Starting a business 16

[GlenJohnson]

I started Johnson Computer Consulting when I first got certified with Microsoft. Trying to get your name out and beat the big guys that charge over $100 an hour isn't always that easy. I've tried calling into talk radio to offer free advice, advertising in the paper, all kinds of things. Getting a small business started isn't all that easy, but when you get the jobs, it's worth it. Anybody have any ideas on how to get your name out there? Good luck.

Glen A. Johnson
If you're from Northern Illinois/Southern Wisconsin check out Tek-Tips in Chicago, Illinois Forum.

TTinChicago

 

[chiph]

Managing your receivables can take a large amount of time each week. I don't know of a good answer, other than to only do work for people who are good about paying you. No one will pay you exactly when you'd like, but if they pay you in a reasonable length of time that's all that can be expected.

My opinion is that if a customer goes over 120 days, I wouldn't do any more work for them until they make good. Over 180 days, it's time for small-claims court. What is customary may vary in your area.

Chip H.


If you want to get the best response to a question, please check out FAQ222-2244 first

 

[magneto77]

Hi all,

Am from within Australia. where IT jobs are only gettable if u somehow, with a miracle get 7yrs experience or you know some manager at a high-level in a tech firm.

having minimal experience but the know-how and hows-tos of web dev and graphics and some server side work,

DOES ANYONE HERE recommend that starting a web dev-design and e-commerce service firm is a good idea, starting from small projects to employing grads.

I have a more detailed plan and ideas worked out,

but need some more discussion on this,

thanks for reading
cheers,
sanjay,

Definitely, hearing from Glen, gave me the focus and go-ahead, all smiles

 

[GlenJohnson]

With the world going the way it is, being your own boss is great, but keep in mind it's the hardest job you can ever have. Hours can be lousy, and the boss can be a bear. If you have a job, and can start your business up on the side, GO FOR IT! Just remember, don't quit your other job until you have enough income that is guarenteed in writing to keep you going. Good luck to all of us.

Glen A. Johnson
If you're from Northern Illinois/Southern Wisconsin check out Tek-Tips in Chicago, Illinois Forum.

TTinChicago

http://www.johnsoncomputers.us

 

[chiph]

Yeah, if you're your own boss, it's tough to find someone to complain about!


Chip H.


If you want to get the best response to a question, please check out FAQ222-2244 first

 

[mmorancbt]

Hello all:

I have been consulting since 1992, built a small consulting company and sold it in 2001 and have been earning 6 figures since 1994 on - even in the downturn. That is not to brag but in consulting, income is one measure of success.

I take a hands-on, cold-calling mentality. However, I do not market myself as a "technology consultant", listing what my qualifications are and what technologies I support.

When I had my company we always called ourselves a "Business Solutions Firm" and I maintain that approach for several reasons.

First, I don't want to compete with the new guy - price is not the reason anyone goes with me.

Second, techno centric technologists are a dime a dozen. I speak for University of Phoenix, Platinum Group, Workforce Development Centers, etc. on building careers in technology. When I speak I always let them know I am going to tell them what the "next hot technology" is. I finally reveal that it is business acumen and communication skills.

My marketing materials are much more case-study driven. I'll point you at links to an actuals simple case-study. I've helped several consulting companies develop similar approaches as well.

Case-studies allow companies to "see themselves" in the solution. When I cold call I am simply adding names to my marketing database and getting an assessment of the company and culture when I walk in the door. Later, I re-contact them and have a pretty slick HTML based email I send the contact.

The email focuses on questions like:
- Are you getting the most benefit from your current technology?
- Is your technology underutilized?

It then points them at some of my articles and case-studies. It has proven to be extremely effective.

My personal consulting page is found here:

http://www.cbtoolkit.com/consult/Summaries.htm

- in the left hand menu, select a "Focus on Solution" document to see my basic case-study layout. Nothing overly complicated but effective.

Also read my article, "Why Technologists Must Learn To Speak Business" - Let me know what you think.

http://www.cbtoolkit.com/consult/whytechnspeakbusiness.htm

===========================================
FYI: I am not promoting either the book or my consulting. I have locked up engagements through the remainder of the year, the book is not available as a major publisher picked it up and they will be rereleasing it in the future - after some additions are completed.

