Get a hold on creep

Dear jay,

One of my clients is driving me nuts by continually asking for changes or alterations to her jobs. She doesn’t seem to comprehend that these modifications take time and are beyond the original brief. Worst of all, she thinks that she shouldn’t be charged extra. Help!

We refer to this issue as ’scope creep’ and the key to handling creep starts with a good upfront and dynamic documentation, and continues by managing the project efficiently and effectively. As the project manager, you have to lead your client through your process, eliciting their commitment at each stage.

Not being an advocate of the “scope creep is absolutely unacceptable” paradigm, I hold the view that scope creep should be expected and processes put in place to handle it. Of course, it is wonderful when a project goes exactly as planned but the larger the project, the more likely you will have to deal with creep even if in only a minor capacity.

Detailed Design Brief

A design brief from your client is vital. If they do not have one, then include the production of one as the first step in your proposal. Getting your client’s views in writing documents their expectations and direction; A valuable tool when the project looks like going off the rails. Check out our Proposal and Creative Brief Resources for further reading, including Stacy King’s Using the Creative Brief at HowDesign.com.

Detailed Proposal

We will save putting together a brilliant proposal for a later time but you can get started with Crafting the perfect proposal by Neil Tortorella over at Creative Latitude and Roger C. Parker’s Write better proposals.

A detailed proposal tells the client exactly what they are getting for their money. It will include your process where you give a clear plan for each phase or major milestone (and minor if necessary), listing for each:

• client input expected including assets and decisions,
• the scope to be covered in detail,
• what is not included, if known,
• the time required,
• the deliverables, and
• the payment required.

As an example, you may need content in electronic format but not included data entry and/or proofreading in your budget. The detailed scope may include the X number of scans and images and Y number of pages.

Out of Scope Process

Include your process for handling out of scope requests, but be prepared to make compromises. An arrangement that suits both you and your client is more likely to be adhered to when it comes to the crunch. Requests for major changes, for example, may mean a halt to the current project while a new proposal is prepared, or they could be assigned to a follow up project.

Inexperienced clients often are unaware of the consequences of what they perceive to be a ‘minor’ change. By discussing this prospect upfront, they have the background to accept your assessment later in the project and can then decide whether to go ahead, defer or cancel the request.

A Change Order should be among your collection of documents and used for every change request whether major or minor. Get it signed by the client! Documenting changes not only saves invoice disputes but also allows you to build a record for future estimating.

Give the consequences of delays in time and cost, clearly and precisely. This especially important, if delays will affect other projects on your schedule. If necessary, you could include a statement to the effect that nonadherance to the timetable will result in the project being downgraded in priority or put on hold.

Make sure you highlight your ‘out of scope’ rate(s) and how it will be applied. Include examples: extra image scans may be a set cost, while extra pages may be charged by the time necessary to produce them.

Project Management

Document each task, how long each takes, where problems arise and how they were resolved. Even though the client is unlikely to see this accumulation, it is an invaluable assistant to fine tuning future proposals and anticipating possible problem areas.

As each phase is completed get the client’s signoff; Include the agreed scope as well as any extra tasks involved listing the relevant Change Orders. Invoice the cost of the changes straight away along with the progressive payment for the next phase. You do get progressive payments, don’t you? Again, include the Change Order numbers or other identification on the invoice, so there is no confusion in your client’s finance department.

Busy clients may forget that a change requested during Phase 1, resulted in an extra charge in Phase 3, so review the next phases to ensure the consequences of any past changes have been recorded and give the client an updated phase plan, if necessary.

Good documentation can help solve client problems. You project a professional image and it gives you the basis to communicate your policies and procedures to your client. A frank discussion is all that is needed to get the money into your bank.

Good luck!

Until the next
Ask jay

You too can Ask jay!

Four steps to a client contact policy

Dear jay,

I find myself in an awkward situation. One of my very good clients quit her job and has decided to go in to business for herself as a marketing representative.

She was a great client and we worked well together but the problem now is, she considers me a professional brain-picking source. She calls to ask how to set files up for press, to find out who the best printer is for a job, etc, etc.

I have told her repeatedly that I am not in the business of training competitors, nor a free ride. We had a big discussion about it. Two weeks went by, but now she’s back at it. I am really sick of it, but what can I do?

It does not matter what kind of consultancy/freelancing you do, you are likely to have to deal with this problem in one form or another. IT get callers asking how to clean up a virus, photographers are queried regarding light settings, etc. While a certain amount of free advice can always be regarded as good client relations, it is very easy for a drop to become a raging torrent!

1. Start from the beginning

Decide how much up-front consultation time you are willing to give a client or prospective client, taking into consideration what will work for both you and your clients. For example, you may decide that a set number of free hours or one free meeting is all you are willing to give and everything else has to be compensated.

