and the client. Once it is established that you’ll work a more-or-less fixed number of hours per week or month on a certain assignment or category of assignments and a comfortable relationship develops, by all means suggest that you create a monthly retainer agreement. Bring evidence of 6 – 12 invoices to bolster your case.

In the retainer pricing strategy, the client pays the Freelancer a flat fee every month for on-demand access to your services (and that could be anywhere from $500/month to a four or even five figure sum). This allows you to depend on a certain amount of money each month, no matter what. The downside is that unless you’re careful, your client may take advantage of the “all you can eat” pricing by monopolizing your time.

To prevent abuse, be very clear upfront about who can contact you and for which types of services. It is also advisable to specify the hours that you’ll be available ( 8:00 AM – 6:00 PM or longer?), the protocol for weekends and holidays and the methods of contact—email, phone and/or text. You’ll also want to specify whether they only have access to your advice, or if there are specific deliverables you may be asked to produce (for example, you might also agree to generate content for social media or the company newsletter). As you gain more experience and develop long-term relationships with clients, you will be able to propose retainer agreements and institute more control over your monthly income.

Freelancers who succeed are those who are appreciated for the value they bring to their clients’ organizations. An important building block that supports how you communicate your value to the client is your pricing strategy. Study the pricing options discussed above and choose the most advantageous for you and your client.

Thanks for reading,

Kim

Photograph: Courtesy of the Everett Collection. Dink (Margaret Nolan) gives James Bond (Sean Connery) a massage in Goldfinger (1964).

Bragging Rites

In our hyperbolic business environment, all working people—Freelance consultants, entrepreneurs, corporate executives and everyone else who must earn a living—are expected to promote their successes and ambitions in face-to-face conversations and social media platforms. Everybody has to be “on,” i.e., camera-ready and prepared to roll out an elevator pitch to prospective clients, an investor pitch to potential backers, or a sales pitch to browsing would-be customers.

Job-seekers sell their skills and work experience to search committees. Apartment-hunters sell their credit rating and rental history to landlords. The marriage-minded package and promote what they hope are desirable traits that will persuade Mr. or Ms. Right to swipe right. Everyone is pressured to sell themselves, but sounding like you’re selling is a turn-off. No one one likes an obvious self-promoter and heaven help you if people think you’re bragging.

While we’re busy telling possibly interested parties how talented, resourceful, creative and dependable we are, we risk violating a powerful social norm in American culture that prefers modesty, cautions Susan Krauss Whitbourne, Ph.D., Professor Emerita of Psychological and Brain Sciences at University of MA /Amherst. Bragging is not popular. Do an internet search on bragging, and you get 55, 900,000 results, including How to brag without making people hate you.

Communications consultant Peggy Klaus says the fear of being perceived as pushy and vulgar can lead professionals to hide behind modest self-effacement, even when speaking up about their accomplishments would be perfectly acceptable. Klaus, the author of Brag: How to Toot Your Own Horn Without Blowing It  (2003), says that the very thought of self-promotion is difficult for many to embrace, including those who are fully aware that they must create business in order to survive. “So ingrained are the myths about self-promotion, so repelled are we by obnoxious braggers, that many people simply avoid talking about themselves,” writes Klaus.

Valerie DiMaria, Principal at the 10company, a New York City firm that helps high potential executives at companies such as Verizon, L’Oreal, Raytheon and BNY Mellon reach the next level in their careers, offers encouragement to the introverted and shy. She points out that if the goal is to make a strong, positive impression at work, you must be willing to tell your story and bragging doesn’t necessarily mean boasting.

Di Maria suggests taking a calm, confident, matter-of-fact approach to sharing what’s special about you. Her firm offers leadership and communication coaching and she recommends these five tactics:

