Archive for the ‘Dr. Wesley Carter’ Category
From Losing to Winning
Wednesday, February 15th, 2012Desparate Times
Wednesday, January 25th, 2012by Dr. Wesley Carter
Sarah drives 25 miles to the grocery store, on the other side of town, to avoid running into anyone she knows. She is embarrassed to be seen using her EBT food stamp card. Times have gotten so bad that Sarah cannot feed her family without the food stamp assistance provided by the federal government. For an accomplished woman with a history of working and earning an income to support her family, this feels like a handout.
James hides in his house filling out job applications online, too ashamed to make the effort to get out and go to lunch with friends for fear that they will ask about his job prospects. Unemployed for the first time in over 20 years, James struggles to maintain optimism about his job opportunities. James is not alone. According to the Employment Situation Summary published by the Department of Labor, 13.1 million people were unemployed in December 2011.
Vanessa owns a small consulting firm. But, she has not generated any income in over a year. Too embarrassed to let her friends and colleagues know, she runs around town pretending to be on her way to an appointment with a revenue-generating client. She talks a big game and pretends that her consulting practice is still making money.
Taylor sits at the desk of the only employment he could find after being laid off from his six-figure job. Everyday he is browbeaten by his manager, treated like he is dumb, unskilled, and uneducated. He goes to work everyday, full of optimism, intent on making a positive contribution. By day’s end, he is exhausted by being mistreated and belittled. Taylor suffers quietly. He is too ashamed to tell anyone what he is experiencing.
All of these professionals share a common thread – – shame. Millions of Americans are suffering silently. This is the unfortunate consequence of the current recession. The amount of pain and suffering begs the question – - is there a better way to navigate desperate times?
In a recession, the decline in sales revenues and profits, threatens the sustainability of large corporations. In response, corporate leaders exercise cost cutting measures such as lay-offs, hiring freezes, and curtailing expenditures for new products and services.
Even if Sarah, James, Vanessa, and Taylor are the most skilled, accomplished, and resourceful professionals; they may still find themselves living with the consequences of the current economic crisis happening across the United States. There is no need to suffer in shame. This is not a personal crisis.
The United States of America is in a state of flux. During the past 24 months, we have experienced a slowdown in industrial production, a decline in real income, and a slump in consumer spending. So, why are so many Americans taking on the shame of struggling to take care of their families?
The answer lies in the experience of shame. Rightfully so, many of us should have managed our finances more responsibly. However, the recession was also brought on by many conditions outside of our control.
The sense of humiliation and distress causes many of us to suffer in isolation. When Sarah actually opens up and tells her friends and family what she is experiencing, she will find that there are several other families receiving help from the federal government.
James is basically keeping himself from finding employment because the people in his social and professional circles are unaware of his plight. When James finally confesses his lack of success in landing a job, his friends and colleagues will be able to engage and refer him potential employers.
Vanessa’s self-imposed isolation has kept her unaware of funding opportunities available to struggling small businesses. The hesitation to seek counsel, prevents Vanessa from exploring employment opportunities. If she were to make others aware of her available capacity, they could refer business or jobs to her.
When Taylor begins to share his story of degradation at the hands of his manager, he will finally be able to get some guidance on how to address his situation. Perhaps Taylor has friends that are in the same situation. Together, they can create a community of support and leadership to transcend their current working conditions. Whether the solution is a new job or a new attitude, Taylor will have the support to persevere.
The take-away is the same – - suffering in isolation, humiliated, and owning the recession as a personal burden is unproductive. Breaking the silence is the first step toward breaking the pattern of self-flagellation. If you see yourself in the stories above, take the first step and tell your story. You are not alone. There are resources and people willing and able to help you get back into the game. Begin to build your community of support and be empowered!
Dr. Wesley Carter authors a weekly business column in The Charlotte Post newspaper. Carter holds a Doctor of Management (DM) degree from the University of Phoenix with an emphasis in Organizational Leadership, an MBA from the Babcock Graduate School of Management at Wake Forest University, and a B.A in Management from the University of North Carolina at Charlotte. This information may not be copied or shared without permission from Dr. Wesley Carter. If you have a question, email wacarter153@gmail.com or call (704) 992-1211.
