Category Archives: Dear Gritty VA

March 3, 2010 – 10:00 am

Dear Gritty VA: How Do I Get Clients

Dear Gritty VA:

Brief question–how do you get clients? I know this is on every Virtual Assistant’s mind in America whom is starting out. I know that the Virtual Assistant business is referral-based, but my God! I know that you can’t just jump up and think you are going to get rich from this (not my intentions). However, it’s one person I did some donated hours for, I have tried working with another client and lowered my prices to accommodate her. Still a no-go on this one. If I would have said it was free for the service, she would have been all over it. I think if I had at least two clients, I would feel like my business is progressing forward. But not having anyone get discouraging at times and you wonder if it’s worth it if your business is solely based off referrals, you know? –ST

Well, first, I had to chuckle because there’s nothing brief about the question, “How do you get clients?” LOL. Not laughing at you, but it’s sort of like asking, “How do we achieve world peace?” It’s a BIG, complicated question with no quick, simple, pat answer.  It’s difficult to start a business, as you recognize. For a large number of Virtual Assistants, they are not going to get clients right away. While they’re waiting, there’s a lot of learning and studying they can be doing to better understand marketing and client psychology. Here are a few thoughts to help you get started in the right direction…

1. Stop donating hours. When you give away your value (the very product you are in business to earn your living from), you devalue it in the eyes of clients. Worse, all giving stuff away for free does is attract freebie-seekers. These are not your clients. They will be gone as soon as you take the free buffet away. If they can’t afford professional services, they either shouldn’t be in business, or they should at least not expect you to subsidize their business (to your own detriment) until they can. These are very selfish, self-centered thinking people. You have your own bills to pay and people to take care of. You can’t put your time and energy into those folks. You’ve got to market to people who can already afford you and who don’t expect you to be footing the bill for their business. If you keep giving it away for free, you’re just going to keep getting more of the same. “Why pay for the cow when you can get the milk for free?” applies here. If you’re dishing it out, they’re gonna take it. You are attracting what you are giving. So stop the gravy train and get serious about serious clients.

2. I’m not sure why you think this, but this is not strictly a referral-based business. A business can become mostly referral-based once they’ve established their business, had a chance to get their foot in the networking door, and have clients and others who happily recommend them. If you’re new, you don’t have that right off the bat. But there are things you can do and ways you can network that will better draw/pull prospective clients to you. What will help here is having a target market to focus your message on and give you direction on where to find those folks you wish to be talking with and expend your efforts and energy there (which are limited and need to be conserved for the highest and best possible use). Two of the most important criteria in deciding on a target market are that a) it must be one where the people in it generally are earning enough money that they can afford professional services, and b) there are enough of them that it’s easy enough to figure out where they are (offline and off) and then find ways to interact with them, come up in their search terms and be found by them.

3. Never, ever bargain with or negotiate your fee. All you are doing is teaching clients to devalue you and your support. You start doing that and they forever after expect freebies and discounts and that everything is up for negotiation. You don’t even have to tell me what you’re charging. I can pretty much guarantee that you are undercharging–all these issues you describe are always symptomatic of rates that are too low. They cater to the wrong crowd. On top of that, I’m willing to bet the conversation on your site is all about cost and discounts and freebies and savings and how much cheaper and more affordable than an employee you are, yada yada yada… am I right? That’s exactly the problem. I would tell you to raise your fee. You likely will be ALL kinds of uncomfortable doing that and at the same time you will need to learn how to market differently and change your message. But when you do that, you will begin to attract a clientele with an entirely different mindset and more professional business sense. Those folks are looking for skill and quality and competence, not handouts. You simply can’t waste your time and energy–and money, because that’s what it boils down to–on folks who can’t afford you and would have you harm yourself in order to help them.

4. Adding onto the idea of changing your message, you’ve got to frame what you have to offer in respectful ways. You’ve got to hold what you do in high esteem and talk about it in respectful terms. If you use words like “generalist” and “mundane” and “affordable” and the like, you are lowering the perceived value of what you have to offer. You are teaching prospects to look down upon your work and view it as lowly, and thus, not worthy of professional fees. And the industry as a whole has GOT to get off the cost conversation and all the employee comparisons. If you have any of that stuff on your site, take it off immediately. You are creating and attracting the very mindsets you are complaining about now. If everything you put on your website is about how cheap you are, how much they can save, how much more affordable you are than employees, save this, get a discount on that, guess what you are focusing people on? MONEY. You can’t make your marketing message about that–unless you want to continue to attract nothing but people who are looking for savings and discounts and bargains and cheap and affordable. Stop talking about costs whatsoever. That’s the last thing you should be talking about. And if you don’t have anything else to talk about with regard to what you do for your clients and your value to them, then you’ve got a lot more work to do about understanding what you are and what you do.

