I won’t be publishing here on Gritty VA any longer so you’ll want to update your RSS feed and Networked Blogs subscriptions accordingly.

See ya over on the new blog!

Check it out here (and be sure to subscribe so you don’t miss an issue) >>

I’m so excited about finally moving forward on the new direction. It’s been a long time coming. I actually started the site design last year, but got mentally blocked and had to put it on ice until I got some clarity again. And one I did, it started moving like gangbusters!

I’ve still got a few loose ends to take care so the site isn’t officially done, but do take a look and let me know whatcha think:  Administrative Consultants Association.

I also want to ask for your help. I’d like to spotlight a few stories from those of you who have embraced the new Administrative Consultant term and how it has helped you in your business.

For example, I recently received a note from a member who related how much easier it’s been for her in talking with potential clients and in networking situations since she began using the term Administrative Consultant. She said she doesn’t get any more of the eyes-glazing-over/deer-in-the-headlights thing that she would always get when she called herself a Virtual Assistant.

And I know of several people(myself included)  who have experienced a dramatic shift in how clients and business people at networking events treat them… getting rid of the word “assistant” from the equation makes all the difference in the world.

So if you have converted over or are still trying out the term Administrative Consultant, please email me your positive anecdotes and experience in using the term. My goal is to share these on our home page or a dedicated pate on the new site and will include your name and backlink to your site.

Looking forward to hearing from you!

What strikes me is that there doesn’t seem to be anyone anymore out there (except me) who is trying to help them actually be financially successful as an administrative support business.

It seems that everyone is jumping ship to become something else other than an administrative support biz, or teaching folks everything else EXCEPT how to be financially successful in an administrative support biz.

THAT’S what I find sad… everyone is always trying to dig into their pockets to teach them everything else BUT how to be financially successful as an admin expert.

And then you have all these self-proclaimed industry “experts” who aren’t even VAs telling those in our industry how to be successful. They don’t know the first thing.

Hey, if someone doesn’t want to be in the admin support biz, that’s their prerogative. Everyone should be and do and have the kind of business they love.

But don’t try to pass yourself off as an expert in the admin support biz if that’s not what you actually are.

One of the very first things you have to do to become financially successful is get clear about exactly WHAT you are. Most don’t really know. They just have some vague notion that they “assist” “virtually.” That isn’t a definition of anything.

If you really want to start earning well in the administrative support business, you have to stop being a gopher and an “assistant” and get really clear about what admin support is.

And the reason that’s important is because administrative support comes with a host of unique challenges. We have to battle against unique client mindsets and misconceptions, particularly when it comes to thinking of us as replacement employees. It’s too easy to actually become a substitute employee in this business, which will actually keep you in the working poor. Which is why I’m always, always trying to educate on this topic.

I find it interesting that some of these VA training programs have so many graduates who aren’t actually doing anymore the thing the training program was supposed to help them become successful at–because they couldn’t be financially successful doing it. They had to become another kind of business entirely to become financially successful. And that’s because no one taught them how to be financially successful in THIS business.

I’m not saying folks shouldn’t do something else or move onto another business entirely if that’s what their heart wants to do. What I’m sad about is that those who actually love being in the admin support business and really would rather just do that, but are compelled to look elsewhere because they just didn’t get the right guidance to be financially successful in THIS business.

One of the things we have to battle in our industry to our financial detriment is this idea that VAs do anything and everything. That’s not a definition of anything… that’s merely being a gopher. And people don’t view gophers as experts, they view them as lackeys. You simply will not be able to command professional fees if you allow people to view you as merely as gopher/lackey.

The other subsequent thing that happens when you allow people to perceive you as merely a gopher/lackey and because you have no clear-cut expertise (as in Administrative Support as an expertise) is that they have you chasing your tail around all over the place. They think you should be doing this and that and everything else ON TOP of administrative assistance. That’s because you yourself haven’t defined for them exactly what you are in business to do. And because they don’t view you as any kind of professional expert in anything (“I’m a this, that and the other” isn’t an expertise of any kind), they don’t want to pay you for it, at least not well. You become merely a servant, an order-taker, in their eyes.

