Freedom, Finance, and Keeping Your Business Fit

With ongoing inflation, interest rate hikes, and the failures of Silicon Valley Bank and Signature Bank, we continue to navigate uncertain times. In this episode we talk about shoring up our communication with our clients and ways to work on your business development pipeline.

 

Transcript

Michelle Kane (00:02):

Thank you for joining us for this episode of That Solo Life, the podcast for PR pros and marketers who work for themselves. I am Michelle Kane with VoiceMatters, and I'm here with my ever steady co-host, Karen Swim of Solo PR Pro. Hi Karen. How are you today?

Karen Swim, APR (00:17):

I'm great. How are you doing?

Michelle Kane (00:19):

I'm good. Hey, you know, we're just flying along in this crazy little world, .

Karen Swim, APR (00:26):

We're rolling along, changing as we go, making it up, figuring it out.

Michelle Kane (00:33):

Hey, that's, the beauty of being a PR pro. And you know, every day we wake up to the news, we peek our eyes out from under the covers and think. “What's happening out there?” And today we're going to talk about the financial world. Ooh, but as we are recording this, on the date we're recording this, the Fed is considering whether or not to pop up those interest rates again. Yay. But you know, as I'm sure all of our listeners know, we've had some bank failures and there has comes along with that some angst. I think we still kind of have a trauma from 2008 sticking in our bones and it's just bringing back some of those feelings of “ooph…”

Karen Swim, APR (01:17):

Well, yeah. For those of us who are around and remember that, but even if you weren't yet in business or were not yet operating, or maybe you were still in school back then and you're new to the working world. There are some things that we can learn from the recent bank failures. First of all, I think one thing that we can learn from a communication standpoint is what not to do. And I think that because we counsel clients, maybe many of you had some clients with ties to those banks, so it's really important. And then I had clients that didn't have ties, but for all clients, I said the same thing, it's better to control the message before the message controls you.

Michelle Kane (02:17):

Always.

Karen Swim, APR (02:18):

So, something this widespread, we talk about, we have this decision grid about when to weigh in on issues of the day. But something like this is definitely a place where I think it does not hurt at all to communicate it to key stakeholders, even if you're not affected by saying, “Hey, this recent news is very troubling and unsettling. We want you to know that we are not impacted by the SVP Bank failure nor by First Republic.” If you're not impacted, it's good to say that because this type of challenge is something that hits just everyone. It's going to, you know, employees are going to wonder, “Oh my God, do we have money in these banks? Is it going to affect payroll?” Your investors want to know that you've got a handle on this, your potential investors, your customers want to know that you are fine and that you're not going to be making moves out of frenzy and in response to this, but that you're okay.

Michelle Kane (03:27):

Yeah.

Karen Swim, APR (03:28):

And if you are affected, communicate with a plan about what you plan to do.

Michelle Kane (03:33):

Right. I mean, that's basic PR 101. It's take control of the messaging. And I give kudos, of course, I wasn't privy to what local companies were saying but I know the banks in our region did a wonderful job - the very next morning, making statements of we're, we're good, we're solvent. That was different because X, Y, Z, you can rest assured… They just did the right thing.

Karen Swim, APR (04:01):

I think it also brings up the question - I had providers that I utilize that were impacted. And I immediately got messages that what I utilized them for would not be affected. But it really, that's good. You know, there's just been a lot of uncertainty and this financial part adds to it because I had to question - I did not know prior to this where all of my clients banked, where their money was parked. And it brings up a point like, here's one more stress test that we need to follow. And it's not so much even knowing where they bank, but having some failsafe to protect your income.  So I know some people that were personally impacted by delays in payments because of these bank failures. Could you absorb a delay in payment?  For how long could you absorb that delay? Do you have anything in your contract that is a protection? Do you have conversations with your clients about the realities of life? And are you documenting those in your contract? Because again, it brings up one more issue that we have to make sure that we guard against. And I'm all for making sure that you build a cushion that can carry you through any crisis. Whether it is several clients cutting off contracts at once, client organizations failing, bank failures, whatever it is, you not being able to work, have a cushion. And no judgment on you today if you do not have that. Because so many small businesses in America are operating on very, very thin margins. So there's no judgment. But I am saying that for all of us, we need to stockpile even more.