Marketing and attracting clients is an area of ongoing learning and study. It’s not anything that can be answered quickly or simply in a mere blogpost, but I hope this at least gets your wheels turning. The very best way I can help you is to recommend that you get my e-book, “Understanding Your Value: How to Craft Your Own Unique Marketing Message and Make More Money with Alternative Billing Strategies.” This is a self-study guide that will help you determine your target market, define an ideal client profile, differentiate yourself with your own unique marketing message and value proposition and use value-based pricing methodologies to package up your support in much more attractive, marketable ways.

Give to Haiti Disaster Relief!

By Danielle Keister | Also posted in Business Savvy, Marketing, Virtual Assistant/Virtual Assistance | Tagged , , , , , | Comments (11)
February 10, 2010 – 10:00 am

Dear Gritty VA: How Do I Keep Everything Separate?

Dear Gritty VA:

It is that time of year… taxes!!! And I was wondering if there were any helpful tips or tricks that you could share for a new Virtual Assistant to help stay organized. What you do to keep track of your business expenses from your personal expenses? My tax accountant told me that it is very difficult to write off office expenses from home because you have to keep track of EVERYTHING. She also stated that being paid as an employee is better than being paid as an independent contractor for tax purposes. Is that true? I would love to hear your thoughts. –MB

Omigosh, you need a new accountant! The one you have doesn’t sound like she understands small business at all! First of all, you aren’t an employee so you don’t have a choice about that, just like clients do not get to choose to pay employees as independent contractors. That’s called misclassification of employees and it’s against the law. You are either an employee or you are a business. Independent contractor is not a third option. It’s just another name for someone who is in self-employment and self-employment is a business, just like any other. The first thing I highly recommend is that you find an accountant who understands these things as well as the fact that you are a business owner, not an employee. Of course, you have to be clear about that in your own mind as well.

In response to your accountant’s claim that it’s very difficult to write off office expenses from home: No, it’s really not. EVERYONE in business has to keep track of everything; where your office is has nothing to do with anything (except for maybe the square footage of your office space).

Here is what I recommend: If you don’t have a dedicated room in your home for your office, at least have a  dedicated space, whether that is a desk in a corner or a tabletop in your den. Wherever your space is, keep it off-limits to anyone and anything else. That becomes your dedicated business space that may not be used by anyone else or for anything else other than your business. The square footage of that space is what you then get to use to calculate that business expense when you file taxes.

As far as keeping track of expenses, yes, of course, save your receipts. If a receipt isn’t clear about what it was for, you will need to make notes on them by hand. Whatever you buy for the business is pretty much a business expense, as long as you don’t use it for anything else. Just keep that in mind and you’ll be good. It’s only when you mix things for personal and business use that you have to start figuring out percentages and calculations and make things complicated so the way to keep things simple is to just not mix them. Get dedicated everything.

It is never a good idea to co-mingle business and personal funds, and, in fact, the law can dictate that you may not do that. Therefore, plan on getting a dedicated checking and savings account with a debit and/or credit card that you use strictly for the business. (Depending on the bank and account, these can earn you rewards points that might come in handy as well.) Each month, transfer funds over to the savings account to set aside for taxes. Your new accountant can advise you on the right percentage to set aside. That way, when it’s time to pay estimated self-employment taxes, you don’t have to scramble.

Also, if you haven’t already, I really recommend investing in a proper business accounting software like Quickbooks Pro. Not only will it make entering and keeping track of things a breeze, but the reports you can pull up in analyzing your business and seeing how it’s doing will be invaluable. Your tax preparer will love you more, too.

I also want to be clear that when it comes to anything financial, legal and tax-related, you should never, ever rely on the advice, and especially not the opinions, of laypeople and colleagues, no matter how experienced that may be or how smart they think they are. Always, always go to the source and seek the guidance of those who are educated, licensed and qualified to be giving the information (ahem, accountant and attorney). In your case, you did the smart thing by consulting with an accountant; you just need to find one a little more knowledgeable, current and supportive of the small home-based business owner.

Give to Haiti Disaster Relief!

By Danielle Keister | Also posted in Business Savvy, Virtual Assistant/Virtual Assistance | Tagged , , , | Comments (0)
January 20, 2010 – 10:00 am

Dear Gritty VA: What Advice Do You Have for a Vagrant Virtual Assistant?

Dear Gritty VA:

I am currently planning and readying my new Virtual Assistant business for its grand opening in about a month and a half, but my husband is in the military and we will be moving all over (this is why I am starting this business). So my question is two-fold: Do you have any tips for a vagrant VA? And will there be different laws to follow depending on where you are located? –CD

As you recognize, that’s the beauty of a business such as ours. It does not require any kind of physical brick and mortar presence, there are no geographic constraints and we can do the work that we do anywhere. You don’t elaborate much so I’m not sure what kind of tips you’re thinking of, but here are a few thoughts off the top of my head:

1. Set up a virtual collaboration office with a service like HyperOffice (they charge a monthly fee) or software like Groove (one time software purchase; requires hosting). These are not merely project management programs–these are full package organizational tools that you can set up by client so that each “collaborative office suite” has it’s own shared calendar, contacts/address book, project/task management section, full real-time document filing and sharing, forums and wikis you can set up, and all kinds of other things–all in one.