  1. Define your brand One of the best professional investments you can make is to learn to articulate your own value proposition, also called your personal brand. DiMaria explains, “A brand describes who you are, what sets you apart from others, what you contribute and what you want to accomplish. In this information-overdosed world, a brand helps you cut through the clutter and make a memorable impression.” So it’s important that you spend time thinking about how you can convincingly describe your secret sauce.
  2. Give your pitch at every (appropriate) opportunity DiMaria recommends that you “master the art of speaking up.” Create scripts that you can use in different business and personal encounters: an elevator pitch that is also a self-introduction, to use at networking events; a “small talk” version of your elevator pitch to use at social or quasi-business gatherings; and stories you can use whenever, to illustrate how your hard work and ingenuity produced results for an important project.
  3.  Give credit to everyone, including yourself   Always thank others for their contributions and don’t shy away from acknowledging your own contributions as well. Do not relegate yourself to the background. DiMaria wants you to remember to find a way to weave in your own role when recognizing achievement. “If your team accomplished something significant, you likely did something wonderful as well,” she says. “You’re not stealing the spotlight by describing how everyone contributed; you’re sharing it.”
  4. Amplify your reach with social media Complete as many sections of your LinkedIn profile as possible, so that visitors will find solid evidence of the depth and breadth of your professional and volunteer experiences. If you have only one or two recommendations, ask a colleague to write one for you that highlights a strength you’d like to highlight (and offer to write a recommendation in return). If practical, upload examples of your work to the Portfolio section, so that browsers of your profile can understand what you do and gauge the quality of your work. Search for groups associated with your profession and join one or two. Be sure to select the option to receive updates, so that you can join conversations every once in a while. If you don’t have a flattering photo that complements your professional aspirations, have one taken. If you’re feeling brave and ambitious, open a Twitter account that you’ll confine to business purposes and announce conferences that you’ll attend or courses that you’ll teach, if those are things you do regularly. If you get a promotion or receive special recognition at work for a job well done, share the announcement. You can do the same on Facebook. Always respond to replies and inquiries, since generating conversations is an important objective.
  5. Avoid the humble brag It’s impossible to ignore that Facebook, Instagram and Twitter accounts are filled with humble bragging posts that try to disguise boasting with a nasally whine (“Now that I’ve reached 500,000 followers, I never have time to cook or do laundry….I barely have time to sleep….”). Everyone sees through the humble brag and it does nothing for your integrity. If you have a success to share, own it because you earned it.

Finally, choosing to remain silent about your accomplishments can diminish your earnings. “It’s those who visibly take credit for accomplishments who are rewarded with promotions and gem assignments,” writes Klaus. As our economy has resulted in less job stability, self-promotion has become more important. Even if you aren’t a Freelancer or entrepreneur, advises Klaus, you need to think like one and start talking up your most valuable product: you.

Thanks for reading,

Kim

Image: Narcissus (1597-1599) by Caravaggio (1571 – 1610 Milan, Italy) courtesy of the Galleria Nazionale d’Arte Antica, Rome

Business Failure: Autopsy and Recovery

Failure and setbacks in a business venture can take many forms, from a botched new product or service launch, to cash-flow insufficiency, losing the lease on the perfect storefront or office location, to the appearance of an aggressive new competitor. Business failure is painful and humiliating.

Even if the pre-launch planning and start-up capital are inadequate, significant research and planning and usually a large sum of money (that may have been borrowed) are nevertheless invested with the hopeful intention of bringing a new product, service, or company to life. If things don’t pan out, it’s inevitable that those involved feel crushed and demoralized.

The intricacies of launching and operating a business can cause any venture to falter, even if the founder is not directly responsible for the downfall. The many moving parts of a new venture can cause the founder to overlook essential factors, resulting in a failed launch.

Yet, in some cases,  it’s possible to recover and relaunch after an autopsy has been performed and you and your team (if there is one!) have figured out why things unraveled and how to avoid that problem and maybe others, too, in a second attempt. Common stumbling blocks include insufficient operating capital, an ill- conceived business model, an inadequate assessment of what target customers value and improper pricing.

Many Freelancers and entrepreneurs, after allowing themselves to grieve the loss, are able to move forward with determination and a better plan (and additional resources, most likely) to do much better in the next iteration. Take a look at these common causes of business failure and make note of the lessons to learn:

Unanticipated start-up costs and low sales revenue

Whether you self-financed and bootstrapped your business or borrowed from a bank or investors, you can find yourself in financial quicksand if your projections of start-up costs were underestimated and expectations for customer acquisition were blue-sky optimistic. It’s very easy to rack up big credit card debt and then succumb to panic that leads to making reckless decisions, such as second- mortgaging your home or borrowing from friends and family, as you struggle to successfully launch and create adequate business revenue. Unfortunately, you might find yourself unable to repay as expenses mount and customers are slow to arrive.

