Mixing Friendship and Business is a Bad for Business

March 24, 2011 by  
Filed under Business Basics, Featured

For the past two years, I’ve been in a business relationship with a client whom I felt had also become my friend.  After extracting more than twice the amount of labor than was allocated under the terms of our monthly retainer agreement for WordPress Website Development services over several months, these local clients have reminded me that mixing friendship with business is a bad idea.

In an effort to overcome my disappointment about their denial about what is owed for my services … or even discuss a compromise, I decided to write a post to advise and educate small business owners on better ways to structure contracts with clients who expect to receive benefits prior to payment.

Qualifying Business Prospects

As a former Realtor, one of the refrains that they drilled into my head during training was that Buyers were Liars.  We were taught to qualify people for mortgages prior to investing time and energy in setting up showings or writing contracts.  This is easy to do when you can “spin” your request for qualification as a service that will benefit the Buyer but it is not so easy to do in other service businesses.

The difficulty may lie in the fact that most small business owners cannot afford to use expensive credit checking services.  Thus, the qualification process involves interpersonal communication that almost seems intrusive while qualifying a prospect for their ability to pay.

In a perfect world, you would take 100% of the payment up-front but that is a hard sell.  In lieu of that, insist on a retainer of no less than 50% of the total contract price and establish milestones that pay the remaining 50% for each deliverable at the time of acceptance.  You may want to consider using an escrow service to ensure that you will be paid as tasks are completed.  If you are in the middle of their project and they begin to tell you they are having trouble paying their bills, stop working on their project.  Retainers are non-refundable.  You cannot recover the time you’ve spent once it is gone.

Get it in Writing!

If there is no written contract to enforce a business agreement, things can easily go wrong.  At the very least, put the request into an email message after you’ve agreed to deliverables and pricing.  Don’t begin work on the project until you have an email reply that acknowledges the agreement.

Stick to Business

Since time is the commodity that service providers trade, don’t allow yourself to get engaged in personal discussions with your clients during the project.  Clients will act friendly and they will say anything to get what they want.  Inevitably, they will try to gain your sympathy and convince you that they will pay you later when they want more than they can afford.  In my experience, this never happens when the bill comes due and the friendship that you felt was merely the tool they used to get what they wanted.

Negotiate Before You Do the Work

mixing friendship with business is bad for businessIf a services client requests work that you know will take more time than the payment arrangement allows for, take notes about their request and tell them that you’ll have to get back to them with a price.  Regardless of their insistence, don’t lift a finger to get the work done until you have reached an agreement about compensation and received an additional retainer payment.  This is business and you are delivering value.

I repeat:  Don’t budge if they say they will pay you later.  They won’t.

Don’t be Afraid to Walk Away

As the saying goes, when one door closes another is opened.  If you feel that your client is difficult to work with and they are exhibiting signs of ambivalence about your requests for payment, this is a sign that you need to move on to another client who understands that this is your business.  You are not their employee and you owe them nothing.  You are an independent business owner and it isn’t your job to save them at your expense, no matter how nice they seem.

Don’t Get Distracted by the Noise

When a client knows they are wrong, they will endeavor to assign blame to you for their irresponsibility.  If you get caught up in their accusations, you’ll get distracted from the goal of being compensated for the work that you’ve done.  Acknowledge that you have heard what they are saying but do not engage in a debate about why you are demanding to be paid and do not involve yourself with explanations about your actions as you pursue payment.  You did the work.  In a business relationship, you deserve to be paid.

Incoming search terms:

Don’t Should on Yourself!

A wise man with whom I worked during my earlier years once came up with a profound New Year’s resolution at our annual marketing support meeting.  The entire group laughed out loud when he said his resolution was to never say “it should work” again.

There does seem to be a resurgence of people not thinking through the answers to questions that are asked.  Responses like this are pointless:

It should have been there by now.” or “That should have worked.”

Normally, a long explanation about how the process is supposed to work follows comments like these.  All kidding aside, it almost seems like an assumption has been made that I wouldn’t have done something simple, like checking my spam folder or reading instructions.  As the support person drones on about how their process works, I’m thinking, “If your system worked the way you’ve described it, I wouldn’t have picked up the phone to find out what was wrong.”

Customer Relationship Management | GetIncomeBlog.comCommunicating is such a critical component of business.  Whether it is written or verbal, our phrasing has a lot to do with how the other side of the conversation receives our responses.  We need to empathize with the caller and, above all, treat them professionally.  Without our customers, we have no business.  This applies to ALL business models … assuming the business is legitimate.