Related articles
Desiderata
Bossy Co-workers
Wednesday, January 25th, 2012By Dr. Wesley Carter
Everyone works with at least one. They are easy to recognize. They typically know everything about everything. They lord their infinite wisdom over the office and often have the first and last say on most issues. Never short of an opinion, is the bossy co-worker a productivity nightmare.
Bossy co-workers provide an over abundance of unsolicited advice and direction. According to them, and only to them, they know best. The stress in the workplace created by bossy employees manifests itself in decreased productivity and team cohesiveness.
Organizations lose productivity due to disruptions created by bossy employees. More often than not, bossy co-workers impose rigid codes of conduct on others and excuse themselves. Masquerading as experts, bossy co-workers impose their will on others and create a tense work environment. If the bossy co-worker outranks co-workers, it can be particularly bothersome. Abusing their power, bossy co-workers micro-manage lower ranking employees. Resistant to respecting organizational boundaries, bossy co-worker do not respect the rights of others.
Bossiness can result from insecurity, inflexibility, or over confidence. If a co-worker is insecure because of deficient or outdated skills, bossiness serves as a deflection strategy to divert attention away from their inadequacy. Unbeknownst to them, bossy co-workers are quite transparent. Still, they continue to hide behind a displaced sense of purpose, dispensing advice like cough drops. Conversely, if bossiness is a bi-product of over confidence, it can manifest itself as arrogance. In this case, co-workers should hold their ground and avoid interacting with the bossy co-worker. The lack of relationships may be enough to motivate a bossy employee to stop those behaviors that alienate others. If all else fails, a private conversation with the leadership may alert them of the productivity impact of a bossy employee.
Inflexibility is a clear indication of a bossy co-worker’s insecurity. While it is totally appropriate to adhere to company policies and procedures, few employees enjoy working under the watchful eye of a bossy interloper. Bossy co-workers would do well to focus on their own performance.
Bossy adults were likely bossy children. Left unaddressed, little tyrants have become big tyrants. There are several strategies for dealing with bossy co-workers:
Do not over-share. A bossy co-worker only needs a tiny morsel of information to start commanding and directing. Clearly, but tactfully, establish your boundaries. Simply state, “I’ve got it under control.”
Some bossy co-workers precede their intrusions with a rhetorical comment, such as, “If it were me.” Listen respectfully, evaluate whether you can use any of the guidance constructively, and proceed appropriately. No need to feel obligated to follow their instructions to the letter. When you have heard enough, politely excuse yourself.
It is doubtful that you will be able to get a bossy co-worker to change. However, you should establish boundaries to minimize the interruptions. Politely say, “No, thank you.” Those three words clearly articulate your decision without a lengthy dialogue. Teach your bossy co-worker that their advice is unnecessary and unwelcome.
Remember, you are at your place of employment and therefore, should always conduct yourself professionally. Work diligently to minimize the time-drain spent interacting with your bossy co-worker. Focus on doing your job very well and leave the bossy co-worker to their antics.
Dr. Wesley Carter authors a weekly business column in The Charlotte Post newspaper. Carter holds a Doctor of Management (DM) degree from the University of Phoenix with an emphasis in Organizational Leadership, an MBA from the Babcock Graduate School of Management at Wake Forest University, and a B.A in Management from the University of North Carolina at Charlotte. This information may not be copied or shared without permission from Dr. Wesley Carter. If you have a question, email wacarter153@gmail.com or call (704) 992-1211.
Selling through Presentation
Sunday, December 25th, 2011by Dr. Wesley Carter
Making presentations can increase the heart rate and anxiety level of even the most tenured executive. In business, the oral communication and the physical document are the two most common components of every presentation. Public speaking terrifies most individuals. Thankfully, there are organizations dedicated exclusively to helping individuals develop their speaking skills. A quick search on the Internet will provide a list of resources.
Presentations should be developed based on the specific audience for the information. In business, presentations are typically geared toward selling an idea, product, service, or concept. Therefore, it is critical that the presenter is very knowledgeable about the respective topic.
The oral portion of a presentation is different than the actual physical document used to convey an idea. Both, the oral and physical presentation must tell a story. And both must contain an introduction, middle, and conclusion. However, the oral presentation actually sells the idea, product, service, or concept. Hence, the importance of making a presentation that is memorable, persuasive, and succinct.
