During our conversation he described to me all the things he needed, many of which I could not do. At the end of our conversation, I told him I was exactly who he was looking for, an executive virtual assistant who could manage the project of writing his first book. He jumped on the opportunity and suddenly I found my niche. I would be an EVA project manager for aspiring authors with full-time jobs. It made complete sense. I love books, and I could use my calendaring and productivity skills. I also loved the personal attention I could give to my clients by mapping out the process. Most of all, I enjoyed the challenge and the variety. I would simply find the right people to do the things I couldn’t do.
After I discovered my niche, I began telling people what I did and what type of VA I was. Everyone got it. I received referrals, and more people requested consultations. Because it was a strong niche that played to my strengths, I could get better, faster, more efficient—take on multiple clients and yet keep it all very personal. I loved my work and my clients. Had I started with my personal strengths, gifts, passions, desires, and hobbies, I probably would have arrived at this point in my career much sooner.
Look at that list of 100 things you’re good at doing. After you’ve asked friends and acquaintances to give you feedback, you should have uncovered some of your best qualities and abilities. Now you can begin to look at who your ideal clients are and determine what they are missing from their professional lives, the pains they feel that either keep them up at night or keep them working all the time.
Working backwards into my ideal client, I discovered that he was a male who had a career and wanted to write a business book. The problem was he could not find the time to write a book in the midst of his other work duties and life commitments. That’s where I stepped in. My ideal client was searching for accountability—someone to research editors, book printers, Amazon setup, formatting, cover design, creating a timeline, and taking care of other tasks that may come up as he dealt with his daily work. This was my niche.
I found it because I found my ideal client. When I could see the similarities in all of my clients, both personally and professionally, I began to see what they wanted versus what they said they needed. How I sold it wasn’t by saying what I did, it was by saying who I helped and the end outcome—I virtually assisted aspiring authors with full-time employment finally publish their books.
Niching doesn’t have to be a specific skill or a single service, although it could be and that is often the case if you provide more technical services. Niching can be your client base and their needs as a whole. Remember when I said niching was for now, not forever? My business has grown, and I no longer serve clients in this capacity. In chapter 5, I’ll share with you how this first niche led to where I am now.
There was something different about making money now versus when I was struggling. At first when I told people what I did for a living, some told me it was a great idea, said it was valuable, and assured me I was in demand. However, not one of them was forking over any cash. Fans are not clients. Don’t confuse the two. When someone says you have a great idea but they aren’t willing to pay for it, you have a problem. This is where VAs can often get stuck. Forget the compliments and go for the cash.
Monetizing
I thought I had an edge, a leg up because I cared about and loved what I do so deeply. “Do what you love and you’ll never work a day in your life.” A great quote with an untold great truth. Until you figure out how to make money, you’ve got an expensive, draining hobby. So, yeah, you won’t be working.
My wake-up call about not making money came one day during a conversation with my brother. I was frustrated that I wasn’t making enough money, and my brother told me about a guy he knew who was doing extremely well for himself. At first I was confused. I didn’t know a person in his field could make so much. My brother explained it wasn’t his day job that was providing all the extra cash. He was making this money on the side. What? It wasn’t a get-rich-quick, online marketing, or turnkey business. This was an in-person service business he was running while keeping his full-time day job. He even had a few people working for him part-time.
As I pressed my brother for more information, I was getting angry, even jealous, which isn’t an emotion I experience often. Why him? Why not me? I live and breathe what I do. This guy doesn’t even like it. Even with all the money he’s making, he had no desire to quit his day job because that is what he really loves. He’s certainly not smarter than me. What bizarre world are we living in?
I made a comment about things being “fair” to my brother. Life wasn’t fair because here I was doing the work I love and barely getting by, and then here’s a guy who hates what he does on the side and he’s making money hand over fist.
That’s when it hit me.
This guy and I both saw a market need, so we had that in common. We both saw value in our businesses. Got it. When I first started, I got out of bed every morning to do the work I love for little to nothing. This guy wouldn’t get out of bed for less than his premium price because he didn’t love it. His price was fixed, non-negotiable. He knew the value and the service, the demand in the market, and had no fear of loss. That’s where I was going at it all wrong.
After learning of this guy’s story, I was bound and determined to make money. No longer was I going to let this guy, who has no idea who I am, beat me in business. Doing what you love doesn’t mean you will make money. You have to make that decision on your own. Figure out a way to charge for everything you do. This doesn’t mean you nickel and dime clients, nor does it mean you overcharge. However, when someone says, “I’d pay for XYZ,” pay attention. Don’t think it’s ridiculous and don’t say you’ll do it for free because it will take you all of five minutes.
The hardest part of monetizing what you do isn’t deciding on pricing, although we’ll cover this in the next chapter. The hardest part is figuring out what you’re monetizing because being good at something doesn’t mean people will pay you for it.
