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

Hello everyone and welcome to post-summertime reality.  We’re heading into the fourth quarter and whether or not you’re on track to meet your 2017 earnings goal, the time for a big push to help you end the year strong has arrived.  Marketing will play a big role in your revenue-generating strategy, but as was discussed in my August 15 post, do what you can to create a marketing budget so that your clever strategies and tactics will make it off the drawing board Your Marketing Plan Is Meaningless Until You Assign A Budget

In this post, I’ll share the results of what appears to be a credible survey of 1,700 Freelancers and small business owners 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.  Let’s look at what the folks at FreshBooks have to tell us about the practices, priorities and challenges of Freelance consultants and small business owners:

Who were the survey participants?

  • 65% male and 35% female
  • 51% Baby Boomers (age 50 + years);  34% Generation X (age 35 – 49 years);           15% Millennials (age < 35 years)
  • 65% have earned at least a Bachelor’s degree
  • 55% operate as Sole Proprietors, with no formal legal business structure
  • < 10 employees in the business
  • 15% in business < 2 years
  • 42% have no retirement account (median survey age was 50 years)
  • 23% earned < $20K in 2016
  • 23% earned $21K – $50K in 2016
  • 29% earned $51K – $100K in 2016
  • 24% earned $101K + in 2016

What kinds of marketing tactics are most often used?

Tactics considered most effective:

  • 67% ask for referrals, from clients or personal relationships
  • 47% have referral partners (e.g., at business association networking groups)
  • 39% speak and/or teach
  • 23 % use content marketing (especially blogs and newsletters)

Tactics considered somewhat effective:

  • 51% attend industry/ professional association events
  • 48% join business networking associations (e.g., chambers of commerce)
  • 44% entertain prospects (anything from coffee to drinks and dinner)
  • 44% use social media marketing
  • 24% use email marketing

Tactics considered least effective:

  • 32% purchase ads in print or online publications
  • 19% post on industry online forums (e.g., LinkedIn groups)

Age has a statistically significant impact on the types of marketing tactics employed and on the success rate of those tactics.  Baby Boomers have a much better success rate obtaining referrals, probably because they’ve lived long enough to develop those types of relationships.  Millennials have great success with content marketing and social media, no doubt because they grew up with the internet and they’re comfortable and adept with online communications.

Millennial Generation preferred marketing tactics:

  • 42% Content marketing
  • 30% Social media
  • 30% Referrals

Baby Boom Generation preferred marketing tactics:

  • 47% Referrals
  • 26% Content marketing
  • 22% Social media

Finally, marketing and sales are the mechanisms that promote market share and revenue growth and put the venture on the road to earning the desired profit margins that will secure its financial standing.  Yet, small business owners and Freelance consultants devote little time to business development (i.e., prospecting for new client acquisitions). which is supported by the right marketing strategies and tactics.  Most feel that signing new clients and retaining them is difficult:

  • 65% feel they need to find new clients
  • 85% consider business development a challenge
  • 75% devote less than one-quarter of their time to business development
  • 51% feel that they’re too busy with client work to prospect or sell
  • 40% devote one-tenth or less of their time to prospecting
  • 37% are uncomfortable selling
  • 25% feel they’ve found the right balance between making sales calls and performing client work

In order to build and sustain the business, it is necessary to attract and retain clients that you can reliably bill at a certain minimum amount; figure out how to describe and sell a value proposition that makes your services appear desirable to a critical mass of clients; performing client projects that you can price to ensure the desired profit margin; and effectively managing the business’ financial strategies.  As was discussed in my August 22 post, Only Those Who Have Money Can Borrow Money , the survey also examined the access to capital that Freelance consultants and small business owners have, or don’t have:

  • 20% used bank financing to launch their ventures
  • 25% were turned down for business
  • 52% feel that big banks are not designed to serve the needs of Freelancers or small business owners

Next week we’ll weave together the threads laid out here,  examine and analyze the picture that emerges and use some small data to help our respective business ventures get big ROI as we enter the fourth quarter.