Before making a presentation, gain as much knowledge about your audience as possible. Will your audience consist of experts or will your presentation be their first introduction to the topic? If your audience consists of experts on the topic, your oral presentation can be presented at a high level with details included the Appendix, should you need to explain a concept in more detail. However, if your audience is not very knowledgeable of your topic, your presentation should be designed to teach and sell.
Know your topic! Nothing is more ineffective than listening to a presentation made by an individual with little or no knowledge of the topic being presented. Reading to the audience is a presentation no-no. Skilled presenters practice their presentations, and some even choreograph their gestures for emphasis, until they are smooth and natural. The tempo of the presentation should be conversational. Beware of rushing through the presentation.
At the beginning, the presenter should introduce themselves and the topic. Experienced presentations speak clearly, making frequent eye contact with the audience. Attire should be neat and professional to minimize distractions.
Generally, presenters should plan to spend about one minute per presentation slide. Upon the conclusion of the presentation, the key points should be reiterated. The presenter should invite questions. It is wise to repeat the question before responding because the audience may have difficulty hearing the individual posing the question.
The physical presentation typically consists of slides produced on a computer. There are several presentation tools available. It does not matter which tool presenters use as long as it produces professional presentations that can be accessed easily using the hardware that will be available at the presentation site. Design themes and templates should chosen to align with the presentation topic.
The slide layout is absolutely critical. Slides should be consistent and easy to follow. Dark words on a light background are easier to read from different vantage points in the audience. Punctuation, fancy fonts, and words spelled using all capital letters, tend to detract from the presentation. Presentation experts recommend that each slide consist of no more than five bullets, no more than two different fonts, and less than 35 words. However, this is a guide rather than a rule.
Slide transitions and animation should be kept to a minimum. Presentations that include numerous slide transitions and lots of animation are clear indicators that the presenter is a novice. When an audience is presented with heavy animation, it can be a like a dog chasing a squirrel, the audience becomes preoccupied anticipating the next transition. The topic of the presentation gets lost in the animation theatrics.
Just like the oral presentation, slides should be organized with an introduction, middle, and conclusion. Spell-check is a presenter’s friend. Typos can destroy the effectiveness of any presentation. Slides should include page numbers.
Finally, skilled presenters generally arrange for a trusted individual to review the slides before actually making the presentation. Another set of eyes will often uncover errors or inconsistencies missed by the creator of the presentation. A carefully prepared presentation is a valuable sales tool.
WESLEY CARTER DM, authors an advice column that leverages leadership and management strategies to solve common business problems. Carter holds a Doctor of Management (DM) degree with an emphasis in Organizational Leadership, an MBA, and a B.A. in Management. Carter is a partner at KRS Consulting, LLC in Charlotte, NC. If you have a question, email wesley@krsconsult.com. All submissions become the property of Wesley Carter. Call (704) 992-1211 or email to book an engagement. This article originally appeared in “The Charlotte Post”.
Barrier to Entry for Small Business
Sunday, December 25th, 2011By Dr. Wesley Carter
Stella stood with her hand resting gently on the whiteboard in the conference room. She had been in the office most of the night and all morning, working on a report for her father, the owner of a small business. Stella’s father had asked her to identify the barriers to entry for potential new competitors, or entrants, into their market. With a supportive pat on the back, her father had posed the question last night.
Stella was intent on convincing her father that she was ready to take over the reins of the family business. She absent mindedly twirled the dry erase marker between her fingers and mentally reviewed what she had learned about barriers to entry in business school and from years of experience in the family business.
New companies must be able to enter the market before they can actually become competitors. Creating strategic barriers is an excellent strategy to stave off competitors and deter entry into a market. Stella’s father posed the challenge to evaluate how the business would fair under Stella’s leadership. Her father’s faith in her ability motivated her to provide a thorough assessment.
Stella recalled Michael Porter’s five strategic market forces regarding barriers to entry for potential competitors. She quickly went through her mental checklist and scribbled her ideas on the whiteboard. Economies of scale can pose a barrier to entry when potential competitors must make large investments to compete in the same market as an established business. Typically, new market entrants will be forced to enter the market on a large scale to threaten an entrenched and established business in a particular geographical area. The access to proprietary technology, an advantageous location, or government subsidies can make it difficult to enter a new market.