This is where you frequently hear me saying “why are you asking a plumber to fix your car?” Because we get these clients who are expecting you to not only provide admin support, but to also be a bookkeeper, a website designer, a graphic designer, a this and a that and so on and so forth. And so, so many VAs are giving this stuff away for free when they should be saying, “I’m in the administrative support business. If you want a web designer, you need to hire a web designer.”

That’s why it’s so important to get clear exactly what you are and what you do in your business. And if you are ALSO something else in your business, to clearly differentiate and denote those dividing lines in your business so you can still be considered an expert in those additional areas (and not merely a gopher/flunky/lacky) and charge separately for them. Because web design and admin support are not the same thing. Because bookkeeping and admin support are not the same thing. Because graphic design and admin support are not the same thing. Because completing a project and providing ongoing administrative support are not the same thing.

Don’t understand? Ask me your questions! I really want to help you get clear on what this means.

I am always curious and have asked lots of people.  I am wondering just how you pay yourself.  Do you pay yourself sick/annual leave?  Aside from overhead costs, do you deduct taxes?  What kind of taxes do you face, ie, self-employment, FICA, etc?  Your help is greatly appreciated. –SH

Seems like such a simple question, doesn’t it?

You don’t mention what your business formation is and that’s going to be very relevant to how you pay yourself and what your tax and reporting legal obligations are.

The very, very first and most important advice I can give you is that you need to get yourself–quick–to an accountant or bookkeeper. And I don’t want to hear any whining about how that would cost you money. Yeah. Business costs money and you are simply going to have to spend money on important professionals and advice if you want to be successful. Not doing so now could end up costing you far more later. And given how you’ve asked the question, I can tell there are some significant gaps in your business knowledge that will do you great harm if you don’t get the right professional guidance and advice.

In the meantime, here is some general information when it comes to paying yourself in business (and, understand, this is for U.S. based business; you’ll have to bone up on your own country’s laws and taxing requirements if you reside and operate elsewhere)…

The first thing people need to understand is that they are either an employee or they are a business. I see so many people who decide to “work from home” or “freelance on the side” or become an “independent contractor” who don’t realize this. There is no third classification. If you are working for yourself, no matter what you call it, you are a business. Even if you might have an actual job as an actual employee somewhere, whenever you are wearing the hat of “freelancer” or “independent contractor” or whatever you want to call it, you are operating a business during those times. You MUST understand this because there are legal implications and obligations.

So that’s the first thing to understand, and the reason I mention it is because the way you ask the question, I’m not sure you entirely understand that.

If someone doesn’t have this understanding, it’s pretty safe to bet that they haven’t done any official or intentional business formation. When that’s the case, they are by default running a sole proprietorship. In a sole proprietorship, which is the simplest and most common business formation to operate, you simply take money when you want and how much you want. For bookkeeping purposes, these are recorded as “owner’s draws.”

The question about sick leave and vacation pay is moot in this circumstance. You simply pay yourself when you want and how much you want (well, that is, if the money is there, lol).

I would always advise you to keep separate accounts for your business. (In fact, there are some circumstances where you are required by law not to comingle your business and personal funds). Either way, at some point, you will want to “pay” yourself from the monies you have earned in your business. All that is entailed is simply withdrawing funds like you would any other account. So, for example, if you went to the ATM and took out $X dollars for your personal use, you would simply record that as an owner’s draw. Same thing if you transferred funds from your business bank account to your personal bank account or if you wrote a check for something for personal use. Anything that goes out of the biz accounts that is not related to the business is recorded as an owner’s draw.

