Networking for the Future

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Networking is a term that many fear and avoid yet it’s essential for business growth. The negative connotations rise from the riff raff who prey on people during professional networking sessions. They are in it for themselves and have no comprehension of how powerful maintaining a network of courageous professional relationships are to their future.

Others become disenchanted by the process due to those who immediately escape a conversation the moment they determine you aren’t a potential customer. They are short sighted, not realizing you may know a dozen perfect customers in your circle of influence that will add to their business growth.

After participating in numerous networking events, I’ve learned that there are three things all business people can use from the experience to grow their business.

Great Courage

It takes a lot of gumption to enter a room of strangers. The initial atmosphere causes many to connect with those they already know rather than exploring the unknown. No matter how skilled the person is they find themselves digging deeper into their soul for the strength to put themselves into the vulnerable realm of possibilities.

Courage is not about being comfortable, but about the choice of facing fear head on. We tend to forget that the courageous around us feel just as vulnerable as we do, but they’ve taken the further step of pressing through the fear courageously. It is merely a choice to take action, while feeling exposed.

This ability to choose courage over fear is a tool that will always force a business to land upright regardless of any temporary setback it might endure. It’s also the formula used by most businesses to grow. We know that businesses are either shrinking based on ignorance and fear, or they are growing because someone was courageous enough to take a risk.

Listening Skills

No one cares if you have a solution for their business unless they first learn that you care about them. Taking time to meet someone in a networking environment requires huge listening skills, especially in the din of most rooms designed for socialization.

Selective listening isn’t considered listening at networking events. The person only listening for a potential buying signal is shortchanging their future. Listening is a tool to learn about the person first and their needs second. Anyone who doesn’t take time to first learn about the person will never care about his or her customer.

The old saying about having two ears and one mouth gives us the perspective of talking a little and listening twice as hard, which actually helps at networking events. It’s also an asset for the person that wants to grow their business. A customer that feels like the vendor understands their need will always be a happy customer.

Clarifying Pitches

Noisy rooms force a person making a pitch at an event to be concise and understood at the audience’s level. Using jargon and rambling on about what you do is a sign that you may not know your core business or what value your current customers see in you.

By sharing your core competencies you avoid using stereotypical phrases, which stops the person listening from lumping you into a group of all others that do the same thing. Your razor sharp focus helps the person understand what differentiates you from the others who carry a similar title.

Setting yourself apart from the stampede of cookie cutter functions is critical to be noticed over the marketing noise that permeates the Internet, business market and event space. A quality pitch is one that is all about the uniqueness that makes you who you are, which can’t be replicated by any competitor.

Having the guts to meet new people, taking time to really hear about who they are and what they are trying to accomplish, and fine tuning your presentation so its easy to distinguish you from others, helps develop long term relationships that will eventually pay off.

Networking is about surrounding yourself with quality people and developing those relationships so you can help them when needed and they can reciprocate when you’re in need. These lifelong skills always drive business growth and force us to continually better ourselves for the next great adventure we face.

© 2017 by CJ Powers

4 Steps to Setting the Value of Your Services (Part 3 of 3)

Continued from part 2.

BusNotesPt3Pricing Sample:

An editor I coached needed to make $50,000 a year. She also needed two weeks of vacation, holidays off, and some personal/sick days to take care of her kids. She was also able to work 6 hours a day, although not in a row, and wanted to make sure that her work time was filled at least 80% of the time. Here is the formula we used to determine hours she’s available to work each year:

((6 hours per day * 5 days per week) * 48 weeks per year) * 80% of time busy = 1,152 hours of work

• The 49 weeks allows for two weeks of vacation, one week of personal/sick time, and five holidays.

Next we had to figure out the hourly rate:

$50,000/1,152 hours = $43/hour (Not taking into account overhead, education, etc.)

Since no one wanted to hire her by the hour, she needed to convert the hourly rate into a per page or per word rate. She determined that there are about 150 words per page and it takes her 5, 10, or 20 minutes per page depending on the type of editing she does. So we developed the following two formulas:

$43/(60 minutes/time per page) = per page rate

per page rate/150 words = per word price

She created two versions of the above prices based on the three types of editing she does, which looked like this:

Editing Type A = $3.58/page
Editing Type B = $7.20/page
Editing Type C = $15.00/page
Editing Type A = $0.03/word
Editing Type B = $0.05/word
Editing Type C = $0.10/word

Now when she gets a call from a potential customer, she asks how many words are in the manuscript. If they tell her 77,000 words, she says, “For type A editing, your price will be $2,310.”

Gone are the days of calculating out how many days are left in the month and her workload. She no longer has to review the physical documents for typeset size based on the font used in the manuscript. She just uses a simple multiplier to calculate the answer. All the other background work is done by the previous formulas to free up her quoting process. And, if she’s a bit faster on a job or two, she’ll find a nice bonus at the end of the year.

End of part 3 of 3.

© 2017 by CJ Powers

4 Steps to Setting the Value of Your Services (Part 2 of 3)

Continued from part 1. 

3. Value Results-Oriented PricingBusNotesPt2

I met with a CEO of a small business that requires lots of traveling to disseminate its products. The team is well liked by all clients, but the traveling process makes the business inefficient. This drops the overall value of the product and delivery services. It also means, unbeknownst to the CEO, that clients are looking for alternative solutions.

My package offer to fix the looming problem was designed to increase revenue 300% by implementing online ordering. The new process guaranteed that the parts and services happened “just in time” rather than by chance. It also allowed for territory expansion without adding more personnel or trucks.

The package was priced at $120 per hour for my time to set up the online services, train the employees, and structure the new distribution practices using a third-party shipping company. Plus, they wouldn’t owe anything if I didn’t double the company’s revenue in 12 months. In other words, if I only hit 99.9% of the financial goal, they’d get everything I did for free.

The CEO turned me down because he never paid anyone more than $29 per hour. Since our last meeting, the business has seen a 12% reduction in revenue because clients have found alternative sources for the product. While this situation was an odd bird, there are plenty of companies that would love to work with a vendor that guarantees his work. The real value of any workload is in the end results.

4. Establish a Formula for Service Pricing

When I worked for the network division at Lucent Technologies, our competition was running circles around us. After loosing two dozen bids in a row, upper management demanded something be done about it. I researched the situation and learned that it took our team 7 days to publish a quote, and our competitors did it in 3-4 days.

After discussing the issue with the team, we came up with an online quoting system that returned accurate quotes within 4 hours. No one ever questioned why we were inundated with orders. Upper management just smiled all day long.

An entrepreneur that I met with last week had a similar problem. She didn’t have enough time each day to put quotes together and lost most jobs before she could finish her quotes. By turning to a modular formula system, she can now turn some quotes around while she’s still on the phone.

End of part 2 of 3. Part 3 will provide a pricing sample.

© 2017 by CJ Powers