THE LESSON IS, do your homework. Thoroughly research the amount of money that will be required to launch your new business, or new product/ service, and make a rational plan for how to acquire the funds, whether you go to the bank, self-finance, ask to borrow from selected family and friends, or take on partners.

Regarding target customers, your first task is to figure out who will buy what you propose to sell, whether products or services. Is there a viable and growing market? Moreover, can you access those prospective customers, something that can be a challenge in the B2B sector.  Realistic financial projections will protect you, especially a Break-Even Analysis, which helps you predict when customer sales can be expected to pull into profit-making territory.

Finally, develop a profit-making business model. You must anticipate the start-up costs, be able to access the targeted customers, you must have the right method of delivering the products or services and pricing must be acceptable to the customers and profitable for the company.

Receivables collection problem

“They’d take sometimes 3 – 4 months to pay and it was killing my cash flow,” she said. “I couldn’t pay my suppliers without difficulty. (The company) refused to pay with a credit card. I was trying to get paid.” Lara O’Connor Hodgson, Co-Founder of the NOWaccount

As counter-intuitive as it seems, a business owner can have orders flying out the door and be totally broke. The problem, as described above by Lara O’Connor Hodgson, is that customers can be slow pay and the difficulty in collecting accounts receivable has put many businesses under.

THE LESSON IS, healthy cash-flow is essential to sustaining a viable business. Investigate the NOWaccount, which guarantees that invoices will be paid on time and in full (both you and the customer must have good credit). Those in a service business (me!) are advised to ask clients who contract to pay a project fee for an assignment to pay 15 % – 20 % of the total fee at the contract signing and link additional payments to project milestones or specific dates (at 30 day intervals, for example). The final payment owed should be no more than 25 % – 35 % of the total fee. In this way, you will receive regular infusions of cash and be much less vulnerable to a payment default by ghosting.

Powerful competitor

Facing a big new competitor is scary, but take a couple of deep breaths and take heart. If you’ve been in business for at least a year and managed to attract customers and deliver your products and services adequately, then you have a chance to hang on and continue with a growth trajectory. Just don’t panic; shift your adrenaline to market analysis instead. In reality, your competitor probably does not offer better quality products or services but rather has resources (like a generous advertising budget) that your organization lacks.

THE LESSON IS to 1.) analyze your competitor’s operation and determine the obstacles you need to overcome or what you need to do differently, i.e. smarter; 2.) refresh your customer knowledge to learn how their expectations and concerns may have changed to make them susceptible to switching their business to the competition; and 3.) avoid competing on price, which is usually an unwise strategy for smaller operations.

Larger companies have more money to work with and that allows them to hire more employees, offer a wider range of products and services, roll-out splashy marketing campaigns, stock more inventory and more flavors or colors and also offer lower prices because they can afford to buy in volume from the wholesalers.

Your defense is to brand your business well and customers reasons to think twice about opting for the competitor. Because no two businesses are alike, you must define for current and prospective customers why they’ll do better by doing business with you.

The heart of branding is defining and constantly communicating a company’s unique selling points, so you must 1.) understand the competition’s unique selling points and 2.) learn to clearly define and articulate your organization’s unique selling points so that you can build on the attributes that set your company apart and potentially make you valuable to customers.

When you understand your competition’s unique selling points and update your customer knowledge to learn as many specifics as possible about what resonates with them, at least theoretically, about the competitor’s unique selling points, you’ll see how to tweak your offerings in ways that reflect your company’s “house style.”

New and small businesses should definitely put an emphasis on excellent customer service. The digital revolution has not meant that customer interactions aren’t essential, even though face-to-face communication has become more limited for many.  To the contrary, customer service is even more vital in today’s business world.  Present a customer first attitude and create a pleasing customer experience. Go the extra mile to surprise and delight and your business will quickly become trusted and loved.

If you have employees, you also want to ensure you are the best employer in the industry. Having motivated and skilled staff will provide benefits for your customers and that will translate into benefits for your ability to successfully compete.

Some of the most successful entrepreneurs have suffered the frustrating experience of a business failure. For Scott Adams, creator of the world-famous Dilbert cartoons, life’s path wound through many jobs, failed startups, useless patents he applied for and countless other indignities. In his memoir, Adams shares lessons learned about keeping himself motivated, healthy and happy while racking up the failures that ultimately led to his success.