Even though this may sound cliché, there really is no such thing as a dumb question.  Entrepreneurs who are operating a truly customer-facing business must learn how to respond appropriately to their customer’s questions.  Here are some suggestions for improving your customer communications:

  1. Smile before picking up the phone.
  2. Establish set time frames during work days for taking calls to ensure minimal disruption..
  3. Draft agenda topics for scheduled meetings and allocate time limits to the topics.  Distribute the agenda to all invitees in advance of the meeting.  Be flexible to requests to alter or rearrange the agenda and time frames.
  4. Don’t make customers wait more than 24-hours for a response to their email or voicemail.
  5. Set “office hours” so your customers are respectful of your personal boundaries.  Inform active customers of your vacation plans.   If you have a dedicated business line, update your announcement to reflect any extended time away from your office so potential new business doesn’t think you are non-responsive.
  6. Ensure that you understand your customer’s problem statement before suggesting a solution.  They’ve been immersed in it long enough to determine it is a problem.  Sometimes you must back them up to the beginning so you can be of better assistance to them.
  7. Remain calm and be empathetic.  Understand that your customer may have struggled for hours before calling you and that they could be tense as a result.
  8. Set expectations properly if your customer’s issue cannot be handled during the call.
  9. Publish an FAQ page on your website and refer people to it first.  Whether you have a product or service, if you’ve been in business a while you know what questions are most frequent.
  10. If your product is digital, prepare documentation that assumes the least amount of knowledge while making it complete enough for advanced users.

Most of this blog’s readers are aware that I have a service business and that one of my services is WordPress Website Development. Many of my clients are unfamiliar with the software and part of my service fees include one-on-one training.  I welcome client calls because I love teaching people things that will make them feel more self-sufficient and confident with the products and services they have purchased from me.  Because I also enjoy the clients with whom I work as people, I have to monitor the gab time with some of them because we have so much fun just talking.

Incoming search terms:

The Proposal …

In my business, potential clients sometimes ask for me to submit a detailed proposal that outlines deliverables and costs for milestones on a project.  This usually follows a lengthy phone conversation.  This is not an unreasonable request but preparing these proposals takes time that cannot be spent on other business activities and exposes details about my strategies and methods so my quandary is what level of commitment to ask of the prospect in exchange prior to delivering the document.  Although it is part of doing business, nobody likes paperwork.

Project Proposal GetIncomeBlog.comWhen I launched my business, I submitted detailed proposals without a second thought.  However, I modified my approach after a potential client failed to acknowledge the receipt of the proposal and ignored my requests for follow-up and negotiation until he contacted me to share a listing he had placed on a freelance site which was a verbatim copy of everything I had written in my proposal.  I was shocked.  He seemed pleased about the fact that he had sourced the project at a lower rate than I had proposed.  He has returned with new requests since then but I’ve declined.

My proposals now include a time limitation for pricing and a copyright notification that is intended to discourage prospects from using my content to shop their projects around.  In spite of these measures, there still are people who promise to meet with me after the proposal is sent, fail to return calls or emails for a while, and send a cryptic email saying that they “going another direction” with their project after a couple of weeks.  This is disappointing … and suspicious.

This isn’t a sour grapes post.  I certainly don’t expect to win every contract but I honestly don’t know how to handle prospects who leverage my copyrighted content to shop around for better pricing.  It is a bona fide conundrum.

These are the possible solutions that I’ve come up with:

  1. Withhold the delivery of all proposals until a mutually agreed to meeting time where we can walk through and discuss each point/price.
  2. Charge a flat fee for preparing and delivering detailed proposals and estimates that covers the cost of my time.
  3. Propose only an hourly rate for all projects in the future and track time, which is a big headache for me.
  4. Join the Circus and escape it all.  :)

Well, the last one isn’t really an option but it is fun to muse about sometimes.

Step Away from the Computers!

August 30, 2010 by  
Filed under Business Basics, Featured, Marj Wyatt's Musings

We are all aware of the value that our digital tools bring us.  Our technology expedites information delivery, allows us to follow our social networks, makes calling from anywhere possible, and provides on-demand entertainment.

Based on this quote from researchers at the University of California, San Francisco, we are actually depriving ourselves of much-needed mental downtime that ultimately may be affecting our learning capabilities.

“Almost certainly, downtime lets the brain go over experiences it’s had, solidify them and turn them into permanent long-term memories,” said Loren Frank, assistant professor in the department of physiology at the university, where he specializes in learning and memory. He said he believed that when the brain was constantly stimulated, “you prevent this learning process.”

Perpetually Plugged in People

There are armies of mobile application developers who are hard at work creating new productivity tools and producing games to entertain us in between tasks.  I am not a Luddite.  I use mobile technology for both business and pleasure but it does seem possible that society is becoming enslaved to its mobile devices.