And if that means thinking about, “Hmm, are there creative ways that I can build revenue? What can I do to extend that may not even be client work? Or where do I need to adjust my strategy for new clients? Should I be raising my rates?” You really need to start thinking about that in stockpiling, because it's not going to get better out here, , and we're in a climate where it's not going to get better for the general public. And I wanted to correct that because for solos, and it's interesting that I just saw a Forbes piece that we'll be talking about in the future that talks about PR being a recession-proof business. I want to encourage every single public relations professional out there that we have the ability to thrive in these times.

So I want you to just keep that message in your head. If you need to write it on post-it notes and post it around your office, do that. Because it's easy to fall into the trap of feeling like we're just like everybody else. We're not going to be laid off. You need to get ahead though of how your clients are thinking. Because this creates an environment of anxiety. Clients are nervous, organizations are nervous. They're looking at their balance sheets. The Fed is nervous because do they let inflation just continue to like be at a level that is higher? Because traditionally inflation sits at around 2% and do they want it to go to 4%? That's going to make people super nervous, or do they want to raise interest rates to kind of put a tap on it? Then if they raise the interest rates, banks are further impacted because of their investments. Which is what happened to these banks. Their investments were impacted by the high interest rate. So they had less money and they have less money in reserve. So it's like you're choosing between two evils and they can't solve both things at one time.

Michelle Kane (08:21):

Well, and I think the thing that we need to focus on, like you said, it's definitely bringing uncertainty as an unwanted guest to the table, which I don't know if this is going to make us feel any better, but it's certainly one thing I learned as I had to create this business, was even if you're employed by someone - that direct deposit, it feels certain but it's not certain.

Karen Swim, APR (08:55):

Absolutely. We live with uncertainty without even acknowledging it because there are certain risks that we've just accepted as normal, so we don't see them as a risk. But, you know, we want to give you, and we're not financial advisors. You need to talk to your financial advisors. .

So this is not, you know, I think we're supposed to disclose that or, you know, make that clear so that we don't get in trouble. We're not financial advisors, but we're business people that are sharing some strategies. So here are some immediate things that you can do as you're doing your pulse checks with your clients. Do not be afraid to ask, “Hey, we're in a really crazy, chaotic time economically. How are you feeling about that? And what strategies are you all doing to make sure that you can weather this?” Think about how you can help them to hit their goals. Because again, you want to be a problem solver. And so avoiding the conversation can mean that you get hit with surprises later on. Addressing this with your clients brings things to the forefront. And if they're thinking about cutting back, you can help them. You can guide them.

Michelle Kane (10:13):

There's something important you said in that, and since the pandemic, it's likely that you're kind of in this mode because hopefully you've been counseling your clients through this. Because, that was a major drop off of “Oh my gosh, we're all paralyzed.” And okay, well how did you guide them through that? You should have hopefully kept that conversation going, of “How are things? How can we better address, how can we change our tactics? Do we need to pivot in any direction?” So please don't, don't think, oh my gosh, I have to have a big conversation.

Karen Swim, APR (10:52):

Yeah. It's not a, it's a big - I'm a female, so I'm using the term girl. I identify as girl - it's a big girl conversation that you, we all should be having, right? You need to have these conversations. Sometimes we shy away from talking about money with our clients, and sometimes we're afraid to have the big conversations because we're afraid of the answers. But let me tell you something, it is so much better to be empowered with information. So these conversations can yield clues about the certainty of your contract. And those are things that you want to address early on. Another tip is if a client says, “Well, you know, we're thinking about, or we're planning on bringing PR in-house…” Respond with, “That's great, client! That's fantastic. We've seen the best results when there are resources internally that can focus on these things with the support of an agency to do that. What were you thinking in terms of how that would look?” Guide them, make some suggestions? A lot of times I've seen people be in the situation and simply throw down the flag and go into, you know, they’re outlaws. So their mind immediately is like, okay, well we have three months. We have 60 days, we have 30 days, and then they're looking for more business. But you didn't even try to pivot this conversation and influence it by holding onto at least some of the business. Your budget may get cut, but wouldn't you rather have a budget that's cut where you stood up for yourself and maybe your scope for doing the same work? Your budget is cut because the scope is lower, is a lot better than losing the entire revenue. And so again, it's all about these conversations that we have to get comfortable having and not just be so quick to react. So if you're already thinking about these things and addressing them proactively, then you're not in reactionary mode where you're like - and, let me tell you, it is not fun to lose a client even when it has nothing to do with your work. They're not unhappy. It's painful. There's a little bit of like, you know, you're,

Michelle Kane (13:18):

Oh, of course there is.