Thanks for reading,

Kim

Japanese surfer works his plan to win gold at the 2020 Tokyo Olympics   Photograph: Kyodo News (2017)

 

 

 

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Your Marketing Plan Is Meaningless Until You Assign A Budget

Oh, how you love to talk about planning—your business plan, financial plan, vacation plan and what I think is most often discussed—your marketing plan.  Congratulations to you if you’ve drawn up an official marketing plan for your venture.  But if you intend to transfer your plan from the page to reality, you must assign it a budget.  Somehow, that practical reality is sometimes glossed over.  Ask a Freelancer or business owner what the company’s annual marketing budget is and you’re likely to be met with a blank stare or incoherent stammering.  That is not the ideal response, my friend! So today, let’s learn how to estimate a reasonable budget for a B2B annual marketing plan.

Laurel Mintz, founder and CEO of Elevate My Brand, a Los Angeles digital marketing agency, has developed what she calls “marketing math,” to help her clients determine what would be  a realistic B2B marketing budget range for their organizations.  According to Ms. Mintz:

New companies in business for one to five years would be wise to allot 12 – 20 % of  gross or projected revenues on marketing activities.

Established companies in business for more than five years are advised to commit 6 – 12 % of gross or projected revenues to marketing activities.

Those figures seemed rather hefty, at least they did to me and maybe you agree.   According to Laurel Mintz,  if a new business generates just $35,000 in after-tax bottom line revenues, she nevertheless feels that the owner should devote $4,200 – $7,000 annually to a marketing budget.  Ouch! I mean, how does one pay the living expenses and taxes and health insurance when in the salad days of a start-up?

Think of it like this—no one said that self-employment, whether Freelance solopreneur or entrepreneur, was going to be either easy or inexpensive.  Just like you set aside money for other vital expenses, marketing deserves a budget, too, because without marketing you could wind up presiding over a stunted venture that never gains traction and never fulfills its potential.

Marketing activities, whether innovative or predictable, give the venture a needed push into target markets.  Marketing promotes the expansion of prospective clients who will flow into the sales funnel, distinguishes the organization from competitors, establishes and promotes the brand, justifies the pricing structure and keeps the enterprise at top of mind and positioned to beckon clients and referrers.

Now for the cold water—there are no guarantees in marketing and the ROI is notoriously tricky to quantify.  But realize that marketing is all about testing and that means (calculated) risk.  If you approve a certain sum of money to devote to the year’s marketing activities, you might achieve all of your marketing campaign goals, or do twice as well, or only half as well as you projected

Risk is real in marketing, but it’s mitigated by your awareness of how your clients have been known to respond to the marketing tactics that you can afford.  Research shows that if you conduct marketing  activities that resonate with your target clients and are within budget, then over time,  the marketing campaigns will enhance the bottom line and your brand.  Treat marketing activities as an investment that will surely pay off and allocate funds each year.

Marketing  campaigns are all about planning, budget and execution.  If meager finances make you feel that the budget formula given here is too risky for your venture, then focus on planning and execution and roll out “sweat equity” campaigns that utilize tactics that cost time instead of dollars, such as content marketing, face to face networking and social media.  Just do it.

Thanks for reading,

Kim

Director and actress Ida Lupino on the set of The Hitch-Hiker (1953)                    Photograph courtesy of RKO Pictures/ Photofest

 

Which Conference Will Be Worth It?

The Events Industry Council reports that there are more than 1.8 million conventions, meetings and trade shows held in the U.S. held every year.  Big hotel chains and convention centers make oodles of money providing the space.  Along with the venue special events sales staff, whose careers are built on selling space to sponsoring organizations, the waiters and bartenders, concierges and doormen, even the cab drivers, love to see the events roll in.

No doubt, each of those meetings brings a lot of value to the target audience.  The speakers can be top drawer and topics compelling, the venue fabulous and audience members fascinating, but if none of this leads to even a limited number of billable hours, then you will not have received what you paid for.  Writing it off on your taxes yields only about a 35% savings and you don’t receive it until many months after the fact.

Many industry and premier networking group conferences can cost $500 for a one-day event that along with the speakers includes continental breakfast, lunch and light refreshments at two breaks.  Oftentimes, the admission fees are calculated with the expectation that attendees will be high-ranking corporate execs who are able to expense the cost to their companies.  As a result, independently employed professionals regularly forgo a number of conferences that draw the decision-makers they need to meet because unless one has been to a given conference previously, there is no telling if the networking will be good and therefore worth the risk of paying a high ticket price.

