This is the last of a six-part series of articles from two ELT professionals who have successfully done just that: Mike Hogan and Bethany Cagnol. Here, they give advice on how to manage the ups and downs of running your own business.
In the previous articles in this series, we gave advice on setting up your own freelance training business. In this final article we discuss how to manage some positive and negative challenges that may come up as you are running your business. No business comes without its challenges, and it’s vital when starting out to be aware of what’s ahead and to have a rough plan for handling the bumps along the way.
Adding to the team
As demand for your services grows, you might find yourself with a fully booked schedule and a phone that keeps ringing. This is great, and you may soon need to bring on more trainers to fulfil the needs of your clients and to alleviate some pressure from your own schedule.
The laws associated with subcontracting trainers in your country may be pretty straightforward and easy to set up. Nevertheless, you should look into these laws and check with an accountant before you actually engage anyone.
When looking for trainers, it can be a good idea to use the same tactic as for finding your clients: word of mouth. You may already know some good trainers in the network who would be interested in cooperation. If so, get their CVs or profiles (ideally in the language of the client so they can be easily sent on to your clients, if requested) and find out what sort of hourly rate they’d be happy with.
From there, you’ll need to add on a certain amount to cover government charges, business expenses, your time spent doing admin, contracts, quality control, any testing, etc. Always draw up a contract with the trainer, which should include details of the number of hours, the hourly rate, payment conditions, any cancellation policies, and a clause protecting the relationship between you and your client. It should also be noted that not only is it poor business practice to (attempt to) steal clients, but it is illegal in many countries.
As you work with more and more trainers, concentrate on hiring those with specific and marketable talents. Those with sector relevant backgrounds, such as legal or technical, or those with skills specific experience, such as negotiations or presentation skills will be good additions to your team. Consider also hiring someone who can respond to a call for bids and who writes very well in the local language. Seek out trainers who have the people skills to meet with HR managers and build rapport on your behalf. After all, your new team will be working together to maintain the quality of your “brand”.
How to deal with challenging clients
At some point, you may have a challenging client who requires more time (e.g. additional administration, testing, follow-up meetings with HR, frequent quality control, difficult trainees, etc.). Perhaps you’re helping them set up their training programmes, or maybe they’ve had bad experiences in the past and want to keep in extra close contact to ensure maximum ROI. You should be aware of the time investment necessary for each client, and budget your time and costs accordingly. Having a range of service models will make this easier and more transparent for everyone. Of course, don’t underestimate the goodwill to be generated by going the extra mile.
The extra time you spend on that one client could eventually pay off with additional participants, top management signing on, or other company referrals.
How to deal with clients leaving
Almost every freelancer will lose a client at some point in their career. This may be something beyond your control, but you should still reflect on why this is. Obligatory calls for tender, budget cuts and changing priorities can all result in your loss of contracts. In any case, you should get feedback from them as to why they don’t want to (or can’t) continue the relationship. Any feedback you can get should be seen as developmental and necessary for your future growth. In the unfortunate event that the company is forced to close and lay off all of their employees, you should stay in touch with your trainees: they could refer you to their new HR manager when they move on to other companies.
Get in touch
Whichever way your business grows and develops, your chances of success will be much better if you are organised, focused, and prepared for a range of eventualities, both positive and negative.
We hope you’ve enjoyed and benefitted from this series of articles and would love to hear your feedback. We look forward to connecting with you either on LinkedIn or our about.me pages.
This article first appeared in the April 2014 edition of the Teaching Adults Newsletter – a round-up of news, interviews and resources specifically for teachers of adults. If you teach adults, subscribe to the Teaching Adults Newsletter now.
© Mike Hogan and Bethany Cagnol, 2014. Unauthorized use and/or duplication of this material without express and written permission from this blog’s author and/or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to the authors with appropriate and specific direction to the original content.