It’s fine to celebrate success, but it is more important to heed the lessons of failure.”  Bill Gates, Co-Founder and former Chairman and CEO of Microsoft Corporation

Thanks for reading,

Kim

Image: American Gothic (1930) by Grant Wood (1891 – 1942 Anamosa, Iowa, USA) courtesy of the Art Institute of Chicago. The painting depicts an Iowa farmer and his daughter.

Pitching to Prospects: 5 Tactics That Work

Freelance consultants do not have the luxury of a guaranteed weekly paycheck. We earn only as much as we can invoice. We generate a stable revenue stream by continually marketing our products and services to attract new clients and get repeat business.

In tandem with marketing, Freelancers must also identify and pitch prospective clients we’d like to work with; and who we want to work with are those who use what we sell and have the money to pay for it. Our mission is to convince prospects that our services or products will benefit their organization and make them look like geniuses for doing business with us. We must articulate our value proposition in a way that resonates. Our sales pitch must always place the prospect at its center. Below are pitching tactics that you might find helpful:

Pitch to the right person

As we’ve discussed ad infinitum, you must know your customers.  Start by noting the job titles of prospects who usually work with you. Which industries invite you in and which rule you out? Don’t waste time preparing and delivering a good pitch if the prospect is not a prospect. If health care professionals don’t seem to have a need for what you provide, then don’t try to pitch them. Talk about the weather instead.

Second, do your best to speak with either a decision-maker or decision-influencer. This can be tricky because people are known to overstate their role in decision-making. Some want to vet you before revealing the real decision-maker. Others, I guess, just want to feel important? Whatever!

Dig for the truth by inquiring about the budget, confirming the project timetable or important deadlines, asking who else must agree to green-light the project and authorize funding and who signs the contract. You want to unmask any pretenders. Remember to notice the job title of the person with whom you are speaking (ask for a business card). Decision-makers are Directors, Vice Presidents, Chiefs, General Managers and owners.

Speak to their needs

One of the most common mistakes Freelancers (or entrepreneurs or sales professionals) make when introducing their product or service to a potential buyer is placing the focus on those items rather than on the prospect’s needs. While it’s important to explain features and benefits, the key to making a sale is helping the prospect understand how his/her unique need or problem will be resolved if a purchase is made or a contract to bring you in to provide services is signed. You won’t get paid unless the prospect can envision him/herself using the product, achieving the desired outcomes and looking like a hero to his/her colleagues and the higher-ups.

Identify your prospect’s needs and challenges, concerns and priorities and use that information to devise a solution that’s specifically tailored to the prospect’s circumstances and shows that you’ve thought carefully about and understand the goals. Also, start your pitch with a great opening line. You’ll lose the prospect’s attention if you can’t capture him/her immediately with something that entices.

If you’re cold calling, or if you will attend an event and expect to to encounter an important prospect while there, visit his/her company website to view their organization’s mission statement, learn about major initiatives that were recently or will soon be launched and investigate the management team. Look for community outreach efforts, peruse the social media accounts, read what’s appeared in the press and skim the annual report—you may be surprised at what you learn.

When pitching products and services, you want to incorporate whatever “intersections” between their operation and yours into your presentation. Whenever possible, use their words to illustrate your points and explain why you will make a good partner for them.

Establish credibility

When cold calling a prospect to whom you have no connection, you must demonstrate unassailable proof of your trustworthiness and ability to produce results and meet or exceed expectations. If you meet a prospect at a business association meeting or social event, in general you will be regarded as more trustworthy than a cold caller, but demonstrating your specific expertise and reliability will still be required.

Presenting your business card is step one, but if you neglected to bring cards (or you ran out), ask for your prospect’s card and in your email to confirm whatever preliminary agreements have been made (such as a telephone call or meeting to gather more information), be sure to include your company website address, LinkedIn profile address and links to two or three examples of work that the prospect would like to assess (I always send a link to this blog).

Follow-up

It seems so simple and basic, doesn’t it? But Freelance consultants, sales professionals and others have the unfortunate habit of failing to follow-up on potentially promising leads. Maybe you misplaced the prospect’s business card?

Showing persistence is another important element when pitching a potentially good client. Maybe your first email doesn’t wow them, or it gets lost in a pile-up of messages, so always follow-up if you don’t receive a reply. Generally, I consider it polite to wait at least seven days before reaching out again and to never follow-up more than twice.