2. Perhaps set up your email accounts in an online tool like Gmail. That way, you can have online access to all your communications wherever you have an Internet connection. It’s funny I should recommend this, since I’m not personally a fan, but I can see the potential advantages for someone in your position who moves around a lot.

3. Get an aircard (also called “mobile broadband”). This is a little “stick” you plug into your laptop that gives you Internet. Wherever you can get a cell phone signal, your aircard will work there as well. Which means you could be anywhere, in your car, at a park, whereever, and still have Internet access. I use Verizon and have been very pleased.

4. Get a remote access service like LogMeIn. This will allow you to log into your homebase when you need to whenever you are away. There is a free version, but there are all kinds of wonderful extra tools you get with the pro version, which is what I use.

As far as different laws to follow depending on where you live, yes, that might be the case. Different cities, counties and states have their own licensing and tax obligations. Some cities (like mine) requires a separate business license in addition to the state business license you may have to take out (also required in my state). Others don’t require any separate or special registration at all. Some areas might have special zoning or laws pertaining to home businesses. Some cities or counties might require you to file their own business tax reports in addition to what you might be required to file federally or with the state. It will be your job as a responsible business owner to research those each time you move.

I want to also stress that it’s important to go straight to the source–contact the pertinent state and local agencies and ask them those questions. Their directions and information will be the only ones that matter. You don’t want to rely on the guesses or opinions of others as they are not going to be paying your penalties or fines or dealing with problems if you end up not doing something right based on their “helpful” advice.

Give to Haiti Disaster Relief!

By Danielle Keister | Also posted in Business Savvy, Virtual Assistant/Virtual Assistance | Tagged , , | Comments (1)
January 6, 2010 – 10:00 am

Dear Gritty VA: What’s Your Website Advice?

Dear Gritty VA:

I found your website today and am very impressed. I am new to the world of Virtual Assistance–actually, today is my first day! My 2010 goal is to build a professional Virtual Assistant business, the kind of quality practice you describe in your website. It seems that one of the first really big steps is to design and build a website. Can you share any advice on selecting a host web service geared to Virtual Assistants or what pitfalls to avoid? The seemingly endless options are overwhelming and building the right website is a step I don’t want to take lightly. I’d really appreciate any insights you can share. Thanks. –FS

Oh, this is always a tough one for me to answer because honestly, I think the best business advice is to hire a professional (meaning, someone with actual design training and not someone who simply owns the software) to design your site so you can stay focused on the business-building and simply provide the designer with the direction. Unless, of course, you actually have the design and technical knowledge to do it yourself, and even then, we can often be too close to our own “product” to see the forest for the trees, so to speak. But I know the reality is that most VAs do not start their businesses properly capitalized so I’ll speak from the bootstrapping route.

As far as hosting, you don’t need a service that is geared toward VAs. Basically, it just needs to have reliable servers and great customer service. There are so many out there and we could both wear ourselves out just trying to go over all the particulars of things to look for and what ones to avoid. I don’t have the energy for that today, LOL, so I’m just going to give you a recommendation: A2Hosting.

I had been with another hosting company for years and years… had all my sites hosted through them as well as my web client sites. But the company got sold a couple times and went from being an absolute gem to an absolute dud. I mean, I can’t even begin to tell you how horrible they became…. horrible, horrible offshored customer service, constant server crashes, problems getting into your own accounts (they’d change the password on you without telling you and then you’d have to waste all kinds of time sitting on the phone trying to get your damn info)…. I’m about to die just remembering all the crap I had to go through with them. It was a nightmare.

So I went shopping around and tried many of the hosting services that are frequently recommended. And they sucked. But eventually I found A-2 and tried them out and I could not be happier. Actually, ecstatic would be a better word. I have not had any problems with their servers. They have fantastic in-house 24/7 telephone support on top of an easy-to-use online support ticket system (depending on what you prefer). They’ve got a Fantastico control panel with all the bells and whistles. I have moved all of my sites and as well as the client sites I manage over there and I could not recommend them more highly. They personally “walked” with me through a few more complex site transfers, all the while continuing to be their very personable and cheery selves. They’ve also got a sale going on right now of 40% off any hosting plan for new customers. Here’s a page where you can view all your plan options and discounts.

