March – 2006 – The Gritty Virtual Assistant Blog

Monthly Archives: March 2006

March 18, 2006 – 10:53 am

How to Hire a Virtual Assistant: Your 10-Step Guide to Finding the Perfect Fit

As a savvy solo or small practice professional, you know you can’t do everything yourself. Whether you are capable or not, you understand that your time is most intelligently focused on activities that grow your business and make you money.

These days, outsourcing your administrative work to a Virtual Assistant (or VA) makes it very easy to get just the amount of support you need without the expense of costly in-house staff. Virtual Assistants are independent administrative professionals who partner with clients in ongoing collaborative business relationships. But how do you find a highly skilled, truly qualified Virtual Assistant? Below are some practical points to consider and questions to ask as you go about the selection process.

1. Website. Since Virtual Assistants operate virtually, it’s important they have an online presence. A website can yield critical clues as to the VA’s competence and professionalism. As you look through the website, ask yourself:

Does it present a polished, credible business image?
Is there an abundance of informative content?
Is the concept clearly explained?
Is it organized well and easy to navigate?
Is it well-written and coherent?
Is there a solid command of grammar, spelling and punctuation?

If the VA’s site is littered with misspelling, improperly structured sentencing and incorrect punctuation, don’t expect that she is going to provide you with any greater skill or attention to detail should you decide to work with her.

And if it looks like she put little thought, time or money into presenting her business image, or had her 14 year old kid brother throw it together one Sunday, chances are she isn’t serious about her business, and is not going to put any more care into the work she does for you.

2. Consultation. You naturally want to find a Virtual Assistant you can work with well, and whose personality and style is compatible with yours. You also want to gain some insight into whether this is a person offering the skills, service and expertise you need.

Once you find a site that instills confidence, have a conversation with that Virtual Assistant. Most Virtual Assistants offer a complimentary consultation, and all it takes is a simple email or phone call to schedule one.

In making initial contact, some things to note include:

Does she respond to your inquiries in a timely manner?
Does she answer the phone professionally?
Are there kids and noise in the background?
Is she on time for the call?
Does she seem prepared or unexpectedly flustered?
Does she follow-through exactly as promised?

3. Finesse. How well the Virtual Assistant guides you through the consultation process can tell you a lot about what it will be like to work with her.

Not only do you want a Virtual Assistant who can provide superior quality work, but you also want someone who demonstrates excellent business sense, especially since she will be instrumental in helping you in your business.

During the consultation, some things the Virtual Assistant should cover with you include:

A clear overview of how she works with clients;
What her processes are;
What services she provides (and doesn’t provide); and
What her values and expectations are for working together.

4. Personal & Professional Traits. Listen for the cues that tell you this is someone you can rely on and form an excellent business relationship with.

How smartly the VA handles her business is going to directly correlate with how well she handles your work. Some things you should pay attention to include:

Does she take the lead in guiding you through the consultation?
Is she confident and articulate?
Does she inspire feelings of trust?
Do you feel a good connection?
Does she interrupt often or listen carefully when you speak?
Does she exhibit interest and curiosity about your business?
Does she ask smart, purposeful questions?

5. Experience. Understand that the single-most important qualification of a Virtual Assistant is extensive administrative experience. From this level of experience, she is expected to possess the superior skills, training and business knowledge that are the hallmark of a truly qualified Virtual Assistant.

However, this is an unregulated industry, and while the veterans of us work to promote and maintain high standards, the Internet has nonetheless attracted a certain segment of individuals who have little to no qualifications or only entry-level skill sets that do not equip them to meet your very real and important business needs.

Asking the prospective Virtual Assistant some of these questions will help you discern the difference:

What was your experience prior to opening your Virtual Assistant practice?
What positions have you held?
How many years administrative experience do you have?
How would you rate your skill level (you might ask this in reference to certain skills or software competencies relative to the services you need)?
How would you characterize your level of understanding with regard to business principles and operations?