Entrepreneurs benefit greatly from the advanced technologies availed by multimedia mobile devices but these same advantages have potential to introduce stress, which can have a negative impact on our overall business productivity.  While we want to give our customers the impression nothing matters more to us than our business, we are of no use to customers if we are burned out.

Reboot Yourself!

All of our technology needs to be rebooted periodically to clear memory and cache.  The same is true of us humans.  While it is easy to assume that browsing the internet, checking email, or playing a brief game is a break, these activities don’t remove our technology chains nor provide our brains the breaks they require to renew our creative juices.  Regardless of our professions, most of us are tethered computers throughout our work days so taking a break on another computer isn’t really a break, is it?

During a keynote speech, Harvey MacKay suggested that the most productive time that he spent was time spent looking out his window.  He went on to explain that he was both resting his eyes and refreshing his imagination.  This “stuck” with me.  In situations where there was no window, I hung a photograph of a beautiful place upon which to fix my gaze.

Get Income Blog | Step Away from the Computers!

Reboot Yourself!

When I am confounded by a bit of code for a wordpress website development task or unable to come up with fresh ideas for a new branding strategy, leaving my office for a stroll along the ocean shore totally renews my perspective.  While I am away, I am not thinking about the work task.  I am enjoying the salt air and interacting with people around me.  I also leave my mobile device in the car while I am at the beach.  There is nothing so earth shattering that it cannot wait for a few hours.  Relaxing in a chair with a good book (with REAL pages!) or doing a crossword puzzle is another method that I use to get away from bright LCD screens and computers.

So, whether your thing is shopping, cerebral pursuits, or nature, do your favorite things and leave the mobile devices at home so you can clear your mental cache and attract new ideas.  You will return to your tasks and I guarantee you will feel better and be more productive.

Cyber Vandalism, Skype Hackers and Social Networks

Skype is an invaluable business building tool.  Not only does it allow you to conduct business internationally without incurring international long distance charges, it make is very easy to share large files and engage your customers in video chats when the need arises.

There is a dark side to Skype.  Hackers prey on naive online users.  Last year’s hacker game was to usurp an account and initiate contact with all confirmed contacts, inviting those people to accept files.  Even though I do not consider myself to be naive, I was duped into accepting and opening a file, in March 2009,  when a seemingly active client offered it to me.  When I lost access to my Skype account, I realized I had been hacked.  It took a few days to put everything back together and it was a real headache.

I haven’t accepted any spontaneously offered files or clicked on any uninvited links since that time, even if the offer is extended by a long-term contact on my list.

This year’s hacker game is to hijack an account and offer a link that  looks like a Skype link to all confirmed contacts in that account.  With a slight amount of scrutiny, it is obviously not a link you should follow.  The link will probably ask you to login to your Skype account, at which point the hacker has your credentials.  If you have a Skype subscription attached to your PayPal account, the hackers can run up huge expenses for you.  Skype takes no responsibility for this.  Neither does PayPal.

When my Skype account was hijacked in March 2009, I had no Skype subscriptions but friends of mine who were hacked by the hackers who hacked me were harmed financially.  A hacker’s sole intention is to steal something from you.  They are clever people and it is truly a shame that they have chosen to use their creative talent for malicious intent.

Safe computing and surfing is an old topic but its relevance is not stale.  It is comprised of more than running Spyware blockers and Antivirus software, especially if you are a member of any internet messaging application.

How to Avoid Skype Hackers!

Here are some steps you can take to be safe on Skype:

  1. Whenever a friend offers you a picture or file, ask them what it is.  Try to engage them in a longer conversation so you can determine if the language they are using is native to them.  If you feel uneasy about it, ask if you can connect through voice to have them explain why you should accept the file.  A hacker will not be able to talk to you.
  2. When you are asked to confirm a contact, ask the requestor how they found your ID.  If they can’t provide information that links to any sites or chats you have a membership in, decline the opportunity promptly.
  3. When you are invited to click on a link unexpectedly, look at the link carefully first.  Here is the dialogue from a recent attempt to hijack my account today.  You will notice in the first line that English is not their native language.  By the way, THE LINK HAS BEEN DISABLED IN THIS POST!

[11:20:10 AM] MyFriend says: hi how are you,i send to you link please sign in ok and thanks  http://smii.host.sk/www.skype.com/?id=79826&lc=us
[11:23:04 AM] Marj Wyatt says: oh dear, hackers at work
[11:24:01 AM] Marj Wyatt says: more importantly, what sorts of idiots spend their days trying to wreak havoc on nice people?

I received no response to my inquiry, but I wasn’t really expecting one.  I admit to my brutality in my biting response but, frankly, it was a way to shut them down immediately.  I posted this thread here so you could see an example of a hacker’s link.  There will always be something after the domain name.

