Trick or Treat! Bring Back Your Lapsed Clients

Halloween will soon arrive and ghosts and goblins are on our minds—and candy, too. All Hallows Eve (October 31), along with the Christian feast days of All Saints (November 1) and All Souls (November 2) have got me thinking about bringing lapsed clients back from the great beyond and gently returning them to active status. While some clients give us only a one-off project, others are worth a steady, even if sometimes modest, stream of billable hours and as such, they are worth the comparatively small effort it takes to try and lure them back. Here are some statistics you’ll find persuasive:

1. It costs 5 times more to acquire a new client than it does to retain an existing one.
2. You have a 60% – 70% chance of selling to an existing client and only a 5% – 20% chance of selling to a prospect who has never done business with you.
3. Existing clients are 50% more likely to try your new product or service.
4. Existing clients on average spend 31% more than your newest clients.

So you see that we save time and money, as well as make more money, when we return to our lapsed clients. Surprisingly, only 18% of businesses have a defined client retention strategy, according to a recent marketing survey, but you now know that means money is being left on the table, something you cannot afford to do. Begin your client retention strategy as soon as you’re hired for a project. Shift your perspective—you haven’t just closed a sale, you’ve opened the door to a relationship.

Because marketing experts report that 89% of companies recognize that the client experience is a key factor in driving loyalty and retention, do your business a favor and devise a quick client satisfaction survey, maybe five or six questions, and get some post-project feedback. Clients always appreciate that you value their insights on how your organization does business. You might receive information that will make your business more competitive and therefore more favorably positioned to both win back and acquire clients.

The December holidays are approaching and that gives you the most golden opportunity for client outreach, the holiday card. Start thinking about your cards NOW. Would you like to have your local Sir Speedy or Kinko design a card for your clients? That will take some time and you want to be ready to mail in the first week of December. Remember that holiday cards intended for clients have a “Happy Holidays” message and not a religious message.

If you publish a newsletter or blog, clients past and present are ideal candidates for your mailing list. Clients have willingly shared their contact information and that gives you permission to send each a courtesy copy. Your content is an effective way to demonstrate the depth and breadth of your business acumen, making it similar to an ongoing audition for future assignments. Your newsletter or blog are effective ways to keep your organization at top of mind. Nevertheless, include an opt-out feature for those who prefer to discontinue.

Finally, you can offer a 20 % discount to any client who has not worked with you for the past three or more years. You might include the notice in two successive issues of your blog or newsletter, or send a separate email announcement, or both. However you get the word out, I suggest that you honor the discount for any client who requests it, even if it’s a year after the announcement appeared and you just competed a project with that client last month.

Thanks for reading,
Kim

Photograph: Jonathan Frid as vampire Barnabas Collins in the ABC-TV gothic horror soap opera “Dark Shadows” (1966-1971)

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Holiday Gifts for Your Top Clients

OK procrastinators, it’s time to finally bust a move and get busy with the holiday cards and maybe gifts, too, that Freelance consultants MUST send to every client you’ve worked with over the past five years.  Relationships are everything in life and it’s up to the Freelancer to cultivate and sustain business relationships that help you grow your client list.  It’s important to periodically communicate with clients past and present and the good news is that at holiday time, there’s no need to invent a reason to reach out.  The December holidays are an important element of every Freelancer’s client retention strategy.

I’m happy to report that my business holiday cards were mailed on December 12.  So far, I haven’t felt the need to give client gifts.  BTW regarding cards, the vast majority of your clients are Christian and they’ll celebrate Christmas to some extent.  However, 2014 data shows that 30% of adults in the U.S. do not practice Christianity and it is for that reason your holiday cards should avoid a specific religious theme and instead refer to “the holiday season.” Because you know your clients, the brief message that you’ll write in each card (whether or not you order them pre-printed) can reference Christmas, Ramadan (which can occur in December), or Hanukkah.