2. When to give the green light

Decide if and under what conditions you will not charge a client. You might decide that having a five minute chat with a client now and then is good marketing strategy, but have a prepared phrase or approach to enter into a conversation that clearly signals the client when your clock starts ticking. A response such as “As a quick estimate, the answer to that question will take about (enter number) hour/s to put together for you. I can send it off (date/time) and charge you my usual hourly consulting fee, or would you like a more detailed estimate?” highlights your worth and puts the onus back on the client.

3. Get the cash

Decide how you are going to bill your clients for your advice. This goes along with the adage: A client will not respect your time if you do let them know what it is worth.

For projects, you could add in a number of hours into each proposal, calling it ‘Project Management’, ‘Client Liaison’ or ‘Consultancy’. On each invoice, highlight the number of included hours used and those remaining. Don’t forget to add your rate for time in excess of those included in the proposal. If your first meeting is free, add a line to your first invoice ‘Initial Project Discussion’ or similar wording and mark it ‘Free’ or ‘No charge’.

For times outside a project, you may decide to invoice monthly. I find this much more economical of my time than invoicing each 15 minute or half an hour job/telephone call. Keep a record of your client contact and the subject discussed or the job performed, and list each in your invoice.

4. Get the word out

Make sure new clients are absolutely clear about your client contact policy at the beginning of your relationship, by including a copy in your project proposal.

To put a positive spin to your current clients, announce it as a ‘new consultancy service in response to client demand’.

Until the next
Ask jay

You too can Ask jay!

Dear jay,

I started working with my first client last year, and I have been so overwhelmed with projects they have given me, that whatever little record keeping I was doing, started sliding very quickly. I’ve got to the point where I’m depending on my client’s bookkeeper to alert me about outstanding invoices. Just last week, I got an overdue bill from a printer I have not paid as well. Then the next day, my client tells me I have double-billed them, and I’ve already spent the money!

Help! How do I get control of my finances?

Well, well, well … we are in a fine pickle aren’t we? As a designer you no doubt have all your design practices in place: Job bags/cards, backups , etc. As a business owner you also must have your administration processes in order, or as you have found, things get very messy, very easily.

1. Consult your accountant

No matter what country you live in, you must be able to explain your business transactions to your tax man. You’re required to keep records relating to income, expenditure and taxes. Being a sole trader will mean you have different obligations, than if you are a partnership, LLC or Pty Ltd company. Your accountant will advise on what records you need to keep as well as any other legal obligations you may have. Using accountants as book keepers, however, can be very costly for you and frankly, a waste of their time. So hand over organised records, not a shoebox!

2. Set up your procedure

Sit down with a pencil and paper and think about all the interactions you have with a client and other bodies that might generate a financial transaction: Invoicing and receiving payments from a client, recording bills and making payments for other services and transactions.

Are you going to bill clients monthly and/or ad hoc? How are you going to accept payments? How often are you going to visit the bank to deposit cheques? How often do you have to pay utilities? How are you going to pay them?

How do invoices relate to your job ticketing system? Is the invoice number going to be same as the job number? If it is, how do you identify part payments (eg deposits)?

Make a list of each of your weekly and monthly tasks and how long you think you will need to perform each one. Make sure you allow yourself time to complete each task, so that you are only dealing with paperwork once. For example, if you receive a client’s payment, you need to go get your copy of the invoice, enter the payment into your recording system, and file your invoice away: Not just scribble something on an envelope and chuck it in a drawer.

Make sure you set up a schedule that you know you can maintain. The aim here is to develop good habits while you are not too busy designing, so that once you are, you have a system in place. Consider hiring the services of a bookkeeper for a couple of hours to help you set up: Ask your accountant for a recommendation.

3. Get a diary

Now you know what you are going to do and when, set up your diary to record appointments, payment dates, document lodgement dates, etc. Backtrack and add reminders if there is work that you have to do to prior to any of your dates. Don’t forget to add in your personal appointments!

Whether it is a soft cover bound book or a PDA, you will need to take it with you everywhere, so get something portable.

Before giving a client a timetable for a project, look at your diary and make sure you are also taking into account your administration schedule. Clients will not be offended if you tell them that you will not be able to start on their project till a given date and time. You do not have to tell them that you have to do your banking!

4. Choose your system

Now that you have your schedule worked out, you can decide on your recording system. If you only need to calculate and lodge a tax return once a year, then you will probably find a simple cash transaction system will suit you just fine.

You could use a cash book with pages marked out for income and expenditure, an Excel worksheet or simple software like MS Money or Quicken. Make it as simple as possible, but make sure you are recording all the information about each transaction that your accountant has advised.

As your business grows, you may need more extensive software, such as QuickBooks or MYOB. These will also be appropriate if you find you want to track your receivables (money owed to you), payables (money you owe) or projected cash flows.