Product differentiation creates a barrier to entry when customer loyalty for a particular product or service is strong enough to threaten businesses attempting to enter a new market. Customer loyalty can result from customer service, brand identification, or the status associated with a particular product or service. However, product differentiation is only a barrier to entry for the potential competitor if they do not have access to the capital required to compete.
Capital requirements can make it very difficult for potential competitors to enter the market of an established business. The capital requirements can result from the need for large start-up costs, heavy certification fee requirements, or research and development. Basically, when an industry requires a new entrant to make a large capital investment to enter the market, those capital requirements represent a barrier to entry.
Cost can also represent a potential barrier to entry. When established companies achieve either a lower “cost of doing business” or product/service price advantages, cost becomes a threat to a new company entering the market. If an established company is fortunate enough to operate profitability at a lower cost than a new company entering the same market, the established company has a cost advantage.
Established companies often have greater access to distribution channels than new companies entering the market. Access to distribution channels poses a barrier to entry for a new company if it will be difficult to gain access to similar or more efficient distribution channels.
Government policy and regulations have the potential of posing a tremendous barrier to entry. Industries such as liquor retailing, coal mining, or trucking are examples of government policy interfering with entry into the markets. The government can enact a barrier to entry by limiting the number entrants into a particular market such as public utilities or garbage collection.
The issue is not whether a potential competitor will enter the market, but “how long it will take a competitor to enter and challenge the market space of an established business?” Stella quickly wrote the potential barriers to entry for the family business, took a step back, and admired her work. She smiled with confidence as she prepared for a very positive discussion with her father. She looked forward to hearing her father’s feedback during their lunch meeting. The white board was white, no more.
WESLEY CARTER DM, authors an advice column that leverages leadership and management strategies to solve common business problems. Carter holds a Doctor of Management (DM) degree with an emphasis in Organizational Leadership, an MBA, and a B.A. in Management. Carter is a partner at KRS Consulting, LLC in Charlotte, NC. If you have a question, email wesley@krsconsult.com. All submissions become the property of Wesley Carter. Call (704) 992-1211 or email to book an engagement. This article originally appeared in “The Charlotte Post”.
The Beauty of Failure
Sunday, December 25th, 2011By Dr. Wesley Carter
So, you did not get that new job or you did not qualify for a new business loan. Maybe you failed to win a huge contract. Congratulations are due for either of the situations mentioned. It may be too soon to see the value of failure. But, if you remain vigilant, the value of failure will reveal itself.
Top selling business books contain page upon page on the merits of success. Winners are interviewed and held up for all to admire, but, what about the merits of failure? Failure is a powerful and valuable tool. Failure enables transformations and provides a contrast for success. The lessons learned from failure are responsible for many, if not most, wins. There are six critical reasons to appreciate failure.
Teacher: Failure teaches you what will and will not be accepted in a given situation.
Failure also shows you, who you really are. This knowledge equips you with a mental rearview mirror to assist you toward making better decisions in the future. Successful people perceive failure is a lesson rather than a destination.
Resilience: Most people can persevere and survive in the face of great success. Winners persevere in the face of failure. In fact, failure provides an opportunity to test your resiliency skills
What is Your Change Capacity?
Friday, December 23rd, 2011by Dr. Wesley Carter
Kevin is a professional, driven, efficient, change agent. Kevin is intent on achieving his personal best in everything he does. Yet, he continues to feel frustrated at the end of every day because he did not successfully complete all of the items on his ‘to do’ list. Perhaps Kevin is too ambitious. Or maybe he is too hard on himself. Kevin’s experience is not unique.
Most busy professionals are on a never ending journey to improve personal efficiency in the hopes of carving out personal time or increasing productivity. Upon discovering new or more innovative strategies professionals must choose whether to change their current practices. Without change, improvement cannot occur. And without improvement, professionals become stagnant and lose their competitive edge.
Before embarking on any change effort, it is important to evaluate your palate for change. Do you typically act on your intentions? Are you able to observe others and imagine yourself performing similar activities? Do you initiate effort and maintain the level of commitment required to complete an action to your standards?
