Becoming Your Own Boss (BYOB, 5.2)

In the first series, Becoming Your Own Boss (BYOB, 1.x) "Introduction, Today's Employment Picture", you learned some of the facts related to the current employment picture and examined some of the choices that were available to you. In the second series, Becoming Your Own Boss (BYOB, 2.x) "Examining Your Situation", you answered some key questions to figure out if starting as an independent contractor was a good idea for you. In the third series, Becoming Your Own Boss (BYOB, 3.x) "Preparing for Business", you examined the numerous topics (from taxes and insurance to your need for equipment and an office) that need to be considered before you take the step to establishing an independent contracting business. In the fourth series, Becoming Your Own Boss (BYOB, 4.x) "Establishing Your Business" you learned the many requirements involved in operating a business from the business name and structure to the business forms you will need once you establish your business.

In this article you learn some of the methods that can be used to do well at an initial client interview and to mainitain an existing client relationship.

Doing Well On A First Interview

The first interview with a prospective client is obviously the most important meeting in your relationship with that person. It will set the tone for your relationship. Ideally, you should be on time, be well rested, be relaxed, be dressed appropriately, be sharp technically, and take with you two or moresamples of your work that will be of interest to the prospective client.

The samples should showcase both your technical and organizational abilities. If you can show a sample in which you solved a particularly knotty problem, or you completed a task very quickly, or you otherwise performed in exemplary fashion, don't forget to mention that. In other words, do your homework well, be reasonably sure of yourself (but not arrogant), think before you speak, make frequent eye contact, and strive to make a good first impression.

Dependent upon the prospective client's knowledge of and experience with contractors, your sales pitch should include some or all of the following elements:

• Your experience and competence allow you to learn extremely quickly, which produces a very short, and thus inexpensive, learning curve.

• When the contract is completed, the client has no responsibilities toward you as compared with those toward a regular employee.

• There are no termination procedures and expenses, and no threat of termination litigation.

• There are no expenses for benefits such as pension plan, insurance, vacation, holidays, and sick leave.

• There are no expenses for equipment, office space, supplies, etc.

• There are no employee taxes such as unemployment, worker's compensation, and FICA.

• For accounting purposes, your services can be treated the same as materials or expensed equipment.

• There is little risk of nonperformance or unsatisfactory performance. The client is in absolute control at all times. Point out that the client's good will is essential to your business and that you will do what is necessary to get the job done. Point out that, if progress is not satisfactory for any reason, the contract can be terminated on reasonably short notice.

• If you are incorporated, emphasize it.

In addition to the above items, point out the following aspects with regard to being incorporated:

• Point out that there will be no possibility of problems with the Internal Revenue Service regarding the provisions of Section 1706 of the tax law.

• Point out that, because you are incorporated, you are already an employee (of your own corporation) and that, therefore, the client is at much less risk of problems with the IRS.

• Assuming that you can do so truthfully (remember the points made in "Working On-Site At Your Client's Facility" in article BYOB, 3.6 in reference to being ruled to be an employee of the client), point out that you operate your business so that it comfortably meets the IRS requirements.

If you are in competition in the client's mind with another contractor who has similar technical qualifications, but who is not incorporated, these points might be enough to swing the decision to your favor.

Maintaining An Existing Client Relationship

Maintaining your relationship with a client is relatively easy if you are actively engaged in a contract with that client. If you are not working actively with someone who was previously a client however, the situation is much more difficult. You must keep the relationship viable even while you are working on other contracts because there is a good chance that you will do business again with that client.

The preferred methods for maintaining contact are by telephone and in person. However maintaining the relationship entails accomplishing a very difficult balance between the necessity for communication and the danger of too frequent communication. Too infrequent communication can cause loss of contracts because the client forgets you and forgets to call you when he or she needs help. Too frequent communication can sometimes result in your being offered a contract when you are busy and not only do not need it but would be hard pressed to complete it.

Do not refuse an offer of a contract that falls within your purview.

Unless you know the client extremely well or it is simply not possible to fulfill it, accept a contract if it is offered, even if you must find an associate to help you to complete either it or work already in progress. It is much better (for your relationship with the client) to accept another contract and have to work much overtime to complete it than to refuse it. The client likes to feel that you are at his or her beck and call.

Do not discuss plans for a vacation or time off, or mention that you are too busy for more work.

Unless you are on exceptionally friendly terms with a client, do not discuss either time off from work (except, of course, for a family emergency, funeral, et cetera) or that you are very busy. Again, the client likes to feel that you are at his or her beck and call. If you wish to take a vacation or other time off, schedule it carefully so that it does not adversely affect the client, arrange for your calls to be answered in some effective manner, and answer all calls immediately upon your return.

The next article in this series (BYOB, 5.3) addresses the topics of diversifying your client base, and bidding for services.

To read the rest of the series click here