If you feel that presenting selected clients with a gift (to acknowledge your gratitude for generous billable hours), take action and order today.  Corporate gifts are mailed, as are cards, so you must allow for shipping time.  Start with a call to the client’s HR department to inquire about corporate gift restrictions.  There may be a cap on the amount, or alcoholic beverages may be prohibited.  Once you’ve confirmed the policy, decide what you feel is appropriate to spend, consider your gift options and choose the company you should order from.

When you’ve identified two or three companies that seem to be good possibilities, do an online search to find out if there have been problems with customer service, delivery times, or the quality of the merchandise.  The company should track the delivery of the gifts you’ve ordered from them and let you know when they’ve been received by your clients.  Alternatively, the company should make it possible for you to track your gifts and confirm receipt.

Furthermore, the company you order from should not include its promotional material in the gift box.  Not even your company promotional material will be in the gift box.  Your purpose is to thank your clients for the business relationship.  The company can include a sticker or business card so that it can be identified as the source of the gift.

Every corporate gift company will allow you to include a personal note, so be sure to draft one before you place your order.  A note expressed in your words will communicate your thoughtfulness and respect to the recipient.

Finally, look for a company that will guarantee the gifts with a refund policy for missed delivery times or damaged goods.  Here are a few corporate gift suggestions at various prices:

  1. Texting gloves —keep hands warm on frosty winter days and give fingers touch screen conductivity    $10.00 – $80
  2. Uber or Lyft gift card— sure to be appreciated and quickly used    $20 minimum
  3. Plant—scientific research shows that adding greenery to the environment boosts a person’s mood and energizes the overall ambience of the space. Choose a plant that’s easy to care for and not fussy about the light required.  A geranium could work and they flower year round.  Call a local greenhouse to order.    $20 – $50
  4. Docking station—You may want to oder one for your home office! It’s a sleek charging station for your mobile devices.    $20 – $100
  5. Spiral notebook and mobile charging station from Time Traveler USA    $65  http://timetravelerusa.com/notebook-powerbank-corporate/

Thanks for reading,

Kim

Image: The New Bonnet (1858)  Francis William Edmonds                                            Courtesy of The Metropolitan Museum of Art   New York, NY

 

Client Retention: Surpass the Minimum

In 1990, the consulting group Bain & Company and Earl Sasser of the Harvard Business School analyzed the costs and revenues derived from serving clients over their entire purchasing life cycle and found that regardless of the industry, the high cost of acquiring clients will render many business relationships unprofitable during their early years.

Acquiring a new client can cost up to five times more than it does to retain a current client.  It is only over time, when the cost of serving a long-term client falls as the volume of their purchases rises, that these relationships generate big returns.

The Bain-HBS review found that when the client retention rate increases by 5%, profits increase by 25% – 95%.  Also, long-term clients are more likely to refer new clients to the business and increase sales revenues and profits accordingly.

That said, an ongoing client retention strategy is a must-do for all Freelance consultants and business owners.  Read on and discover how your organization can embed client retention practices in nearly every step of your client interactions.

Context and expectations

When you propose a solution designed to help your client resolve a problem or achieve an objective, include in the conversation your rationale for presenting that particular path rather than another.  Make it possible for the client to better appreciate your decision-making process and divulge how you carefully considered his/her priorities, values, budget, staffing, or other factors that impacted your recommended solution.

We may infrequently discuss the behind-the-scenes thinking that guides the possibilities we envision for a client and his/her organization.  Revealing your big picture thinking demonstrates the depth of the value you attach to the client and his/her unique circumstances and that builds loyalty, trust and a good relationship.

Become an adviser

Don’t shy away from asking questions that will surface your client’s sometimes unexpressed expectations or concerns.  You may discover a solution that is ideally tailored to the clients’ needs when you employ the consultative approach to selling.  You and your client can collaborate on the development of the solution if s/he is comfortable with that process.  Buy-in is a given when the client is a co-author of the process.