If you find that you really cannot (or do not want to) keep up, then consider hiring a book keeper. If you already have a system in place, they will find their job quicker and easier and therefore, less costly for you. Depending on the number of your transactions, you may only have to hire them for a few hours a month.

5. Visit your bank

Make an appointment to talk to an Accounts Manager at your bank regarding the kinds of accounts and services they offer to small businesses. Do not forget to ask about online and automatic banking systems. These can be real time savers and usually worth the small charges.

6. Keep an eye on changes

As a business owner, you need to stay abreast of changes in business laws and regulations: Ignorance is rarely accepted as an excuse. You do not have to become an expert or read all the business journals available at your book store. It could be as simple as glancing through the headlines of your local paper’s business section once a week or setting up a feed to their online version.

If you have any real concerns about an effect on your business, do not be afraid to contact your appropriate professional advisor.

7. Check out your tax man’s website

Believe it or not, you will find lots of helpful information in the small business section of your tax man’s website: Some examples USA: IRS, UK: IR or AUS: ATO. Great time savers are online lodgement and payment services: Your tax man should have a range of options from which to choose. Don’t forget to also check out the Money Matters sections in our Resources under M - N.

Good luck!

Until the next
Ask jay

You too can Ask jay!

In the first half of Taking it Personally, we talked about the ten traits of successful business owners. Now, that’s all well and good, but does everyone start out successful? Or do they learn how to work with that they have? Below is how each of us got personal.

Stefan’s determined

For me a lot of what makes who I am suitable for running this business is guts. I am always willing to go out on a limb and take a risk in order to achieve success. But I also try to find opportunities and exploit them. I like to think big, too. I’m not willing to look at our business and say “we’re only suited for small markets, or we aren’t capable of getting the really prime clients.” I say, if we produce the best work possible, deliver on our promises and continue to get better all around, then we can get any job we want. Complacency does not fit into our business plan. However, I would say that despite being willing to take business risks, I’m quite a shy person when it comes to one on ones or group events. But I have had to force myself into uncomfortable situations in order to do what’s right for this business. If that means going on tv and doing an interview or speaking to a group or class on good design/business practices, I’ll do it simply for the exposure.

Stefan Bean | President/Creative Director
Pulse Creative Partners, Inc. | BoDo Author | Bean’s Biz

Leslie’s been practicing

If you are going to run your own business, you had better like people, or at least play well with others. It has been my experience that loners struggle more with their creative businesses than do friendly, gregarious folks. We have to work with people, even if most of our work is done alone at our computers.

In my case, I actually have a very deep sense of personal shyness, but no one who has met me professionally or seen me at one of my lectures (or read my writings, etc.) would ever think for a second that I’m shy. Like many actors, I can get up in front of a group of strangers and do almost anything, but inside, I’m just as terrified as anyone. So, if you find it hard to talk to strangers, I suggest working on getting past that (coaching, Toastmasters, therapy).

It’s also a good idea to be organized. That doesn’t necessarily mean organized like “normal” folk–creatives are often ADDers and they need to find their own best system. Timers, PDAs, notebooks…there are all sorts of tools to try and combinations to work out. Find the right one for you and your way of thinking.

Leslie Burns-Dell’Acqua | Creative/Marketing Consultant & Coach
Burns Auto Parts–Consultants | Burns Auto Parts blog | Podcast | Book

Neil’s backpacking

I’m something of an introvert and office environments don’t really suit me. Being an introvert … and card-carryin’ hermit … doesn’t mean I’m shy. It simply means I need my own space and time alone.

In the old days, I was married to my business partner and she was, and still is, the consummate extrovert and dynamic sales person. She ran interference for me. When I found myself single, I needed to make some adjustments. I had to learn how to do the “people thing.” So, I found the most extroverted person I could and did what he did. It worked.

Although I’m still an introvert at heart, I have no problem at all with public speaking – a task that rates higher than death on the “stressful things to do” list. Actually, I rather enjoy it. I’m also the guy who starts up the conversation at a “dead table” during a club lunch or other event. I’m comfortable with it now, but it’s a learned characteristic. If I can learn it, you can learn it too.

Introvert or extrovert, to my thinking, I’m responsible for my own success … or failure. Being on my own makes me the captain of my ship and I steer the course. I decide who I’ll work with and who I won’t. Sometimes that works to my advantage, other times I end up shooting myself in the foot. But, either way, it’s a result of my choices and I need to do those things that will help insure my success.