Know what you want

Keep at top-of-mind the type of relationship you want to create with your prospect. Be clear about what that relationship would ideally look like from your perspective and how it will benefit both parties. You’re probably looking for ongoing projects or sales and referrals, too, more than just a one-off interaction. It may be too early to share that ultimate goal with the prospect, but keep your eyes on the prize as you set the stage at every touch point to achieve it, beginning with your focus on your potential client’s expectations and shaping an appealing client experience.

Thanks of reading,

Kim

Photograph: © Bob DeChiara USA TODAY Sports. Boston Red Sox relief pitcher Koji Uehara (now retired) was awesome in the 2013 American League Championship Series and World Series. His 2013 Earned Run Average was 1.09, as he struck out 38.1% of batters faced. Boston won the 2013 Series against the St. Louis Cardinals 4 games to 2. Koji won the 2013 Most Valuable Player Award in the ALCS, Boston v. Detroit Tigers.

Can You Say No To a VIP?

Sometimes, the answer is no. Respectfully, I must decline. No, this will not do. Nein. It’s just that I find saying yes is more fun than saying no. In fact, I find “yes” to be a powerful word. “Yes” makes people happy and I enjoy making people happy.  I love to give people the green light and let them do wonderful, fulfilling things that satisfy them, things that help them grow and achieve special goals.

But certain behaviors or ideas one may find unacceptable, unsustainable, untrustworthy, or merely unattainable. We find them upsetting or unsavory or unrealistic. To such words or conduct we may even have an intense visceral reaction that literally makes us pull away, as if to shield our offended sensibilities. It may seem counter-intuitive, but think about it—what we reject defines us because our core values, priorities and boundaries often become evident only when they are challenged. Saying no to requests that compromise one’s values announces and reconfirms those values.

Saying no not only represents the conviction to honor one’s own values, priorities, self-respect, or boundaries, but can also be about conserving and managing one’s energy, time and other resources. To politely refuse certain invitations allows one to direct energy and attention to people and activities that matter most. Saying no is strategic.

Now, let’s be honest—saying “no” to a VIP, especially when the VIP is a paying client, carries risk. Certain powerful people have the ability to make an offer that cannot be refused (at least not without damage). Nevertheless, it’s worthwhile to explore ways to decline that which we dislike, mistrust, or just find inconvenient for some reason. Disappointing someone whom one would much rather please is stressful.  Think of it this way—when you feel it necessary to voice doubts about a strategy or proposal makes your expertise, insights and values known to colleagues and keeps you true to yourself. You may also prevent an ill-conceived idea from gaining support (maybe because others were not inclined to speak out?) and causing an ugly crash and burn somewhere down the line.

Tact and diplomacy will be needed when saying no to a VIP, no doubt about it. Pour oil on potentially rough waters to head off the appearance of insubordination and ensure that disappointment doesn’t escalate to insult. Take care to separate your discomfort with supporting a certain strategy or participating in a proposed project from your feelings about the people involved. Make it strictly business and emphasize that you support the organization, its mission and history. Below are suggestions for how one might diplomatically say no and not burn bridges:

  • Provide facts. Don’t simply say “no.” Express the reasoning behind your decision. Most importantly, communicate the values that influenced your decision. If you don’t provide the context, others will do it for you, and the picture they paint might not be pretty.  Unflattering motives could be assigned to you and your reputation is sure to suffer as a result.  Don’t create a mystery for others to solve. Cite data and share the motivations that led to your position.
  • Acknowledge values trade-offs. Let others know that you respect the priorities  they aim to promote. Decisions are rarely as simple as black and white, right and wrong. They typically involve value trade-offs. To soften your “no” vote and avoid unnecessary offense, remember to compliment the worthy values that may motivate others’ positions.
  • Be tentatively confident. It’s important to take a firm stand, but avoid appearing intransigent or aggressive. You’ll alienate more people than you’ll convince if you make absolutist statements.  Show that you’re a thoughtful person who has arrived at a reasonable conclusion. Opening statements such as, “I’ve researched the matter and learned…” and “I believe…” demonstrate a combination of resolve and humility that avoids provoking unnecessary conflict.
  • Ask for permission to say no. When saying no to a VIP, particularly someone who might misinterpret your refusal as disrespect, it can be helpful to ask permission to say no. This allows you to honor their authority while maintaining your integrity. For example, you could say, “Boss, you’ve asked me to take on a new project. I think it is a bad idea for me to take it on and I’d like to share my reasons. If, however, you don’t want to hear them, I’ll take it on and do my best. What would you like?” In most cases, the boss will feel obligated to hear you out. If the boss refuses to hear your reservations, you might decide to say no to continuing your employment there!