Along the way, let your client know what to expect as the solution is implemented; it will also be helpful to review what success looks like.  Communicate often, so that the client understands where you are with the project, especially as regards milestones, Key Performance Indicators, the deadline and other agreed-upon metrics.

Moreover, depending on your product or service line, recommend services to your clients, based on their previous purchases.  According to a 2015 survey of marketers, this personalized touch generates a high ROI.  It shows that you’ve paid attention to client preferences and it is a compliment.

Finally, we are nearing Holiday time.  Make sure that you send cards to clients you’ve interacted with over the past five years.  Who among us does not appreciate a card at this time of year, when we reach out to those who matter?

Thanks for reading,

Kim

Photograph: Corine Vermuelen (2013)  Alicia and John George, owners of Motor City Java House in Detroit’s Brightmoor neighborhood

 

 

Survey Discussion: How Freelancers Market Our Services (2016 – 2017)

Today we have recommendations on how Freelance consultants and small business owners can implement as needed the results of a survey of 1,700 of our peers that was conducted in December 2016 by FreshBooks, a Toronto company that sells cloud based accounting solutions designed for Freelance professionals and small business owners http://FreshBooks.com .

Given the limited time that Freelancers and small business owners have available to devote to new client acquisition and once we’ve accepted the fact that the pool of new clients must be constantly replenished, it is essential that what we do has a very good chance of delivering the necessary results.

The survey indicates that devoting one’s marketing activities to tactics that are ranked as highly effective across all three age cohorts and then diversifying the tactics utilized, has the potential to reap tangible benefits for all age cohorts, despite the fact that each has a clear preference for certain activities and an ROI track record to defend those practices.

Exceeding client expectations of the work you are hired to do is the recipe for obtaining referrals from satisfied clients. Building relationships with peers that you meet at the chamber of commerce, on volunteer boards, at the gym, or at your religious institution, for example, is often a highly successful marketing and business development tactic for Baby Boomers, with 67% relying on referrals to find new clients. The ability to obtain referrals from business and personal relationships will become more accessible to Generation X and Millennials over time, as their personal and client relationships expand.  There is no more effective advertising than word of mouth.

Millennials have made hay with content marketing tactics and 42% of the age cohort use that marketing tactic. I will guess that a certain percentage of what is called email marketing, which has an adoption rate of 24% across the three age groups, overlaps with content marketing because email is how newsletters are sent. Generation X and especially Baby Boomers are advised to step up the use of content marketing if for no other reason than several surveys have demonstrated its satisfactory ROI.

Content marketing is poised to surpass the use of paid advertising because it seems that B2B prospects find advertisements insufficiently credible or engaging and they have gravitated to the brand story approach that is content marketing. Commissioning a marketing case study to put on one’s website and can be used in other marketing activities, is another highly effective method of content marketing (but it is not inexpensive).

Public speaking in the form of teaching, speaking, training (and I will stretch to say it also includes podcasts, webinars and appearing on a panel as speaker or moderator) is acknowledged by 39% of  survey participants across all three cohorts as being a highly effective marketing tactic and I respectfully suggest that you adopt the practice if you have not already done so.

It may be a little intimidating for Millennials to assume the role of expert, but appearing as a guest on a webinar or podcast seems less of a stretch than teaching business courses or speaking at professional association meetings. Your diarist is in the Baby Boom generation and I’ve done a fair amount of teaching and speaking over the years, but I’ve never directly received either a client or referral from any engagement. Rather, prospective clients are always seem impressed when I mention those activities, so be advised that you may see your teaching and speaking ROI indirectly.

Finally, since the survey explored financial management, we might pause and consider that topic as well. While only 20% of survey responders financed their businesses with bank loans, that doesn’t mean that they don’t need help managing the business finances (and their personal finances).  One third of the responders has a relationship with a bank and yet 52% report that they feel big banks are not a good fit for small business owners and Freelance consultants.

