Category Archives: Virtual Assistant/Virtual Assistance

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.

Why Would I Work with a Virtual Assistant?

You might be asking yourself, “Why would I pay someone else to do administrative work I can do myself? It seems like it would be easier and cheaper to do it myself.” The operative word here is “seems.” Because in all honesty, trying to do everything yourself actually exacts a heavy price in your business, far more than you realize. Just because you can do something, doesn’t mean you should. So let me tell you why you would want to work with an Administrative Consultant.

  1. To conserve energy. You waste vital energy by trying to do everything yourself in your business. Energy is a finite commodity that comes at a premium when you are running a business. If you spend it all on back-end work, it will deplete the reserves you have for creativity, brainstorming, marketing, developing your business and working with clients.
  2. To create more time. You have better things to do with your time as a business owner than trying to take care of your own administrative work. When you allow an Administrative Consultant to shoulder some of the burden, you can double–even triple–the time you have at your disposal for more important things, such as working with clients, marketing and networking, creating new products and services, or taking time off to recharge.
  3. To stay focused. Trying to take care of every detail yourself in your business will keep you distracted and overwhelmed. Don’t do that. Hire key partners–such as an Administrative Consultant–to help shoulder the load so you can keep your eyes and mind on your goals.
  4. To make faster progress. You can’t be a master of all things. Not to mention the fact that if you don’t excel at certain work, it will be harder and take you longer to accomplish. You will get so much more done, far more quickly, working with an Administrative Consultant than you would trying to do it all by yourself.
  5. To make your life easier. Trying to juggle every single ball in your business all by yourself will stress you out and burn you out. Guaranteed. Working with an Administrative Consultant will cut that stress out and make your life much more peaceful.
  6. To double your resources. Two brains are better than one. When you partner with an Administrative Consultant, all of that expert’s knowledge, expertise and resources are lent to your business. You create a smarter, stronger business foundation as a result.
  7. To make more money. When you have more time, energy and focus to devote to working with clients, marketing and developing your business, you will make more money. It’s as simple as that.

The bottom-line is that you squander more than you save by trying to do it all yourself. What you gain in time, energy, ease and progress will always be greater than any fees you pay for a competent, expert Administrative Consultant.

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.

Billing by the Hour is Killing Your Business

As mentioned in this and last week’s newsletters, I’m offering my second clinic on Value-Based Pricing & Packaging. (If you’re on my mailing lists, you’ll also get a more official notice shortly). With other things that came up on my plate last week, I didn’t have a chance to really let folks know about the early bird pricing that was supposed to end July 4. For that reason, I’m extending the offer until July 10. You can get more info on the class and register here:  http://www.virtualassistantnetworking.com/bizintensive.htm

Thanks to All My Testers!

Well, my first and only 50% off sale is over. A huge thank you to everyone who came out as a test buyer! You guys were so truly helpful!

This was a great way to find those last little glitches in the new online Virtual Assistant Business Forms store. With any project like this, I highly recommend putting the thing out live at a certain point because you’ll always have blind spots. You can test and test and test on your own until the cows come home, but there’s nothing like an actual, practical implementation to ferret out those last little bits that need fixing up.

Unofficial announcement: The new store is live now. I will be replacing links and phasing out the old store slowly. In the meantime you can make purchases at either place. I always welcome all your feedback and ideas on the new store so keep’em coming! One cool new feature of the new store is that you will get automatic version upgrades of every product you purchased. New versions upload automatically to your online account. And if you ever lose a document you’ve purchased, again you can go to your online account and download it. No more expired download links.

Only 5 Hours Left for 50% Off Sale

Only 5 hours left for my one-time 50% off sale! I won’t hold one of these ever again!

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.