As far as the site design goes itself, you don’t mention where you’re at in terms of know-how on the web design thing so I’m flying blind here. That being the case, one route you could take is self-hosting a blogsite from WordPress.org (do not go with WordPress.com as you have no control over hosting, have fewer capabilities and people have lost their sites before going that route). A hosting company like A2 has one-click installs of WordPress. You could also hire someone who already has the know-how to do the installation and then work with them to customize a template. Lots of folks recommend Wordpress as being easy as pie, but truthfully, it is a bit more complicated than that and if you don’t have the know-how, you can expend a lot of wasted time and energy concerning yourself with all the ins and outs. And getting the site to look like a professional site and not just the same generic template that everyone has seen on a million other sites takes some doing . You’ll have to weigh that out for yourself. Personally, I learned long ago not to waste my time with things I’m not good at and hire those who are. It saves all kinds of time, aggravation and ultimately, money.

I should add that your site will always be a work-in-progress. It’s the most important piece of marketing collateral you have and should always be in a constant state of improvement as you learn more about marketing and your clientele and how to better articulate your message to be more compelling and have more meaning for them. So the good news about that is that it doesn’t have to be perfect, get something up and then work from there. And if design isn’t your forte, at your first opportunity, find a pro to partner with to help you so you can have a visually attractive site with your own unique visual identity that will help draw people into the all-important content and facilitates their ease and use of the site.

As far as content goes, one of the biggest pitfalls in our industry is that VAs are recycling the same, tired old industry rhetoric so their sites sound exactly alike. This frustrates clients and doesn’t do anything to differentiate the VA from the herd. The one thing that makes literally everything easier–your marketing, your networking, your work, finding client…everything–is to focus on a target market. I can’t stress this enough. Narrow down one audience to speak to and then study and learn everything about them. The direction this focusing on a target market gives you will make everything less overwhelming and vastly more effective and expedient.

It’s important to remember that when your product is a service, it’s invisible… meaning, it’s not something a person can physically hold in their hand. That’s why your “packaging”–hich is what your website is–becomes so important. It’s the physical, more tangible representation of your business and image. If your site looks amateurish, prospective clients will think the caliber of your service may be amateurish as well. Any money you invest here in making your site top-notch, professional, polished and unique is an investment in your success.

38gdeNow, getting direction in your marketing and messaging efforts can be overwhelming in and of itself. If you have any trouble in that area, I’ve figured all that out for folks in my guide, “Understanding Your Value: How to Craft Your Own Unique Marketing Message and Make More Money with Alternative Billing Strategies.”

By Danielle Keister | Also posted in Marketing, Virtual Assistant/Virtual Assistance | Tagged , , , | Comments (2)
December 23, 2009 – 10:00 am

Dear Gritty VA: I’m Afraid I’ve Forgotten Everything I’ve Learned

Dear Gritty VA:

I sent an attorney the Virtual Assistant contract templates that I purchased off your site. I contacted him knowing very well that it would be costly, but he offered to look them over at no cost. After not hearing back from him, I asked him once if he’d had a chance to look them over and he mentioned via email that he would look them over during the Thanksgiving holiday weekend. Well, as of today, I’ve yet to hear from him. Since he offered, I don’t want to bug him. I would really like to start marketing the business, but I’ve been hesitant because of this minor glitch. I’ve worked with contracts before and they looked fine to me, but contacted him because it’s smart to have an attorney look things over. I’m seriously thinking of writing him off and simply moving on. I really need to move forward with my business, but I’m nervous about working with my first client. I’m sure you can understand my dilemma and frustration. To be honest, I’m afraid I’ve forgotten everything I’ve learned in the last 15 years. Crazy, isn’t it? –DE

Not crazy at all. So is that the only thing holding you up? If so, don’t give it another thought. So you’re nervous about going live, so to speak. It’s perfectly understandable. Perhaps waiting around for this attorney’s approval on the contracts is a way to keep dragging your feet. So I have two thoughts to offer you:

1)    Yes, I think you should write the attorney off at this point. It’s holding you up and when it does that, it’s no longer a kindness or a favor to you. Don’t allow empty promises to keep you from moving forward in your business. You were prepared to pay for this service originally. Find another attorney and pay him or her. Remember: You get what you pay for and you can’t expect much when it’s a freebie.

2)    For legal reasons I have to qualify my assurances by saying that you should always have an attorney look things over. That said, I work with attorneys, three of my uncles are attorneys, I developed these forms with my own attorneys and have been using them for over 12 years of business. So again, I want to encourage you to move forward. Waiting around for clearances and permissions and okays and not trusting in your own good counsel is going to keep you from rockin’ and rolling. Find another attorney to look them over when you get a chance, but in the meantime, you don’t have to wait on that to get started.

As far as being afraid you’ve forgotten everything, trust me you haven’t. It’s like riding a bike. You’re just experiencing the natural, usual fears that all of us have about putting ourselves out there. We all have the inner self-critic in the back of our heads telling us we’re not good enough and all that. You have to just ignore that and plow forward.

Remember, you don’t have to be perfect. You don’t have to know everything. The value in what you do as a Virtual Assistant for clients is that you are providing a base of right-hand support. Some things you might be rusty at, but you’ll pick them back up with use. There will be other things you might have to learn. And then there are going to be other things you simply don’t need or want to provide.