If you decide to go the high-profile marketing route and become an exhibitor, your cost is likely to resemble a full-page 4-color ad in an industry magazine.  The exhibitor booth fee can be $3500, with additional costs for Wi-Fi and branded give-aways like tote bags, pens, umbrellas and the like and the custom table-cloth you must order to display your company name and logo.  If you will stay overnight, add hotel bills that will include a discount but can nevertheless exceed $200 daily and the cost to park can be $40 per 24 hours.  Figuring out the attendance profile of a conference is paramount, so that you can calculate your ROI.

First, think about your business products and services and your ideal clients and start filtering out what doesn’t align with your objectives.  If your business is B2B, you’ll look for an audience of business people who give you either product sales or billable hours.  If you’re a start-up looking for investors, then you’ll look to attend programs that draw venture capital specialists.  You don’t need to attend the largest conferences, just those that put you in front of those people who have the motive to do business with you.

Further, if you are investing in an exhibitor booth, check the conference schedule and look for down time between speakers that will encourage attendees to visit the exhibitor area and get to know who is there.  If time has not been scheduled, you could find out that you’ve paid dearly to look at the other exhibitors and not interact with the target audience you hoped to meet.

But whether you will attend to make a marketing splash, find an investor, or recruit a good client or two through networking, you never know until you get there because every conference has its own personality.  At some events, the people talk and at others I’m sorry to say, they don’t.  Before you jump in and commit big money as an exhibitor, attend as a civilian and test the waters.  If the conference is two or more days, attend one day and be sure to attend the day that has a scheduled networking dinner or reception.

Now, may I share good news with you? My eighth anniversary as your faithful diarist, the author of “Freelance: The Consultant’s Diary,” occurred in June. I’ve earned the special citation from WordPress that you see here.  Heartfelt thanks to those of you who read!

Thank you for your support,

Kim

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Business Forecasting Helps You Make Money

Summer 2017 will officially arrive on June 21 and the warm temperatures promise to seduce us with sunshine and flowers. Summer is the primary vacation season and many businesses slow down with its arrival , with the exception of tourist industry service providers and wedding planners and their usual sub-contractors: caterers, florists, photographers, DJs and videographers, many of whom are Freelancers.  The rest of us, however, have to get creative and try to maintain our discipline and resolve as the heat and humidity conspire against ambition.  This lovely time of year can present a real financial challenge for Freelancers.  How can we remain productive and scare up some billable hours? Summer is the ideal time to devote attention to positioning  your venture to make money in the fourth quarter and beyond.

I suggest that you conduct business forecasting at your organization this summer. Business forecasting is the cornerstone of business planning and business planning is the foundation of enabling business profitability.  Forecasting helps business owners and Freelancers to objectively examine the monetary value of each revenue stream that the venture generates, so that it becomes very clear which lines of business are making money and the amount of profitability of each line.  Forecasting shows you where you should devote your resources and in that way generate increased billable hours, revenues and profits.

Forecasting in your Freelance venture is crucial: client work, teaching assignments, writing assignments, subcontracting work for other Freelancers and maybe even an under-the-radar odd job along the way to fatten the coffers are among the business activities in which we engage to maintain cash-flow.  It’s very useful to know which of these lines of business is worth more attention and those that you may want to drop, since the returns are meager.

Let’s face reality—we B2B Freelance service providers often don’t know when our next client will come along, or what s/he will want to spend on services when that happens.  It’s so easy to wind up scrambling from new client to new client without getting much repeat business, or adequate control over our earning capacity. That’s why it’s vital that we:

  1. Identify where the earning potential really is (and it might not be client work)
  2. Create strategies and action plans that promote successful participation in those of your business activities that are the most profitable

There are thousands of Freelancers who make their real money not from client work, which can be both scarce and erratic, but on other related business lines.  For hiilucky Freelancers who have national renown, that could be book sales, paid speaking engagements and paid writing assignments.  For others, it’s their coaching business that is the real profit engine.  In such cases, the client work is necessary to lend credibility and enable access to the other, much more profitable, activities.

So how does one conduct business forecasting? If you use Intuit QuickBooks software, you can build a model on that system.  If you have at least three or four years’ of client data in QuickBooks, you will receive much valuable, actionable information about your business, including:

  • Profitability and profit margins
  • Average revenue /client
  • Average billable hours /client

If you keep your financial data on Excel, review the past five years’ of invoices (or as far back as possible in a newer venture) and identify your top five or ten most lucrative revenue streams, whether that is client work or other related projects.  Invoice dates will reveal seasonal revenue generating patterns and the invoices will remind you of which of your services sells the most and which the least.  Billable hours and hourly or project fee rates should also be noted. It will take longer to generate the data, but as with QuickBooks, much valuable and actionable data can be extracted from your Excel based financials.

