Articles

Starting Over and On My Own
by Dr. Lynne Curry

Question:
I got laid off last week with no warning. I’m a computer guy and this is the second time in two years I’ve been laid off. Both times, my employers have said they’re sorry because I do good work but when push comes to shove, I’m the most expendable employee. They say that while they can contract out for computer assistance they can’t afford to lose any of the other employees.

I’ve decided to read the writing on the wall, start my own business, and plan to consult for my former company. I’ve asked a bank for a loan. The banker wants a business plan and my brother-in-law who knows finance says he can write one for me but he needs me to write up the marketing plan section. How do I do that? Even more important, how do I market and how do I figure out what to charge?

Finally, I suspect that part of what sent my former company over the edge is that the operations manager embezzled. I started to track this just before the end but didn’t get very far. I don’t know if I want to upset things by telling anyone my suspicions since I can’t really prove anything and the operations director would be the one deciding who gets the computer contract. What do you think?

Answer:
If you seriously suspect the operations manager of embezzling money, you have two options. You can say nothing and wake up every morning remembering you potentially allowed someone to steal or you can let your former employer know what you suspect. Before you give your former employer your views, realize he may question your motives. Prepare for this by outlining the facts that led to your suspicions and devil’s advocating your reasoning in your own mind. If you feel solid, tell your former employer what you suspect so he can take the lead in checking it out.

When you help a former employer fix a seriously wrong, you develop a lifetime ally. If your suspicions lead to smoke, you lose a potential client but not your self-respect. Those of us who see wrongdoing but allow it because of our own self-interest or fear participate in the dishonesty along with those who more directly profit. Thieves succeed because we let them.

A good marketing plan shows who may buy your services and how you’ll sell yourself. Start by listing the types of clients most likely to need your services. Are they new businesses starting out, mid-size businesses or organizations going through a growing spurt, or large companies hoping to contract out computer assistance needs?

Then, list the services they most need from you. Do they need help in computer, software or network trouble-shooting? Do they need on-site or telephone user help or assistance in upgrading existing systems?

Next, what matters most to your prospective clients when in choosing a computer assistance vendor? Are they looking for the lowest cost vendor or someone they can call 24 hours a day? Do they need you to be up to date on the newest software or ready to come on-site for assistance? What promise or guarantee do they want before they buy?

Now, what makes you better able to meet their needs than any competitor? Are you willing to learn your client’s systems and special parameters so you can give them on-target help? Can you commit to returning client emergency calls within four hours – no matter what? What is your unique selling advantage? Once you know these details, you know what you plan to market to which types of clients and simply need to decide how to price and market your services.

You can’t decide on prices in a vacuum without risking over or under-pricing the market. Most successful consultants determine their prices after first checking what others charge and what prospective clients feel comfortable paying. Research this by calling seven to twelve computer vendors listed in the yellow pages and learning how they charge for their service. Alternatively, you might call prospective clients and ask what they need and what price you’d need to be able to beat to have them willing to give you a "test run."

Then, decide how you plan to market. Unless you have a large network of acquaintances, your marketing plan needs to explain how you plan to get your name and business card or brochure into the hands of prospective clients who don’t yet know you. Many new consultants try a mix of "warm" calls and targeted mailings to prospective clients recommended by current clients and friends. In a warm call, you call an individual based on a referral and ask if you can send them written information outlining you services. Even those who hate "selling" can make "warm" calls.

If all this scares you, look for job. Those who start small businesses need to accept large levels of risk that equal and exceed being laid off. If, however, you dream at night about working for yourself, good luck. The riches you find when you take charge of your own destiny outweigh the risks.