High self-efficacy, your confidence in your capability to execute some action, is a key component of successful change. There are four components of self efficacy; intention, vicarious experience, volition, and faith. Intention is a strong indicator of whether an activity is acted upon. Vicarious experience refers to the capacity to identify and observe how others whether similar changes. This information serves to confirm or dispute the practicality of our intentions.
Volition refers to the power of will. In fact, when we will ourselves to execute some action, we are acting of our own volition. Volition is a combination of initiative, motivation, and commitment. Faith refers to our confidence in our ability to accomplish some objective. Without faith, our efforts will be halfhearted and unproductive. Faith gives us the strength to raise our emotional arousal to the level necessary to sustain our commitment.
While it is impossible to prepare for every change that we encounter, it is totally possible to control how we experience and respond to every change. To do so, we need to make a conscious decision to take 100% ownership of how we navigate change. By owning our power to navigate change we become emboldened to actually achieve our objectives.
High performing professionals never stop driving to self-actualize personally and professionally. Like Kevin, we should all hold ourselves accountable for achieving our personal best. Are you satisfied with your productivity? If not, change.
Dr. Wesley Carter authors a weekly business column in The Charlotte Post newspaper. Carter holds a Doctor of Management (DM) degree from the University of Phoenix with an emphasis in Organizational Leadership, an MBA from the Babcock Graduate School of Management at Wake Forest University, and a B.A in Management from the University of North Carolina at Charlotte. This information may not be copied or shared without permission from Dr. Wesley Carter. If you have a question, email wesley@krsconsult.com or call (704) 992-1211.
Five Reasons to Pick up the Phone
Friday, December 23rd, 2011by Dr. Wesley Carter
Ask any professional and they will tell you that email is indispensable. Email serves a vital role in the operation process. Unlike live conversations, email enables individuals to rehearse messages before actually communicating to the recipient(s). In addition, email functions as a tool for communication, documentation, archiving, dissemination, invitations, tracking, and organizing.
However, the overreliance on text and email may be negatively influencing interpersonal relationships between professionals. Email simply does not have the potential to replace all communication mediums. There are at least five situations where email is not a very communication medium; debates, emotionally charged messages, private conversations, negotiations, and media richness needs.
The Rule of Six. If more than six emails are exchanged about the same topic between two people, within the same day, it is time to make a phone call. When numerous emails are exchanged within a relatively short period of time, email has outlived its usefulness and a voice-to-voice conversation is a more effective communication tool.
Context-sensitive messages. When the context of an email can be negatively misinterpreted, it is wise to make a phone call. Disagreements and misunderstandings can escalate quickly when emails are perceived negatively or too rigidly. In fact, emotionally charged communications may be exacerbated by email. A phone call provides both parties with the opportunity to clarify points and resolve issues in real-time.
Privacy Needs: One should never assume an email message is private. Electronic communications are never truly private. Most employers have the legal right to access any and all communication that occurs through company property. Truly private messages should never be relegated to email. If an email could be negatively perceived by organizational leadership or law enforcement, it should not be created.
Negotiations. Email is not effective tool for facilitating negotiations. However, after the terms have been negotiated, email is an excellent documentation tool. In a successful negotiation, each party feels fairly heard, represented, and compensated. Unfortunately, the lack of social cues inherent in email communication may not provide each party with enough information to perceive the negotiation positively.
Media richness requirements. Face-to-face communication is considered rich media, whereas text communication, such as email, is considered lean media. The classification of communication modes based on richness and leanness refers to the capacity for accessing social cues via a communication medium. It is easier to share social cues through face-to-face communication than email. Ideally, individuals should meet face-to-face when starting a new working relationship to negotiate the rules of engagement. However, face-to-face meetings are often impractical. In those instances where face-to-face communication is not possible, voice-to-voice conversation is the next best alternative. Email should only be utilized to kick-off new relationship if face-to-face and voice-to-voice are unavailable.
Before typing the next email, individuals should pause and evaluate whether email is the most effective medium to communicate the intended message. Taking a few seconds on the front end could save time, money, and relationships. It is an investment well worth the consideration.
