Self Employed Success

Much of marketing is about persuasion. Note that I do not say “manipulation.” That’s the kind of marketing we all hate.

Dictionary.com defines the verb “to persuade” like this:

1. to prevail on (a person) to do something, as by advising or urging: We could not persuade him to wait.

2. to induce to believe by appealing to reason or understanding; convince: to persuade the judge of the prisoner’s innocence.

So persuasion, especially in marketing, means:

• encouraging someone to take action (call me to talk about your needs, sign up for my program, buy my book, etc.)
• convincing someone by helping them to understand information, ideas and/or benefits.

CNN/Fortune Magazine posted a interview with Kurt Mortensen, entitled How Persuasive Are You? The article referred to a quiz (self-assessment) which helps you to understand your own first reactions to a series of events, to see how much you use persuasion in your marketing and sales efforts. Go ahead, take the self-assessment! It’s an eye-opener!

When you’re finished with the self-assessment, he will email you the questions you got right and wrong, so you can begin to understand the psychology of marketing.

I’m absolutely fascinated by the psychology of marketing: what makes people pay attention to a marketing piece, and more importantly, what persuades them to take action and buy. I’m reading several books on the topic right now, and as soon as I compile my notes, I’ll write more about the topic in this blog.

For instance, my blog post How Customers Make Buying Choices walks you through how decisions are really made during your clients’ buying process.

I think the psychology of marketing will make all the difference in the world to your success. I’ll keep you posted.

When planning for the year, remember that there are 8 ways to increase your income:

1. Sell more quantity of your existing offers. If you typically have 25 people in a workshop, aim for getting 30 or 40 in your next workshop. If you work one-on-one with clients, add more private clients to your roster.
2. Increase the price of your existing offers. Without changing your offer, increase your fees. If you’re still charging the same fees as you did five years ago, it’s time to look at your pricing model.
3. Increase the price and increase the value. Change your offer to be more complete and compelling, and increase your fees. Make sure that you haven’t increased the value by adding more of your personal resources, otherwise the offer isn’t scalable. For instance, if you previously offered a six-session consulting package and now you’re making it an eight-session package, you’ve just used up two extra hours of your time. Even if you charge more for it, are you actually making more income from it? Instead, consider adding something valuable to your clients that doesn’t require you to spend massively more money, time or resources to deliver. Do the math to be sure that the cost doesn’t outweigh the income.
4. Decrease the size/quantity of your existing offers without reducing the price. You see this all the time in the supermarket – a 12-ounce box of cookies now becomes a 10-ounce box of cookies, but the price stays the same. Where can you cut back and still deliver value? Which parts of your offer are not used by your clients?
5. Create new offers that leverage your time and resources. If you’ve maxed out of offering private, one-on-one consulting with clients, can you offer a mastermind group or workshop that maximizes your time by working with groups of clients rather than individuals? Can you create an online self-study program?
6. Upsell existing customers to the next level of your offering. Your clients love you and they want to work more closely with you, or they’re asking for a specific resource that you can provide. When my existing consulting clients wanted a systematic way to manage their projects, tasks, and time, I wrote a book and created a class to help them. How can you serve your existing customers better and provide what they’re asking for?
7. Go to the master level – teach others how to do your work. For instance, after 20 years as a small business consultant, I now teach people how to become small business consultants and run an efficient, thriving consulting business of their own. What do you know, that you can teach others who are starting on your same career path?
8. Hire others to do some of the work for you. If you typically bill out at $200/hour, can you hire others at $150/hour do the client work, and you keep the extra $50/hour as your commission for bringing in the clients? This is especially helpful when you have limited time and too many clients to handle personally, or if you want to create an agency model for your business.

These are indeed uncertain times. For the most part, we really don’t know what’s going to happen over the next 3 to 18 months.

You may be feeling somewhat anxious or fearful, for you and your family, and for your small business. You may be feeling overwhelmed or distracted.

I’ve lived through 9/11 and the Great Recession, one thing I know for sure: Action alleviates anxiety.

If you think through some what-if scenarios, you can create an action plan that’s flexible enough to flow with whatever happens in the future, and design an action plan which makes sure you’re in a strong position when things get back to normal.

You don’t want to make decisions now that you’ll regret later.

Grab your note-taking tools and I’ll walk you through several ways to think strategically about your small business and consider what-if scenarios in the above video. After that, I’ll give you some concrete ideas on how to make wise plans and take smart actions over the next few months.

What makes one small business owner more successful than another? Trust me, it’s not lack of fear.