Karen Swim, APR (13:19):

You need to mourn a little bit. Yeah. So we want you to not ever be in that position. Yeah. But to always be operating from a place of strength because you're prepared.

Michelle Kane (13:29):

And, I think by having that conversation, if a client's considering going completely in house, even by reminding them of the value that you bring, that knowledge will stay with them and you'll still be maintaining that relationship because I would say nine times out of 10, they will find they need you to some extent. Yeah. ideally, but, it is like a mourning because business is relationship nowhere more than in our profession. Because you become a member of their team, you become your client's champion, so that's something to both value and it doesn't feel so great when it ends.

Karen Swim, APR (14:19):

Yeah. It doesn't, even for the best of reasons and let's face it, we have had many of us over the years, maybe some of you recently have had clients to cancel your contract and make up reasons that they did so because they're uncomfortable saying it's a financial issue. But we know it is. We know the signs are always there. And this is the thing that I say to people about layoffs. They really don't come out of nowhere. You just have to know how to look for those bread crumbs and spot them. And here's the funniest thing. We see the breadcrumbs, we ignore them because it's easier to just not look at them.

Michelle Kane (15:03):

Reality.

Karen Swim, APR (15:04):

Yes. I don't want to know. I don't want to know. I'm going to work today. We do that with clients too. We see the signs. We're smart, we see them. But we'd rather not pay attention to them because we don't want to deal with it. And that's human nature. But you've got to fight against that. And look at it so that you are not caught off guard.

Michelle Kane (15:28):

Right. And it also brings us back to the drumbeat of always, always, always be in business development mode. Always. And you know, it's funny, people ask me, does belonging to this, did it ever get your business? And you know, okay, first of all, I don't usually lead that way because that's too transactional to me. But, it could be a super slow burn. It could take 10 years, but eventually you get to know the right people and the timing is right. So when we say always be in business development mode, it doesn't mean you're, you know, in…what's the word I'm looking for?

Karen Swim, APR (16:12):

That you're closing a client every like 10 days, but

Michelle Kane (16:16):

Right, right. And you're not like, like scattered like, oh my gosh!

Karen Swim, APR (16:18):

This means that you need to always have a full pipeline.

Michelle Kane (16:21):

Yeah. Yeah.

Karen Swim, APR (16:22):

Many years ago, my then and now client, MBO Partners just imparted such wisdom on that by encouraging solo business owners to have a full pipeline because a full pipeline meant that you had choice.

Michelle Kane (16:40):

Oh, I love that.

 

Karen Swim, APR (16:41):

You started your business because you wanted choice. You wanted freedom. You wanted the freedom to choose how you work, who you work with. The way that you protect that freedom is by ensuring that your pipeline is always full. You should never, ever, ever put yourself in a position where a loss puts you in frenzy mode. Like, oh my God, now you're rushing around and you're checking LinkedIn and you're doing all these things. If you do a little every day, and if you're always keeping yourself open for clients, if you're always checking in with your network, if you're always marketing your services, then you should have people in various stages of your pipeline all the time. And to your point, Michelle, one of my most favorite past clients is somebody that it took a year. One year. And here's the funny thing, three companies later

Michelle Kane (17:37):

,

Karen Swim, APR (17:38):

Three companies later to land an account. But you want to know what? Not only was that an amazing account, but after they were acquired, they have been - and not just one person from that company, all the entire team that we work with, all the executives have been a continual source of referrals for us.

Michelle Kane (17:57):

See?

Karen Swim, APR (17:58):

Unprompted just, they are the most beautiful client ever. So don't be afraid of spending time to cultivate relationship over a period of time. Because as you said, sometimes it takes a while.

Michelle Kane (18:11):

Oh yeah.

Karen Swim, APR (18:12):

But that doesn't mean it's over.

Michelle Kane (18:14):

No, no. And there is a beauty in what you just said too. You may think, “Ooh, if I could just work with that person or that company.” Sometimes it's who they know. So take the time to get to know people, even if it's justto touch base or congratulate them on something all the way up to, you know, Hey, let's grab a cup of coffee sometime, I'd love to learn more about what you're into. That definitely helps. So all these little touch points, and I know it can feel overwhelming. Trust. Some days I sit here and I'm like, oh my gosh, .