Survey findings indicate that Freelancers and small business owners with the greatest financial acumen operate the most successful ventures and enjoyed self-employment the most.  That description applied to 25% of responders.  Overall, responders are wary and uninformed about new financial software that might help them better understand and optimize their financial record-keeping data and learn how to use either what they already own, or software they could buy, and learn to understand and manage the financial aspects of their businesses.

The FreshBooks people recommend that Freelancers and small business owners invest in financial management training.  Courses are either regularly or sporadically available at adult learning centers, libraries, business networking groups, professional associations and the Small Business Administration.  https://www.sba.gov/business-guide/manage/manage-your-finances-business-credit

Thanks for reading,

Kim

Photograph: Falmouth (MA) Road Race August 21, 2016 courtesy of Joseph Cavanaugh

 

 

 

Rethinking Your Services

Like lovers, clients can be fickle. Both will tell you that they love you and everything about you and everything you do, that is until they don’t, and they leave you for someone else.  I take this to mean that in business as in love, one should never get too comfortable.  Continuing to do the same things in the same way can become very predictable and therefore boring.  You could eventually be considered to be outdated or out of touch.

Clients and lovers want to be understood.  They crave a partner who is aware of their shifting needs and priorities, without being told.  Talking to clients and lovers to find out how they feel about the relationship is a useful exercise, but the conversation will not always elicit the truth.  It could be that our perceived lapses and failings do not become apparent until a competitor comes along and persuades them that they can do better.

To sustain healthy and satisfying business and intimate relationships, we must hone our intuition and be prepared to never rest on our laurels.  Continually affirming one’s value is key, in both short and long-term scenarios.  I suspect that the 24 hour news cycle and 140 character messages have contributed to the brief attention spans, impatience and need for instant gratification that seem to have overtaken us.

In defense, I suggest that periodically, a brand refresh that includes an update in how services are described and packaged will do some good.  Think of Lady Gaga as you engineer a little shake-up every three years or so.  Staying abreast with what is happening in the industries in which your clients operate will be helpful, so that you can learn about the challenges and priorities that your clients see and you may be able to see opportunities for you new or expanded services.  If nothing else, you’ll can become fluent in the jargon and terms that your clients use to describe themselves and that will add to your credibility when you echo that in your content marketing and client meetings. When you speak their language they will know that you “get it” and that you can be trusted to deliver the outcomes they need.

As a caveat, I also suggest that you beware the temptation of giving your clients precisely what they say they want in every instance and in particular, avoid being swayed by a vocal minority.  Keep client preferences in mind (especially if a clear majority raises the same issues), but understand that clients (and lovers) are not always able to articulate what will make them happy enough to stay with you.

This may be apocryphal, but it’s been said that when the late founder of Ford Motor Company, the legendary inventor and entrepreneur Henry Ford, was asked if he spoke with potential customers to learn what improvements they wanted to see in the transportation field, replied, “If I had asked people what they wanted, they would have said ‘faster horses.’ ”

Hockey legend Wayne Gretzky advised that when playing, you have to skate to where the puck is going, not to where it’s been. CEOs from Warren Buffet to the late Steve Jobs have quoted that line because keeping that advice in mind is how one builds a successful company.  Where the puck is going will be impacted by recent innovations, the economic climate and even social and political developments.  Always, we must stay on top of developments because that is the only way that one who is in business can project what clients might want us to do for them, either next month or next year.

So what does a Freelance consultant do to find out what’s going on? The short answer is to keep your eyes and ears open and fully engage in your business and your life.  Read blogs, newsletters and business magazines. Occasionally listen to a webinar, attend a seminar and go to a business or professional association meeting. Talk to your clients and colleagues, friends and family.

There is a tidal wave of information to soak up, but it isn’t necessary to drink from the firehose and become overwhelmed.  Just be consistent.  Be open to how new information can benefit your clients and you can ask their opinions about some of what you’ve heard or read.  Invite your clients to interpret some things for you, since they are best positioned to do so.  You will then understand the  big picture and when you do, you’ll see where the puck is going to be.