The first time I encountered this in Skype, I asked what the link was for.  The user at the other end kept repeating that it was “a surprise.”  I was polite with them and informed them that, if I wanted to access my Skype account, I would login through a browser and not through their link.  The abandoned their efforts.

Managing Your Online Life

Cyber Vandalism and Online Business | GetIncomeBlog.com | Tips and Tricks for Business Success by Virtually MarjTools, like social networks and Skype, have made it easier to build business and promote products and services at a minimal cost.  They have also opened up a new channel for hackers.  Both Twitter and Facebook have been hacked repeatedly during the past year.  To the best of my understanding, it always starts with a malicious link.

Very early in my practice of conducting business online, I learned to set every profile that I have on social networks to approve comments manually so I could avoid the use of my pages as advertising space for others.  People who have a penchant for doing this have had the nerve to complain when I do not approve their posts with links to their list building tools or business opportunities.  Oh well…

New contacts on Skype are always advised that my accepting them is conditional and presumes that they will not promote every business opportunity they come across on the web via Skype broadcast tools.  When a confirmed Skype contact sends me a link to something that they are promoting, I always ask questions and remind them that I’m not looking for get rich quick schemes.  Not so long ago, one of my contacts decided to launch a group chat with the founders of one business, after I declined to enroll myself.  It was quite embarrassing for me.  I didn’t want to hurt my friend’s feelings but I also did not like the feeling of being cajoled into joining yet another “worthless webinar”  so they could get a bonus.

The LinkedIn network uses a process for profile publications that begins with a request, from you, for the feedback.  It is very straight forward.  Additionally, LinkedIn uses associations like school or work to help people find friends.  It may take a little longer to build your social network there but at least you know who you are connecting with, which provides you with a reasonable expectation about how they will behave online.

I have also monitored my Twitter feeds carefully.  When a Twitter contact presents themselves as being uncouth or a Twitter Spammer, I will “unfriend” them so my Twitter feed isn’t cluttered with junk.  It is my feed, after all.  :)

With the caveat that I find the Facebook user interface unwieldy and may not have taken the time to figure it out, there doe not appear to be a setting for manually approving comments on my Facebook wall.  This is a bother because it enforces a need to go into your account and delete content that you do not want displayed.

Building Business Online

Skype, Facebook, Twitter and LinkedIn are powerful business building tools when they are used appropriately.  Social manners should not be tossed out the window just because you are in an online relationship with your prospects and customers.  When you are respectful of your online contacts, you will attract more business contacts who are also respectful of you.

Have fun online, be careful, and be prosperous!

Incoming search terms:

Brand Revitalization

The importance of creating a brand that sticks in the minds of your target market is obvious to people in stable businesses.  When the market paradigm shifts or a part of a product line is discontinued, it has potential to kill the brand.  Campaigns to create and obtain market share for a new brand can be very expensive so leveraging the investment you’ve already made in your branding strategy  by implementing a brand revitalization strategy is economical and important, especially these days.

When Volkswagen introduced themselves in the USA in 1949, only 2 vehicles sold.  By the end of 1955, the manufacturer had firmly established their presence in the United States. I’m not sure if it was the marketing experts or the public who created the “slug a bug” attachment to the vehicle but I certainly remember playing the game with my sister in the back seat of our family car.  I also remember my mother complaining about the odd appearance of the VW Beetle.

 

brand revitalization

Slug-a-Bug!

 

Lately, Volkswagen has been weaving this childhood game into their brand revitalization campaign.  The inference of the new spin, however, is that the vehicle is moving so quickly that the onlooker who has been “slugged” didn’t see it.  This is brilliant!

A brand can be established using imagery, colors, sounds or words.  Most times, it is a combination of some or all of these things. If a brand becomes “stale” or the marketing message has gotten muddied by exterior influences, like competition or economic constraints, it may become necessary to pursue brand revitalization to elevate awareness and increase market share.  Clever tactics for brand revitalization  or stabilization are not accidents.

Whether your business is small or large, there are a series of rules that must be followed steps that must be followed to accomplish the task of brand revitalization.

Refocus

This step begins by evaluating the market that you are pursuing and redefining the purpose and goals of the company and the brand.  Every member of the organization must aspire that message in their work and the communication from the company to the market must consistently reiterate the new goals.

Your message should succinctly state that purpose and be easy for consumers to remember.  Consider the branding strategy that AT&T is currently using for their wireless campaigns.  They want consumers to know that, using their technology, anything is possible.  This is a good message.  It conveys freedom and choice, something that is dear to all our hearts.

