Authority in Your Field and Promote Your Service-Based Business

Name:  Karl W. Palachuk

Business name: Small Biz Thoughts

Website URL: http://www.smallbizthoughts.com

Social media links:

http://www.facebook.com/karlpalachuk

http://www.twitter.com/karlpalachuk

http://www.linkedin.com/in/karlpalachuk

Tell us about your business and what you do:

My business is based on my experience as a technology consultant. I write books, blogs, and newsletters for computer consultants. I also put on seminars and trainings, many of which are sponsored by vendors trying to get visibility within my target market.

As a result of the variety of income streams we have, we are able to sell website advertising, blog posts, and training time. I am also a paid speaker, appearing at 15-20 paid events per year.

Who is your target audience?

My audience consists primarily of small-business technology consultants who want to be better at running their businesses. This audience refers to itself as SMB (small and medium business) consultants. As a successful SMB consultant, I am seen as an “insider” rather than a stranger who wants to sell into this group.

Eventually, I developed a second audience: large companies that want to sell their products and service to (and through) the SMB consultants that made up my existing audience. Three years ago, about 5% of my revenue came from selling advertising to these companies. Now it constitutes 55% of my revenue.

How did you get started in your business?

As with so many entrepreneurs, I started my consulting business when I became disillusioned with working for corporate America. I started with one major contract and gradually transitioned to having several smaller contracts. Eventually, I hired a staff to help me deliver services.

Based on my experience as a consultant, I wrote a book about some specific processes we used to standardize service delivery. Rather than selling it like a “book,” I sold it as a tool to make more money. As a tool, I was able to sell the book for a very high price.

In order to sell the book, I started traveling and speaking to consultants all over the world. After that, I helped develop a new way of delivering technical consulting and made the circuit promoting this view of business. That led to more books, more travel, more speaking, etc. Eventually, I built a large following within the well-connected technical niche.

What are some of the best tactics you have used to build your audience and establish your authority online?

I would say there are three primary tactics that helped me establish myself as an expert in my field.

One of the most successful tactics I used was cooperation: I made friends with a handful of people that I thought were “rising stars” in the community that evolved online. In various combinations of 2-4 people at a time, we appeared on stage together at events. We promoted each other. We sold each other’s products when appropriate.

We were, to be honest, like the Rat Pack for computer consulting. As individuals, and as a group, the combination of activities that we engaged in amplified the expert status of everyone in the group. At one event, six of us put on a show, released six new books at once, and sold more than $30,000 worth of product in two hours.

A second successful tactic was podcasting. I appeared on a friend’s podcast in 2007. His ratings for the podcast tripled that day and I decided that I had a voice in the community. So I started my own podcast, which became very popular. In fact, many people have told me that they make all their new employees listen to my old podcasts.

After two years, I re-branded and re-packaged the podcast. At that point I started charging a monthly fee for members to download the podcast. After a year, I doubled the cost. In January 2012, we changed the format again in order to keep it fresh. It continues to be a money-making venture and has new subscribers every month.

A third successful tactic has been blogging. I started blogging in 2006. At that time, I decided that my blog had to provide information that was not being provided elsewhere. Many blogs and websites offer free technical training and information. Nerds love to show how nerdy they are, so they freely share technical information. My niche had to do with the business side of running a business. I blog about profit and loss statements, hiring practices, service contracts, and other business topics.

One of my favorite blogging strategies is to start a “series” of blog posts that build on one another and refer back to previous posts in the series. It might be a series of three or four, or a much longer series. One series called Managed Services in a Month eventually became the basis for a book. Another series appears every Friday and has become a consistent draw for new blog readers.

How has social media impacted your business? Any success stories you can share?

I primarily use social media as a means of broadcasting content. I’m a firm believer that 95% of the people on social media are primarily consumers of information and 5% are primarily producers of information. I am a producer.

I send out regular posts to Twitter, Facebook, and LinkedIn. The only forum I actually check in on and post to in real life is Facebook. I post pictures and observations in real time, and I make comments on things I find there.

In the big picture, I believe the social media networks are great for building credibility and getting people onto my mailing list. As an actual sales tool (asking for money), I don’t find them very effective. But I can lure people onto my mailing lists, and then sell from there.

Do you engage in any communities and if so, how has that impacted your business?