Dr. Wesley Carter authors a weekly business column in The Charlotte Post newspaper. Carter holds a Doctor of Management (DM) degree from the University of Phoenix with an emphasis in Organizational Leadership, an MBA from the Babcock Graduate School of Management at Wake Forest University, and a B.A in Management from the University of North Carolina at Charlotte. This information may not be copied or shared without permission from Dr. Wesley Carter. If you have a question, email wesley@krsconsult.com or call (704) 992-1211. This article originally appeared in the Charlotte Post.
Pitching to Angel Investors
Monday, November 7th, 2011By Dr. Wesley Carter
Cathy, CEO of CK Inventions, LLC, tugged at her sleeve and checked her watch for the tenth time in five minutes. Kyle, her business partner and COO, glanced at the closed conference room door and willed it to open. Dave, the team’s numbers man, patted his pocket to confirm that he had remembered to bring extra batteries for his calculator. As Cathy leaned over to whisper in Kyle’s ear, the door opened and the team was invited into the room.
They were invited to plug their thumb drive into the laptop sitting on the conference room table. While Dave opened the presentation, Cathy made the rounds and introduced herself to the Angel investors sitting around the table. Kyle stacked the hardcopies of the presentation on the table and ceremoniously placed the team’s invention in the middle of the table with a black drape covering it.
Raising capital can be a daunting task. Entrepreneurs frequently call on an angel, aka high net worth investor, for infusions of funds to start enterprises or to expand existing businesses. Angel investors are individuals willing to part with a portion of their net worth in exchange for a higher return.
According to the law of primacy, first impressions are powerful. Cathy, Kyle, and Dave did their homework and walked into the room ready to sell their invention. Recognizing that investors evaluate hundreds of pitches, the team prepared a compelling, memorable, and financially sound story. Cathy introduced the team and launched the presentation. She convincingly painted a picture that enabled the investors to make the connection between the loss of life of U.S. military troops due to improvised explosive devices (IEDs) and how CK Inventions was the appropriate response. The pitch resonated with the Angel investor who had served two consecutive tours in Afghanistan.
Cathy, a retired civil engineer with 22 years of active duty, explained how the CK Inventions team had served together and kept their commitment to identify a tool to reduce the threat of IEDs to troops on foot patrol. She described the unique skill set of Kyle, a computer engineer, and Dave, an accountant.
Cathy provided a brief overview and introduced the agenda, Kyle provided the core ideas in the middle of the presentation, and Dave closed with the financials and a recap of the key points. Dave had the forethought to include a 1-page synopsis of the terms of the investment required; 1) how the money would be used, 2) terms and conditions, 3) success metrics, and 4) payout schedule.
Presentations designed to pitch a business idea must impress and convince investors to allocate their money to a particular business venture. The slide master should be configured to include the company’s logo on each page. The presentation should be no less than 10 pages, but no more than 20 slides. An appendix can include more detailed information.
Presenters should plan to spend from 90 seconds to three minutes presenting each slide. A common mistake of amateur presenters is to inundate the audience with too many words. Each slide should include three to five bullet points per page, with no more than 5-7 word phrases per bullet. Pictures and images should be used if, and only if, they convey a point and invoke an emotional response in the investors.
Nothing is more detrimental to a pitch than the lack of knowledge of industry trends in a chosen field. Angel investors leverage industry trends to validate sales projections and operating costs. The pitch team must be familiar with industry trends to increase their credibility and demonstrate that they are serious and committed to the business concept.
Investors are data driven. Current financial standing, as well as, financial projections for at least three years must be included in a pitch presentation. Financial data should be checked, and rechecked, to ensure accuracy. Though it may be tempting to dream of hitting it out of the park on the first try, grandiose projections have no place in a pitch. Projections should be realistic and honest. Milestones should be quantified and included in the key metrics used to drive revenue and gross margins.
CK Inventions had anticipated the possibility of negotiations and established a walk away figure before they entered the room. In case the investors chose to completely forego investing in CK Inventions, the team was prepared to ask for referrals. Pitching to Angel investors is a numbers game. Cathy and Kyle knew the more they pitched the idea, the more succinct their pitch would become.
Cathy reached over and pulled the drape from the CK Robot and demonstrated the degree of cutting-edge artificial intelligence built into the IED finder. Kyle noticed that the investors were sitting on the edge of their seat. It was obvious that the team’s hard work had paid off.