Look for a Virtual Assistant who has worked in upper-level positions such as administrative assistant, executive assistant, office manager, legal secretary, legal assistant, paralegal, supervisor, manager, etc.

Virtual Assistants whose only experience was in receptionist or clerical roles are not commonly going to have high-level skills and competencies.

Keep in mind that Virtual Assistants are independent professionals, not employees. Just as you would not ask an accountant, attorney or any other service professional for their resume, it is inappropriate to ask a Virtual Assistant for theirs, and the request would be considered ill-mannered. However, they should be prepared to discuss in a consultation with you their skill levels and qualifications as described above.

6. Training & Certification. The highest form of qualification, and what Virtual Assistants are expected to have before entering the profession, is at least five years upper-level administrative experience. Our training ground is the real (non-virtual) business world.

If you are a business owner needing competent support from someone who can hit the ground running and take the reins as your administrative expert, you should expect no less.

Don’t put too much stock in certification. Virtual Assistance does have a few legitimate professional associations and training programs, but these are intended for business–not skills–training.

Where certifications are offered, they can be somewhat subjective and misleading, and many of the veteran Virtual Assistants who established the profession and created the standards have been in business longer than these programs have existed.

Additionally, there has been a proliferation in recent years of disreputable and unqualified opportunists willing to “certify” anyone who will pay.

In this industry right now, letters behind a Virtual Assistant’s name mean very little.

7. The Business. I’ve interviewed countless clients and business people since 1997. What I’ve learned is they want and are most happy with high-quality, skilled support from a Virtual Assistant who:

is confident;
has her business solidly in place;
doesn’t need training or hand-holding;
is someone they can place their trust in; and
can be depended on for expert support and guidance in laying strong administrative foundations.

Look for a Virtual Assistant who has been in business successfully for at least three years. New VAs don’t tend to have their systems, processes and offerings honed, which often causes unnecessary headaches, wasted time and an all-around unsatisfactory experience for clients.

I also recommend that the Virtual Assistant is someone who is actually IN business full-time. I’ve yet to see a Virtual Assistant operate a part-time practice that was truly in a position to serve client needs and expectations well.

Some important facts to obtain include:

How long has she been in business?
Is she in full-time or part-time practice?
Does she view her business as a chosen profession she is committed to for the long-term?
Or is it a part-time side-job or hobby?
Does she have well-thought out policies and business standards that will support you in working and communicating together effectively?

If the VA only dabbles or works on the fly, her lack of commitment or focus can definitely leave you holding the short end of the stick. This can manifest in longer turn-around times, lack of continuity, poor communication, conflicting commitments, interrupted work schedules, and long or inconvenient periods of unavailability.

8. Testimonials. A successful, experienced Virtual Assistant will have plenty of testimonials on her website from past and current clients.

She should also be able to provide you with contact information of satisfied clients who are willing to speak with you about their perceptions and experiences in working with her.

9. The Owner. Many Virtual Assistants provide an "About the Owner" page in their website as a way to share important aspects of themselves with prospective clients.

It’s intended to provide you with a view into their personal ethics, belief systems, personality and goals. This information can be helpful in determining whether you share similar values and want to talk with the VA further.

Since you will be choosing each other, make an equal effort to get to know the VA by reading that page.

10. Pricing. Virtual Assistant rates average between $35 – $65 per hour.

Virtual Assistance is not the type of service you want to price shop. I know, I know. We all want to get the best price and pay the least amount possible. But we’ve all heard the saying “you get what you pay for” and this is very true in the Virtual Assistance industry as well.

Think about your own profession. You know you aren’t the cheapest, and you wouldn’t want to be. You know that expertise and quality comes at a price, but the value of that caliber of service extends far beyond mere dollars, and, in turn, saves your clients money.

You know this.

You will find Virtual Assistants who charge very little–so little, in fact, that they can’t possibly be running a profitable, sustainable practice, one that’s going to be around long enough for you to depend on.

