My new blog is up and you can subscribe over there: http://www.administrativeconsultantsassoc.com/blog/
I won’t be publishing here on Gritty VA any longer so you’ll want to update your RSS feed and Networked Blogs subscriptions accordingly.
See ya over on the new blog!
This week’s issue of The Portable Business ezine is out. Today’s edition focuses on administrative partnering with an article for clients on “How to Choose an Administrative Consultant.”
Check it out here (and be sure to subscribe so you don’t miss an issue) >>
Dear Danielle:
Some time ago you shared that using the credit card authorization form, you go into PayPal and “pay yourself.” Do you log into the client’s account? Forgive me if I seem clueless. –TK
Nothing to forgive. It’s a good question. 
Okay, so the credit card authorization form is an agreement between you and the client whereby the client provides you with their credit card details and allows you to keep them on file so that when their fee to you is due, you can simply run the credit card yourself instead of waiting for them to do it. This is an excellent way to take another detail off of your client’s plate while ensuring you are paid on time every month. My client’s love it and I never pay myself late, lol. 
It’s best for clients who are on retainer or otherwise owe/pay you a standard/set amount on a regular basis. And it really doesn’t matter what credit card processing service you use.
With regard to PayPal specifically, as you ask, there are a couple ways you can process the payment.
The first is that, yes, you can log into the client’s PayPal account if they wish to provide you with that information. However, it’s not necessary and for many reasons I really don’t recommend this. There needs to be a great deal of trust there already for a client to provide you with their PayPal account info and a) that level is usually only established with clients who have been with you for years, and b) you don’t want to get blamed for any problems with their account just because you are the only other person who happens to have access to it. Know what I mean?
I advise the second option, which is that you simply process the payment as a guest. As a guest, you don’t need to log into a client’s PayPal account to process their payment. As long as you have their credit card details and the proper legal authorization form on file, you can process any payment without the client even needing an account. And even if they have an account, you don’t need to log into it.
What I recommend is that you set up a “payment” page on your website. Here’s an example of my payment page from my old website:
Get the HTML code from your PayPal account (found under the Merchant Services tab) and insert a PayPal generic “Pay Now” payment button on that page. Then, whenever you need to process a payment on behalf of a client, you just go to that page of your site, click on the option where it says “Pay with your debit or credit card as a PayPal guest” and then enter the amount due and their credit card information. Simple as that.
Let me know if that helps
Man, how time flies. I’ve been so focused on getting the new Administrative Consultants Association site done that I had to completely abandon the ol’ blog here (which will undergo its own metamorphosis soon as well). I have a zillion draft posts, too, that I could have been posting, but I just couldn’t spare the attention span needed to clean them up and get them posted. But you know, I just don’t sweat that kind of stuff.
I’m so excited about finally moving forward on the new direction. It’s been a long time coming. I actually started the site design last year, but got mentally blocked and had to put it on ice until I got some clarity again. And one I did, it started moving like gangbusters!
I’ve still got a few loose ends to take care so the site isn’t officially done, but do take a look and let me know whatcha think: Administrative Consultants Association.
I also want to ask for your help. I’d like to spotlight a few stories from those of you who have embraced the new Administrative Consultant term and how it has helped you in your business.
For example, I recently received a note from a member who related how much easier it’s been for her in talking with potential clients and in networking situations since she began using the term Administrative Consultant. She said she doesn’t get any more of the eyes-glazing-over/deer-in-the-headlights thing that she would always get when she called herself a Virtual Assistant.
And I know of several people(myself included) who have experienced a dramatic shift in how clients and business people at networking events treat them… getting rid of the word “assistant” from the equation makes all the difference in the world.
So if you have converted over or are still trying out the term Administrative Consultant, please email me your positive anecdotes and experience in using the term. My goal is to share these on our home page or a dedicated pate on the new site and will include your name and backlink to your site.
Looking forward to hearing from you!
I am so excited! We are very close to completing the new Administrative Consultants Association website. I can’t wait to unveil everything and give the official word. I’ve been very busy with that work the last couple months. Since we’ll also have a new ezine design, I thought it might be a good idea to reevaluate the publishing day as well. Normally, we publish every Monday, but I’d like to know from you if that’s the best day for you. So please take a quick second today to complete the poll below and let me know. I thank you muchly!
“How do you manage your time and juggle everything.”
A common question, particularly in our line of work. Most of the time, responses to this question have to do with tools and programs and systems. Which is absolutely helpful and definitely part of the equation. But for me, the heart of things always lie in the very foundation. What I mean by that is, I go back to the beginning, the root, the very reasons I am in business.