Relevance

Since the promise of a brand is what leads to consumer interest and loyalty, it must clearly and accurately convey what consumers can expect to experience every time they choose your product or service and how that is different from the competition.

As a business owner or executive, you must decide where you want to be and how you will get there.  You must understand the criteria your market uses to make purchasing choices in your niche.   You must also have an awareness about why people are choosing your competition’s products or services over yours. If you’ve lost market share due to global factors, your task is to repurpose the brand so you can keep your product or service viable.

Reinvent

This is where action comes into play.  The active components of any market are people, product, price, place and promotion.

Revitalizing a brand must begin with the people INSIDE your organization.  Every member of the company must feel committed to the new branding strategy if you hope to influence future success.

Products and services are tangible evidence of the brand promise.  Reinventing a brand image involves innovation of your products and renovation of services that support it.  This requires investment of resources and  and the talent of your organization.

Consider the variances you have witnessed with everyday use products like skin care, laundry detergent, or toothpaste.  With the rise of economical concerns, laundry products began to promote the fact that you could wash more clothes with less detergent.  Personal care products,like toothpaste, introduced and now promote their ability to make your teeth whiter.  Neutrogena has recently introduced a brand revitalization campaign that reminds women that they trusted the product as teenagers and should continue to use it to keep their skin looking young.  This is very clever…

Pricing is part of this phase of brand revitalization.  If there is a way to re-package your product or service offerings in a way to grab more market share, you will have expanded your revenue stream without having to develop new products.  McDonald’s implemented this strategy with their Dollar Menu items.

Inclusive in this phase of brand revitalization is the promotion aspect.  Your brand’s “face” is its place.  Whether the product resides on a store shelf or online, each time it is found, it must be easily recognized.  Packaging, colors, images, and sounds are all part of what makes your brand image memorable.  Promoting and maintaining the non-verbal aspects of your brand image are important, especially in a global environment where language differs.

Results

It isn’t an obsession, exactly, but measuring results is a topic that you’ll find me referencing consistently.  The entire point of change is to realize progress and, if you are not measuring the results of your brand revitalization campaign, you have no way to see if your efforts are enhancing your bottom line.

If your organization has staff, ensure that they are engaged in the results orientation efforts.  Stress the importance of bringing the brand to life for your market, especially if your employees are “on the front lines” and dealing with your customers individually.

Rebuild Trust

Expanded access to information has heightened consumer awareness, and there are many reasons for them to feel distrustful.  Your brand must acknowledge the social imperatives that drive consumers during their purchase decisions.  Speak to their concerns about ecological matters, privacy concerns, or false claims.  Re-establish their confidence by engaging in local activities and events that are not profit oriented and by being open and honest about all of your business affairs.

Realize Globally

Distill your brand revitalization strategy to a single document that is capable of expanding globally.  Make this resource readily available to your staff and your customers, along with the desired goals of your brand revitalization strategies.  If you have a brick and mortars presence, clientele will see that you are walking your talk by the experience they have as they are interacting with you professionally.

Leadership Required

Creativity is essential, but  the new brand vision and positive momentum is a result of committed leaders who are capable of providing clear direction and maintaining priorities.  The brand message must be consistent, whether you are interacting with the board room,  investors, employees, or consumers.  Trust your instincts, by all means, but remember that you ARE the personification of the brand you seek to revitalize.

Technorati Tags: branding and marketing,branding strategy,brand revitalization

Incoming search terms:

SEO and Watching Paint Dry

We joke about watching paint dry when time seems to move too slowly but, believe it or not, this is an actual role for which people are paid.  Duties include touching the painted item to ensure that it is dry.  What does this have to do with businss and online income?  Read on…

Many people put up pretty websites and expect immediate results.  Very few people get what they desire, unless they have found a particular niche that is in demand and has not already been exploited or they have a well established and responsive list.

As a website consultant, I’ve always recommended beginning with the end in mind.  During initial meetings with any new client, I always inquire about their keywords and SEO strategy.  Of all the hundreds of sites that I’ve built, only one customer actually had a plan in place.  Statistically, those who did not embrace the idea that they needed to identify niche keywords and strategically pursue them experienced less than optimal results.

Once you’ve determined your SEO and linking strategy, you must set about the task of doing the work necessary to accomplish it.  This entails tactics that will build relevance based on keywords through on-site and off-site content.

Perhaps the best known method for getting links to your website is writing articles, adding a link to your signature in a forum, or commenting on blogs.  But, how do you know which sites have importance from Google’s point of view?  Michelle MacPherson recently released a free tool for monitoring top internet properties for your content and links.  I don’t know if it is still available but I’ve used it and it is very helpful.  The caveat is that each site has different rules so make sure you read the fine print when you register and begin to use them.