Thanks for reading,

KIm

 

How B2B Clients Do Business Now

Keeping up with the evolving mind-set and practices of your current and prospective clients has long been a challenge for Freelance consultants and continues to be so in the “new economy.”  Signing a good client is not easy, what with the penchant for not spending money being all the rage.  We Freelancers can prosper only by staying one step ahead of the client, always positioned to neutralize the temptation to keep a project in-house or let it languish and eventually die.  Knowledge is power and we need strategies that will turn on the spigot and pour out billable hours.  Here are trends that B2B products and services purchasers are following now.

They do research

A recent survey of employees who make B2B purchases for their organizations was conducted by the global consulting firm Accenture and showed that 94% of purchasers (that is, your clients and prospects) research possible solutions for business needs in advance, to learn about the options, availability and pricing of solutions and to save time and money.  By the time Freelance consultants and other vendors are approached, the hoped-for client has done most of the upfont legwork. S/he already has a good idea of what might be provided by service professionals like you and your competitors and maybe even knows what a reasonable ballpark figure for your services might be.

The entrepreneur and marketing expert Danny Wong, co-founder of the online men’s apparel company Blank Label, recommends that Freelancers acknowledge the elephant in the room and simply ask your prospect about research that may have been done and what you might be able to verify or clarify. Don’t ignore the tsunami of information.  Ride the wave and earn respect for your candor and knowledge of client behavior.

They’re skeptical

Unfortunately, some sales “professionals” and unsavory Freelancers have been known to misrepresent that which they sell.  As a result, many B2B purchasers prefer to buy online and bypass you and me.  The practice was confirmed recently by Forrester Research, in a survey that found that nearly 60% of B2B purchasers preferred to buy independently, without the assistance of a salesperson.

Wong points out that demonstrating expertise, as well as an appreciation and respect for the prospect’s goals and situation, confers to you credibility and helps you to earn their trust, an essential process when competing for assignments and sales.  They won’t do the deal if they don’t trust you and why should they?

No matter how desperate you are for billable hours, don’t rush the deal.  Take the time to understand what is needed and how your products and services can help or for that matter, if they can’t  help.  Avoid being perceived as an aggressive salesperson.  Do present yourself as a trustworthy adviser who wants to make the prospect look smart to his/her superiors and other colleagues.

They’re in no hurry

No, it’s not your imagination that closing a deal is taking longer than it used to.  Another study showed that the length of the average B2B sales cycle has increased by 22% over the past five years.  While the prospect is working the worry beads, Mr. Wong recommends that you do what you can to stay at top of mind and try to keep the project from falling into oblivion.  A Freelancer’s main competitor is not one of our rivals, it’s the client’s inertia.

Send information that can support (and speed up) the decision-making, but don’t overwhelm—curate.  Inquire about a timeline and deadline for the project and suggest what might be a reasonable starting time.

They trust the advice of anonymous “peers”

So do you and that’s why you research hotels and restaurants on Trip Advisor and Yelp and search for a contractor on Angie’s List.  Accenture reports that almost 25% of B2B purchasers make their decisions based almost entirely on information gleaned from online “social” rating sites.

If your Freelancing skill is one that would send prospects to Angie’s List or a neighborhood blog, attempt to establish a presence on those sites and build credibility that will help you get hired.  LinkedIn and Facebook could be helpful once a trusted source has referred a prospective client to you and then your online presence is researched before you get the call.  Nevertheless, create a good profile on your chosen social media sites and make yourself look knowledgeable and trustworthy.

They appreciate relevant content marketing

The longer buying cycle gives the advantage to Freelancers who produce long form content—a monthly newsletter, a weekly blog, case studies and other white papers that appear on your website, videos, infographics, or podcasts—that may grab the attention of prospects.  A FAQs page added to your website that details how to do business with you could  be helpful. Impartial and instructive content is what content marketing is all about. Produce your own and position yourself as an expert who is qualified to get the job done.