When I went into business, it was so that I had more control over my own life… you know, live my life on my own terms. It was so that I could exercise and hone the skills I had that I take immense pride in and enjoy using. It was to do work and work on things and with people I found interesting. It was a means to have an entirely different quality of life, one that allowed me to travel and live differently, to have more and different experiences that the ol’ 9-5 life of an employee simply doesn’t afford. And of course, the fact that my skills and work actually helps those I choose to work with is tremendously gratifying.
What becomes not so gratifying and liberating is when I am working only to manage things, to keep my head above the waters of work.
This is when I have to question what I’m doing? Why am I working this way? Why am I being put in a position of juggling? Is this the way I really want to be working.
This is why you frequently see my using the phrase “working with clients in ways that will bury you.”
Part of the cause of working with clients in ways that will bury you is in trying to be the same kind of “assistant” as they’d have in an employee.
The answer: Don’t try to be an assistant. And you really can never truly be an assistant if you are running your own business. It just isn’t going to work. Because to run a business that will make the kind of money you can actually live on, you have to work with other clients. So you are going to be pulled in different directions. Always.
The trick is to stop trying to be an assistant, and instead be someone with a special expertise. In our case, that’s administrative expertise and support. You don’t have to be anyone’s assistant in order to deliver that expertise. You also don’t have to be their personal assistant or concierge. And that’s the other part of the solution. When you stop trying to be their personal assistant and concierge, you eliminate work you don’t have to be doing. Which in turn creates less juggling, better focus and more time for your own life.
The other part of the solution is to stop trying to do everything. Obviously, your market must have a need for the solution you are in business to offer. And you need to pay attention to your market, study it and understand their needs and challenges so that you can identify where your solution will fit and frame it in ways so they will see how it will fit as well. That’s not to say that your market has the last word. You can’t live your life with everyone else leading you around the nose. As a business owner, you get to decide what you offer, what you don’t and how you offer things, which presumably, are going to be in ways that allow you to give superior service to all of those people you work with. Offering things and doing work that ultimately bogs you down and prevent you from delivering that primary objective defeats the purpose entirely.
It’s the reason I have never, ever managed any client’s email. Ever. It’s always why I have never answered any client’s phones. Because that work would bog me down to the point that I would not be fulfilling my primary reasons for being in business and that kind of work actually prevent me from giving superior support to clients on the work that I am in business to provide–administrative support and expertise.
You get to define what constitutes support in your business. If you don’t intend to be a receptionist, you get to decide that. And I would really advise you to not be a receptionist or manage emails because it will totally bog you down in your business and keep you enslaved beyond what you may have intended. Your value has nothing do with the things you don’t do. Your value lies in what the things you actually do and how it helps your clients move forward. You don’t need to ALSO be a receptionist or manage their emails in order to do that. But what you can remind clients is that the time you free up with the work you do do, they can more easily and effectively manage those things you don’t do (or hire someone else who does them). And you can also help them set up systems and automations to make those things easier for them to manage on their own.
You know, it’s so sad when those in our biz who self-identify as Virtual Assistants have to close their doors because they just couldn’t make enough money.
What strikes me is that there doesn’t seem to be anyone anymore out there (except me) who is trying to help them actually be financially successful as an administrative support business.
It seems that everyone is jumping ship to become something else other than an administrative support biz, or teaching folks everything else EXCEPT how to be financially successful in an administrative support biz.
THAT’S what I find sad… everyone is always trying to dig into their pockets to teach them everything else BUT how to be financially successful as an admin expert.
And then you have all these self-proclaimed industry “experts” who aren’t even VAs telling those in our industry how to be successful. They don’t know the first thing.
Hey, if someone doesn’t want to be in the admin support biz, that’s their prerogative. Everyone should be and do and have the kind of business they love.
But don’t try to pass yourself off as an expert in the admin support biz if that’s not what you actually are.
One of the very first things you have to do to become financially successful is get clear about exactly WHAT you are. Most don’t really know. They just have some vague notion that they “assist” “virtually.” That isn’t a definition of anything.
If you really want to start earning well in the administrative support business, you have to stop being a gopher and an “assistant” and get really clear about what admin support is.
And the reason that’s important is because administrative support comes with a host of unique challenges. We have to battle against unique client mindsets and misconceptions, particularly when it comes to thinking of us as replacement employees. It’s too easy to actually become a substitute employee in this business, which will actually keep you in the working poor. Which is why I’m always, always trying to educate on this topic.
I find it interesting that some of these VA training programs have so many graduates who aren’t actually doing anymore the thing the training program was supposed to help them become successful at–because they couldn’t be financially successful doing it. They had to become another kind of business entirely to become financially successful. And that’s because no one taught them how to be financially successful in THIS business.
I’m not saying folks shouldn’t do something else or move onto another business entirely if that’s what their heart wants to do. What I’m sad about is that those who actually love being in the admin support business and really would rather just do that, but are compelled to look elsewhere because they just didn’t get the right guidance to be financially successful in THIS business.