 

Thanks for reading,

Kim

Photograph: L-R Florence Ballard, Diana Ross and Mary Wilson The Supremes sing Stop in the Name of Love in 1965.

Summer Reading List 2019

It’s been a few years since I’ve compiled a suggested list of business books to read over the summer (and beyond). Professional development need not always require enrolling in a semester-long course or workshop. Reading is a gateway to so many positive experiences, from learning to pleasure. If you don’t want to buy books, visit your local library and check one out, at no charge. A library card is a good investment.

  1. How to Fail at Almost Everything and Still Win Big (Scott Adams)

For Scott Adams, creator of the world-famous Dilbert cartoons, life’s path wound through many jobs, failed startups, useless patents he applied for and countless other indignities. In his memoir, Adams shares lessons learned about keeping himself motivated, healthy and happy while racking up all the failures that ultimately led to his success. Dilbert, a clever gallows humor cartoon that allowed him to share his failures and frustrations with the world, has been in circulation for nearly 30 years. https://www.goodreads.com/book/show/17859574-how-to-fail-at-almost-everything-and-still-win-big?ac=1&from_search=true

  1. Million Dollar Consulting: The Professional’s Guide to Building a Practice (Alan Weiss)

Having now written 49 books on the subject, it is reasonable to regard Alan Weiss, Ph.D. as a consulting guru. If you are consulting, or thinking about packaging yourself as such and searching for clients, Weiss is recommended reading. His insights and recommendations are based on lived experiences of starting and operating an international management and organizational development firm.

As the book’s title implies, Weiss claims that he has consistently produced over $1 million/year in revenues. Although his background is in management consulting, his practical advice applies to all types of consulting. The book contains an abundance of ideas. The focus is on helping existing consultants take their practice to the next level, but he includes advice for beginners as well. https://www.goodreads.com/book/show/27289607-million-dollar-consulting

 3. Dare to Lead (Brene Brown)

Brown is an Oprah-endorsed author who gets invited to participate on the global mega-speaker circuit, TED Talks included. In the book, she dispels common myths about modern-day workplace culture and shows us that true leadership requires vulnerability, values, trust and resilience.

Brown asks the reader to think back to the most important leadership role one has had. Were you the captain of your high school football team or cheer leading squad? Or did you take on a leadership role only as an adult, such as overseeing a business unit with dozens, or maybe hundreds of employees? Whatever it may have been, there’s a high probability that you fell into one of the many leadership traps laid out in modern culture.

You may have thought you had to look strong and could never admit to a failure. You may have avoided telling the truth because you didn’t want to hurt someone’s feelings. These things often happen, especially in the office, because that’s how leadership is portrayed in our society. However, we usually figure out later, when it’s too late to make amends, that the exact opposite behavior would have yielded the best result. https://www.goodreads.com/book/show/40109367-dare-to-lead

  1. The Breakthrough Speaker: How to Build a Public Speaking Career(Smiley Poswolski)

“If you want to get paid to speak, you have to speak about something that matters and something that other people are passionate about. You need to speak about something that other people (specifically people that are in a position to book you to speak) are obsessed with. This is the single most important lesson to keep in mind when building a paid speaking business.”  —Smiley Poswolski https://www.goodreads.com/book/show/42039637-the-breakthrough-speaker?from_search=true

  1. Start with Why: How Great Leaders Inspire Everyone to Take Action (Simon Sinek)

“The limbic brain is responsible for all our feelings, such as trust and loyalty. It is responsible for all human behavior and all of our decision-making. It has no capacity for language.”  —Simon Sinek

When we communicate starting with the why, we speak directly to the section of the brain that controls decision-making and we use our limbic brain. In contrast the language center of the brain, the neocortex, allows one to rationalize those decisions. The limbic brain has no capacity for language and that is why it is so often difficult to explain one’s true feelings. When we make a decision that feels right, we frequently have a difficult time explaining why we did what we did. https://www.goodreads.com/book/show/7108725-start-with-why