I have always participated in online communities. Yahoo Groups are still surprisingly big in the technical communities. I have had good luck participating in the groups. As a frequent contributor, I am once again an “insider” when it comes time to ask people to buy what I’m selling. If I only dropped in to ask for a sale every three months, I would remain an outsider.

What advice would you offer to readers who want to promote their business online?

The most important advice I have is to understand that your online platform is a marketing platform. You need to integrate it into your sales process. You need to use it to promote your sales goals. But please do not think that blogging and social media will do your selling for you. These tools will soften up the prospects, but they will not sell for you.

You will always have to make your own sales by engaging people, making proposals, and asking for money. I recommend that you consider your company’s strategy for moving from the online marketing funnel into the email- and telephone-based sales funnel.

If you were starting your business over today, is there anything you would do differently?

Oh my goodness …

The above interview is an excerpt from Own Your Niche: Hype-Free Internet Marketing Tactics to Establish Authority in Your Field and Promote Your Service-Based Business by Stephanie Chandler, which includes interviews like this one at the end of each chapter!

So if your business earned $60k last year, you should budget up to $6k for marketing this year.

If that sounds like a lot, consider the consequences of not making this investment. Marketing is the fuel for your engine. Without it, the car can’t run—and the business will be much harder to grow. You may instead choose to run your business on a shoestring, investing your TIME instead of dollars in marketing efforts. But there are two main problems with shoestring marketing:

1. Time still costs money. Your personal labor should be factored into the equation. If you earn $75 per hour and spend 10 hours per week on marketing, you’re technically spending $39k per  year on marketing! Are you getting great results from those efforts because you should be at those rates! And by the way, every hour spent on your own marketing is an hour of lost revenue.
2. You limit your growth. When your marketing plan is based solely on your efforts, you miss out on tactics that could be getting a lot more mileage. You can’t compensate for a well-placed ad in an industry publication or a pay-per-click campaign that converts leads daily. Trying to do all of your own marketing is like trying to build your own house with no previous experience. Sure you can find ideas and figure a lot of things out, but it would get done a lot faster and the foundation would likely be more stable if you invested in some expertise.

So consider what you’re missing out on by failing to invest in marketing your business, and what your business could look like if you invested 10% of your revenues to get the marketing wheels cranking.  Soon your small business might not be so small after all.

I am honored to be part of the Hiscox Author Series for Entrepreneurs and look forward to delivering this webinar and answering questions from participants. Register for the free webinar here.

P.S. Hiscox is the first insurer offering U.S. small businesses the ability to obtain quotes and buy small business insurance direct, online and in real-time.  Make sure you get the right insurance protection for your business.

Fire Up Your Marketing

When business is slow one of the most important things you can do is launch new marketing strategies. That might mean putting together a direct mail campaign (yes, these are still valuable!), stepping up your social media activity, joining a new networking group or trade association, applying to speak at events, purchasing paid advertising in print or online, or any number of other marketing activities. The point is that marketing is essential to attracting new customers to your business. If what you’re doing now isn’t working, start a new campaign.

Launch a New Product or Service

A new product or service might be just the thing you need to reengage your audience. Consider what your clients have been asking for and how you can deliver something to meet their needs. We recently announced that we’re now offering social media services via Authority Publishing and the phone has been ringing off the hook. It’s amazing what can happen when you listen to your customers and take action.

Look at Your Competitors

If you haven’t been paying much attention to your competitors, then it’s time to revisit what they’re doing. Have they launched new products or services? Has their pricing changed? Where are they advertising? This is all important data so that you can make adjustments to stay competitive. Also, determine their weaknesses and find a way to demonstrate your strengths in comparison.

Seek Advice

Entrepreneurship can be a lonely journey. You can have the responsibility of the world on your shoulders and no place to turn for advice or even just commiseration. One of the best things I do each month is meet with my mastermind group. I get together with ten of the smartest people I know and we each get 20 minutes to discuss and brainstorm business issues and challenges. This helps members stay accountable to their goals, generate new ideas, and get the advice needed to deal with challenges and opportunities. Invite the smartest people you know to get together—even if just for lunch or drinks—and ask for advice. You may find just the answers you need and realize that you’re not alone.

Pedal Harder

The worst thing you can do when times are tough is nothing. Don’t stay stuck in one place; keep the motion going. Look closely at your business processes and determine what is or isn’t working for you, and then make the changes needed to get back on course. Most slow periods are temporary, provided you’re doing the work to generate new opportunities. Before you know it, business will be cranking again and running stronger than ever because you took action.