One of the things we have to battle in our industry to our financial detriment is this idea that VAs do anything and everything. That’s not a definition of anything… that’s merely being a gopher. And people don’t view gophers as experts, they view them as lackeys. You simply will not be able to command professional fees if you allow people to view you as merely as gopher/lackey.
The other subsequent thing that happens when you allow people to perceive you as merely a gopher/lackey and because you have no clear-cut expertise (as in Administrative Support as an expertise) is that they have you chasing your tail around all over the place. They think you should be doing this and that and everything else ON TOP of administrative assistance. That’s because you yourself haven’t defined for them exactly what you are in business to do. And because they don’t view you as any kind of professional expert in anything (“I’m a this, that and the other” isn’t an expertise of any kind), they don’t want to pay you for it, at least not well. You become merely a servant, an order-taker, in their eyes.
This is where you frequently hear me saying “why are you asking a plumber to fix your car?” Because we get these clients who are expecting you to not only provide admin support, but to also be a bookkeeper, a website designer, a graphic designer, a this and a that and so on and so forth. And so, so many VAs are giving this stuff away for free when they should be saying, “I’m in the administrative support business. If you want a web designer, you need to hire a web designer.”
That’s why it’s so important to get clear exactly what you are and what you do in your business. And if you are ALSO something else in your business, to clearly differentiate and denote those dividing lines in your business so you can still be considered an expert in those additional areas (and not merely a gopher/flunky/lacky) and charge separately for them. Because web design and admin support are not the same thing. Because bookkeeping and admin support are not the same thing. Because graphic design and admin support are not the same thing. Because completing a project and providing ongoing administrative support are not the same thing.
Don’t understand? Ask me your questions! I really want to help you get clear on what this means.
Dear Gritty VA:
I am always curious and have asked lots of people. I am wondering just how you pay yourself. Do you pay yourself sick/annual leave? Aside from overhead costs, do you deduct taxes? What kind of taxes do you face, ie, self-employment, FICA, etc? Your help is greatly appreciated. –SH
Seems like such a simple question, doesn’t it?
You don’t mention what your business formation is and that’s going to be very relevant to how you pay yourself and what your tax and reporting legal obligations are.
The very, very first and most important advice I can give you is that you need to get yourself–quick–to an accountant or bookkeeper. And I don’t want to hear any whining about how that would cost you money. Yeah. Business costs money and you are simply going to have to spend money on important professionals and advice if you want to be successful. Not doing so now could end up costing you far more later. And given how you’ve asked the question, I can tell there are some significant gaps in your business knowledge that will do you great harm if you don’t get the right professional guidance and advice.
In the meantime, here is some general information when it comes to paying yourself in business (and, understand, this is for U.S. based business; you’ll have to bone up on your own country’s laws and taxing requirements if you reside and operate elsewhere)…
The first thing people need to understand is that they are either an employee or they are a business. I see so many people who decide to “work from home” or “freelance on the side” or become an “independent contractor” who don’t realize this. There is no third classification. If you are working for yourself, no matter what you call it, you are a business. Even if you might have an actual job as an actual employee somewhere, whenever you are wearing the hat of “freelancer” or “independent contractor” or whatever you want to call it, you are operating a business during those times. You MUST understand this because there are legal implications and obligations.
So that’s the first thing to understand, and the reason I mention it is because the way you ask the question, I’m not sure you entirely understand that.
If someone doesn’t have this understanding, it’s pretty safe to bet that they haven’t done any official or intentional business formation. When that’s the case, they are by default running a sole proprietorship. In a sole proprietorship, which is the simplest and most common business formation to operate, you simply take money when you want and how much you want. For bookkeeping purposes, these are recorded as “owner’s draws.”
The question about sick leave and vacation pay is moot in this circumstance. You simply pay yourself when you want and how much you want (well, that is, if the money is there, lol).
I would always advise you to keep separate accounts for your business. (In fact, there are some circumstances where you are required by law not to comingle your business and personal funds). Either way, at some point, you will want to “pay” yourself from the monies you have earned in your business. All that is entailed is simply withdrawing funds like you would any other account. So, for example, if you went to the ATM and took out $X dollars for your personal use, you would simply record that as an owner’s draw. Same thing if you transferred funds from your business bank account to your personal bank account or if you wrote a check for something for personal use. Anything that goes out of the biz accounts that is not related to the business is recorded as an owner’s draw.