Inappropriately low rates also signal a lack of business sense, which most often translates to poor quality, and lack of skill and experience. The consequence of hiring a Virtual Assistant who falls in this category is that your investment in her is unstable and ever at risk.

Virtual Assistants who don’t price their services profitably do not stay in business long. In their last gasps, many end up taking on a side-job or more clients than they can handle just to break even, becoming overwhelmed in the process. For you, this means they are less available, and their service and quality of work suffers.

You want ability. You want someone you can work with well. You want great customer service. And you want someone who’s going to stick around.

So look for quality and value–it’s an investment that will literally put money back in your pocket.

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By Danielle Keister | Posted in Business Savvy, Virtual Assistant/Virtual Assistance | Comments (0)

March 15, 2006 – 10:38 am

How to Choose the Business Structure That's Right for You

By Nina L. Kaufman, Esq.

At some point in their business planning, most entrepreneurs wonder: “How can I protect myself if things go awry?”

Even if they have few personal assets, they may want to avoid the possibility of seeing their name in the caption of a lawsuit, for how can you concentrate on business with that looming over your head?

One of the simplest ways to protect yourself is to form a separate business entity. That way, the entity (not you, personally) takes the “hit” from any lawsuit that might occur in the course of your business. That’s also why they are called “limited liability entities,” because they limit your personal liability.

Limited liability entities come in many forms including the C-corporation, S-corporation, limited liability company, limited partnership, professional corporation (or, in some states, professional association), limited liability partnership, and professional limited liability company.

Think of it like cherry pie, apple pie, chocolate chip cookies, Swiss almond ice cream, chocolate layer cake, raspberry Jell-O®, and rice pudding. They’re all desserts that satisfy a sweet tooth, but are slightly different in their form and composition, and certain desserts aren’t right for everyone.

So it is with limited liability entities: all will shield your personal assets (provided it’s formed correctly and you observe the niceties that go along with that form), but some are better than others for certain situations.

For the most part, small business owners tend to choose the S-Corp (“S,” for Subchapter S of the Internal Revenue Code, which gives the S-Corp its special tax treatment) and the limited liability company – the apple pie and chocolate chip cookie of business forms.

How do you know which choice is right for you? You need to weigh and balance a number of considerations. Some may be more important to you than others. Let’s look at just a few of the significant ones:

1. Who are the intended owners of the business?

Some forms have restrictions on who, or how many, people can own it. For example, in many states, professional corporations can be owned only by people who are licensed members of the company’s profession (e.g., only architects can own an architecture firm).

Also, an S-Corp cannot be owned by foreign nationals who are not resident aliens in the U.S., so you could not use that form with overseas investors. An S-Corp can have as few as one, but no more than 75 owners (called “shareholders”).

By contrast, a limited liability company (LLC) does not have these limitations, although in a few states, there need to be at least two owners.

So ask yourself: Can I form the entity with me alone? Will others own the company with me? Will I have investors (even family or friends) who are not U.S. residents? Am I a licensed professional?

Your answer may rule out the choice of certain business forms.

2. What kind of flexibility do you need in distributing profits?

For a one-person business, this may not be so much of an issue.

But what if you’re in a situation where there’s more than one owner? Especially where you’re doing most of the work and putting in the “sweat equity” and the other owner is a “silent” or financial contributor? Do you want to distribute profits on an even basis? Do you want your co-owner (called a “member” in an LLC) to have the same amount of management control as you?

An LLC can provide you with a great deal more flexibility because the percentage of the company you own/control is not tied to the percentage of profits you receive.

For example, in a two-person LLC, you could control 75% of the management of the LLC to ensure that the company achieves the growth you want; but you might choose to receive only 25% of the profits because the other member has made a substantial financial contribution to get you started. You can’t do this in an S-Corp because you can have only one class of stock.

Your ownership percentage mirrors the profit percentage to which you’re entitled.

3. What will you pay in taxes?

Both S-Corps and LLCs provide certain “pass-though” tax advantages to small business owners.