There are two basic methods of business forecasting, Qualitative and Quantitative. Qualitative forecasting models are based on market research and they’re most effective in predicting short-term cycles. Quantitative forecasting models are based on data and the approach is more effective than the qualitative model in predicting long-term cycles.

There are various types of quantitative forecasting approaches and for small and medium size business forecasting, the Time Series Method is most useful.  The Time Series Method uses historical financial data to predict future results.  When you go to your bank for a business loan and five years’ of your financials are requested, the loan officer is using the Time Series Method to predict whether you will be able to generate enough cash-flow and sales revenues to repay the loan on time.

Once you have your financials in hand, Step 2 of Business Forecasting is the development of a marketing plan that contains strategies and action plans that create the road map that your organization will follow as you seek to expand those business lines that generate the most revenues for you and consider dropping those that perform poorly.

When you see with irrefutable data that reveals which of your services brings home the most money, you will likely get a clearer picture of your ideal clients and the messages and marketing platforms that resonate with them.  An amended pricing strategy and/or sales distribution method may be instituted, as might tweaking of your business model.

Business forecasting reveals patterns in client activity that are often overlooked and the process allows you to anticipate demand for your services, reveals which services historically have produced the greatest sales revenues, reveals the types of clients that spend the most with you and in general, shows on what side the toast is buttered.

With objective confirmation of your best client categories and most popular services, you can concentrate on how to access those clients, including bigger budget clients within the categories and you’ll know how best to sell to them.  You will work not only hard, but also smart, to grow your client list and increase billable hours, revenues and profits and that will be the best use of your time during this glorious summer.

Thanks for reading,

Kim

On Conducting an Interview

Because you are an ambitious Freelance consultant, you regularly provide content marketing that showcases your expertise and reinforces your brand with current and potential clients and, when good fortune intervenes, motivates them to give you some much-needed billable hours.  As you plan your activities, you may at some point reach out to a fellow Freelancer, a good client, or another expert and ask to include that individual in your content marketing by way of an interview.  Featuring another perspective every once in a while keeps your marketing content fresh and more interesting to the audience.  I’m thinking of doing exactly that sometime soon, if my target interview guest is willing to speak with me on the record.  Stay tuned.

At some point in your professional life it is likely that you may decide, or be asked, to interview someone, so you would be wise to learn the process.  Successfully conducted interviews hinge on good preparation.  While some of us may feel that interviewing is an intuitive skill and that we should be able to manage the process spontaneously, that will not be the case.  You could probably muddle through, but why not take a couple of hours and learn how to get it right?

Think first of an interview guest to invite.  Who do you know who might tell a good story, or share some useful information that will be appreciated by your audience and does it seem possible that you’ll be able to convince that person to speak with you? 

Second, consider the basic interview format. Will your guest agree to a face-to-face Q & A that will be required for a video, or will it be a phone interview that is suitable for your podcast, blog, or newsletter? Email interviews often do not produce the best results according to many journalists. 

Third, brainstorm questions or topics that might be interesting to your audience and play to your guests’ strengths. You may want to write up a list of potential questions, or make note of possible topics. Visit the Twitter feed, Facebook page, LinkedIn profile and conduct an internet search to find out what may have been written by or about your proposed guest.

Invite your potential interview guests in a phone call. Some requests require a more personal approach than email.  Immediately upon reaching an agreement with your guest, send a confirmation email.  Two or three days in advance of the interview, send a second email to confirm the interview time and place and specify whether a phone call or in-person meeting will take place.

In all formats, introduce the guest to your audience and give a brief bio. If your interview will be video or podcast (audio), welcome your guest warmly and thank him/her for agreeing to appear. Your audience needs to hear, and see, this greeting. If the interview will appear in text you will still give a warm welcome and thanks and that exchange will appear in print.  