Merry Christmas and Happy Chanukkah,

Kim

A Fail-Safe Christmas Party Strategy

Christmas party season is here, bringing Freelancers and business owners opportunities to become their own Santa Claus and put some new clients under the tree.  Christmas is the time to pick up the thread with clients past,  nurture relationships with clients of the present and meet clients you’d like to add to your roster in the near future. To make that happen,  you know that you’ll need a game plan.

First,  go to your parties alone.  Under no circumstances do you need to drag someone along with you, unless that person is required to get you into a party where you can expect to meet prospective clients,  or that person promises to introduce you to a good prospect while there.  Even that arrangement can be risky— a few years ago I was invited to what should have been a networking bonanza for me,  except that my friend wound up getting very drunk and even worse,  he reneged on bringing me into a post-party meeting with someone who could have been very helpful to me.

Second,  confirm the dress code.  A weekend party held after 6:00 PM will imply fancier dress and maybe even black-tie optional.  If you are the  +1 (guest),  ask your contact to send you the invitation.  If s/he does not do so,  then call the party organizer and inquire.  You do not want to show up improperly dressed,  even if your contact claims not to care about such things.

Men should wear a jacket,  even if a suit is not required.  Women should avoid too-short or too-tight clothing and revealing necklines.  Jeans or leather pants are out of the question for either sex,  unless your host is in the arts or tech.

Third,  ask who is on the guest list,  if you can do so casually and diplomatically.  Present your request as a way to find out if you’ll know others in the room.

Fourth,  polish up your short-form elevator pitch and think about how you might approach guests that you’d like to meet or reconnect with.  You may want to Google a name and find out what that person has been doing,  so you’ll know what to “spontaneously” bring up.

However,  be mindful that pushing business topics will be a turn-off,  unless the other person raises an issue.  Focus instead on scheduling post-party follow-up with selected people who would like to know more about your products and services.

While at the party,  greet and thank your hosts straight away,  before you visit the bar or buffet.  After that relax,  mix and mingle.  Brainstorm some friendly ice-breakers that will open the door to conversation (“How do you know [the hosts]?”)  Eating and drinking are party highlights,  but take it easy with the drinking.  I recommend that you have not more than one drink and then switch to a non-alcoholic beverage.  You must be sober to successfully work your networking agenda.

Moreover,  you’ll also need to master the drink and hors d’oeuvres plate juggle.  Hold your drink in your left hand,  so that you can shake hands easily and not give a cold,  damp greeting.  Likewise,  eat your hors d’oeuvres with the left hand,  so you don’t offer a sticky handshake.

Finally,  pay attention to the ebb and flow of guests.  Unless you’re in a serious conversation  when their number begins to fade,  find your hosts,  thank them for the invitation and take your leave.  There is an optimum time to arrive  at and leave a party.  Arriving 15- 20 minutes after the start time is usually good.  The next day,  send a quick email to thank the host once more.  After all,  a good party is a wonderful thing and you want to get invited back next year!

Thanks for reading,

Kim

 

Build A Winning Business Model

Whether you are considering the feasibility of launching a business or you are on the leadership team of a business that is several decades old, the business model for the organization is the hub around which all activities revolve. The business model is the blueprint that details how you will create and sustain a money-making business venture. It is the engine that drives revenue. Fail to identify a winning business model and you fail to build a business that will succeed over the long-term. Creation of a profitable business model is a multi-disciplinary exercise that encompasses marketing, sales, strategy, operations and finance.

Identify your primary customers  (Marketing)

If you will focus on B2B clients, describe who they are: for-profit or not-for-profit organizations, Fortune 1000 companies, start-ups. If you plan to focus on a particular industry, specify that and specify also the department(s) in which you will find your decision-maker and/or key purchase influencers and the job title of the person who can green-light your contract. Detail also the services or products that you will provide to your target clients.