WESLEY CARTER DM, authors an advice column that leverages leadership and management strategies to solve common business problems. Carter holds a Doctor of Management (DM) degree with an emphasis in Organizational Leadership, an MBA, and a B.A. in Management. Carter is a partner at KRS Consulting, LLC in Charlotte, NC. If you have a question, email wesley@krsconsult.com. All submissions become the property of Wesley Carter. Call (704) 992-1211 or email to book an engagement.
Consulting Favors Add Up
Monday, November 7th, 2011By Dr. Wesley Carter
Rodney braced himself for yet another request for a favor of free consulting. His neighbor, Larry, approached him while carefully dodging the pile of freshly raked leaves. Rodney switched his rake to his other hand and gave Larry a firm handshake. Larry wasted little time before he launched into a diatribe about the trials and tribulations of owning a business in today’s economy. Within minutes, Larry asked Rodney do him the favor of reviewing his marketing plan.
Rodney stiffened at the tenth request for free consulting services in as many days. Friends, family, and even a few strangers routinely asked Rodney for consulting services without any intention of paying for the services. Rodney exhaled as he quickly calculated how much revenue he had sacrificed over the years by doing consulting favors.
Without waiting for an answer, Larry reached in his pocket and pulled out a thumb drive with his marketing plan. But, this time, Rodney was ready. He looked at Larry and said, “Larry, it is time to give your business the attention that it requires. Why don’t you call my office with a couple of possible meeting times for us to get together next week? I want to give your business my full attention.”
Larry’s hand froze in midair. He had hoped to avoid paying for Rodney’s services. But, Rodney had had one too many lectures from his accountant. Every month, he gave away enough consulting services to turn a nice profit. Instead, he continued to struggle to make ends meet. Occasionally, he had to pick up teaching jobs at the local university to supplement his income.
Larry made one last feeble attempt to persuade Rodney to look at his marketing plan over a bottle of wine later that evening. Again, Rodney declined, pleading fatigue, and repeated his request for Larry to call the office. Rodney felt a little embarrassment even as he stood his ground.
After an awkward good-bye, Larry headed back to his house, thumb drive in hand. Larry resumed his yard work and prepared himself for more of the same conversations in the coming months. Until he had satisfactorily trained his circle of family and friends, he would be having similar conversations.
Larry had already gotten thousands of dollars of consulting with his requests for Rodney to review his financials and operating model. Rodney used to look out of his office window and see that Larry’s lights were out while he toiled over Larry’s documents. Rodney was tired of taking time from his paying clients to work on nonpaying projects for family and friends.
Rodney recognized that he was to blame for making it so easy for others to take advantage of him. More importantly, Rodney finally realized he had devalued his services by giving them away so freely. He knew that Larry would probably be resistant to call his office and become a paying client. Rodney was determined to get paid for his services.
Entrepreneurs frequently suffer requests for free services from family and friends. Whether from ignorance or more unbecoming intentions entrepreneurs are often asked to provide free services or products. Entrepreneurs must respect their value to resist being taken advantage of by others.
In anticipation of requests for free services, entrepreneurs should establish a budget for the amount of free services they are comfortable with providing each month. In addition to a budget, it is wise to establish criteria to assist with decision making regarding the requests that will likely come. Perhaps a portion of the services may be allocated to nonprofits. Services can be provided to individuals based on need or referral potential. Invoices should be provided for all services and a professional services credit should be reflected at the bottom. This small detail reminds that receiver that there is a cost associated with provided free services. It also establishes the foundation for requesting payment for future services.
Research indicates that 80% of small businesses go out of business within the first two years. It isn’t a stretch to consider that some of those businesses likely forfeited revenue due to the provision of free services to family and friends. It is important to remember that entrepreneurs garner respect for their products and services when they manage their business professionally. Others will respect Rodney’s services, as long as he holds to his commitment to terminate giving business away indiscriminately.
WESLEY CARTER DM, authors an advice column that leverages leadership and management strategies to solve common business problems. Carter holds a Doctor of Management (DM) degree with an emphasis in Organizational Leadership, an MBA, and a B.A. in Management. Carter is a partner at KRS Consulting, LLC in Charlotte, NC. If you have a question, email wesley@krsconsult.com. All submissions become the property of Wesley Carter. Call (704) 992-1211 or email to book an engagement.