Sometimes, the best advice is to not even think about all the what-ifs you may encounter. Just focus on getting that first client, taking that first step. It might even be helpful to have an honest conversation with any new client letting them know that while you are an administrative expert and can definitely help them, you are new to business as there are going to be things that you learn in that regard as you go along. This will at will clear the air and I think most people are going to find such openness and honesty very refreshing and earn you their even greater confidence. You’ll tweak and hone and fix things as you go along, which is to be expected in any business regardless, but if you don’t ever get started, you won’t ever get anywhere. Go for it!

By Danielle Keister | Also posted in Business Savvy, Virtual Assistant/Virtual Assistance | Tagged , , , , | Comments (0)
December 16, 2009 – 10:00 am

Dear Gritty VA: What Insurance Do I Need?

Dear Gritty VA:

I am looking into starting a Virtual Assistant business and am having some trouble finding information on insurance that is required. I am assuming that as a Virtual Assistant it is required to have errors and omissions insurance. I am having trouble finding an insurance company that can give me an idea of the cost or that covers this industry. I would really appreciate it if you could provide me some information on this. —SC

Errors and Omissions isn’t required, but it’s certainly a good idea to have that kind of insurance in a business such as ours.

For those who don’t know what it is, Errors & Omissions (E & O) insurance protects you if a client claims you are responsible for errors or failed to perform as promised in your contract. If you are a sole proprietor (where you and your assets are at risk directly and personally), it can be even more important to have this kind of coverage.

This is a very common type of business insurance so I’m not clear why you would have any trouble finding a broker or insurance company who can talk to you about it. My best advice is to keep calling around. Coverages are going to vary and be dependent upon your own particular situation so you really do need to talk to the source, but very, very roughly, you can expect this kind of insurance to cost around $1000 or more annually.

Another kind of insurance you may want to look into is some kind of General Business Liability. Policy terms, limits and coverages are going to vary and be dependent upon your particular situation as well as the insurance company so you really do need to talk to the source. Generally, this kind of policy covers “trip & fall” type situations you are responsible for either at your office or at a client’s office (like if someone tripped over your briefcase while you were making an office call, for example), medical payments, business personal property (damage/loss/fire/vandalism), signage and loss of income (excellent coverage to have in case fire, loss, damage, etc., prevents you from running your business). Different insurance companies will have different coverages and limits that come standard and then optional coverages that you can add on so, again, you’ll need to talk to the source and work out the particulars with an agent. An administrative consulting business running out of a home office making roughly $125,000 annually could expect this to cost between $250-$300 a year.

It’s important to note that even if you have homeowner’s or renter’s insurance, you may not have proper coverage for the business itself so be sure and find out from your agent what kind of business “riders” you need to add-on to protect those interests.

Another kind of insurance you may want to look into is Disability Income. This is a separate policy that would cover you if you became injured or ill and couldn’t run your business and earn your living. The amount of the policy will depend on all your personal particulars such as age, income, whether you smoke or not, etc. This one can (very roughly) run around $115 or more per month, but as with all things insurance-related, you must get your information directly from the source.

If you live in an area where there are frequent natural disasters (slides, flooding, for example), you may also want to look into high-risk coverage to protect your personal business assets. These types of situations are often above and beyond regular business liability coverages (meaning you may not be covered in those events) so it wouldn’t be a bad idea to ask your agent about that as well if it applies to you.

I would really love to see you take your practice to an entirely different level in 2010 so you can earn better and stop struggling to find clients. As my gift to you this holiday season, from now until Sunday, Dec. 20, you can get this guide for $47 (a $20 savings).

GDE-38 Understanding Your Value

By Danielle Keister | Also posted in Business Savvy, Virtual Assistant/Virtual Assistance | Tagged , , , | Comments (0)
December 2, 2009 – 10:00 am

Dear Gritty VA: Do I HAVE to Know This and This and This, Too?

Dear Gritty VA:

My biggest strengths are written and verbal communication, research and word processing. Can I still be a successful Virtual Assistant or do I need to know things like 1shoppingcart, website design and desktop publishing to even have a prayer of getting any clients? -KT

I’m going to be annoying and not really answer your question directly. And the reason is because there are several aspects to consider. In pondering those things, you will end up answering the question for yourself.

My first question to you is: Do you know what business you are in (or considering being in)?

Being in business first has to be something you want to be in, want to be doing and have the qualifications to do. I mean, it wouldn’t serve you to wake up one day and decide to be a plumber if you have zero interest in pipes and sewage. And it certainly wouldn’t serve any customers you got if you didn’t have the training, experience or qualifications to be a plumber, right?