  1. The E-Myth Revisited: Why Most Small Businesses Don’t Work and What To Do About It (Michael E. Gerber)

The book explains why 80% of small businesses fail and details how to ensure that your venture doesn’t wind up in that group. Gerber says that building a company based on systems and not just on the skill set and labor of a single individual is the secret because having great technical skills does not mean you know how to run a business. Gerber points to this misconception as the entrepreneurial original sin. Being a great baker, graphic artist, or writer does not necessarily make you an expert at running a business in that industry.

Once you start a business, you’re not just the person doing the technical work; you’re also the CEO, CFO, CTO, CMO and a whole bunch of other things. You must bring in customers, track and manage finances, create advertising material, answer customer requests, set a strategy and, and, and… https://www.goodreads.com/book/show/81948.The_E_Myth_Revisited

  1. Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (W. Chan Kim and Renee Mauborgne)

Are you tired of competing head-to-head with other companies? Do you feel like your strategy differs little from the competition surrounding you? You may need to redefine the rules of competition by defining a new strategy. The book describes two types of playing fields:

  • Red oceans, where competition is fierce in bloody waters, strategy centers around beating rivals, and wins are often zero-sum.
  • Blue oceans, where a market space is new and uncontested, and strategy centers around value innovation.Blue ocean strategy pushes company leaders to create new industries (well…!) and break away from the competition. In short, you create a blue ocean by focusing on the factors that customers really care about and discarding factors they don’t appreciate. This often attracts a new type of customer the industry hadn’t previously encountered and so the market grows.
  • The hard part is actually finding a reasonable strategy and executing it successfully. This book contains plenty of examples of successful blue ocean strategies, and it teaches you how to discover and execute them. https://www.goodreads.com/book/show/4898.Blue_Ocean_Strategy
  1. The Non-Obvious Guide to Emotional Intelligence (Kerry Goyette)

Being in touch with the emotions of those around you is key to developing strong, reliable relationships. Kerry Goyette’s guide to upping your EQ is a powerful tool for understanding how you can trnslate emotional skills into valuable business practices. The techniques included show you how to navigate change, find the root causes of problems and make better decisions.  https://www.goodreads.com/book/show/46681827-the-non-obvious-guide-to-emotional-intelligence?ac=1&from_search=true

9. The 7 Habits of Highly Effective People (Stephen Covey)

Increasingly, people look for quick fixes. They see a successful person, team, or organization and ask, “How do you do it? Teach me your techniques!” But these “shortcuts” that we look for, hoping to save time and effort and still achieve the desired result, are simply band-aids that will yield short-term solutions. They don’t address the underlying condition.

Covey advises us to allow ourselves to undergo paradigm shifts, to change ourselves fundamentally and not just alter our attitudes and behaviors on the surface level so that we can achieve true change. Start with a clear destination in mind. Covey says we can use our imagination to develop a vision of what we want to become and use our conscience to decide what values will guide us. More than 15 million copies of this classic have been sold.  https://www.goodreads.com/book/show/35895321-the-7-habits-of-highly-effective-people?from_search=true

  1. How to Win Friends and Influence People (Dale Carnegie)

Since it first appeared in 1936, this beloved book has sold more than 15 million copies. Dale Carnegie developed courses that became famous in the disciplines of sales, corporate training, public speaking and interpersonal skills, from networking to business best practices to Emotional Intelligence. Carnegie will teach you actionable skills such as six ways to make people like you, twelve ways to win people over to your way of thinking, nine ways to change people without arousing resentment and much more. https://www.goodreads.com/book/show/4865.How_to_Win_Friends_and_Influence_People?ac=1&from_search=true

 

Thanks for reading (and read a book very soon, please!),

Kim

Image: The Bibliophiles, 1879 Luis Jimenez y Aranda (Spain, 1845 – 1928), Private collection

On Being Persuasive

According to Carmine Gallo, Instructor at the Harvard University Graduate School of Design’s Executive Education Department and author Five Stars: Communication Secrets to Get from Good to Great (2018), the ability to persuade, to change hearts and minds, is perhaps the one skill that can be depended on to confer a competitive edge in the knowledge economy. Successful people in nearly every profession are typically those capable of convincing others to take action on plans and ideas. If you want to achieve anything of substance in life, learn to be persuasive.