Detail the business processes  (Operations)

Where will business transactions take place? Will you have a physical location and will clients visit you there? Will your business be primarily online? Will you have a consulting practice and perform most of the work off-site on your computer? How will clients pay—by check or credit card at the time of purchase, or will you bill them? Must you ship products? Describe how and from which location you will provide or deliver your products and services and the system of payment.

Identify the resources necessary to operate  (Finance)

Before your business is up and running, what must be available? Along with business cards and probably a website, computer, smart phone, and maybe a tablet, you may decide on print collaterals as well. You will need a business bank account and you may need a process by which you can accept credit cards as a merchant. Must you rent commercial space? What will the construction costs be for the build-out of your office space? What will insurance, special certifications and utilities cost you? How much product inventory does it make sense to have? Must you hire help? Determine how much you must spend and have on hand before you can commence business operations.

Define the value proposition  (Sales)

Make the case as to why your products and services are superior to what competitors offer. Learn what motivates your target customers to seek out the products and services that you will provide. How are target customers getting the job done now? Perfect your selling points and learn to neutralize the most common objections that prospects will raise.

Determine key business partners  (Strategy)

Will your business success be greatly helped by getting referrals from a particular source? In other words, if you plan to become a florist or a caterer, it will make a lot of sense to develop relationships with event planners. Referrals are always crucial to building your client list, so figure out which types of businesses you can build a mutually beneficial relationship with—what can they do for you and what can you do for them?

Build and fill the sales pipeline  (Marketing)

Describe the various methods you expect to use to build awareness of your business and find prospective clients. Social media will provably be used, but which platforms can be expected to have the most resonance with your target clients? Teaching, conducting webinars and networking will serve you well in the early stages of your business and throughout. Client testimonials, referrals and case studies will support you as your client list grows and you develop a track record.

Expect to fine-tune and innovate  (Strategy)

Until you begin to welcome paying customers, you will not really know if your proposed business model adequately meets their needs. Expect a reality check and build innovation —that is tweaking —into your business model.

Thanks for reading,

Kim

Who’s Getting Paid

Freelancers who design Power Point presentations,  write reports and perform accounting functions are the big winners in Freelance Nation right now.  A recent review of 2Q 2013 data on 300,000 job postings by freelancer.com. revealed the results.  According to freelancer.com,  business owners are hiring Freelance workers to perform core functions,  jobs that once were the domain of permanent employees.

Demand for Power Point slide design and production increased 35%  from 1Q 2013 to 2Q 2013;  requests for accounting services jumped 23% and report writing 20% between the first and second quarters of this year.  By contrast,  demand for copyediting during this period fell by 14%.  The survey indicates that demand for Freelance skills that are mission-critical and require sophisticated and specific knowledge are on the rise.

Freelance graphic designers,  especially those proficient in website and Power Point slide production,  and content marketing writers are in demand.  Employers are backing away from pricey advertising agencies and are continuing the transition to Freelance labor,  a trend that started in the 1990s.  Requests for Freelance illustration was 20%  higher from 1Q 2013 to 2Q 2013 and Freelance Photoshop design increased by nearly the same amount.  Banner design assignments increased by 14%  and logo design projects were 9%  more plentiful in 2Q 2013 than they were in the first quarter of the year.  Speaking of design,  3D imaging’s depth and sophistication caused demand for 3D printing to shoot up by 17% in the second quarter of this year,  over the first.

In a 2012 global survey of 3,000 Freelance professionals conducted by Elance,  the online employment marketplace,   respondents were queried on the types of assignments they were receiving.  Web programming,  website design,  mobile app development,  graphic design,  online marketing and content writing were the predominant assignments and Elance predicted that the trend would continue into 2013.  Results of the freelance.com survey support that prediction.   Both surveys indicate that graphic designers,  accountants,  certain techies and writers are raking in most of the money in 2013.