As you ask questions be friendly and upbeat, to help your guest to feel comfortable and safe.  Avoid “gotcha” questions designed to make the guest feel judged. Keep your mouth shut and practice active listening as you take notes as the guest speaks  (you can record as well and if you plan to do that, ask permission).  If you hear a particular word, phrase, or aspect of the topic that piques your curiosity or seems to give unexpected insight into the question, enter it into your notes and then ask a follow-up question. In this way, your interview will become a conversation, rather than a stilted Q & A session.  The best interviews are what seem to be a relaxed and intelligent conversation between the host and guest.

FYI, it is sometimes necessary to ask the same question two or even three times, in different ways, to persuade your guest to give a complete answer. It’s important to build rapport throughout the interview to make the subject feel comfortable sharing information.

You may need to nudge the interview back on track if your subject goes off on a tangent, in particular if this is a video or podcast conversation.  A useful phrase could be, “How does that relate to the big picture”? Conversely, you might draw out more information from a reticent guest when you ask, “Do you have a story that will illustrate your point”? At the end of the interview, thank your guest for participating and enlightening the audience.

If the interview will appear as a podcast or video, your guest may appear for 15 – 20 minutes, unless his/her topic is especially compelling.  If you are interviewing for your blog or newsletter, 15-20 minutes is probably still a good time limit for the conversation. Overwhelming your guest or audience is to be avoided.

Interviewing a guest for your chosen content marketing platform will build your audience and enhance the brand of your guest as well.  Create a win-win situation for you and the guest by carefully considering the benefits that will accrue to each of you through the proposed interview and be sensitive also to the interests of the audience.

Thanks for reading,

Kim

 

Portfolio Style Consulting

The typical Freelance consultant offers to the marketplace a flagship tangible or intangible professional service that is accompanied by several quasi-related supporting services that s/he is qualified to deliver, according to the needs and budgets of clients.

Freelance consultants find it necessary to create multiple revenue streams generated from an array of  services as a way to make the Freelance life financially and professionally rewarding.  Even in the best of times, consulting projects can have infamously long sales cycles and Freelancers must guard against significant revenue gaps. Furthermore, offering more services is a way to attract more clients and billable hours.

While some Freelancers are able to make a good living in consultation with just one or two clients, an arrangement that is no doubt considerably less stressful and time-consuming than juggling several responsibilities, each with its own location, decision-makers, deadliness, cultures and invoicing rhythms, that is nonetheless a very vulnerable position.  Just as the tide comes in, it eventually recedes; any client can choose to decrease billable hours or terminate the relationship altogether, just because.

So we spread our eggs amongst several baskets as a way to appeal to a broader range of clients and mitigate risk.  We must be aware, however, that explaining our various competencies in trust-inspiring language that successfully bundles everything together under one inclusive brand umbrella is perhaps the greatest challenge of marketing and selling the services of a Freelance consultancy.

Like it or not, clients tend to pigeon-hole the consulting contractors that they know, to make it easier to remember whom to call when the need for external expertise arises.  As a result, the Freelancer has two self-branding promotional tasks that will help clients understand how and when our services might be useful:

  1. Position oneself as a highly knowledgeable and trustworthy expert.
  2. Become known as the go-to consulting expert for a given competency.

Convincing “verbal packaging” is urgently needed.  I’ve recently seen the term portfolio suggested as an elegantly simple way to describe how Freelancers help clients to achieve mission-critical goals.  The portfolio system allows Freelancers to present our unique skill sets, the sum of our experience and judgment and the outcomes we regularly deliver, packaged similarly to financial services products, a format that is familiar to your prospects.

Your portfolios will contain marketing, rather than financial, strategies but that does not diminish their value. Plus, clients will agree that diversified portfolios provide the smartest investment solutions and that is what the successful Freelance consultant delivers, every time.

Like a financial services expert sells the advantages of his/her investment portfolios, assign value to and spotlight the ROI derived from the services available through the portfolios contained under the umbrella of your consultancy.  Introduce the portfolio system to your consulting practice by first categorizing and grouping your services into distinct portfolios and then articulating the benefits and outcomes associated with each.  Develop “verbal packaging” to tie them together in a way that helps prospective clients to understand how and when to do business with you.

Thanks for reading,

Kim

Outsourcing Your Content Marketing: Legal Safeguards

Regarding the process of content marketing, I work both sides of the street.  In addition to generating original content for this blog, for the past 6 or 7 years I’ve worked as an outsourcer, both generating and editing content for two monthly newsletters and serving as editor only for a third.

