Category Archives: Business Savvy

Why Should I Pay That When I Can Get a Temp or Offshore VA for $5 Bucks an Hour?

Ever hear a client utter these words? It’s probably the most grating sentence in the Virtual Assistant world today.

But what if you knew exactly how to respond… what if you offered your services in a way that didn’t focus whatsoever on hourly rates? Wouldn’t that be a total game changer? It’s not so annoying when you actually begin to love responding to that kind of question (or when you don’t even get it in the first place). ;)

…If you frequently encounter price resistance with clients and want to know what to do about it;

…If you have trouble getting clients to commit;

…If you struggle with articulating your value to clients, talking about your fees and feeling confident in them;

…If you find the whole topic of pricing difficult, I can help you!

Today is the last day to register for my Value-Based Pricing & Packaging Biz Intensive. I have just a few spots left. What I will teach you in this clinic will help you:

  • Attract more clients, more easily;
  • Make more money;
  • Create an easier business to run;
  • And toss out those time sheets forever!

…all without discounting, negotiating or justifying your fees whatsoever!

Learn more and register by midnight tonight >>

I’d love to “see” you there!

This Is All a Journey

Starting a Virtual Assistant business, or any business for that matter, is going to be a journey. You won’t just open your doors overnight and bam! you’ve got clients, you’re making money and all goes perfectly, smoothly. It will not all fall into place and come together neatly with a bow on top without any glitches or stops and starts along the way.

You will grow in stages. Your learning and business evolution will be ongoing. What you know and understand now will be nothing compared to what you come to know and understand a year from now, two years from now, and so forth. After five years, you’ll look back and marvel at how much you didn’t know (but thought you did). You may even chuckle and feel a little sheepish about how you railed at and resisted the advice of those who have gone before and, as you realized later, actually knew what they were talking about. ;)

Not that any of this is a bad thing. It’s all a normal part of the process. It’s also why these kind of conversations exist on blogs and forums and so forth and are beneficial to your growth. People naturally want to help others. So even though you are not going to know everything right off the bat–and no one expects you to–they will raise your business consciousness. You might never have seen a path otherwise without it having been brought up in a discussion. Or things might have taken you much longer in business than need be without hearing about the mistakes of others. Without these conversations and help from your colleagues, you might keep banging your head upside the same old walls. Likewise, some things might not make sense to you in the beginning, but you come to understand them more clearly later after you’ve gained some experience under your belt. You suddenly “get” it.

Part of what got me to thinking on this was some recent correspondence with a colleague I hadn’t heard from in awhile. She related how she was agonizing over perfecting things. She was also so busy that she’d finally gotten to the point where she was actively seeking her own VA. She lamented that a few recent prospective clients she had consultations with weren’t so ideal. And while another one was really great, she still wasn’t happy with her consultation process and felt she could have done better.

And while she was angsting over all this, I’m seeing nothing but marvelous stuff! She’s established a pipeline and is getting consultations! She’s also got a way better idea where she wants to head with them than she did a year ago. She’s fine-tuning things to suit her needs and she’s able to more quickly identify who is right for her and who isn’t. These are all signs of business maturation and growth!

So many people who play it safe, who are so afraid of failing or making a mistake they never try anything new, who never open their minds to advice that goes against the idiotic status quo, never, ever reach these stages. Which is really sad.

So you’ve got to remind yourself now and again that growing in your business isn’t necessarily always going to be comfortable. You are going to agonize and twist and turn as you hone your processes and try new things. You simply aren’t growing without some discomfort and mess. And you will make what you feel are mistakes and gaffes, but they really aren’t. They are merely learning processes.

And honing is something that will occur throughout the life of your business. That is, if you’re doing it right. You will never reach “perfection.” I think it’s entirely the wrong word to be associating with in the first place. I like to think of business as an artwork in progress. And “progress” is something that is always evolving, forwardly and upwardly.

So embrace these things! What you’re going through is absolutely normal. You’ve got to pat yourself on the back for stepping up and allowing yourself to make mistakes and feel uncomfortable! Be proud about where you are now compared to where you were when you started!

How to Stop Selling Hours and Start Selling Support

I’m really excited about my upcoming Pricing & Packaging Biz Intensive next week. We’ve got a great group of people signed up so far. There are a few more spots available; be sure and sign up by July 19. What you learn in this clinic will blow your mind and revolutionize your business. Plus, as a registrant, you’ll get a ton of hardcopy tools and information to begin you on your journey toward improved billing, marketing and consulting with clients!