That said, being in a sole proprietorship doesn’t mean you are exempt from paying employment taxes. It’s just that you pay and report them differently than you would if you were an employee, where actual paycheck processing is required by law. In a sole proprietorship, you will pay what are called “self-employment taxes” and they are to be estimated and paid/reported at certain, specific intervals.  You’re going to want to set aside a percentage of funds every time you receive client monies so that you have enough when it becomes time to pay these taxes. Here again is where an accountant or other kind of financial advisor can give you guidance.  (For more info on U.S. based self-employment tax reporting, start here)

While a sole proprietorship is the simplest/easiest business formation to operate, it also is the one that puts you at the greatest legal liability should a client sue you for any reason. All your personal income and assets are at risk in a sole proprietorship. This is why many folks opt to go into some kind of corporate business formation where personal assets are not at risk (or are, at least, at less risk). There are many kinds of corporations which also involve varying complexities: corporation, LLC, PLLC, S-Corp, and partnerships to name just a few (consult with a business attorney to get the right guidance in selecting the formation that is best for you and your business circumstances).

This is where paying yourself becomes more complicated and where you will definitely want to seek the advice and guidance of some kind of accountant or financial advisor.

For example, in some corporate formations, you are required to pay yourself as an employee or as an owner/operator. When that’s the case, formal employment payment processing is required which entails a whole host there is a whole host of accounting, processing, reporting and taxing obligations you must abide by and be knowledgeable of. There may be some minimal salary requirements you must payself as an owner/operator. You may be required to pay out profits to partners and shareholders in dividends. Or you may need to know how to record reinvested profits back into the business. In other formations, while you report otherwise as a corporation, you may be allowed to elect to pay yourself in owner’s draw instead of with an actual employment check.

See how much knowledge is involved? And if you do things incorrectly according to your particular business formation, it could cost you big time later. So this is why it’s always, always best to seek the services of the right qualified professional–not other Admin Consultants or VAs–when it comes to these kind of matters. And if you do go with one of the corporate business formations and don’t have a thorough understanding of bookkeeping yourself, hire a bookkeper (one that also has paycheck processing knowledge for your state/locale) to handle that work for you. It’s just too important.

I do hope this helps you get going down the right paths though.

Women, I think, have it especially tough. Being the natural-born givers and nurturers that they are, they will often bargain with their value in business—giving freebies, giving discounts… giving, giving, doing and doing until they have nothing left for themselves.

Healthy giving starts with taking care of ourselves first in business. It’s especially smart to never bargain with our value by giving away the very products and services that are the lifeblood of our business existence. So what can those who have the giving gene do that won’t be detrimental to their business health? Lots!

1. Keep your business out of it. Let’s face it, giving and doing for others just feels great! But that doesn’t mean your giving needs to be in the context of business. Respect the value of your products and services. Save your giving for non-business activities and ways that don’t have you working for free and bargaining away the value of your products and services. As Suze Orman says, “YOU are not on sale!”

2. Success affords you more to give. Remember, the more successful your business, the more you will be able to give via those other avenues without devaluing or sacrificing the things that earn your living.

3. Give a gift. Send someone an online gift certificate. Have a coffee or flowers delivered. For no special reason other than to make someone’s day and let them know that someone (you!) is thinking of them and appreciates them.

4. Do a favor. Know someone who is more harried than usual? If time is something you have to give, offer to run some errands for them. Or maybe you’re a closet chef. Why not send over a home-cooked meal for their family one night?

5. Say something nice to someone. Acknowledge a trait, talent or effort you appreciate about someone. Tell those who have helped you how much their knowledge and support mean to you. Who knows, they might just really need to hear it that day. Better yet, say it publicly if at all possible so more people can chime in. We can all use those atta-boys and atta-girls whenever and wherever we can get them!

6. Volunteer at a charitable organization or community service agency. Many run on a shoestring and will appreciate any effort you can give.

7. Give year-round. Don’t wait until the holidays to help those less fortunate. Your local agencies and churches will be full of good ideas for ways you can give or be involved in making a real, meaningful difference in someone’s life.