Plan to succeed in the gig economy by identifying which of your skills clients will pay to obtain,  how to package and present those skills and how to connect with paying clients.  On your website and in all marketing materials,  demonstrate that you are a top-of-the-line professional who exceeds expectations and works with recognizable clients.  The latter may not be immediately possible,  but those who provide visual products should post a portfolio that makes it known to prospective clients that your work is distinctive and not cookie cutter.  Providers of intangible services should include case studies.  Every website should include client testimonials.

Thanks for reading,

Kim

C x 5 = Success for Your Business

If one intends to succeed in business,  then it is necessary to manage the business effectively,  because in the long run,  the better-managed businesses  succeed.  Dan Barufaldi,  Freelance management consultant active in metro New York City,   authored the 5 C’s for Success in Business list.  According to Dan,  success in business requires that you attain and leverage these five resources:

Clients

Credibility

Cash flow

Credit

Capital

I.   Clients

But of course a robust client list is necessary if one expects to keep the doors open.  Clients are the life blood of every business and priority is given to acquiring and retaining the  source of revenue.  There are a number of tactics  strategies that business owners can use to find and retain customers,  including:

Advertising and promotion

Advertising in newspapers,  blogs,  newsletters,  trade journals

Email marketing campaigns

Trade show and conference  exhibits

Participation in local charity events

Brand

The focus may not be on a specific product or service,  but branding is marketing/advertising designed to enhance the reputation of the company/ consultant in the marketplace.  It is important to communicate to current and potential customers that the company/consultant is reliable and trustworthy.

Customer service

Create good word of mouth  (still the best form of advertising)  and stimulate referral business by providing excellent customer service and exceeding expectations every time.

Networking

Those whose target clients are B2B will greatly benefit from membership in the local chamber of commerce,  Rotary Club and neighbor hood business association.  Those whose target customers are B2C will be wise to take part in neighborhood charity events and otherwise be visible in the community.  B2G oriented businesses and Freelancers will attend information sessions and certified vendor conferences sponsored by city,  state,  county and federal organizations.

II.  Credibility

Freelance consultants and small business owners must package and present ourselves and our products and services in a professional manner.   We cannot afford to advertise and brand like the major corporations,  so we must be creative in our use of promotional resources.  A good ongoing branding campaign to enhance reputation is essential,  as is excellent customer service.  Promote your brand and build trust with good customer service,  to create good word of mouth that can earn you recommendations and testimonials.  Teaching is a time-honored way to demonstrate one’s expertise.  Speaking on (or moderating)  a panel at a professional development symposium is another excellent way to create visibility among your peers and potential clients.

III. Cash Flow

For Freelance consultants and small business owners,  cash flow can sometimes take precedence over  short-term profitability.  Cash flow glitches will result in unpaid accounts payable,  the inability to take advantage of special offers,  an unmet payroll and/or the inability to cover immediate and urgent expenses.  It’s a smart idea to project cash flow needs over 8 – 12 weeks,  so you’ll know when to invoice clients,  when receivables are expected,  when accounts payable are due and have time have time to cover any gaps that appear.  It may be possible to extend the due date on certain accounts payable,  accelerate the collection of accounts receivable,  adjust expenses or even get a bridge loan  (or a temporary job).

IV. Credit

Available credit supports cash flow management.  An honored request to increase the credit card limit allows one to float expenses when accounts receivable collections are unexpectedly slow,  or allows the business to stock up on inventory when prices are favorable.  Those with good credit ratings pay lower credit card interest rates,  which is also good for cash flow.

V.   Capital

Those looking to grow their business may need to make large expenditures and that will require access to capital.  If significant business growth is part of your organization’s three-year plan,  start now and improve your credit rating by paying off debts,  if that is an issue.  The establishment of a good relationship with a bank,  along with a credit rating and financial management practices that demonstrate good judgment and fiscal responsibility,  will be very helpful when it is time to seek financing.  Make an appointment with the manager of your bank to discuss your plans,  learn how much you are qualified to receive and the payment terms.  Meet a banker as you network at the local business association and get a second opinion.

Thanks for reading,

Kim