In the meantime, I want to invite you to ask me any questions you might have. For example, maybe you aren’t sure what I mean when I ask “Are you selling hours instead of expertise?” Or after watching my quick video below, you want to know more about why selling hours is debilitating your business, limiting your income and scaring away prospective clients. Ask me anything! I’ll post the good ones here for everyone and I will automatically keep your name and information confidential.

Dear Gritty VA: Why Can’t I Find Income Tax Info All in One Place?

Dear Gritty VA:

I submit final draft of my business plan to my mentor soon (I can’t thank you enough for the Virtual Assistant Business Plan template you have included in your packages). My question is for the financial aspect of the business plan… calculating the income taxes. There are so many websites out there and not one that offers suggestions of what a Virtual Assistant/ home-based business could file. I mean, you have state, federal, etc. Is it just the same when you are taking an owner’s withdrawal vs. salary? I really want to check all of my resources before I pay an accountant for the same thing I can find myself. –MK

I love to see how you are doing your actual homework! I can’t stress enough to new business owners the importance of not being penny wise and pound foolish. What I mean by that is I think every business owner should do this homework to make sure they have a good grasp of these things. That way, when they do talk with an accountant and/or business attorney, the information makes more sense; they understand it at a more cellular level. But even after doing your own homework, it is more than wise to still consult with an accountant and/or business attorney.

The reason you can’t find all this info spelled out for you is because… it all depends. Your business formation will be relevant. If you are in the U.S., besides federal obligations, different states and localities will have their own varying requirements. Every person’s situation and circumstances are different. Therefore, there’s just no way around simply going to all the pertinent agencies in your own location, talking to them and getting the low-down on exactly what your particular tax, licensing and reporting obligations are. And don’t expect one agency to know the particulars of another. It’s not their place and relying on wrong info they might give can cost you. You need to talk with each one.

As far as figures go, you can figure on 15.3% right off the bat to Uncle Sam. Technically, it’s 12.4% for Social Security up to $106,800 and 2.9% for Medicare. After $106,800, you only have to pay for the Medicare portion of the self-employment taxes. However, things can get more confusing depending on individual circumstances, like for example, if you have a job in addition to running a business. Personally, I don’t worry about cut-offs and just keep setting the same amounts aside. Anything extra can go into the fund for future payments or turned over to savings. (And realistically, it’s not likely that you would even hit the $100,000 mark, if at all, until several years in business. Not that’s it’s not possible; it’s just that most VAs don’t know how to work with clients or run their businesses in a way that allows them to reach that potential.)

But 15.3% isn’t all that you want to set aside for taxes from your business income…

As far as your state goes, you want to find out if there is an income tax or not (some states have one while others don’t). How much is it? When do you need to pay it? Does your state require a business license? How much is that? How often must it be renewed? What are your reporting obligations?

Your city, even your county, may also have their own business licensing and tax requirements as well. You’ll need to find all of this out.

As you can see, there’s no one-size fits all answer. It all depends. And this is exactly why it is always in your best interests to work with an accountant and/or business attorney. Even if you think you understand things or have covered all your bases. Because unless you are an accountant or attorney, you simply don’t always know what you don’t know. And they can literally save your butt from making potentially costly errors, giving you the right advise based on your own particular set of circumstances and business formation and saving you all kinds of time, energy and money trying to figure all that stuff out on your own.

PS: No, an owner’s draw is not the same thing as a salary. Just one of the myriad bits of knowledge you must know about in order to do your own bookkeeping.

YOU Are the Captain of Your Own Ship

YOU have to decide–specifically and clearly–what you’re in business to do.

If you fall to pieces and think you have to start over the second one uninformed client doesn’t get it or looks at you cross-eyed…

If you blow with the wind every time a client thinks you should be doing this and doing that, you’re never going to get anywhere, and your life and business will be anything but your own.

You can’t please everyone. Not everyone is going to get it. And you can’t be in business to do everything that everyone wants.

Early Bird Savings Ends Midnight Tonight

Just a quick reminder to register for my Value-Based Pricing & Packaging Biz Intensive by midnight tonight to get in on early bird savings!

You definitely want to attend if you’ve ever struggled with:

  • Price-shoppers
  • Clients being scared-away by your hourly rate
  • Feeling like the economy is affecting your business prospects
What you learn in this class will help you:
  • Attract more clients, more easily
  • Make more money
  • Create an easier business to run
  • Toss out those time sheets forever!

…all without discounting, negotiating or justifying your fees whatsoever!

Learn more and register for early bird savings (ends at midnight tonight) >>

Hope to see you there!