For this reason, you have to get really clear and cognizant of exactly and specifically what you want to be in business to do. In this case, you may want to ask yourself: Am I in business to provide support or am I in business to sell individual services. Because there is a big difference between delivering ongoing administrative support (which is a service offering all its own) and selling individual services. When you are selling line-item services, the focus is on the individual project and the transaction. But if you are in business to provide administrative support, the product you are really offering is an ongoing, right-hand relationship. The relationship is the focus, not the transactions or tasks.

The reason this clarity is important is because it makes all the difference in how you market, articulate your value and attract exactly the right clients who have a need for what you are in business to offer.

Which brings us back to your original question, and the answer to that is, it depends. It depends on what you are in business to do, who has a need for what you offer and who you want to work with. You can be an administrative expert and not have to also be a website designer and a graphic designer and a bookkeeper, etc., etc., if that’s not what you want to do. Your value isn’t in trying to be every single kind of professional under the sun or to know how to do everything in the world. In fact, it’s really silly to and ineffective to try to do that because you can quickly distract yourself from your focus, spread yourself too thin and dillute your strengths and expertise.

You’re in the driver’s seat. You get to set the expectations and craft your marketing message in a way that attracts exactly who you want it to attract. If you don’t want to do any of those other things you mention, focus clients on the thing you do do and how that helps them in their business.

Now, I’m not saying you can’t or shouldn’t do any of those other things. If you want to work with online business owners, knowing HTML and being able to draft up web pages, etc., is something that will add value to what you offer. Additional divisions and layers of support in your business (such as technical support for 1shoppingcart, for example) are also ways you can add more revenue streams by offering them as stand-alone services or at higher priced support packages.

At the same time, there are plenty of clients doing real-world work and running non-virtual businesses who aren’t going to care a whit whether you know 1shoppingcart and don’t need you to know graphic design because they already have a talented graphic design house they use, thank you very much. They just need you to be focused on administrative support, and really, that’s plenty as it is!

They certainly wouldn’t turn to you for legal advice if you weren’t an attorney, and they wouldn’t ask you for financial guidance if you weren’t an accountant, right? Of course not. So focus clients on exactly what you are in business to do and explain things so they know as clear as day exactly what kind of expert you are.

The trick is to get clear about what you want to be in business to do and then target a market that has a need for exactly that. The more clear you are, the more you’ll attract exactly the right clients.

32frmPS: I think you’d find my Virtual Assistant Business Plan very helpful in sorting all this out. It’s not only a template that shows you how a professional business plan should be structured and formatted, it’s also designed to get your thought juices going with regard to these kinds of questions, figure out exactly what kind of business you want to be in and how you can create a multi-layered administrative support business with multiple revenue streams.

726 participants–only 274 to go! Take part in the 2009 Virtual Assistant Industry Survey and spread the word!

newssurv09

By Danielle Keister | Also posted in Business Savvy, Marketing, Virtual Assistant/Virtual Assistance | Tagged , | Comments (4)
November 25, 2009 – 10:00 am

Dear Gritty VA: How Do I End a Relationship with a Difficult New Client?

Dear Gritty VA:

How do I end a relationship with a difficult client without burning bridges? This was a brand new retainer client. We’d finished the contract process and I had just received my deposit. I’d actually been talking to this client for three months about working together and I was so glad to finally close the deal. This client had lots of energy and seemed to be wonderful on the telephone and in email and on chat. We went through the contract process fine, no issues. I felt we would have a long-term relationship with lots of exciting projects to work on. But in one of our first exchanges, she got very nasty with me. She threatened that if I couldn’t do this, she’d do it herself or find someone else. Up until this point, she had been very nice. Ultimately, I refunded her deposit, but I was not really sure how to address the email to her regarding the tone of her letter, why I was refunding her deposit or how to explain why she needed to do these tasks in a way that worked for me, too. As you know, threatening to “do it myself or get someone else” doesn’t really bode well for furthering the relationship. I don’t like working with people like that nor do I really need the work that much. But I still feel guilty. I always feel guilty about these issues. She has emailed me more than once asking for another chance. I just don’t feel like we’d be a good fit at this point. I have recommended someone else to her who is probably more willing to put up with this type of thing. The situation is basically over, but I’d like to know what someone like you would do so maybe I’ll stop feeling guity. Should I give people like that more of a chance or not? –NB

I think you handled this just fine. I would have done the same thing: refunded her money and politely indicated that we weren’t going to be a fit after all. As you recognize, the kind of behavior you describe right out of the gate doesn’t bode well for a happy, healthy working relationship. As service providers, we simply can not afford to work with anyone who makes us miserable. It’s unhealthy for both you and the business, as well as the client. You can’t honestly take care of any client you silently resent or allow to mistreat you.