Here’s another tip—people won’t always pay for what they need. Crazy but true. Value, ability, worth, outcome, and expectations—that is what you’re monetizing. Notice I didn’t list skills. Skills are important, but your client has skills as well. Chances are they’ve already done what they are willing to pay you to do. You will rarely wow anyone with your skills.
The way you will wow someone is by how you do things. The how is what you monetize. People used to tell me to “sell the sizzle not the steak.” I knew what they were saying and yet I couldn’t get it right. I was too focused on all the things I could do. All the things I have done. All the people I’ve helped in the past. In the simplest of terms, say who you help and how you do it. (I’ll share some examples of this in chapter 5 when we cover the elevator pitch.)
Monetizing is making money, which means you have to ask for it. Unapologetically. Too many virtual assistants are afraid to ask for money. If you can’t ask, no one is going to give it to you. All the clients, colleagues, and contacts I had who were making the kind of money I wanted to make had no problem asking for it unapologetically. Without batting an eyelash or stuttering. I’ll share a secret with you—it’s easier to ask for money when you know someone has it. So how do you know who has it? Follow the money trail toward your ideal client.
If you know what your ideal client needs, then you’ll know how much they will pay for that service based on what they have paid for in the past. What do they charge their clients? This won’t be exactly the same for all of your clients, but you will find strong similarities. Some of the things I need I actually enjoy doing. I need to do a lot of writing, but I’ll never hire a ghostwriter. Not even if that person was a New York Times bestselling author. Other tasks that are simple, I’ll happily throw money at someone to do them for me. Which problems do your clients throw money at? No matter how simple, easy, or remedial, figure out a way to charge for it.
To dive deeper into this subject, there is no better book
I’d recommend than Dorie Clark’s latest book, Entrepreneurial You: Monetize Your Expertise, Create Multiple Income Streams, and Thrive. Remember you’re in business for the long haul. This is not a get rich quick book, and the strategies Dorie suggests will bring you long-term benefits.
Summary
Now you know why you should really fail fast in business, so you don’t become married to your ideas. It’s perfectly normal if you don’t end up with what you started with!
You’ve learned the importance of niching and why it’s for now, not forever. Remember, you don’t want to be bland. “Bland is not a flavor.”
You know how offering more services in the beginning confuses your ideal client. Don’t trust your clients to order á la carte from your service menu. Know how you want to stand out and what you want to be known for.
Ask yourself the five questions to begin the process properly. If you want the right answers, ask yourself the right questions and don’t skip the steps.
You know why loving what you do too much is a bad thing. Love not only what you do but also yourself in the process. Know your value and your worth.
As we continue building your business, it’s time to take care of the nuts and bolts, and that’s what we’ll be covering in the next chapter. This is the necessary preparation that must be done before you begin gaining clients.
CHAPTER 3
Step 3: The Nuts and Bolts of Your VA Business—Business Planning, Pricing, Sales, Negotiations, and Contracts
The next step to creating your VA business is writing a business plan. I remember dreading each business plan I ever made. They were exhausting, and I didn’t know why I needed a plan. What I thought I needed was clients and money. Later I learned how much this would cost me. If you think about the things we plan—trips to the grocery store, weekly dinner menus, our next vacation—doesn’t it make sense that you should give attention to the thing that pays for all the other things?
A business plan’s primary purpose is to create the vision of your company on paper so you know what you’re doing. This is your roadmap. From there you can plan all the other facets of your business, from sales and marketing to growth and design.
You’ve already done much of the hard work that goes into a business plan. You already know your audience, your niche, and your value. Now it’s simply a matter of putting it on paper. What you need to add to your business plan now is how you’ll run your company. What do you sell? What do you charge? What are your short-term and long-term goals?
The power of putting these things on paper is not only so it is clear, it’s also to show inconsistencies. We don’t mean to be inconsistent. Somehow it just happens. Have you ever had something so clear in your mind and then when you wrote it out, no one else understood? Maybe you didn’t understand anymore either. That’s because no one can write a business plan in their heads. Period.
Pricing
When it comes to setting fees, it’s easy to make this an emotional decision—especially when you think of your bills and purchases in an emotional way. Your pricing and emotions actually have very little to do with one another. Nor can you base your pricing on how much money you made as an employee. The faster you get rid of the employee mindset, the better off you’ll be.
I’ve read no better book on the subject than Profit First by Mike Michalowicz. If you are a Dave Ramsey follower, this book is Dave Ramsey approved. The book is so powerful that I send a signed hardcopy to all the VAs I consult with as well as my online class participants. I have a lot of favorite books, but this one is more than a favorite. It’s a necessity, and I wish I had read it when I first started my business.
Along with all the practical applications, this book shows you how to set your prices, take the emotion out of paying bills, and think like a business owner and entrepreneur. Trust me when I tell you, you need to read this book.