That said, being in a sole proprietorship doesn’t mean you are exempt from paying employment taxes. It’s just that you pay and report them differently than you would if you were an employee, where actual paycheck processing is required by law. In a sole proprietorship, you will pay what are called “self-employment taxes” and they are to be estimated and paid/reported at certain, specific intervals. You’re going to want to set aside a percentage of funds every time you receive client monies so that you have enough when it becomes time to pay these taxes. Here again is where an accountant or other kind of financial advisor can give you guidance. (For more info on U.S. based self-employment tax reporting, start here)
While a sole proprietorship is the simplest/easiest business formation to operate, it also is the one that puts you at the greatest legal liability should a client sue you for any reason. All your personal income and assets are at risk in a sole proprietorship. This is why many folks opt to go into some kind of corporate business formation where personal assets are not at risk (or are, at least, at less risk). There are many kinds of corporations which also involve varying complexities: corporation, LLC, PLLC, S-Corp, and partnerships to name just a few (consult with a business attorney to get the right guidance in selecting the formation that is best for you and your business circumstances).
This is where paying yourself becomes more complicated and where you will definitely want to seek the advice and guidance of some kind of accountant or financial advisor.
For example, in some corporate formations, you are required to pay yourself as an employee or as an owner/operator. When that’s the case, formal employment payment processing is required which entails a whole host there is a whole host of accounting, processing, reporting and taxing obligations you must abide by and be knowledgeable of. There may be some minimal salary requirements you must payself as an owner/operator. You may be required to pay out profits to partners and shareholders in dividends. Or you may need to know how to record reinvested profits back into the business. In other formations, while you report otherwise as a corporation, you may be allowed to elect to pay yourself in owner’s draw instead of with an actual employment check.
See how much knowledge is involved? And if you do things incorrectly according to your particular business formation, it could cost you big time later. So this is why it’s always, always best to seek the services of the right qualified professional–not other Admin Consultants or VAs–when it comes to these kind of matters. And if you do go with one of the corporate business formations and don’t have a thorough understanding of bookkeeping yourself, hire a bookkeper (one that also has paycheck processing knowledge for your state/locale) to handle that work for you. It’s just too important.
I do hope this helps you get going down the right paths though.
Being in business is one of the most thrilling, self-actualizing, independance-building rides you’ll ever experience. Being a business owner can also be one of the most stressful “jobs” you can have when success or failure is completely on your own shoulders.
Women, I think, have it especially tough. Being the natural-born givers and nurturers that they are, they will often bargain with their value in business—giving freebies, giving discounts… giving, giving, doing and doing until they have nothing left for themselves.
Healthy giving starts with taking care of ourselves first in business. It’s especially smart to never bargain with our value by giving away the very products and services that are the lifeblood of our business existence. So what can those who have the giving gene do that won’t be detrimental to their business health? Lots!
1. Keep your business out of it. Let’s face it, giving and doing for others just feels great! But that doesn’t mean your giving needs to be in the context of business. Respect the value of your products and services. Save your giving for non-business activities and ways that don’t have you working for free and bargaining away the value of your products and services. As Suze Orman says, “YOU are not on sale!”
2. Success affords you more to give. Remember, the more successful your business, the more you will be able to give via those other avenues without devaluing or sacrificing the things that earn your living.
3. Give a gift. Send someone an online gift certificate. Have a coffee or flowers delivered. For no special reason other than to make someone’s day and let them know that someone (you!) is thinking of them and appreciates them.
4. Do a favor. Know someone who is more harried than usual? If time is something you have to give, offer to run some errands for them. Or maybe you’re a closet chef. Why not send over a home-cooked meal for their family one night?
5. Say something nice to someone. Acknowledge a trait, talent or effort you appreciate about someone. Tell those who have helped you how much their knowledge and support mean to you. Who knows, they might just really need to hear it that day. Better yet, say it publicly if at all possible so more people can chime in. We can all use those atta-boys and atta-girls whenever and wherever we can get them!
6. Volunteer at a charitable organization or community service agency. Many run on a shoestring and will appreciate any effort you can give.
7. Give year-round. Don’t wait until the holidays to help those less fortunate. Your local agencies and churches will be full of good ideas for ways you can give or be involved in making a real, meaningful difference in someone’s life.
RESOURCE: Want to raise money for a certain cause? ChipIn.com is a no-cost service that let’s you create a custom online widget that shows the financial goal, amount raised so far, and more information about the cause. Donations are handled automatically via PayPal so it couldn’t be easier and simpler!
If you put yourself in the position that you are forced to rely on volume of business in order to make ends meet (often because you simply are not charging properly), you will also be forced necessarily into a bigger and different kind of model entirely, one that you perhaps don’t want and didn’t bargain for.
And that’s not necessarily an easier or more profitable business. In fact, it will automatically reduce your profit margins, increase your administration, overhead, costs and expenses, and require you to become a people and quality assurance manager, among other things.
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Thanks for commenting. Yeah, the virtual assistant term is really completely idiotic to...
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