Dear Gritty VA: “I” or “We” in My Business Plan?

Dear Gritty VA:

On the business plan template, I am having a hard time coming up with the replacement word for “we” and “our” since it is only “I” who will be doing all the work for now. My mentor stated it is not acceptable to put “I” in its place, that I need to put my business name; however, that is so redundant! Any ideas? –MK

I have to disagree with your mentor on this one. The fact is most of us in boutique firms and solo practices are not completing business plans for the purpose of getting loans or attracting investors. We’re just not that big.

First and foremost, the point of going through the business planning process is to gain clarity and consciousness about our objectives for our businesses and how to best achieve them. The value of a business plan is not the formatting, it’s the process, or the journey of the process, if you will. It’s what we learn and gain insight from by going through the process that is the important thing. The process forces you to get conscious about things and specifically address them that you might not have otherwise. Therefore, it matters not a whit whether you use “we” or “us” or “I.” In fact, if you are an “I’ and specifically not a “we” and your business plan is for your purposes, not for loans or investors, I would say use “I” to speak to yourself and make it more personal.

Of course, if your business plan is doubling as something you would be formally presenting, then by all means use whatever form is accepted and expected. And don’t forget, there’s no law preventing you from directly asking about what they’d like to see, how they’d like it presented and what will help you get what you’re looking for.

The Difference Between Project Work and Providing Support

Here’s one way to understand the difference between project work and providing support:

A one-time project is like a one-night stand. You are strangers and don’t know each other at all. You do it once and never see that person again.

Occasional project work with a repeat customer is like a booty call or friends-with-benefits. You might get in bed together once awhile, but you’re there for one thing with no other strings attached. There’s only a very superficial level of familiarity.

Providing administrative support is about being in a relationship with a client. You’re both there for the big picture and know that familiarity, knowledge and understanding can only be shared, grown and deepened in an ongoing, committed relationship.

Dear Gritty VA: Is It Possible to Start a Virtual Assistant Biz in Japan

Dear Gritty VA:

I have 30 years of diverse administrative experience.  My husband is transferring to Japan and civilian employment is very difficult to come by where we’re being stationed.  Is it possible/feasible to start up a Virtual Assistant business from overseas?  I have a modern, complete home office set-up.  Any advice or assistance you can provide is greatly appreciated. –KF

Absolutely, it’s possible! You’ve got the experience. You’ve got your home office set-up. Perfect. As with any new business, there is always a learning curve when it comes to running and managing a business successfully and profitably. And you’ll need to get your foundations in place. But everyone goes through those stages, so that’s nothing out of the ordinary. And most importantly, you aren’t restricted to your local area as far as finding clients. That’s the beauty of the kind of work we do–it can be done virtually.

You don’t mention whether you are intending to seek local clients in Japan. I’m not sure what the market is like there or how receptive they are to this kind of working so naturally, as you would with any market, you’ll need to do your research.

I would advise you to  steer clear of the term “Virtual Assistant.” Anymore, it’s associated with cheap gopher labor and not skilled, professional expertise. Plus, people have never understood what it meant in the first place. Instead use terms like “administrative support” and “administrative consulting” or “administrative support consultant.” This makes it much clearer to people what we are and what kind of work we do.

And consider this, accountants don’t go to their clients’ office to do their work. People don’t expect their attorneys to come to their offices to conduct their work. With a few exceptions, no professional service provider does their work on any clients’ premises. They might make courtesy visits for client relations purposes. They might conduct consultations face-to-face. But their actual work is done in their own offices or places of business.

What we do is no different. If you learn to put things in the right light, avoid the word “assistant” at all costs, and compare yourself to any other service provider they might hire, clients won’t expect that you are going to be coming to their offices to work. They will see you as any other professional with a particular area of expertise (administrative support) they hire to provide a service.

Which is why geography isn’t a barrier for doing what we do. We can pretty much work with anyone, anywhere. So if you find that the market in Japan is difficult or less receptive, you have the entire rest of the world, including your own native country, in which to find clients.

At the same time, while geography isn’t a barrier and we often never meet our clients face-to-face (especially if they are in completely different states or countries from us), this makes establishing trust, rapport, credibility and confidence even more important. Your business website, your social media accounts, your blog, your marketing materials, all of those become the visible, tangible representations and demonstrations of your competence and legitimacy as a business. So, you’ll want to put top priority and care into how they look as they will become your “face” to prospective clients. They’ll either feel safe or suspicious based on what they see.