As far as ending a relationship without burning bridges, you only have domain over your own actions. It can be tempting to point out all the things a client did wrong or let’em have it in a letter. But really, going into all the details serves no useful purpose and it’s a negative waste of your time and energy. It’s enough to be unfailingly professional, simply explain that you no longer see a fit (or however you would say that in your own words) and wish them well. Refunding the client’s deposit was a very honorable and ethical thing to do as well. How the client chooses to view or handle things after that is out of your control and none of your business. ;)

I see this as a very healthy experience for you. It shows that you value yourself as much as you value any client. Don’t second-guess things. There’s no right or wrong answer. If you saw fit to try and regroup with this client, have some conversation about how you expect to be treated and bring some clarity about how dissatisfaction should be expressed so that neither of you feels demeaned or mistreated, in an effort to make the relationship work, that would have been perfectly okay, too. But your gut told you this wasn’t a relationship you wanted to invest in any further and you trusted and honored that. That’s very healthy.

As far as feeling guilty, that’s something only you have control over. It comes from that little, niggling Negative Nelly in the back of all our heads, the one that tries to make us second-guess ourselves, tells us we’re not good enough, make us feel that our needs, our wants, are less important than everyone else’s. That voice. We all have to work at stifling our inner naysayer and not allow it to interfere with taking good care of ourselves. And that you did. You honored what was right for you and you did everything you could to do right by this client in ending the relationship. Celebrate that.

You can’t beat yourself up for taking on a client who didn’t turn out to be a fit. You had every indication that this was going to be a great client to work with. We do what we can to make educated decisions in accepting the best-fitting clients as possible into our practices, but none of us has a crystal ball. We aren’t going to make perfect choices or do things perfectly 100% of the time. We’re all going to make mistakes, missteps, have things turn out in ways we didn’t expect. You have to say, so what. The world will continue to go ’round and you always get to start over.. ;)

At the same time, be sure and reflect on everything and see where you can glean other business nuggets. There’s always something we can learn from experiences that we think are all bad. You might see spots where you can tighten up your client qualifying and selection process. You might have a better idea of the kinds of red flags you want to be more conscious of in the future. You might find that there are other questions you want to ask in your consultation process. Maybe you can beef up your explanations of how things work, take more ownership of your processes so the client has the proper understandings and knows what to expect. Maybe there are collaboration tools or services you can begin using (like HyperOffice and DropSend, for example) to make it simpler and easier for clients to work with you. There are all kinds of things you can take away from this and use to improve your business, service and client selection for the next time. I think you’re on a great path to a very happy Virtual Assistant practice that ultimately will serve clients well because of it. :)

PS: As a side note, I notice you use the term “deposit.” But if this is a retainer client, why are you accepting a deposit? Perhaps you meant retainer and just misspoke, but I did want to clarify that a retainer is a full fee paid in advance (typically at the start of each month). There are no deposits when it comes to retainers; you should be requiring the full fee upfront. If they are truly committed to working together, they are going to pay. You can’t waste your time on those who can’t commit or aren’t really invested in the relationship. Otherwise, it’s another area where you’d be setting a bad precedent in the relationship right from the start which will ultimately undermine its success.

698 participants–only 302 to go! Take part in the 2009 Virtual Assistant Industry Survey and spread the word!

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By Danielle Keister | Also posted in Business Savvy, Virtual Assistant/Virtual Assistance | Tagged , , , , , | Comments (1)
November 18, 2009 – 10:00 am

Dear Gritty VA: How Can I Handle Last Minute Requests at the End of the Month?

This isn’t actually a question that was submitted to my Dear Gritty VA column, but it was an email conversation with one of my members on a topic I thought would be helpful to everyone here…

Dear Gritty VA:

My main issue around retainers is that toward the end of some months, I’m less than half way through some of my retainers (meaning, clients still have about half their hours unused). Then I get worried that the last week of the month is going to be a flurry of activity trying to get all the hours in. My clients know where they stand with my hours, and they also know that unused hours don’t roll over. However, I let this issue bother me and take up space in my head. How can I handle last minute requests on the very last days of the months from clients who haven’t utilized their retainers? –DB

Here’s what I do in my practice… In my client guide and in my orientation with new clients, I explain how work requests are to be submitted. One of my policies is that all work needs to submitted with at least three days notice, and particularly when it comes to work toward the end of the month. The idea is to make sure they understand that they can’t submit something on the last day, for instance, and expect that it is going to be covered under that month’s retainer, much less get done that same day. I have to have three days heads-up so as to fit things into already scheduled work and not be forced into last-minute, rush requests. If they do not provide the proper notice, then it gets counted under the next month.

You have to be able to manage the work that comes in and have time to do it well and on your terms. When we’re rushed, we are sloppy and make mistakes. It cheats other clients. It can also very easily lead to resentment, which isn’t good for any relationship. It creates poor operating conditions and that in turn affects the quality of your work and service all the way around.

You’re not a slave. You have a right as a business owner and as human being to care about doing good work and about how the work affects your morale, business image and operations. Make sure you are instituting the protocols and procedures that allow you to create those conditions that lead to great service–for all your clients–and which take care of you as well.