RESOURCE: Want to raise money for a certain cause? ChipIn.com is a no-cost service that let’s you create a custom online widget that shows the financial goal, amount raised so far, and more information about the cause. Donations are handled automatically via PayPal so it couldn’t be easier and simpler!

And that’s not necessarily an easier or more profitable business. In fact, it will automatically reduce your profit margins, increase your administration, overhead, costs and expenses, and require you to become a people and quality assurance manager, among other things.

Interesting anecdote:

“The economist Richard Thaler, in his 1985 Beer on the Beach study, showed that a thirsty sunbather would pay $2.65 for a beer delivered from a resort hotel, but only $1.50 for the same beer if it came from a shabby grocery store.”

How does this relate to your professional services business? They might be talking about beer, but it harkens to a fundamental truth in business:  “image is everything.”

What that means is that clients and customers are influenced by your professional image. They’re led to believe or make assumptions about how good (or bad) the service/skill/product is based on nothing more than the professional image that is presented. They directly correlate the quality of your skills, services and products with how things “look.” Very often, it’s the only thing they have on which to base their decisions, and it’s not entirely conscious.

This is especially true with professional services. Clients can’t pick up and hold in their hand a “service” like they could with an actual product. A service is intangible. It’s invisible. Because of this, it could be argued that your professional image is even more important in a service-based business.

The look and feel of your website, your writing and communications, the experience of dealing with you–literally everything that prospective clients have any contact with–make up your professional image. It’s going to be one of the most important ingredients in shaping clients’ perception of you and the value, quality and skill you help them believe and see demonstrated.

What that means is that if you are trying to command the higher professional level fees you want and need, you have to “look the part.” If you say you are worth $X a month, but your website and other marketing collateral appears like the “shabby grocery store,” you’re going to have a hard time convincing anyone you’re worth it. Because you haven’t showed up dressing the part of the successful, competent, qualified expert. The incongruency between your words and the “environment” of all those things that make up your professional image will block them.

Often, prospective clients don’t have any other way of judging how you might be better than the next person who says the same thing. But when they see an image that backs up what you say you are about, you are giving them visual proof to believe you. The “environment” of that top-notch professional image sends a message of congruency and instills confidence.

Your copy, too, is part of your professional image. If you write about yourself and your services in lowly terms, as if you are merely a peon or gopher and that the work is only “grunt” work, people will accordingly only view–and pay–you as such. If you don’t respect the work and understand its value and importance, clients won’t respect or value it either.

Your words also shape how clients treat you. So if you are wanting to command professional fees and be treated as an equal partner, a skilled professional with an expertise to share, you’ve got to also re-image your words. You aren’t some lowly peon. You are not a “generalist.” You are an expert and specialist in the art of administrative support and you have an expertise to share that truly does change the lives of your clients.

A stressed, burned-out service provider is no good to anyone, much less themselves or their business. That’s why it’s so important to visualize what your best business looks like and what policies, procedures and practices you need to establish and how they work in actual practice to support you in creating your dream business. So how have you set things up to support your joy and commitment to being in business?

1. Have the right tools and equipment. Obsolete tools and technology will slow you down and drive you crazy. You don’t need to keep up with the Joneses. Slavishly buying top-of-the-line for no other reason than for appearances sake is just immature silliness. But you DO need state-of-the-art because it is what will allow you to do your work as quickly and effectively as possible without unnecessary snafus. That doesn’t necessarily mean the most expensive, but you also don’t want to be penny-wise and pound-foolish by going the cheapest route. That’s as equally dumb and short-sighted. Do your homework and look for sturdiness and long-life. This is an investment in your joy and happiness and you don’t want to be constantly frustrated and slowed down by tools that just don’t work well. They’ll end up costing you–and your clients–far more in the long-run.