Procedures make your business run without you. They also ensure that your business operates in a consistent manner. McDonald’s has long been an example of consistency and process. Whether you visit one in Orlando or Munich, the experience is the same. That’s one of the most important elements to running—and expanding—a successful business.

Even if you don’t yet have a single employee working for you, it makes sense to start documenting your procedures in preparation for the time when you are ready to hire. If you want to grow your business, you will eventually need to hire help, even if you start with an intern or a part-time contractor.

Here are some items worth documenting:

• Sales Scripts – What questions do you ask a prospect to qualify them? What key points do you share with every prospect? If someone else were taking those calls, how would you want them to be handled?
• Sales Process – When do you send a proposal? What is the format? Do you have a price list for products/services? What steps are involved? Should there be a checklist so all steps are completed?
• Operations – If you have a physical location you probably need opening and closing procedures, an emergency plan, cash register and cash handling guidelines, instructions for the security company, details about janitorial, and all other day-to-day activities.
• Emergency Contacts – Who should your staff call if you’re not available? Also provide them with phone numbers for the alarm company, maintenance companies such as HVAC, nearby neighbors, police, poison control, animal control, etc.
• Employee Training Manual – It’s best to create this documentation while you’re managing specific tasks so you don’t miss any details, or ask an existing team member to document their work. My project manager is pregnant and will be heading out on maternity leave soon. She has been documenting all of her procedures in preparation for her departure, which is a lifeline since I’ve lost track of all she does for us!
• Employee Policies – This should include policies for personal and paid time off, sick leave, dress codes, and other expectations. You may want to consult with a human resources expert to ensure you don’t violate any laws in your state with your guidelines.
• Customer Service – When I ran the bookstore, I quickly realized I had to train the staff to serve the customers in a consistent way. They were to greet everyone who walked through the door, ask if they could help them find something or make a recommendation, make small talk at the register, and offer an up-sale. I also had guidelines for how to handle returns and difficult customers. It’s all about creating that consistent experience.
• Templates – Any items that you send to clients on a regular basis should be made into templates, even if you’re the only one sending them. This will save you lots of time from re-typing the same information over and over. For my publishing business, we have a file folder called “For New Clients” where we keep project timelines, checklists of the items they need to submit, welcome letters, intake forms, and other documents that make life for all involved much easier.

1. Decide What You Want to Be Known For – This starts with establishing your brand. What do you have to offer and what’s great about you? What key messages do you want to convey to prospective clients? These are big decisions that shouldn’t be taken lightly. Spend time brainstorming and discussing ideas with peers until you narrow down a focus that will stand out against your competitors.

2. Get Your Website in Order – Like it or not, your website is often the first (and potentially last!) impression that prospect has of your business. That means your site should be professional, impressive, clear, and focused. If you designed it yourself or you wince a little when you look at it, invest in a website makeover pronto.

3. Add a Blog to Your Site – I’ve said it many times before—a blog is no longer an option; it’s an essential marketing tool for your business. A blog brings traffic from Google, impresses prospects, gives you the opportunity to communicate with your audience, builds loyalty, and is the foundation of your social media strategy. Update it often for best results (two or more times per week—the more often you blog, the more results you will see).

4. Embrace and Use Social Media – It’s not a fad; social media is now essential to business. Most businesses can benefit from having a presence on all the major social media outlets: Facebook, Twitter, LinkedIn, Google+, and Pinterest. Share your blog posts with all of your networks, work to build your following, share photos, videos, special offers, and plenty of great content. Become a resource for your audience and your online reputation will flourish.

5. Find Your Community – No matter who your target audience may be you will likely find an online community where they spend their time via groups on Facebook, LinkedIn or Ning. Can’t find a group or think you can do it better? Start your own group. Group leadership is a fantastic way to build a reputation.

6. Contribute to Your Community – The internet is abundant with opportunities for exposure via internet radio programs, blogs, and websites. Look for sites that reach your target audience and find out how you can contribute an interview, guest blog post, regular column, or other resource.

7. Write a Book – There is no better credibility-builder than a well written and professionally produced book. Trust me, it will be the best brochure you ever have.

8. Do Something Buzz-Worthy – Get people talking about you by giving great content often, doing something unexpected, holding a contest, or hosting an event. Word of mouth is as powerful as ever and spreads even faster thanks to the internet.