How Do You Know if Your Pricing Is Valuable to Your Market?
Your pricing shouldn’t be a struggle or a secret. Your goals should be to know how to price your services and then find the right client to not only pay those prices but also find you extremely valuable.
When I interview VAs, I’m always intrigued when someone is hesitant to share their prices. Knowing my client’s budget, my job is to stay in the ballpark or be able to justify why going with the higher fee is worth it. Hesitancy makes me wonder if you’re hiding something, making up prices as you go along or not confident in what you are charging. Often, it’s the latter.
Usually it has less to do with the fees and more to do with a lack of confidence that the client can afford the fees. This tells me the virtual assistant hasn’t done enough homework on who his or her client is and what that client finds valuable.
Virtual assistants can learn from big businesses. You may not be grossing millions or billions of dollars, but good business principles are something we all benefit from. At the end of the day, we’re all trying to turn a profit, not break even or avoid going bankrupt.
In a First Round Review article, “It’s Price Before Product. Period,” Madhavan Ramanujam is the “Price Whisperer.” Let’s break down his advice so it can be applied and easily implemented into your VA business:
Client’s Willingness To Pay (WTP)
You can’t assume all people value you and your services in the same way. Furthermore, you can’t expect someone to be willing to pay a higher rate simply because he or she can afford to. While you need to make money and monetize your services, stop offering more. Offer exactly what your potential clients want at the price they are willing to pay. If the ideal client avatar you created isn’t putting money in your pocket, one of you has to change.
Feature Shock
This is one of the most common issues for virtual assistants, and it was the hardest for me to overcome when I first started as VA as well. Clients want the one thing. Think about your favorite products. They only do one thing. Even if you see that product as a multi-feature item, it isn’t. The team that created that product was smart enough to make it feel like more to you, but the end result was one thing. Discover your clients’ one desired result and create your services to meet that need.
Undead Ideas
I love this term because it’s intriguing, much like the services you are offering. The problem is no one is willing to pay you for it. Like a zombie clinging to a life that is already dead and gone, you hold on to the belief that others just haven’t caught on yet. For me, this was calendaring. Calendaring is my great love, passion, and pet peeve when done wrong. There are so many apps, articles, and “experts” on the subject that I was determined this was going to be my platform. I was fixated on finding the right client to pay me for my services. I had so many ideas surrounding it. None of them ever caught on, and if I never changed, I would have been out of business a long time ago. My business and service model was in the undead zone.
Pricing is personal but not emotional. It’s personal to you based on how much you need and desire to live on. The client also has a very personal point of view. Hiring a virtual assistant is an added business expense until it becomes an investment. You don’t have the luxury to get upset if someone says you’re overpriced. Do your homework and price accordingly. Don’t make the mistake of putting your product before pricing or your emotions before your personal needs.
One of the most common statements I hear from VAs is “I wouldn’t even know what to charge for that.” This is not meant to be a guessing game. By now you should have a good idea of what your client can afford, what he or she is willing to pay, what your value is, and what you need to make. Don’t forget to read Mike Michalowicz’s book Profit First! His method will help you with your personal budgeting and how to manage the cash flow for your business.
Based on your ideal client, determine if you are going to price yourself hourly, by the project, with a flat fee, or on a retainer basis. How do you know which is right for you? Look to your clients. How they charge for their o
wn services is a major indicator for how they like to pay.
Tip: If you are in the first year of business or virtual assisting in addition to your full-time job, you should either be charging by the project or a flat fee, and you should not sign any contract for more than three months at a time. Here’s why. During your first year, you’ll be learning a lot. You may find you don’t like the services you are offering as much as you thought you would. You are likely to find you need to raise your prices. It’s very possible you’ll grow quickly, and your ideal client avatar might change. Having clients that are short-term and pay per project will allow you to part ways naturally and raise your prices if needed in a way that serves you and the client, creating a win-win situation. Even if you find that you dislike the project you agreed to do, you’ll see the light at the end of the tunnel and can easily see that project through to the end.
If you are working as a VA on the side, you should never charge by the hour. You are already working enough. You’ll never get ahead by putting in more hours, nor will you figure out how to work less and make more money. Instead, you’ll actually penalize yourself for getting faster and more efficient. Then you’ll have to work twice as hard and find twice as many clients to bring in the income you need. You can’t do this, in any business, if you are trading your time for money.
When I first started out, my pricing was based not on what I needed or desired; it was based on what other VAs, who I felt were similar to myself, were charging. Even still, it was hard for me to charge $30 an hour, something I find laughable now. Because I had not taken the proper steps to determine who my ideal client was and the value I brought to my clients, I was attracting clients who also didn’t really know what they were doing and what value they needed. And ultimately those clients didn’t have enough extra income to afford me. My mindset was in the wrong place.
Become A Successful Virtual Assistant Page 5
