Yellow Dog Consulting

Sales & Marketing Consulting for solo-preneurs.

Sales Lessons From a 3rd Grader

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jog a thon!A couple of weeks ago I was visiting with a friend and her 3rd grader had his jog-a-thon sponsor form on the kitchen table. I asked him what it was, hoping he’d get the hint and ask me to donate. After some coaching from mom he asked if I’d like to donate. I said OF COURSE!

He explained to me that if I donated $9 per lap and he ran 9 laps that’d be $81! (Mostly he was just showing off his mad multiplication skills.) So, I asked how many laps he thought he would run. And he had no idea, and didn’t seem to remember how many he’d ran in the past. So, I told him to put me in for $5 a lap. His math estimates seemed safe enough, I figured he’d be somewhere between 5-10 laps, it’d be fine.

Cue to Friday morning and a text from my friend. “Dude. We may want to change your jog-a-thon donation to a flat rate. The poor kids are trying to keep warm in the rain and are running their asses off.” I told her I was sure it’d be fine, how many laps had he run? How much time was left ?(4 laps in 7 minutes, 23 minutes to go…) Well, it’ll be fine.

15 laps later I learned a flat rate might be a safer way to go in the future.

What does this have to do with your business?

How often has someone tried to renegotiate the rate when it gets too high? If you agreed to it up front, you need to pay your bill. And yes, get an estimate. I could have pushed more on his past lap average, or just done a flat rate. But changing my donation in the 11th hour is a weaselly move. When I’ve seen business owners try to change things half way through a project, it’s always a red flag.

Being straight forward and honest is always good if you realize the scope is more than you quoted for. This is why a contract is a great idea – here’s the rate, here’s the estimate, here’s what’s included. If the estimate changes, or you want to add something else in, that’ll be more or changes the terms of the contract. Every time I skip a contract with a client (“it’ll be fine, it’s a small project,” “she’s friend!”) it bites me in the ass.

Learn something from this awesome (and financially well supported in his jog-a-thon) 3rd grader. Get it up front, in writing and then run your ass off to make the most of it!

My Vacation Plan…

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mai tai on vacationI’m going to Maui next week and I can’t WAIT! But being away from my business means a lot of planning so I can read, relax and drink mai tai’s!

I’ve talked before about why it’s important to take vacation but it’s also important to plan so you can truly relax. Here’s a few things I’ve done to prep:

  • Communicated Clearly with My Clients – Every client knows I’m going on vacation and they know what needs to get done before I leave or won’t happen till I get back. And they’re all on board and hustling!
  • Not Schedule Meetings – The week before vacation it’s easy to think you should schedule that meeting NOW instead of in two weeks. And I did some of that, but I knew I needed a few clear office days to get all my work done. That last week of April is looking pretty busy already…
  • Follow Up – I’ve had a few recent conversations with prospective clients and I keep doing my follow up. I also communicate that I’m going on vacation next week so if I don’t hear back from them this week I’ll follow up when I return. Setting expectations up front, and in writing, always helps!
  • Saying No – I haven’t had to do too much of this yet, but the week’s not over. As we all know, your lack of planning doesn’t constitute an emergency on my end. By planning in advance and setting clear expectations my clients and I know what’s needed and what’s outstanding and what can wait till I return.

What do you do in your business so you can truly relax and unwind on vacation?

18 Months

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an 18 month old puppy
Norm, at 18 months. A lot has changed, but not his energy level!

Last week I ran into a colleague at a networking event. She started a business about a year and a half ago and we had met to talk about marketing around that time. I asked how business was going and she reminded me of something I said when we had met.

It takes 18 months to get into a groove.

I may have forgotten I told her this, but she sure didn’t and said it was absolutely true. 18 months is a great milestone in a small business. Within the first year you have a few clients and you’re still getting setup and going, working out all the kinks. At around 18 months (it’s not an exact science…) you’re in a groove. You know what you’re doing and your target market (if you’re networking in the right places) knows you’ve been around and in business for more than a hot minute.

If you’re a small business just starting out, don’t get defeated. And don’t get defeated if you’re at 18 months and don’t feel this is true. But if you’re running a small business full time (IE: no day job and doing this nights and weekends) then at around 18 months, you’ll probably start to see an uptick in business. Here’s a few things that can help:

  • Network – all the time and everywhere. Meet EVERYONE. Take those coffee meetings, go to that event that your friend recommends instead of staying home and watching TV. And obviously do ALL the follow up afterwards!
  • Don’t Get Distracted – Yes at some point you’ll need a marketing consultant and CPA and a business coach and a new website. But in your first few months your budget is tight and you need to figure out what your priorities are. Don’t get distracted by shiny ($2000 conferences anyone?) objects.
  • Talk to Others Doing It – The best thing I did when I started my business was talk to my friends who had their own companies. What do I need to do? Do I need to hire a lawyer to file a LLC or can I fill out the paperwork to be a sole proprietor right now? What do I need to know that I don’t know?  What tax and financial stuff should I be thinking about? What list building?
  • Take Amazing Care of Your Clients –  When you’re starting out you’ll make mistakes. But make sure that those first few clients, even if you’re working out the kinks, you’re talking to them right away if you do drop the ball. Don’t sweep anything under the rug, take great care of your clients. They’ll be your biggest referral sources if you do it right. And oh so loyal…

I know I’m missing other tips for starting a business – what advice have you received that’s been helpful to keep the momentum going as you’re launching? If you’re near the 18 month mark, where are you stuck and in need of help?

Starting your own business is the hardest and BEST decision I ever made, and it wouldn’t be possible without great support along the way!