Matthew Moran

 

[mdwmail]

Greeting,

If any of you are thinking of starting a business, please read The E=myth by Michael Gerber.

Marc

 

[MaxEd]

Greets to everyone who owns and run their own business. I am by no means the best Access database programmer but I know how to find a solution to just about every issue I've runned into during my 2 year on and off programming. My degree was not in computer science but I have had many programming courses. Does anyone have any advice on which direction to take? I am employed right now but the job has gotten routine and I'm loosing interest. I am an Information Systems Analyst but I don't look at code though, just the reports.

-Laughter works miracles.

 

[GlenJohnson]

Rule #1

Just remember, don't quit your other job until you have enough income that is guarenteed in writing to keep you going.

I don't know that much about what you're doing, but a steady income helps during the dry spells, and they will show up.


Glen A. Johnson
If you're from Northern Illinois/Southern Wisconsin feel free to join the Tek-Tips in Chicago, Illinois Forum.

TTinChicago
Johnson Computers

 

[rsinj]

to GlenJohnson and others who are trying to go at it alone and taking the MS Certification route...

MS Certification is now pretty much worthless. I speak from experience here having been in the first batch of MS Certified Solution Developers, I guess about 8 or 9 years ago.

Early on, MS provided lots of support, low cost avenues for developers to get into the MS Solution Provider program, a certain level of marketing support and lead generation, and all of the development tools you could ever want. However, as many saw things developing, MS turned the certification process into just another CNA/CNE look a like, turned it into a profit center, and the objective is not to get solid certified developers out there to help customers get MS solutions, but that MS wanted to control the entire process and tell you how to run your business in an effort to generate more money for MS - under their terms.

Initially, there were no constraints on Solution Providers. Folks like myself who were in business for themselves were fine. We paid our $2000/year and received the program benefits. Then, as time went on, Microsoft was telling me how many employees and certified employees I had to have. I had numerous discussions with people at MS asking them "exactly what business do you have telling me how to run my company and telling me how many employees I have to have"? The answer was "we're just trying to help you grow your business" - or the real truth "we really don't think that as a one person shop you provide anything valuable enough to us to provide you any kind of support or membership in our business programs".

If you are a software developer, it is very, very difficult these days to be in business independently. Not only do most corporate employers not go direct (going through third party body shops instead), but, they are no longer willing to pay reasonable rates (or what I believe are reasonable rates). These coporate clients are not only cutting costs and twisting benefits out of their own employees, they think that if they can't get the prices they want by using domestic labor, they just go to India to get the help they need. All in all, it is a very, very bad situation.

If you are really good, you will always be able to find work. The best people always do well regardless of the market - though it is becoming much more difficult. However, I'd like to offer one piece of advice - think very, very long and hard about going at it alone or under your own company. I think that over the past 10 years, the landscpae has changed drastically, and will continue changing. If going through a body shop will get you in the door of an employer, then do it. Make a name for yourself, and then the next job will come along much more easily.

MS Certification puts money in the pockets of MS, not you.

 

[mdwmail]

Glen,

I have to disagree with your rule #1. There are no guarentees when you start you own business. If you wait till you have enough to replace your current income, you may never leave your job.

Running your own business is about risk and reward. You have to take a risk to go out on your own, but in the long run the reward is worth it.

I suggest building a nest egg of about 6 months worth of expenses, not income, but expenses so that you can pay the bills and feed the family.

If you have a solid business model and the skills to support it, you should be able to suceed.


I have been in the computer business for 20 years. I have no certifications, no formal training, etc. I have people skills and the ability to learn quickly. I have worked with over 300 mom and pop clients over the years. I work only on referrals and then I am very choosey about who I work with.

My typical client is a small business with 5-10 systems. Some have servers, most don't. I am the IT department. I setup the equipment, I troubleshoot the problems and I clean off the viruses and the spam. I do everything for them.

There are thousands of small businesses in every city or county that need computer help. Get out there and prove to them that you are the one to do it for them.

Marc

 

[GlenJohnson]

mdwmail, here's a star. Good advice.