Aspiring entrepreneurs persuade venture capitalists to provide financial backing for their new ventures.  Salespeople persuade customers to buy products. Freelance consultants persuade clients to hire them to provide professional services. In short, persuasion is no longer considered merely a “soft skill,” but rather a leadership skill, that enables those who’ve mastered it to attract investors, sell products, build brands, inspire teams and activate social or political movements.

More than 2,000 years ago, the Greek philosopher Aristotle outlined a formula on how to master the art of persuasion in his work Rhetoric.  Throughout history, statesmen and salesmen have used Aristotle’s guidelines when preparing speeches or talking points that brought history-shaping ideas and ground-breaking products to the world.

Your words and ideas have the potential to make you a star in your field, if you can persuade others to join you and act on them. To become a master of persuasion and successfully sell your ideas, use these five rhetorical devices (as interpreted by Mr. Gallo) that Aristotle identified in your next client meeting or sales presentation:

ETHOS (Character)

Gallo feels that ethos represents that part of a speech or presentation where listeners take the measure of the speaker’s credibility. Aristotle believed that if a speaker’s actions don’t reflect his/her words, that speaker would lose credibility and ultimately weaken the argument.  As humans, we are hardwired to search for reasons to trust another person. A simple statement that you are committed to the welfare of others before you introduce your argument or selling points will enhance your credibility.  Show your prospect that you understand and appreciate his/her situation.

LOGOS (Reason)

Once ethos is established, it’s time to make a logical appeal to reason. Why should your listener care about your product or idea? If it will save the listener money, for example, s/he will want to know how much it will save them and how the savings will be accomplished. The same reasoning applies to making money. How will your idea help the listener earn a profit? What steps must s/he take next?  These are all logical appeals that will help you gain support. Use data, evidence and facts to form a rational argument.

PATHOS (Emotion)

According to Aristotle, persuasion cannot occur in the absence of emotion. People are moved to action by how a speaker makes them feel. Aristotle believed the best way to transfer emotion from one person to another is through the rhetorical device of storytelling. More than 2,000 years later, neuroscientists have found his thesis to be accurate. Research has demonstrated that narratives trigger a rush of neurochemicals in the brain, notably oxytocin, called the “the moral molecule” that connects people on a deeper, emotional level.

In his analysis of the top 500 TED Talks of all time, Gallo found that stories made up 65% of the average speaker’s talk, whereas 25% went to logos and 10% went to ethos. In other words, the winning formula for a popular TED Talk is to wrap the big idea in a story.

What kind of story? TED Talks curator Chris Anderson explained, “The stories that can generate the best connection are stories about you personally or about people close to you. Tales of failure, awkwardness, misfortune, danger or disaster, told authentically, hasten deep engagement.” The most personal content is the most relatable, in other words.

METAPHOR (Comparison)

Gallo reminds us that Aristotle believed that metaphor gives language its beauty. “To be a master of metaphor is the greatest thing by far,” Aristotle wrote. Gallo follows-up, “When you use a metaphor or analogy to compare a new idea to something that is familiar to your audience, it clarifies your idea by turning the abstract into something concrete.” Those who master the metaphor have the ability to turn words into images that help others gain a clearer understanding of  their ideas and more importantly, remember and share them. It is a powerful tool to have.

BREVITY

Brevity is a crucial element in making a persuasive speech. An argument, Aristotle said, should be expressed “as compactly and in as few words as possible.” He also observed that the opening of a person’s speech is the most important since “attention slackens everywhere else rather than at the beginning.” The lesson here is: start with your strongest point.

The good news for communicators is that Aristotle believed that persuasion can be learned.  According to Edith Hall, author of Aristotle’s Way, the political class in ancient Greece wanted Aristotle to keep his tactics for persuasion a closely held secret.  But Aristotle disagreed and wanted everyone to have access to it. Hall’s research showed that he instead championed the idea that a person’s ability to speak and write well, and to use rhetorical devices to change another’s perspective, could unleash human potential and maximize happiness.

Thanks for reading,

Kim

Photograph: Emmy Award-winning actor Danny DeVito (Taxi, 1978-1883 ABC-TV)  in Matilda (1996)