We’re all afraid of failing, of our offer being rejected, of making a complete flop of a project, of screwing up a business relationship.

What’s the difference between entrepreneurs who are successful and those who aren’t? Successful entrepreneurs have an even bigger fear: fear of what their life will look like if they don’t pursue their dreams.

They aren’t willing to settle for the way things are now. They don’t sit around hoping things will change. They take action. They go out and try things.

They can’t stand the idea of missing out on the big win, or how they will feel about themselves if they don’t put their total focus, emotion and effort into creating the life they want.

Successful entrepreneurs love to feel progress; they like to move forward towards their goals. They don’t wait until they’ve hit rock bottom and are so desperate that they’re finally motivated enough to do something about their situation. Instead, they create clarity about what they truly want and then they take action each day.

Six things successful small business owners do daily:

1. Constantly ask, “What’s next for my business?”
2. Understand your motivations and why you want your goals.
3. Choose one thing each day to focus on and accomplish, even if you only have 15 minutes a day to work on that one thing. Daily momentum is what creates success, not the huge once-a-year breakthroughs.
4. Only work on projects and goals that you’re passionate about and will lead you to your ultimate goal.
5. Know that if you follow a set of steps that you’ve outlined for your business or project, that you will achieve your goals. It goes beyond merely “believing” that these steps will create the outcome you want; you know they will at a gut level.
6. Trust yourself and be willing to make mistakes and try new things. What you’ve done previously had a certain result. Doing that same thing again will simply get the same results. So trying new things is the only way to break out of the pattern of getting the same results over and over again.

Five morning rituals of small business success

Most successful small business owner I know have a quirky morning routine that goes something like this:

1. Every morning, map out in your mind what you’re going to do that day. Imagine it before it becomes a reality so you can repeatedly “practice” these steps to success. Imagine what the results will look like and feel like once you’ve achieved your goals.
2. Imagine what “a little further” feels like and enjoy playing this imagination game with yourself.
3. Tell yourself emphatically, “THIS is how it’s going to be.” This keeps you fresh and motivated, and changes your limiting beliefs into empowering beliefs. If you see the results in the advance, you condition your mind to know what’s possible.
4. If you can’t envision what a future success looks like, spend time remembering what past successes look and feel like, reminding yourself that you’ve been successful before and you can do so again.
5. Don’t just do it once, or even once-in-a-while…envision your success every day. (Twice a day, if you need to!)

You can let disappointment kill your dreams — or you can take disappointment and let it drive you towards success.

People who are fearful of getting hurt, rejected or disappointed never even attempt to reach for their dreams. But successful entrepreneurs know that hurt, rejection and disappointment are part of life. They don’t try to avoid them, they use those feelings to propel them forward.

Whether we’re in a recession or not, the economy surely seems shaky right now. When things take a down-turn, how will you handle it for your business?

Now is the time to think strategically.

Hasty decisions often lead to poor decisions for the long term health of your business. According to Wikipedia, there have been four recessions since 1980, lasting from 8 months to 18 months. If you lived through the Great Recession which began in 2008, you know the recession officially ended 18 months later, but the economic fallout lasted for many, many years after the recession had ended.

Here are some tips on dealing with a recession for your business:

1. Cut costs, but only if it won’t harm you later. The first thing business owners think they must do it cut costs. But don’t cut costs or decrease prices now, if it will hamper your business later. Ask yourself: once the economy picks up again, will the cost I’m cutting or the price I’m reducing put me in a worse situation than I’m in right now? Learn what not to do, from Pizza Hut’s pricing mistakes in 2008.

2. Think sub-contractors. If you have employees, consider turning them into sub-contractors. This will help you avoid paying additional employment taxes and benefits. However, the IRS or your country’s taxing authority can be very strict about the definition of an employee versus a sub-contractor (they call them ‘independent contractors’), so check their rules. This might be an alternative to laying off your staff.

3. Get out there and shine. This seems counter-intuitive, but now may be the time to increase your marketing; hard economic times may cause your competition to disappear, leaving the field wide open for you.

4. Take the long view. Remember, marketing is a marathon, not a sprint. You should have been doing (and keep doing) marketing every month, month in and month out, not stopping and starting on a whim.

5. Choose your marketing techniques wisely. You should have been tracking, historically, which techniques bring you the most business. Reduce or eliminate those marketing techniques that aren’t paying off for you, or fix them so that they do increase leads and sales. If you can’t do face-to-face marketing any longer because of the coronavirus, move to online marketing techniques.