The practice of content marketing has taken root in many organizations, from Freelance consultancies to multi-national corporations.  The responsibility for generating a good deal of that content has been outsourced.  President Trump is apparently the author of his own tweets but many corporate execs, government leaders, celebrities and other public figures are not.  Text, images, audio and video content destined for blogs, newsletters, webinars and an array of social media platforms might be created by an in-house social media specialist or, increasingly, the function is performed by an external marketing firm or a talented and plucky Freelance consultant.

Ideally, your content marketing will become an effective inbound marketing strategy and “pull” self-selected potential prospects who will be primed to become your customers.  Along the way, good content will also enable customer engagement and enhance and promote your organization’s brand.

Producing top quality marketing content is time-consuming and you may at some point decide to outsource all, or segments, of it.  Before you finalize that decision, take the time to consider what you would like your content to do for your organization; how much content it makes sense to produce; and how you can protect your intellectual property (because the content represents you and your business, whether or not you write it).

Determine the best content marketing platforms for your business

As always, it’s necessary to know your customers and target markets to determine the type of content that will resonate.  B2B clients will have different expectations than B2C or B2G customers and you must reflect that in your platform choices.  Be advised that you cannot and should not attempt to be all things to all people.  Consider picking one or two options, depending on the size of your organization and budget.  Develop an editorial calendar so that you will feature relevant seasonal topics throughout the year.

  • Weekly blog
  • Monthly newsletter
  • Semi-annual webinar
  • Email marketing
  • Social media updates
  • Semi-annual case studies
  • Annual video (with audio) featuring you or other key team members

Specify the outsourcing requirements

Clearly describe what you would like your outsourced content specialist to do.  Do you want content creation and editing, or do you want editing services only for content that you create? Will your content be original, or will you mostly feature short preludes that introduce links to other articles that tell your story? Would you like images included in your newsletter or blog? Might you like short videos to be embedded in your blog or newsletter and will that function be the focus of the outsourced duties?

Finally, when would you like your blog or newsletter to publish (for example, every Tuesday at 6:00 AM or on the 15th of every month?) Share your proposed editorial calendar and publishing schedule with your outsourcer, so that s/he will know what to create and when to have the content ready.

Assign the content copyright

Stay on top of this one, people.  Be advised that unless you specify in the outsourcing contract that all content belongs to you, then ownership will lie with the outsourcer who creates it.  On your own, or after your outsourcer is no longer in your employ, you may want to repackage text, images, or video from your blog or newsletter and use it on your website, in email marketing letters, or in a book (that could be written by you or by the original content outsourcer, a ghost author) and you must ensure that you will have the unrestricted use of what you paid for.

Further, you are advised to include an indemnification clause against possible copyright infringement of text and images that the outsourcer may (unwittingly) commit.  Some images are free, 95-year-old plus images are in the public domain and others are for sale.  Misinterpretation can be costly.  Also, proper credit must be given to images and failure to do so will cause legal problems for you.  Your business entity is the publisher of the content and is the responsible party.

Address the potential legal liabilities of your content

If your content addresses a subject that requires some manner of official licensing—medical, legal, investment, architectural, engineering, or nutritional, for example—it will be wise to include disclaimers or some assurance to readers that the information provided meets accepted regulatory standards and best practices.

Contract with outsourcing termination clause

Include all points detailed above in a contract that is signed by both you and your outsourcer and send a signed copy to the outsourcer.  Hire an intellectual property attorney to review your draft contract to ensure that both you and your outsourcer are protected.   Be certain to specify  who owns the content and how it can be used after the work relationship has ended.  Non-disclosure of potentially sensitive information can also be included.

Thanks for reading,

Kim

 

 

The Content of Content Marketing

Content Marketing continues to have a life of its own, riding a wave of non-stop hype. But what are all that text and all those images floating through space really worth to your business? I edit two newsletters,  one short and sweet,  the other several pages long and filled with lots of text and photos. One newsletter I assemble myself by reaching out to obtain snippets of relevant and timely new information and an image or two each month.  The second I solely edit and what a laborious process it is to slog through all that dense text!  Can you guess which entity generates the most revenue and profit?

Why, the owners of the short newsletter that gives splashes of fresh info every month plus one or two new pictures, of course.  Those organization leaders do not bury themselves in the labor and expense of high-maintenance content marketing.  They are instead pursuing clients and making money. They are not merely busy; they are productive. They know their role as business owners.