Lately, there has been a resurgence in using videos to promote your business or opportunity.  This isn’t big news.  Video marketing has been a great way to give voice to your brand for years and new video distribution channels are popping up every day.  Your videos need to go viral, for them to really provide benefit, and if you don’t use good keywords when posting the video, it is just “out there” waiting to be found.  Alternatively, and as I mentioned earlier, you can deploy it to your dedicated and responsive list.

Differentiating yourself online may be the biggest challenge you face.  Most of what I observe is a lot of emulation.  That isn’t a bad idea.  Heck!  It worked for me when I wanted to learn to sing like Joni Mitchell.  :)   Still, emulating what everyone else is doing only makes you like everyone else.  Your market will choose to buy the offer, if it is something they want or need, and they will buy it from a link that appears in early in their search results.  Thus, if you have no SEO strategy, whether or not you’ve done your niche research homework, there will be a lot of people ahead of you in the pile.

Assuming that you’ve are now convinced that learning SEO and keyword research is important to your business success … online or offline … what can you do?  Well, you can begin by learning more about SEO and keyword research from an expert.  Dan Thies has availed a great ebook entitled Fast Start SEO which you can download at this linkDan Thies also offers a free membership where people aspiring to learn more, or those who are active in the arena already, can interact and swap ideas.  You can choose to outsource the task to someone who knows what they are doing, if you feel you have more important things to do,  but I imagine it will be hard to sift the wheat from the chaff  when interviewing potential outsourcing partners without any knowledge so learning something about how SEO is done is still advisable.

www.getincomeblog | SEO Like Watching Paint DryBuilding an online brand requires patience, dedication and belief.  Once you have your keywords and SEO strategy in place, all that remains to be done is to implement it.  However, waiting for the benefits you seek can be difficult if you are impatient.  Not much different than watching paint dry, I suppose.  But, if you’ve done your homework and selected a good niche and linking strategy, your results will come.

Tools help.  I use a product called Micro Niche Finder that is easy to understand and provides a lot of data very quickly.  If you don’t want to buy a product, you can also use Google’s free keyword research tool.

If you’d like to know how I can help you, please don’t hesitate to ask.  You can complete the contact form at www.VirtuallyMarj.com and I will certainly respond.  I’d love to learn more about your business and, if it feels right to us both, help you build your online brand!

Technorati Tags: keyword research,business basics,branding and marketing

Incoming search terms:

Creativity in Business

Normally, we associate creativity with artists who apply their craft in written communications, visual arts, or music.  But, if we strictly define creativity as artistic talent, we fail to appreciate how it is involved in the apparently mundane aspects of our lives.  That is really a shame, for nothing of life is truly mundane.

An acceptable definition for creativity is having the ability to find solutions where none are apparent.  This is often seen with children who are learning something new.  Less obvious are the toiling movers who manage to fit your heirloom dining room table through a narrow hallway without destroying the furniture or the walls, which is certainly admirable.  :)

In business, creativity is characterized as thinking outside the box, creative problem solving, and maybe even critical thinking.  Has your business creativity ever been stifled by colleagues or clients?  Have you ever inadvertently stifled them?  There are so many ways this can happen, and this article exposes a few of them.

You Want it When?

During my corporate days, I had an image of a person beneath a thumbscrew with a caption that read:

Turn it again you SOB!  I work well under pressure!

The poster was irreverent and got many laughs but there really was no truth in it.  The fact of the matter is, people don’t perform as creatively when severe deadlines are imposed.  While the tasks may be completed on time and satisfactorily, there is kind of a hangover after the fact for those involved that can literally immobilize them for days after the effort is over.

Time pressure disrupts one’s ability to fully engage themselves in the solution.  True creativity requires an incubation period.  In my business, premium rates are applied to “rush” projects for good reason.  When we come to terms on delivery dates and pricing, another dark side can be introduced by anxious people.  Folks who are in a panic with a high need to feel in control can upset the creative flow with interruptions.  To avoid this possible problem, I’ve learned to suggest a date in advance for status updates.

Please Put Your Weapons Away

With morbid fascination, I’ve observed threats that some people have  imposed in an effort to inspire.  This was more or less a daily fact of life on the job in the information technology industry.  As a Realtor®, a client’s posturing that they would withdraw their listings didn’t motivate me to change anything about the marketing plan we had agreed to at the time we wrote our contract and the listing still sold within the pricing and terms we had set forth at that time.

These days, as an internet entrepreneur, oppressive behavior serves as a signal that it might be time to fire the client. Proceeding with people whose projects are fraught with self-serving drama is rarely worth the effort involved in their high maintenance, although some empathy and discussion can sometimes alleviate the  problem.  Yet, if someone wants to be a unhappy, they want to be unhappy and it is never worth entering into a battle of wills.  Let them be right and move on.