6. Renovate your marketing tools. For those marketing techniques that are working for you, this might be the time to revamp your marketing tools. Does your website need a facelift? Do you need to offer some new freebies to entice people to look more closely at your products or services? Do you need to change the way you phrase things when you are selling to your customers and closing the deal?

7. Automate wherever you can. Find ways to automate any tasks to reduce the workload on yourself and your staff. What have you been doing manually that a computer system can do for you? Take a look at all your daily tasks and see if there is a computer solution to these time-wasters.

8. Spend your time on what really matters. Consider hiring a virtual assistant or a technology consultant to help you with routine administrative, marketing and website tasks, so that you can use all your time to focus on marketing and delivering your product or service. Decide on the tasks that you are best at, ones that will directly increase your income, and delegate the rest. If you can earn more per hour than it costs you to hire help, then it’s a good use of your time and money to delegate tasks.

9. Make do and mend. Because raw materials were in short supply during World War II, people were encouraged to “make do and mend” an item instead of simply replacing it. Consider your own expenditures and items that might be hard to acquire over the next few months or years: do you really need a new computer, or could you somehow upgrade your existing one for less money? Do you need a new smartphone or can you get by with the old one for a while longer?

10. Reduce inventories. If you sell a product, and you believe your sales are going to decrease, this might be a good idea to reduce inventories and not restock to the same level. This is a risky strategy (what if the recession only lasts 6 months?), so be sure you know exactly how long it will take to replenish inventories once the economy picks back up.

Now is the time to begin thinking about what you’ll do if the economy affects your business. It doesn’t matter if we are in a recession now or not. Economies, by their very nature, are cyclical, and you will face lean times and booming times in the future.

It’s important that you have a plan for dealing with all types of economic realities.

For some business owners, it’s a struggle to clearly explain what it is you do, especially if your business is unique or you are trying to stand out in a crowded marketplace. Often, we explain what we do, but not how it’ll benefit the person we’re talking to. We need a clear way of saying, “This is what I offer and this is how it will help you.”

Whether you are marketing service or products, classes or mastermind groups, you need to have a quick, precise way of explaining your offer.

Forbes contributor Carmine Gallo suggests three steps to map your message in 30 seconds or less:

1. Write a short headline with the one well-defined message you want to send to potential customers. What is the single-most important thing you want your audience to know about your product, service, brand or idea? What do you do and who do you help? If this is all the customer knows about you, does it give him or her a clear picture?

Hi, I’m Karyn. I’m a business-building consultant for micro entrepreneurs.

2. Expand on that message with three important benefits.

I help people expand their reach, increase their revenue and decrease overwhelm.

Put steps 1 and 2 together, and you have your 15-second commercial. If potential clients walk away from the conversation hearing only that, they have a good idea of what you do and how you might help them.

3. Support those points with additional benefits (or examples). Come up with three examples, stories or statistics that reinforce your statements.

I’m a business-building consultant for micro entrepreneurs. I help people expand their reach, increase their revenue and decrease overwhelm. I teach people how to get known in their market, package and price their offerings for maximum profit, and create cohesive action plans to get it all done efficiently.

Here’s another example:

Hi, I’m Joe. I facilitate a mastermind group for baby boomers who are getting ready to retire. Through brainstorming, support and accountability, we help you to find clarity on your goals, make the best decisions, and move forward. You will walk away knowing that the retirement you envision is not only possible, but that you’re designing and taking active steps every single day to making it a reality.

Use This for Networking and Marketing Launches

It’s easy to see how this would be useful in a networking situation where you have to quickly explain your business to someone when they asked the dreaded question, “So, what do you do?”

But you can also use this same exercise for all your marketing. You need to come up with your Core Message in these types of marketing situations:

• When you’re describing your services on your website
• When you’re writing an article or blog post
• When you’re putting together a speech or a class
• When you’re launching a new product
• When you’re writing a proposal or white paper

Not comfortable with your writing skills? Use the same outline to create a vision board. Cut out pictures and words that explain your business, and arrange them in a map that helps bring clarity to your message.

Mapping your message, whether with words or pictures, will help you move beyond telling people what you do to clearly explaining what results your customer can expect.

Remember, when crafting your message, make sure it is short and clear, and that you can say it in 30 seconds or less. (If you can say it in 15 seconds or less, you win the prize!) Too much information could confuse the person you’re speaking with. This message will become your elevator speech at networking events, and your marketing message to potential customers. It’ll be the core message you use when launching a new product, service, class or mastermind group.