If you can build and maintain a good stable of clients without a web presence, by golly I say you should do it. Truth be told,  most of the most successful business owners and Freelance consultants that I know have no website and no social media.  Instead, they are known and trusted by clients and referral sources.  They are going to the bank and not to their keyboards or video cameras to crank out “content”.

Enter the experts

The short answer is,  if you’ve done something successfully a number of times,  you can claim the title.  However, there is also the axiom “Those who can do and those who can’t, teach.” My client who has enlisted my services for the production of the monthly weighty tome hasn’t had a client in something like five years (I’m serous). She swans around speaking on panels, moderating panels, writing articles for a couple of journals that don’t pay (I edit those as well) and overall being a very busy girl. But I’m not sure how she pays her mortgage. Trust fund?

Noise makers

Everybody with access to a keyboard or a camera is doing some level of content marketing,  even if it’s only for themselves and their Twitter friends. Everybody’s pulling out a cell phone to snap pictures of something—the first snowfall,  the first crocuses and at the Boston waterfront a couple of weeks ago, when the air temperature was minus 10 and the Atlantic Ocean was about 40 degrees,  the fog that was rising from the water as a result of the 50 degree temperature difference (it was quite a sight). all those photos become content posted to social media.  It’s all noise that competes with what Freelance consultants and other business owners are aiming to do,  that is,  get the attention of potential clients and referral sources.

Branding is not personal

Supermodels and a certain group of raven-haired sisters (and their mother) in southern California seem to have done very well with the personal branding concept,  but that doesn’t hold for the rest of us.  Unless you were lucky enough to have held a job that allowed you to publicly build a reputation amongst prospective clients,  or you descend from a prestigious family,  the differences that you (and I) point out to clients are only differences and not distinctive competitive advantages.  We are the same, only different.

Strategic, original, relevant, concise

If you have the time and inclination to delve into the content marketing fray,  be strategic about the process, most of all. Have a clear and defendable purpose.  My purpose for producing this blog since June 2009  has been to

1.demonstrate that I have good business judgment

2. demonstrate my writing skills

I’ve referred prospective clients to the link for this blog and the strategy has been successful.  I’ve gotten at least three clients,  including a (modest) book editing assignment,  my first. Editing two newsletters also helped me to snare that gig.

Further,  read about business topics in places like The Financial Times,  The New York Times, Business Week,  Inc. Magazine,  the Harvard Business Review and other credible sources. Those can become your inspiration,  along with your owned lived experience,  to generate original content.  Do not bother to try and pass off groupings of links to articles as your blog or newsletter content.  Do not insult people.

Finally,  whatever your topic, two and a half pages of text, or 1000 words, has got to be your max. When writing this blog,  I start thinking about creating a two-part post if I surpass 800 words. Attention spans are not what they used to be in this noise-filled arena of experts.

Thanks for reading,

Kim

 

 

 

 

 

 

 

Plans For Your Business

Whatever the health and condition of your Freelance business venture, you will at some point benefit from planning.  Business planning of any type provides a roadmap that will help you to successfully achieve your business goals.  Business planning can be instituted when sales are tanking and you need to find a way to improve billable hours.  Or you may have decided to aim for larger assignments  or roll out new services and need to figure out how to make it happen.

I’ve taught business plan writing for 7 or more years and I’ve also developed a one-day business plan writing workshop. As I see it,  the process of writing a business plan gives the writer (or the team) many opportunities to think things through and  get the magical thinking out of one’s head. The business plan shows us first,  if the dream is potentially viable and second,  how to make the dream a reality.

The plan you write will depend on what you set out to achieve.  If you’re launching a start-up that will involve significant outside investment,  then you’ll need a very detailed plan that focuses on financial projections;  marketing plans that delve into customer acquisition, the competitive landscape, the product or service launch, messaging,  sales distribution; and operational aspects such as manufacturing,  staffing and quality control.  Freelance consultants will mostly focus on marketing, in particular defining the target clients,  client acquisition; providing the right services; appropriate pricing; and the budget to pay for their marketing strategies.

Whether your plan will be used to launch a big venture and attract outside money,  or is a boutique style service provider, include the following elements in your plan.  Even if you’ll be writing what amounts to an extended marketing plan used for a one-person shop,  it will be a good exercise to include these elements, because you’ll be encouraged to think seriously and strategically about your mini-enterprise.