Karen Swim, APR (18:56):

Here’s where social media can also be a beautiful thing. I don't believe that posting on LinkedIn doesn't have a return. It does. Even if you don't do it a lot, I'm not a big LinkedIn person, but I just had an opportunity come up because of posts that I put on LinkedIn. When I felt like posting, I just did. I am the worst social media person ever. I'm just going to admit that I'm horrible because it just, I don't like it anymore. .

Michelle Kane (19:33):

Well, I think a lot of us feel that way. It's work. And I realize, when I look at my accounts personally, I don't post that much because ugh, I do it all day.

Karen Swim, APR (19:46):

It’s just not fun.

Michelle Kane (19:54):

Well, we all go through phases, right? But then there's other ways that you cultivate your relationships.

Karen Swim, APR (19:59):

This doesn't mean that you have to, like, I'm not a fan of wasted time. I am not that girl. I'm not the girl who's going to do a whole bunch of in-person coffee dates. I'm not the person who's going to go to every networking meeting. I'm not doing that. That's just not my personality, not my style, doesn't line up with how I manage my time. However, there are things that you can do that may seem a little more passive, but that actually can produce, and that is putting content out there. Writing bylined articles for your target audience. I cannot say this enough. PR people, we love to write for PR publications. Stretch yourself and write for where your clients read.

Michelle Kane (20:40):

Yeah. So true. So true. Be the answer to the problem your clients have.

Karen Swim, APR (20:50):

Yes.

Michelle Kane (20:50):

Be there, be that resource already. And when they are ready to take action, you hopefully will be top of mind because you've positioned yourself to be top of mind.

Karen Swim, APR (21:03):

Yeah. If you're going to talk PR, don't make an inside baseball.

Michelle Kane (21:07):

Right.

Karen Swim, APR (21:08):

Nothing wrong with that, by the way, if PR people are your target audience. And by the way, it's good to talk about these issues with other PR people, but in terms of your marketing, you want to be mindful that you are talking PR to your target audience. Who do you have as a client? Can you talk PR in their language? Can you tell them things that they may not know that will be helpful to them? Because people really do pay attention. And I know that we all think that we're this one little person and the big old sea of all of this information and all of these articles and all of these reels and videos and YouTube channels and podcasts. But you still matter. You do. And what you have to say has value, and it doesn't have to be so mind-blowingly different.

Don’t put these obstacles in front of you. You're, and I know some of you are sitting there like, well, everybody talks about that. And are people listening to everybody? Somebody's listening to everybody.

Michelle Kane (22:11):

. Yeah.

Karen Swim, APR (22:12):

We don't need everybody to listen to you. You just need to say it in a way that resonates with a few people.

Michelle Kane (22:18):

Right. And those are the people that are going to want to work with you.

Karen Swim, APR (22:23):

Because you said it in a way that resonated with them. I don't know where we get this idea that only one person can do something. You know, how many brands of toilet paper are there when you go to the grocery store?

Michelle Kane (22:35):

Right.

Karen Swim, APR (22:36):

We're all there for a reason.

Michelle Kane (22:40):

This is true. Or even, why does anyone write songs anymore? If there are only so many notes in a scale? We could do this all day. We could, but, at the end of it, be strategic. And we said this before on here, treat yourself as a client, hire yourself.

Karen Swim, APR (22:58):

Love it.

Michelle Kane (22:59):

And I think you will, we know you're smart, we know you're savvy. We know you can weather anything because hey, we're all still here. We've been through things and we're still here. So if anything, take that with you and we hope we've inspired you today. If we have, please subscribe so you don't miss a thing. Share it around with your friends and colleagues. I mean, there's content you can share. That was, that was pretty shameless, wasn't it? But that's okay. ,

Karen Swim, APR (23:26):

When we share this and we love to hear from you. So add your thoughts to it, say “They talked about this, here's my advice.” Disagree with us, because that'll be awesome. We learn from that too. But the key point is please share our stuff,

Michelle Kane (23:45):

In case we weren't subtle enough. But, well, we thank you for spending this time with us. We know everyone's time is so valuable these days. And until next time, thanks for listening to That Solo Life.