2. What exactly ARE you? Jack-of-all-trades (master of none) is not a profession or expertise. People do not value gophers, much less consider them experts in anything, which is why you’ll never make any real money trying to be and do anything and everything. The fastest path to burnout is keeping yourself on a hamster wheel of constantly scrambling for chump change. Make a clear and conscious decision about what you are in business to do and then only seek clients who need and value that expertise. You’ll be able to command higher fees and the work will be more specific, thus easier, to do.

3. Lead your own business. If you are a parent, are you going to let your kids choose the meals your family eats? They know what they like and you definitely take that into consideration, but heck, they’d eat snacks and sweets for every meal if you let them. As the head of your household, it’s up to you to decide what is best for the long-term health and habits of your family. Same thing in business. You are a business owner with an expertise, not a slave or indentured servant. And as a business owner and professional service provider, you simply can’t allow yourself to be sent running in all directions like a chicken with its head cut off. It’s not up to clients to decide when, where or how you work and you simply can’t be a slave to their every whim, wish or demand because that actually isn’t good for you or your business. If you want to stay in business and continue serving clients you care about, doing the work you love, YOU–not your clients–need to set the rules, policies and procedures that are best for you and the long-term health of your business. Because these are the things that allow you to do great work and give great service to all your clients consisistently, all the time and every time.

4. Say “no” to say “yes.” YOU get to say what you do and what you don’t do in your business. Having a clear definition/identity of what you are and what you do in business is important because it helps set expectations and align understandings with clients. You also want to operate your business and work with clients in ways that give you plenty of “space” around the work and don’t require you to work at a frantic, unsustainable pace. Say “no” to requests that don’t fall under your category of expertise. Say “no” to work that requires you to work on-demand and check-in daily with clients as if you were their assistant (you’re not!). Say “no” to unrealistic demands and turn-around times. Saying “no” to these things allows you to say “yes” to more fufilling, valuable and profitable work and clients and gives you more space to do fantabulous–not merely sufficient–work.

5. Choose a target market and define your ideal (and unideal) client. Not everyone needs what you are in business to do. Nor does what you do make sense for every kind of business. You will drive yourself nuts and keep yourself in the poorhouse if you keep trying to fit square pegs into round holes. You need your thinking cap, not wishful thinking, for this. Figure out who really has the most need (and, thus, will value it most highly) for what you are in business to do and then focus your efforts on that market. It’s going to make all your marketing infinitely easier and “easy” in this respect is insurance against frustration and giving up.

Likewise, get clear about who is and who isn’t an ideal client for you. Ill-fitting clients take up double, even triple, the space in your practice and require an even greater amount of energy and hand-holding. If you have clients you don’t enjoy working with, you will dread contact with them, procrastinate on their work and avoid them like the plague, sometimes without even realizing it’s happening. There is absolutely no good that comes from working with anyone you simply don’t like and enjoy. Avoid taking them on as clients and graciously let them go the minute you realize there isn’t a fit.

These two steps are what will allow you to make more money, working with fewer clients, and go a long way toward keeping you happy, joyful and committed in your work and business.

6. Don’t try to be an island. One of the biggest misconceptions I see in business is this idea that a solopreneur is someone who works completely alone and does everything themself. Nothing could be further from the truth. EVERYONE needs the help of others to be successful–in life and business. Being a solopreneur simply means that you are the craftsperson, the artisan, the expert that clients hire and expect to work with. But that doesn’t mean you don’t need your own support. Hire a bookkeeper to take care of your financial recordkeeping. Find a business attorney you can turn to when you have legal questions and need advice. Partner with an Administrative Consultant to take on some or all of your administrative tasks, functions and roles so you can focus on working with your clients doing whatever it is you do. Join professional organizations and participate in industry forums so you can cultivate relationships with colleagues and others and have a network you can turn to for ideas, advice and additional help when you need it.

No one has perfect vision and we all make missteps along the way. But every day you are given a new opportunity to do things over–to improve and make them better–for you and your clients.