If we enjoy what we’re doing, getting out of bed in the morning is never a chore.  Happy liaisons are not only much more fun.  Working with joyful people induces higher creativity for everyone involved.

Roles and Responsibilities

Casting a stereotype, based a limited perception about the skills involved in that role, can be limiting for the individual contributor and dangerous for the type-caster.  Consider your bookkeeper, for example.  The joke associated with creative financing is well known to us all but, when your accountant suggests a financing solution that you’ve never heard of before and it helps you to forward a business goal, their creativity is a huge asset to your business.

Financial Incentives May Not Be The Answer

A study on business creativity suggested that tying compensation to overall team results isn’t necessarily the ticket for inducing higher creativity OR better solutions.  In fact, the study’s results demonstrated that people who were focused on bonuses were less productive than those who worked for the love of the effort.

Although there is a somewhat common belief that people will work harder if they are rewarded through performance incentives, concerns about negative compensation effects lead people to risk aversion, which ultimately affects creativity.  Ranging outside the norms of what is imagined is an outcome of being truly interested in the effort at hand, knowing that it’s OK to try anything that has potential to work, and believing that one’s suggestions are taken seriously and that their contributions are valued.

How this Relates to VirtuallyMarj.com

As a WordPress website designer,  the truth in the tagline at Codex is not lost on me.  Even though most people will never truly appreciate the elegance of some of the code they use, which the tagline describes as poetry, one’s ability to envision and develop it certainly requires a special sort of creativity.

Personally, I get much more satisfaction out of consulting with clients, who have come to me for help with their marketing and branding strategies, and seeing the light bulb illuminate.  This happens when our discussions unearth something about their pursuits that is not obvious to them because they are too close to the proverbial forest to see the trees.  That is fun!

Right Brained or Left Brained … Does It Matter to Creativity?

creativity-in-businessOur right brains influence our creativity, so science says.  Here’s a place for you to take a test, if knowing your brain’s preference is important to you.

I’ve known remarkably creative people whose claim to fame was clearly left brained.  The most renowned example is a former real estate client and friend of mine, Leo Hurwicz, who achieved Nobel Laureate status for his Economics Theory at the age of 90.  It was a privilege to know him and and memories of our talks are truly treasures for me.

His special skill was mathematics, which is clearly left-brained and analytical.  Yet, his creativity allowed him to see beyond the equations and develop a theory that explained financial markets and ultimately garnered world-wide recognition.

So, the moral of the story is to not hold yourself back if you are left-brained by nature.  Creativity is the product of what you believe is possible for you to do and it is nurtured by an environment where your ideas can expand to reality … regardless of your brain’s bias or your assigned role.

Incoming search terms:

Should You Fire Your Client?

When you decide to work with a client, your business relationship has potential to develop into a friendship.  This can be very rewarding, as long as the boundaries between friendship and business are established and maintained.

Very few people understand how awkward it can be when questions they are asking begin to encroach on the time you had set aside to relax.  Under most circumstances, gentle reminders that you are “off the clock” will be enough.  Conscientious people will never ask you to work for free and there is no reason to feel guilty about accepting compensation in exchange for your expertise.

Here are a few gray areas that you may have encountered:

  1. Someone expects you to do something for them which is a service for which clients normally pay.
  2. You’ve earned an affiliate commission because someone clicked on your link and that person treats it as if they are owed services in exchange.
  3. Sudden demands for a “finder’s fee” months after an introduction.
  4. Promising future work for reduced fees.

Expecting Free Help

We’ve all hit financial speed bumps.  My first response to someone who asks me to work for free so they can preserve their cash is to suggest that they need to adjust their mindset.  This sounds brutal but it isn’t.  We are what we believe and, if we believe we are broke, we are broke!

Many philosophies, including the Law of Attraction, conceptualize thought as energy that attracts like-kind energy.  If your thoughts are trained on what you lack, you will attract more of that.  In other words, your lack will increase.  This is so stupidly simple, yet so difficult to master!

Placating your associate’s fears by working for free is a choice that you make based on whether or not the time commitment will put your real business obligations at risk.  We all like to help people out but, if you do, recognize that it can be a slippery slope.  Like silencing your barking dog with a treat reinforces bad behavior, your associate may expect that you will continue to work for them for free.

Leveraging Affiliate Commissions

You’ve taken the time to set up accounts and establish affiliate relationships for products or services that you want to recommend.  Affiliate earnings are intended to be passive.  Thus, any expectation that you will provide services in exchange for an affiliate commission you’ve earned is flawed logic.  All that person did was click a link to buy something of value that they wanted.

