The Insider Secrets to Not Losing Your Shirt on your Client’s Next Project
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The Insider Secrets to Not Losing Your Shirt on your Client’s Next Project My client Anna called me last week, completely frustrated, about an unfolding nightmare with her new client. Anna had recently accepted a new client who had an exciting project. They discussed what specific needs the client had, and Anna determined that it would fit in her schedule. She received a down payment for the work, and scheduled the time in her calendar. Before she even got started, her client called with changes. Being the kind person that Anna is, she said, “OK, I can do all this.” Before the week was out, the client called again, with another change. This time Anna got worried. This great project was now turning into a nightmare. This project wasn’t really that exciting and fun anymore. As a matter of fact, it was downright stressful, overwhelming and with all these changes, she would be working much longer and not making her desired financial outcome. What happened? In the Fortune 500 project management world it is called “The Deadly Scope Creep.” What is it? It is the natural process every client-vendor relationship goes through as the client learns more about their needs and possible solutions you have to offer. Why is it Deadly? Because most entrepreneurs don’t manage the change process properly and the result is: Overwhelm and long hours Frustration and resentment Loss of profitability Delays on other projects for other clients An unhappy customer who doesn’t refer you more business Does this sound familiar at all? Well there is hope. Here are my insider secrets to turning that deadly scope creep into a win-win outcome (that means a profitable, enjoyable, satisfying business transaction where you are in your power!) DO…create a written agreement which includes: exactly what you commit to do, when it will be done by, who needs to do what (for example, the customer has deliverables), and how much it will cost. I guarantee you this step alone will increase your sanity. DO…get changes in writing. Make sure you capture what the changes are and communicate them back to the client in writing. When this step is skipped, miscommunications can lead to an unhappy customer or a late deliverable. DO...take time to track your project changes . Every time your project scope grows (the client wants something added), it will either take you more time or cost them more money. Either way, it is going to impact your bottom line. Educate the client on how their request will affect the completion date, or cost them more money, or both. This is one of the easiest ways to create a win-win relationship with your clients and have them “sing your praises!” DO…communicate honestly with your client about what is happening. If you aren’t enjoying your client, procrastination can easily take hold and your client will become unhappy when things aren’t done on time. DON’T…shortcut on writing out the agreement. It will come back and bite you on the A$$ later. When errors, misunderstandings and problems occur, written documentation takes the “he said-she said” out of it. DON’T... cave in when your client pushes back. You will inevitably resent the client or the project. It is perfectly acceptable to say “No, that isn’t going to work.” Just follow up with, “Here is what I can do.” DON’T... be a People-pleaser. It leads to the Over-Commit and Under-Perform Syndrome. Remember, it is business, not personal! Your client will ultimately respect you more for being honest and grounded in your abilities and desires. If they don’t, you don’t want them as a client! So what happened with Anna? She realized that the project was rapidly becoming an energy drain and she didn’t have time to complete the job in its “new scope”. She gave the client his money back and recommended someone else. Miraculously, two additional clients showed up in the same week, and she doubled her revenue that month. By the way, this process works great with spouses, kids and co-workers too. (Although your kids might look at you funny when you submit a change order for their 3rd dinner request tonight!)
Melanie Benson Strick, The Entrepreneur’s Success Coach, teaches entrepreneurs how to stop feeling overwhelmed so they can create more money, more freedom and more prestige.
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