Archive for August, 2009

Imagine this for a moment…you are a new business owner and are at an event where you can learn from some seasoned entrepreneurs.  Someone asks you for your elevator pitch, you spew out a bunch of blah, blah blah leaving everyone in the room dazed and confused.  Someones says: “Who is your ideal client?” and you respond, “Everyone!” with great enthusiasm.

Oh boy!

Sound familiar?

I attend an event very similar to the one I described just the other day.  Although everyone I met had very different issues, the one thing that they all had in common was how unclear they were about where they were going and how they were going to get there. They were unsure who their target market was and more importantly they didn’t express how they helped their potential clients.

What did they lack?

Clarity!  That’s right…clarity!

Without clarity in any given situation its like being lost at sea with no land in sight.  You drift aimlessly around the water’s of confusion in the hope that something will trigger you to move in one direction or the other.  Now you may finally figure it out on your own but I know one thing for sure that going it alone without the support of a mentor or coach will definitely take you  a lot longer to find the direction you are seeking.

Just like the business owners I met the other night, I too lacked clarity when starting my business.  Once I got really clear about what business model I wanted to adopt  my business started to take off!  I got  help from a great coach and mentor which made all the difference.  I stopped wasting my valuable time and instead started focusing and producing the kinds of results that I wanted in my business.

So if you feel lost in that sea of confusion, not sure how to develop your business so that it is fun, authentic and lucrative find a coach who can help you sift through it all and lead you towards a plan that makes sense AND makes you money.

You are new in business and you have been marketing yourself like crazy.  The phone rings and you have a new client…what do you do now?

Don’t let the excitement of signing on a new client get in the way of you using sound business practices.  Follow these three strategies to protect yourself when starting a new businesses relationship.

1.  Have a contract or client agreement

I remember when I was in coaching school we devoted a whole course on sound business practices.  The development of a client agreement/contract was at the top of the list.

When developing your agreement remember to include at a minimum the following:  work hours, fee (this can be either your hourly fee or fee for particular program), payment terms, confidentiality statement, your status as an independent contractor, an “out” clause (e.g either party may terminate the agreement given 14 days written notice), as well as any other information that you feel is pertinent to your particular business.

Make sure that your clients sign and return the contract before any work is performed and send a copy to the client for their files.

2.  Create  Plans

It’s easy when starting out to be unsure about pricing strategies and how much time a client may require in any given month.  The best way that I have found to handle this situation is to develop client plans.

Clients purchase a certain amount of time based on a “package” that you create.   These packages allow clients to purchase a certain amount of hours of service each month based on their particular needs.  Some people use the bronze, silver, gold systems whereby the more hours you get the higher the package and the cost.  Bronze is less hours and less money whereby the gold package  allows for more service hours at a higher price point.

3.  Get Paid in Advance or Require a Deposit

We have all heard the stories of business people who started doing work for a client only to get stiffed in the end.  The best way to protect yourself is to require that your clients either pay in advance or pay a deposit before you start working on their project or providing any type of service.   The deposit doesn’t need to be astronomical but rather enough so that if they walk away you have been compensated for your time, effort and talent.

Most coaches that I know require payment in  advance.  For example, you pay in August for coaching that will occur in September.  Some VA’s do the same but others require a deposit that then is applied to the invoice at the end of the month.  I use a variety of different payment strategies depending on whether or not someone is purchasing private or group coaching or signing up for a retreat or mastermind program.

The important point is that you develop these systems to ensure that you and your clients are on the same page with regard to payment.  This is all laid out for my clients in my application and enrollment forms.  In addition, all my clients complete an intake form which clearly lays out how I work and what my expectations are from this relationship.  This ensures a win win situation for both of us because it is all spelled out BEFORE we start working together.

In the end its all about making sure that you and your clients are on the same page, that expectations are clear and that both parties are happy with the arrangements.