EXECUTIVE SUMMARY

Present the business mission statement. Include as well the date when the business was formed; key management personnel; your unique credentials or experience that make you especially suited to start and successfully run the venture; the business legal structure (LLC, Sole Proprietor, or Corporation); the products and services; one or two key competitive advantages (maybe you have a patent?); sales projections; and the amount of capital needed (if you’re looking for investors).

BUSINESS DESCRIPTION

It’s traditional to present a brief description of your industry and its outlook,  nationally and regionally. give the details of your products and services and competitive advantages. Identify whether your venture is B2B, B2C, or B2G. If you hold a patent,  detail the competitive advantages that it will convey. Have there been any technological advances that will help or hinder your business?  Divulge here.

MARKETING

The category is a big tent that encompasses sales, product or service distribution,  competitors, advertising,  social media, PR,  networking,  branding, customer acquisition and pricing. The plan written for a mall organization will essentially consist of an extended marketing plan, because for Freelance consultants,  success hinges on identifying and reaching clients who will pay as well as pricing the services advantageously.

FINANCING

Whether you’ll self-finance because you’re wealthy enough,  or the venture is small and  not especially demanding of capital investment,  you nevertheless need to know with a reasonable degree of certainty how much you’ll need to spend to carry out the plan ( that could be a new product, or the purchase of something big, or a marketing plan, for example).  If your strategy is to attract investors,  they’ll need to be convinced by your projected sales revenue figures,  because they’ll want to know when they’ll be paid back or know when to expect profits if they are made co-owners of the business.  A break-even analysis, projected income statement, projected cash-flow statement and projected balance sheet are required by those who will need significant money.

OPERATIONS

How will day-to-day business processes function?  Tell it here,  along with providing the organizational chart,  the business location,  the method of producing that which you sell (if you are,  say,  a Freelance book editor or  graphics specialist,  you produce the service yourself),  your sub-contractors (if you are a special events organizer,  who is your usual caterer, florist,  limo service, etc.?) and quality control methods.  This element is about logistics.

For more information on writing a business plan,  visit the Small Business Association website https://www.sba.gov/tools/sba-learning-center/training/how-write-business-plan

Thanks for reading,

Kim

 

 

 

 

 

 

 

 

 

 

Business Model = Profit Engine

Hatching an idea for a business involves much more than inspiration.  Your entrepreneurial idea must also include a strategy for making the idea profitable. That strategy is known as the business model. The function of a business is to provide products and/or services that help clients solve their business or consumer needs.  In addition, your business must work for you  and generate a reliable and abundant revenue stream from which you derive your annual income.

Before we go any further, let’s clarify the meanings of business model  and business plan.  Your business plan  is a document in which you describe the mission of your business; the target customers; the marketplace and competitive environment in which it will operate; its marketing, financial and operations plans; and the legal structure it will be given.

Your business model  will detail how the venture will attain and sustain profitability. The cornerstone of a good business model is a competitive analysis, which will help you verify target markets (customer groups) and establish your expected value-added in the presence of enterprises that offer similar products and services.

The primary element of your competitive analysis is customer knowledge, something that regulars to these posts know that I encourage frequently.  Information-gathering is a vital and ongoing business function.  James King, Director of the New York (state) Small Business Development Center, notes that “…customer purchasing patterns change rather rapidly and if you’re not ahead of your customers, you’re not making sales.”  Along with your selection of products and services to provide and customer acquisition strategies, operational aspects — that is, the process of how your products or services will be delivered — must meet the often fluid expectations of customers and will therefore figure into your venture’s business model.

Once you’ve developed a proposed business model, find a trusted potential customer or business owner or colleague and ask for a review.  Discovering and closing immediately obvious gaps is something you’ll want to do before your business is up and running.

King recommends that aspiring entrepreneurs “Sit down with someone who doesn’t have a vested interest and ask that person to poke holes in your model. If they do a good job, you’re going to be better prepared for any eventuality. The more risk you can eliminate, the higher the probability that you’re going to be successful.”

One is advised to revisit the business plan and business model every couple of years, or at least when changes in your industry, local business environment or technology have the potential to impact your sales revenue or how your do business. This practice will also give you the benefit of reviewing your projections as regards expected vs. actual target customers and allow you to refine planning for growth and expansion, as you create strategies for sustainable business success.

Thanks for reading,

Kim