The other part of this question speaks to the issue of clients not utilizing you. Here are a few of my thoughts on that…

First, we can’t take responsibility for clients in that regard. It is up to them to make use of what they have purchased. They are grown-ups and we are not their babysitters.

That said, we need to ask ourselves what we are doing to help clients utilize the support. If a Virtual Assistant is just passively waiting to be told what to do, they are not truly being administrative experts and they are not leading their own business. Clients are expecting you to be the expert; they expect you to know how to guide them. It is incumbent upon you to be proactive, take charge of the delegation process and figure out how to help clients make use of your service. One way to do that is by taking what you gleaned from your consultation talks and regular meetings and coming up with a plan of support for them. This gives them clear direction and helps them more easily give things over to you.

Beyond that, it’s up to clients, which leads to another side of the coin to consider… if you end up with a client who has a pattern of not being able to follow your protocols, who consistently is not utilizing the service they have paid for, you may need to evaluate the fit of the relationship. Someone not in business or solo practice might think, so what, it’s business, it’s money. But they just don’t realize how awful it is to work with someone who just isn’t using your service. I don’t know of a single Virtual Assistant who enjoys taking money from someone who just isn’t using their support. It’s completely de-energizing and unsatisfying. We want to make money, yes, but we truly want to be of help and service at the same time. We want our gifts and talents needed and used.

So if you find yourself with a client who isn’t using your support and you feel you’ve done everything you can to help them give stuff over to you and they still can’t get with the program, you simply aren’t going to be able to help them and it’s time to let them go.

By Danielle Keister | Also posted in Business Savvy, Virtual Assistant/Virtual Assistance | Tagged , , , | Comments (0)
October 21, 2009 – 10:00 am

Dear Gritty VA: What Is My Compensation as a Virtual Assistant?

Dear Gritty VA: I am just starting my Virtual Assistant career. I have seven years of administrative expertise, but one thing I am unclear about is my compensation as a Virtual Assistant. I know that most charge by the hour or on a monthly basis, but how do I know how much to charge? And considering that I am just starting out so I am taking on side jobs that are here and there, how should I charge for smaller list items? Thanks in advance? –KT

My first caution is to always be conscious about the terminology you use. This is important because when you are communicating with others, and especially clients, the words you use in explaining things can have very real effect on how and what expectations are formed, as well as how and whether folks understand what you mean for them to understand. Words like “compensation” have no place in the Virtual Assistant world. That is a term used in the context of employees, which a Virtual Assistant is not. Virtual Assistance is a profession and a business.

As far as what to charge, ask yourself these questions:

1. How much does your business need you to charge? That is, how much do all the expenses and overhead cost to run your business?

2. How much more money do you need to set aside for incidentals and/or continuing education?

3. How much do you need to charge to pay for your own time? How much do you want/need to earn each month/year to pay your own bills (not the business’s)?

4. How much does it take to make something worth your while?

5. How much would honor your skill, value and expertise as an administrative expert?

6. What rate or amount would send the message that you are an expert, not an unskilled amateur, who has what it takes to improve the client’s situation?

7. How much profit needs to be built in for you to achieve your own goals and dreams (e.g., for travel perhaps, or special family vacations, or buying a home)?

8. What kind of cash flow do you need to operate with ease and not be stressed with bills and due dates? (Cash flow is a concept different than simply income; it’s the amount of money you reliably and consistently expect each month that you can use to plan and budget).

9. How do you want to position yourself in the field? How do you want potential clients to look upon you? What “perceived value” message does your pricing send?

You can’t just work to be paying the bills. What you charge can’t just be enough to pay for your expenses and time. In order for you to grow a solvent, sustainable business, you have to make sure your fee covers all the practical business considerations. It also has to be intentioned enough that you can plan, set goals and grow.

Pricing is every bit a marketing strategy as well. How you price sends a message to clients–it can tell them that you are a top-notch expert who has real value to offer and can really help them or it can convey the idea that you are desperate (which isn’t attractive to clients) and/or not very highly skilled.

I would also add that it’s not your job to be “affordable.” Keep that word out of your vocabulary as well. It’s your job to deliver a solution that helps clients move forward in their business and accomplish things. That’s your value and that’s where you want to keep your message focused. So if you consider all the ways that what you do helps clients, how your work ultimately helps them achieve their goals and dreams and make more money, what would you say is the value of that?

Have a look at our Free Resources page… we have a free automated Excel service pricing worksheet that will help give you a beginning frame of reference about what it costs to run a business and what kind of fees you need to charge. It’s a great way to start becoming conscious and intentional about this area of business.

564 participants–only 436 to go! Take part in the 2009 Virtual Assistant Industry Survey and spread the word!

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By Danielle Keister | Also posted in Business Savvy, Virtual Assistant/Virtual Assistance | Tagged , | Comments (1)