9. Do You Well – One of the biggest mistakes people make is to try to be like everyone else. This won’t help you make a mark on the world. Inject your personality into your content online. Be bold, funny, smart, sarcastic, honest, contrarian—whatever feels right to you and helps you connect with your audience.

10. Always Remember Your Audience – When it comes to marketing content online, it’s never about what interests you—it’s always about what interests your potential customers. Pay attention to what gets the best responses and do more of what works. Understand the needs and challenges of your audience and find ways to help them. When you take time to understand them and meet their needs, you create a winning formula for building a strong reputation and a thriving client base.

For example, if you can hire someone for $20 per hour to do administrative tasks or bookkeeping or house cleaning, and you can go out and earn $50 or more per hour gained, then you will come out ahead.

This is an important lesson for entrepreneurs. We all have many responsibilities and tasks to get accomplished each day. But when you let go of some of those tasks, you create more time to grow your business.

Here are some sources for hiring freelancers and contractors to give you more time to be profitable!

1. Interns – Guess what? Students work for free! They want to learn and gain experience and you can create a mutually beneficial situation by teaching someone what you do while they help manage tasks. Contact your local colleges to inquire about placing an ad for an intern. There will be some paperwork involved, but this can be a great solution that can also lead to a potential employee for your business.

2. IVAA – The International Virtual Assistants Association offers a member directory, plus an option to post a Request for Proposal (RFP).

3. AssistU – A training program for virtual assistances, here you can find assistance who have been through certification programs.

4. Elance – The largest network for finding all kinds of freelance professionals in many countries. Options include web designers, copywriters, graphic designers, administrative professionals, and much more.

5. Guru – Similar to Elance, find freelance professionals here.

6. Rent a Coder – If you need computer programming or software development, you’ll find lots of options here.

7. Craigslist – If you prefer to work with someone local, you can always advertise job opportunities with Craigslist—even for contractor positions.

8. 99 Designs – This is a fun way to find a graphic designer. It’s done by conducting a contest and allowing designers to contribute their concepts. Find one you like and you can award the fee you designate to the winning designer.

9. Freelancer – Similar to Elance and Guru.

10. Freelance Switch – Similar to Elance and Guru.

11. People Per Hour – Similar to Elance and Guru.

12. Odesk – Similar to Elance and Guru, though one of the larger networks.

13. Coroflot – Primarily a source for creative professionals and graphic designers.

14. Fiver – This fun service lists people and the tasks they are willing to complete for $5. If you need something quick and easy, this could be the way to go!

But the thing about ideas is that sometimes we are too close to them and don’t give them enough time to mature. We can easily get excited or even obsessed with a new idea, only to find out later that it didn’t meet with as much enthusiasm with customers. When this happens, we end up throwing away time, money, and resources when often times mistakes could have been prevented.

Big companies spend millions on market research every year, but most entrepreneurs don’t have that kind of budget. However, we do have the ability to reach out and ask for assistance and perform some due diligence. The next time you have a new idea, consider the following before you take that next step:

1. Research the market, especially if you’re going after some new territory. You don’t have to spend a fortune on reports. Hire an inexpensive administrative assistant or even an intern to do some research to make sure your market is ready and that you understand the competitive landscape.

2. Survey your customers. You have premium market research right at your fingertips. Ask your customers what they want and need, how much they’re willing to pay, what features are most important to them, and any other relevant questions that will help you build a plan.

3. Build an advisory board. I’m in a mastermind group and it has been a powerful place for me to flesh out ideas and get feedback. The key to doing this successfully is to pick people whose opinions you respect and who you trust to tell you the truth. Mastermind groups can be mutually beneficial for all participants and I highly recommend them to all entrepreneurs. You shouldn’t have to work alone all of the time.

4. Talk about your idea. Provided you’re not worried about someone else stealing your idea (and honestly, this rarely happens), start talking about it with people as much as possible. It’s amazing how much feedback you can get at a business mixer, cocktail party or even your kid’s soccer game from people you didn’t even expect would be interested.

5. Let it simmer. If there’s one thing I’ve learned, it’s to let my ideas cook a little longer. It’s easy to get excited and take the ready, fire, aim approach. But this is where I’ve personally made the most mistakes. When I mull an idea over for a while, do the due diligence and get the feedback needed, it always creates a more favorable outcome. Resist the temptation to launch before you’re ready and make sure your idea is fully cooked and ready to serve before you present it to your audience.

How great is that?!