Glen A. Johnson
If you're from Northern Illinois/Southern Wisconsin feel free to join the Tek-Tips in Chicago, Illinois Forum.

TTinChicago
Johnson Computers

 

[GlenJohnson]

So far, my clients have been retirees and people that can't afford the big guys. How did you get into small business clients?

Glen A. Johnson
If you're from Northern Illinois/Southern Wisconsin feel free to join the Tek-Tips in Chicago, Illinois Forum.

TTinChicago
Johnson Computers

 

[mmorancbt]

I have worked primarily for small and mid-sized businesses. I am a big believer in cold-calls as a way to open some door. Follow up, follow up, follow up. Develop a relationship and ask the question:

"What will it take for me to provide you with a small-project? I believe I can do a great job providing a true solution. If it works out, I am an excellent resource for you. Do you have any small projects I can bid right now, or coming up in the next several weeks/months."

Then, if they say to call them in a few months, call back in six weeks. If they say they may have something in September, call back towards the end of July.

Once you have a client of the caliber desired, work on referrals. They typically know people. The adage, it's not what you know but who you know is wrong. I've ammended it to say, "It's not what you know but who knows you and knows what you know."

You see, it isn't as important that you know them. What is important is that when they are out with their peers, and someone says, "we have this project and need to find someone who...." - that your name pops to their mind. They will be able to say, "I know someone. I'll have him contact you."

They must know you and know what you know (know what you can provide; what you can solve.)

Also, look at my post above. Case-study marketing in cold-calling is far more productive the brochure/feature marketing. Clients can see themselves in a case-study. If you compete on features, they have a hard time understanding why one "computer guy" charges $25/hr and why one guy charges $125/hr.

Don't be a computer guy, be a solution specialist; in mindset, in solutions provided, and in marketing approach. It makes a difference.

I hope this is helpful.

Matthew Moran

 

[mdwmail]

Glen,

Talk to your existing clients to see if they know anyone who owns a small business. Talk to everyone you see and without being obnoxious, tell them what you do.

I tell people that "I make computers work". Almost everyone has had a computer problem at some point and they will need someone to help them someday. Prepare an "elevator" pitch, one that you can give in under two minutes that promotes the value that you can offer. After two minutes people will stop listening.

Look for leads groups and offer to talk about safe computing tips.

Don't sell yourself cheap either. I tell people that I charge $80 an hour with a 1 hour minimum. You can always go down if you have to, but if you state $40 an hour it is hard to go up. While $80 an hour sounds like a lot, if you are working with small businesses and the computers are down, they are loosing money.

One comment on cold calling. It sucks! If you like rejection then go for it. I think networking is a much better way to go. Go where business people gather and listen, listen, listen, then offer advice and assurance that you are the one to solve there problems.

When I am networking with small business users, I always ask about the business and how it works. As I listen to them I look for hints about how I can suggest solutions to problems they might not even know they have.

Last week, I was with a group of lawyers and we were talking about viruses, spyware and porn. I listened and suggested they look at ad-aware for the spyware problems. I talked about spyware and viruses once the interest was there and I am sure I will pick up some work from this.

A client once said to me that computers are a pain and I am the aspirin.

Let me know if you want to hear more.

Marc

 

[mmorancbt]

Marc/Glen,

I agree that networking is a far superior method to gain clients than cold-calling. However, whenever I visit a client and am at an office complex, I will visit 8-10 new businesses to drop materials and gather names.

This has resulted in thousands of dollars in consulting fees. New clients lead to additional new clients through networking and referrals.

Glen wanted to move into a more commercial sector. I have a rate of about 1 new client in 30 "cold-calls". But when I cold-call it is hardly an issue of trying to make any sale at that time. I am simply introducing myself and learning what businesses are in the area.

I can visit 30 new busineses to drop off a case-study package and/or summary of professional experience, in about 1-3 hours - depending on density of the office park and/or high-rise building. My average client spends $14,000/year with me (that's fluctuates because I am currently only working for two entities this year and will produce about $140K between them - any remaining income will be publishing and speaking fees).