In the rare instance that someone insists they could have purchased the same product on their own, it may be their way of inducing guilt.  Don’t fall for it.  If you are like me, you have not overpriced your services to begin with and you’re worth every penny.

Does this mean you should not offer affiliate links to clients and friends?  If you do, ensure that you disclose the fact that you will earn an affiliate commission and that it is their choice to purchase elsewhere.

What Finders Fees?

True Story:  A year or so back, a “friend” asserted that he was owed 25% of everything that I had earned since we met.  This came out of nowhere so I was stunned when I realized he was serious.

I explained that I would never have agreed to referral fees of that magnitude without having a formal contract in place.  This fell on dead ears.  His rage and desperation, coupled with some other observations about his online behavior, created an awkwardness that ultimately ended our friendship.

Expecting Immediate and Repeated Help

Most people admire my intuitive grasp of technology.  I will always answer quick questions but, if I know that a request will take more time than I have available, it must be postponed.  When I find a solution, I take the time to carefully explain exactly what solved the problem, in layman’s terms, so people can more become self-sufficient.

Some folks repeatedly return for help with the same things.  I don’t mind re-explaining but, if I can’t drop everything at the moment of their request, enduring unfounded accusations or complaints is unacceptable.  My rule is no tolerance for such bad behavior.

Beware of Wolves in Sheep’s Clothing

One client relationship relationship evolved into spending a lot of time exchanging ideas about WordPress website design, CSS and Photoshop techniques.  Those sessions always began when they would ask a “quick question.”  Since my associate already had some skills, it didn’t occur to me that I was providing information they planned to use to start a new and competing business.  When they announced their plans, they invited me to become a resource, with the provision that I could not use my own business name or offer a link to my website.  I declined and wished them luck.

The tactic of promising “future work” for a discounted rate is the proverbial Pandora’s Box.  In my experience, such requests better serve the requester.  In one extreme case, my willingness to work in this way resulted in many delinquent invoice payments and their expectation that the delayed payments would not compromise the development schedule for the project.   This particular client also neglected to mention very time-consuming development requirements at the time we settled on price and refused to discuss additional compensation.  When their behavior turned into abuse, they were summarily fired with no regrets … at least on my part.  :)

Choose to NOT Diminish the Value of Your Expertise

Be True To YourselfWe all have unique skills to offer in professional liaisons.  The confidence you gain through exceeding customer expectations can lead to business expansion.  When your clients trust you, they will naturally recommend you who their friends and colleagues.  Referrals from such sources are the best kind of business.

Incoming search terms:

Balancing Your Business with Your Business Growth Goals

We all set Goals in some form.  At the time we establish them, they feel exciting and new.  Sometimes are goals are set with a purpose of diverging from our ordinary daily lives.  These sorts of ideas enthuse us, no matter what they are related to.

One such goal could be to branch out in your business.  Many pursue the goal of passive income and this doesn’t always entail joining a business opportunity or MLM, thank goodness.  :)   The difficulty that exists, however, is that you can become swept  away by your primary income-earning activities because you enjoy what you do, have built a reliable reputation and you like the people with whom you are working.

My primary business is project based.  A very high percentage of that business is returning customers with new projects.  If the experience of working with them in the past was mutually beneficial, as well as being fun, I have no qualms about taking on their requests.  On the other hand, there are some clients whose projects I can’t wait to finish and with whom I will not work again.

New projects and cash flow are great to have, and hard to say no to.  But, with only 24-hours in a day, you begin to wonder if you are spreading yourself too tasks to forego are the ones that aren’t producing income for you yet .  It is true that you can outsource some aspects of your business but, when YOU ARE THE COMMODITY that people are seeking, you ultimately must decide if you want to decline new business so you can stick with your business building plans.

This is what I lovingly refer to as a Creative Conundrum.

balance-your-business-with-your-business-growth-goalsThe best strategy that I’ve found for achieving balance between what I have and what I want is to list all of the things that I want to do, as well as the things that I must do, on a schedule of some sort.  Don’t forget to set aside “me” time.

Blocking time is not a new concept but it works.  In fact, this was the basis of Steven Covey’s book, The 7 Habits of Highly Effective People.   Among other things, Covey recommended establishing your task list, prioritizing those tasks and checking them off or updating their status on a daily basis.

A little more tedious, but also helpful, is keeping some sort of log on how your time is being spent.  If you do this for a week or so, you will notice patterns in your days and where you are spending time that takes away from your business building or income generating activities.

Once you have a handle on how your time is being spent, you are in a position to determine what you can spend less time on, or possibly stop doing, so you have more time to pursue your creative goals.   Those are the things that you really wanted to do when you imagined them, right?

Incoming search terms:

Next Page »