It’s an emotional comfort thing. An attorney might not work at the client’s office, but the client at least knows where the office is. Just knowing the attorney is in town or nearby gives the client comfort. So it’s the same thing for us. Logical or not, we have to make up in credibility what we lack in face-to-face availability. Your location becomes less relevant the better you are able to do that.

On Making Mistakes

You’re going to make mistakes. I can tell you this  right now with absolute, 100% certainty. It’s just a fact of life as a human being. So stop trying to be Little Miss Perfect Pointdexter. They may not be convenient… they are often messy and untidy, but mistakes and imperfections are the patina of life. At the very least, you have to accept this. You might even embrace it and have it work in your favor.

Talking about mistakes and how those situations are handled can be really useful in any truly authentic consultation discussion. In fact, as crazy as it sounds, talking frankly about mistakes actually puts clients at ease. They trust you more because you aren’t making far-fetched promises they know in their heart simply aren’t feasible. Someone who says they never make mistakes is full of it (or delusional). No matter how attractive fantasies and wishful thinking are, we recognize this at a very basic level. And so you become someone much more trustworthy and believable in their eyes when you admit the  truth of the matter.

That’s not to say you should be telling clients, “Yeah, I’m gonna make mistakes left and right, all day long!” Um, you wouldn’t be competent or worth working with if that was the case. The point is that while you should absolutely be at the top of your game and always giving your best to clients, there are going to be occasions when you misunderstand or mishear or lack information. Sometimes you know to get clarification, sometimes you don’t. Whatever the case, there are simply going to be occasions (and they should occasions, not the routine) when either external or internal factors foul you up. You want to get a feel for how a prospective client will handle those situations as well as how you expect to be treated at all times. Talking about these things upfront helps you weed out potentially wrong-fitting clients and bring everyone’s attitudes and expectations to a more conscious level of awareness and understanding.

What I like to tell prospective clients is basically this:

“I am exceptionally good at what I do. I can absolutely, confidently declare this. I’m also human and once in awhile, I am going to make a mistake. I very much need and want to know when I make a mistake so that I can fix it and work to ensure it doesn’t happen again where that’s possible. I welcome your input and feedback. To make sure our relationship remains happy, mutually respectful and most importantly, helpful to you, I look to work with clients who aren’t so quick to be upset, but rather will trust and have confidence in the fact that I will make things right once it is brought to my attention. And I will always strive to earn and maintain that trust and confidence. At any time that I fail to maintain your trust and confidence in my service and abilities, I would fully expect that you’d want to end our relationship. In any situation, I always, always expect to be treated and spoken to respectfully, in the same way as I always endeavor to speak to and treat my clients with respect. “

This, of course, is always delivered conversationally, but those are the main points I like to cover. We then have a discussion about their thoughts on the subject. Based on their tone and responses in this discussion, I can usually tell (or at least simply decide) if someone seems like he’d be a good client to work with, one who will be likely to maintain calm composure, respect and professionalism towards me on the occasion that I’ve made a mistake.

[Important Side Note: You naturally want clients with whom you can have great relationships. Plain and simple, it's just not profitable or energizing to work with poor-fitting, abusive clients. And so you choose clients well as best you can. That's all any of us can do, and it's one of the reasons for conducting consultations. But if it turns out a client isn't so great to work with, you always have the option of ending the relationship. You are never stuck. Remember that.]

Often in discussions about mistakes (and setting those expectations realistically in advance), I like to use proofreading as an analogy. Because unrealistic expectations are often rooted in impossible ideas of perfection. I tell clients that the value of a proofreader is not that he or she is going to be perfect. We should never proofread our own work because we can’t see our mistakes much of the time. And even if you give it to five other people, each of those five people is going to miss something. Guaranteed. So while all of us (including clients) might work and strive for perfection, we always need to keep in mind that it’s not “perfectly” attainable. Likewise, the value in great proofreading is not that the proofreader will never, ever miss something. Even if they are pretty darn close to being perfect, the real value is that they have command of the language and rules of grammar to know what to look for in the first place. Skill is important, but without that knowledge and sensibility at the core, there would be no skill.

So this is part of the conversation I have with clients during our consultation to help shape their expectations and feel them out with regard to how they deal with mistakes (or any other situation for that matter) and what ideas they may have about perfection. The more you conduct consultations, have these discussions and work with clients, the more you’ll develop your own green and red flag intuitions for deciding who is likely to be a great client and who is more likely to be a demoralizing soul-sucker.

Hint: Prospects who have realistic expectations about mistakes and give all indications of being able to maintain an even keel and professional demeanor towards you tend to make for better clients. ;)