I am meticulously picky with my clients - only taking on companies that have the ability to pay a decent rate and view technology as valuable. That said, one client I am with - my largest, was a drop-in. I was working across the way for a client, walked across the parking lot, dropped some material off and found out who I could follow up and meet with.

Three days later I secured a meeting and a week later a three week contract. That contract has been extended twice and now will extend through the end of the year.

The other client I am spending time with came about as a two-off referral. Someone saw me speak, read some of my articles, and referred me to an acquaintance. That person read some materials and referred me to someone else - who then came out and saw me speak at another venue.

They approached me about an issue between their HR department and their I.T. department. I am now working to facilitate meetings and provide strategic planning between the two departments.

When I had my business (sold back in 2001), 70-90 percent of my clients where referrals and through networking. However, one year I was working for a mid-sized company, walked next door and said hello, was able to meet their I.T. director (a division of a large aerospace company) and proceeded to win a client that was worth $380,000 over a three year period.

This was not all personally billing. I had a staff of 7. However, if I count the referrals I received from that client - still a client of one of my engineers to this day, that single "cold-call" was worth "oodles".

My advice would not be to become a large-tied, "hey, I like you", type of salesman. But if you are in an area where there are busineses of the type you would like to gain as clients, drop by and say hello.

Another thing. Most of our largest clients were within a two-mile radius of my office. Why, that is where I wanted to work and concentrated my efforts. When I sold my company and went completely independent again, I concentrated on visiting those companies near my home. At one point, I had four 100+ person companies as clients. All four of these buildings were adjacent to each other. I referred to the one-block area as money row.

That is one of the benefits of cold-calling. You can direct your marketing to one geographic area.

Regarding rejection: since I am not trying to make a sell but only introducing myself and meeting people, I have never met with rejection. I've met companies that do not need, or perceive the need for, my services. In that case, they become future follow ups.

One thing Marc is absolutely correct about is positioning as an expert with professional groups. If you have presentations skills, try to provide instructional presentations to professional groups. Kiwanis, Rotary, Chamber of Commerce, etc. are always looking for presentations. Speaking provides almost instant credibility and you get to speak to the individuals after the meeting. This was, in fact, the source of my company's largest clients.

There are many ways to enter the market but saturation plays the numbers game in your favor and is non-passive - it produces results. If the small-business market is where you want to hang your hat, find a way to get in front of that community. If you have an expertise in an area, start there and use referrals to move into new areas.

I cut my teeth in health insurance but moved into legal as a natural seque. Since I had created document management and assembly systems for Blue Cross, the move was a natural one.

In any case, place your efforts where you are most comfortable but do not deny those opportunities where you comfort is stretched. There is gold in them-thar hills!

Later,

Matthew Moran

 

[mdwmail]

Matthew,

When I read your first post about cold calling, I thought back to my days of trying to sell Life Insurance, at which I failed miserably. I never like to work the phones, so I never developed a clientele.

I like your idea of introducing yourself at neighboring businesses, which though you are going in "cold", it doesn't seem like what my concept of cold calling is.

I have often thought that I should do more of that. I do introduce myself when I bump into someone, but I don't actively pursue it.

I used to have a genealogy program that tracked where the referrals came from. I was good to know where the clients came from.

Asking for referrals is something we should all do more of. I read an interesting "fact" yesterday. It stated that 7 out of 10 satisfied clients will gladly refer us to someone, though only 2 in 10 are asked for referrals. When I ask for referrals I usually say "tell all your friends, what the heck, tell your enemies too..." This lightens the mood and usually gets a good response.

Another way that I generate repeat business is by keeping up the new trends, and learning the not so new things that were hot a year ago and now are more cost effective than when they were hot, for example wifi networks. The price has dropped in the last few months and there is awareness on the part of the client.

I also plant seeds to be sown later. I let clients know what my other clients are doing, or what technologies are available and then let them think about it until it becomes their idea. When they bring it up a few months later, I never say it was my idea, I just implement it.

Well, off to work,

Marc

 

[mmorancbt]

Marc,

You are absolutely right about keeping clients up to date on what you are doing with other clients. I use almost a newsletter type approach. But I am very direct in asking those who receive it to contact me if they see/hear of anything interesting.