Neil (nt) Tortorella | Marketing Manager
Tortorella Design | The Marketing Mind | Creative Latitude | BoDo Team | Marketing Minute

Alina’s evolving

I am an in-house designer and always worked in-house except for a few months when circumstances left me on my own. Because I was a single mom, I didn’t have the resources (or experience at that time) to go it alone. I wanted and depended on a steady income with health insurance, sick leave and other benefits. I liked knowing where I would be each day, and I liked the interaction with others and feeling like part of a team. When I was younger, I was more introverted, so it was difficult for me to market myself.

It’s interesting… as I become more experienced and less introverted, I am finding it more and more difficult to be in a corporate setting, perhaps because although I did work in-house, most of my supervisors allowed me to work independently, which worked very well.

Alina Hagen | Visual Communication Designer
Alina Design | Creative Latitude | BoDo Author | Alina’s In-sights

Danita has no regrets

Most of my career has been in-house for different corporations. For me at the time working in-house was more of a security issue while raising my family. It was nice to get a steady paycheck + benefits with no worries. Throughout the years I have taken on independent work on the side as well. Recently I gave notice for half-time at my current position so I can concentrate on starting my own design business.

I’m a go-getter and leader. I’m a solution maker and work hard to keep everything and everyone on track. Most people would be surprised to know that I was never like this. I had been shy for years. One day I asked myself “Why am I so afraid to take chances? What would I have to lose if I took a chance?” I realized then that I didn’t have anything to lose and if I didn’t take a chance now I would regret it later in life. I also realized that I had everything to gain from trying. I figured that whatever I decided to do didn’t work out then no harm done, right? It wasn’t easy in the beginning but not before long I was more confident of myself and my capabilities that it became natural to take on bigger responsibilities.

Because of my nothing-to-lose attitude I’ve become Sr. Graphic Designer for corporations, started and host a once a month meet-up for designers in my area, am on a local college graphic design advisory board, am a major contributor and a committee member for NO!SPEC, have judged design competitions, and now starting my own business.

It really is true, if you make the effort you will reap the rewards.

Danita Reynolds | Principle/Creative Director
Creative Expertise | NO!SPEC

Jay bites

I have an obsessive personality that is well suited to running my own business and managing my own time. When I sink my teeth into a project, I am totally absorbed, whether it is a job for a client or learning something interesting. ‘Office Hours’ are non-existent and it’s not unusual to work into the early hours of the morning. In my own business I do not need to engage in office politics, gossip, clock watching or other employee requisites.

I’m certainly not anti-social, but I can’t stand working with people standing over me, behind my back, watching me work. Or worse, watching me think. I love the freedom and control that I have by being in my own business.

Jeanette (jay) Wickham | Systems Manager
FastCoconut.com | NO!SPEC | BoDo Team | Ask jay

Cat’s bossy and barks

There’s no doubt that I have a bossy, take charge personality. I love to organise; I hate taking unnecessary orders. I thrive on being a group all working together (like NO!SPEC and Creative Latitude), but I also find it easy to work independently of others. I enjoy making the tough decisions, saying THIS is what we need to do, not THAT. And we need it NOW. Or not.

Back when I had an office to go to, I chose to stay away from office politics. I worked away in the quiet, at home. Yes, I do enjoy flesh and blood people, with their warmth and different personalities. But I find I can get more done working physically on my own.

And from my days working corporate, I discovered I don’t have the personality that easily wakes up by alarm clock, gets foofed with eyes still partially shut, eats breakfast on the run, then the dashes out the door to sit in traffic, arriving ready to work. I’m happier forgoing the stress by working in pj’s with a pot of tea at my elbow and a cat nuzzling my powerbook. Do I miss working with others? Sure. But design friends such Alina, Betta, Dawn, Jay, Nt and others are just a Skype away. And sometimes Jay is right here.

Catherine (cat) Morley | Project Manager
Creative Latitude | NO!SPEC | Katz-i | FastCoconut.com | BoDo team

The next post, Clients, Oh My!, gets serious with clients. Mine. Yours. Future. Past.

Until then,
The BoDo Team
cat - nt - jay

Welcome to BoDo:
The Business of Design online launch

Introducing Ask jay

Ask jay is the Dear Abby of business.

BoDo’s own Jeanette (jay) Wickham will give advice on hard core business issues like, ‘What the heck is a general ledger and balance sheet?’ and ‘How do I confront a thunder stealing client?’ and ‘How do I get control of my finances?’

Juggling client projects, BoDo and handling the technical bits on NO!SPEC, Jay is a tireless superwoman (well, ok, it does take multi-injections of cappuccino frappes and coke lights before she wakes). Although it hasn’t been confirmed, there’s talk that she’s planning to have her keyboard surgically attached. Her broad experience in IT, design and business administration is the critical shot in the arm to keep BoDo running smooth. We owe her a debt of gratitude. Without her vigorous work, BoDo would still be just an idea.

Go ahead, try her out. You can Ask jay.

The BoDo Team
cat - nt –> jay