This means that the profit or loss generated by your business gets reflected on your personal income tax return instead of being first taxed to the company and then again to you when you receive your distribution (hence, the dreaded “double taxation” of C-Corps).

LLCs are generally taxed like partnerships, which means a complete pass through to your personal tax return. However, some states do not allow a complete pass-through for S-Corps – so even though your company may not pay federal tax, it may still be subject to state taxes.

There are also local taxes that you may need to factor in as well. To get a sense of what your tax bite might be, ask your accountant to run the numbers based on your projected income and expenses. The difference could be significant.

4. How much does it cost to form and maintain the businesses structure?

Costs of formation vary, depending on the state in which you live.

In some states, like New York, the costs of forming an LLC far exceed that of an S-Corporation. However, these initial costs need to be weighed against the ongoing accounting costs of corporate tax returns (which can be higher than the returns for an LLC), and the legal costs of keeping up with corporate formalities like – you guessed it – meeting minutes.

LLCs do not generally have the same documentation requirements (although it’s a good idea and good practice to do so anyway).

As dessert is a rare treat for me, the decision of “apple pie or chocolate chip cookie” is an important one because I want to be truly satisfied with my choice.

Similarly, the choice of business structure is a significant one that can be difficult (and costly) to change. So be sure you’re making the right decision for you and your business.

We strongly recommend that you consult with an attorney and an accountant before taking this important step. Don’t have them? You can find them easily, as long as you don’t let the prospect of doing so daunt you. Check out the audio clip on our home page – Choosing and Using Attorneys Wisely – to find out how you can take control of the attorney screening process and find the professionals who are right for your “team”!

About the Author: Nina L. Kaufman, Esq., is a small business attorney and the founder of Wise Counsel Press LLC, which offers easy-to-understand legal strategies and information products that protect small businesses and save them money . . . wisely. To learn more, and to sign up for their FREE how-to articles and FREE audio class, visit www.WiseCounselPress.com.

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By Danielle Keister | Posted in Business Savvy | Comments (0)

March 8, 2006 – 8:35 am

Increase Market Visibility and Revenues with One Simple Strategy

Are you looking for ways to gain visibility, reach potential customers and provide a great service for your existing customers while increasing revenues? Do limited funds prevent you from doing this?

Regardless of whether you are a start up business or well established, you can increase your visibility and revenues with very little cash outlay for marketing by offering complimentary seminars and workshops.

Let’s say you have very little, if any, money to market a seminar. No problem. You can either offer the presentation at your place of business or at a free locale. Most libraries offer use of rooms at no cost and as a service to their community.

Pick a topic that ties into your business message. For example, say you are a chiropractor. You could do a workshop on stress management. Put together a 30-60 minute presentation. Design a flyer announcing the free presentation. Distribute them to everyone you know. Ask others to hand out flyers for you. Post flyers in areas that will generate interest such as bulletin boards in bookstores, health food stores, your waiting room, etc. Send out a press release and PSA.

You can require people to pre-register. Online is perfect in that you can capture their contact information and put it right into a database for future promotions and specials. On the day of your presentation, make sure you have something you can give attendees explaining your services.

You may want to have a discount coupon you give to everyone who attends. Additionally, you can provide a small learning guide that they can take notes on. Make sure your contact information is on anything you hand out.

At the end of the presentation, have people fill out an evaluation form that not only will allow them to give you honest feedback about the presentation it will allow you to capture their contact information. Those who attended your workshop are great prospects rather then the dreaded cold leads people seem to fear so much.

This strategy is one the most cost effective way to begin an ongoing process of marketing and promotions for any business on a limited budget. It is also effective for well-established businesses.

In addition to gaining visibility for your company, you are providing a valuable service to your clients which equates to a win/win all the way around.

About the Author: Kathleen Gage is an award winning keynote speaker, author and business advisor specializing in marketing and promotions. Register for the FREE teleconference – How to Become a Six Figure Speaker at http://wwwstreetsmartsmarketing.com.

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