I wrote a simple Access database that tracks my time and those of subs to produce great details reporst. It also tracks client/lead correspondence and lets me know when and how to best follow up.

I can also select a group of people and send out a text or HTML formatted message. It has been extremely effective for me.

Matthew Moran

 

[blutekhnd]

I thought I might contribute a little for how to market to the individual and small business owner. It takes a different marketing style for them than it is for the bigger companies.

At one time I owned a bar and grill. The distributors and companies I did business with were the ones who came into my business and talked to me. They built personal relationships with me from the beginning and as my business grew they were the ones who benefitted. Not the companies that would not send a rep. because I was too small at the start.

Also, for these and individual people send out a good postcard advert you can target by zip code. They don't cost that much. Follow up personally with the businesses that you sent to. They will remember and call when they have a problem.

 

[mdwmail]

Matthew,

I noticed that you do some speaking. Could you share with us how you got started with that and where you are going with it... I am just starting my speaking career and would love to hear your story.

Thanks,

Marc

 

[mmorancbt]

Well, where do we start...

I cut my teeth in technology at a large insurance company in California. During that time I had the opportunity to run the gamut of the technology projects for a user department. That meant I was the primary trainer and developed my training material. I had done some acting (high-school) and performed as a guitar player and singer – for fun. I love being in front of a group.

When I started consulting and then started hiring employees, I found that I was often asked to present to technology and business groups. As I stated in a prior post, case-studies were what I focused on. I didn’t cover a zillion features, just three primary challenges we solved and briefly how we did it.

This led to my far biggest clients – more than one earning my company 300,000+ over 18-36 months. As a side, other people asked me to speak and I received a lot of kudos for the work. I never thought of it as a career, just a marketing tool. However, a staffing company brought me in to speak to their people about how I “sold” solutions, not technology. Their idea was to sell solutions, not people.

In 1996 and 1997, a vendor flew me to NY to present on thin-client technology at PC Expo. I ended up being one of the highest rated speakers and someone said, “you should do that for a living.” I missed the subtle hint and went back to consulting.

My passion prior to starting my technology career was always writing and communication but I had programmed since I was 13 and found it easy to adopt network engineering, scripting automation, etc. Suddenly I found myself making decent money for building solutions out of technology. I put writing off without even thinking about it.

In 2001 my consulting company was purchased by our largest client – we were developing some software for them. My staff was absorbed and I became an equity partner and the CIO. But there was trouble brewing.....

I was largely bored and discontented. I was making 160k a year and miserable. So after 7 months, I walked away. I left my equity (3 year cash out) and with virtually no clients, went independent with the idea that I would pursue writing again.

I redeveloped a consulting practice – and yes, I cold called and developed $10K/month in business in about 2.5 months. I wrote an article for Windows .NET magazine on WAN aware logon scripts using kixtart. I then wrote a piece titled, Why Technologists Must Learn To Speak Business. It was actually an essay from 1998, but during the boom, no one wanted to hear me tell them that their technology skills were the least critical career skill they would develop.

It was far more pertinent in 2001

I was the asked to write a career column for numerous publications and websites. During this time, on some discussion forums, I asked those who read my articles and post if they would like a “toolkit” of career advice. The response was overwhelming. I wrote, “The I.T. Career Builder’s Toolkit: The Insider’s Guide To Building Your Technology Career In Any Economy”

I self-published it, marketed it, and that led to some speaking engagements. Over the past year I have refined the message and created a few others. Then, two months ago, Cisco Press found my book. An editor bought a copy – unknown to me – and two weeks later I was contacted with an offer to publish.

I am now re-outlining the entire book and will be adding 4 chapters. It will be released between November of 2003 and January of 2004.

I created two key presentations.
- The Value-added Technologist – covering the role of technology and how a technologist becomes a value-add not a necessary expense.

- Throw Away The Box – which covers the creation, fostering, and management of innovation and creativity.

I started watching other speakers and speaking for everyone I could. Now I understand that I will present at Comdex and other venues late this year and next year.

Whew! That is the condensed version, if you can believe it. Techies.com runs some of my articles and my currently out of print newsletter (it is being repurposed).


Matthew Moran