Local Entrepreneur Spotlight: An Interview with Dave Baldwin of Baldwin Management Consultants

Baldwin Management ConsultantsCourtney recently sat down with Dave Baldwin, of Baldwin Management Consultants, in Raleigh. From his website: "Dave Baldwin is an experienced marketer and self-taught entrepreneur who first went into business for himself in 2007 after ten years in the technical field, spurred on by a desire to help introverted entrepreneurs succeed in business. Dave has worked with clients in a variety of different industries."


 

Courtney: I can't start without asking about "Let's Not Have Coffee". Why do you think that piece has become so popular so quickly?

 

Dave: From what people have told me, it struck a nerve with a number of folks. Anyone who has ever sat down and had coffee with someone and felt like they wasted time can understand that. At some time or another, we've all been there: sitting in a meeting and wondering, "Why am I here?" Also, some folks who are new to networking groups tend to copy what everyone else is doing. I often run into people who say they want to "have coffee" without giving any thought to what they want to talk about, what the purpose of the meeting is, or the expected outcome or next steps. Time is not free, but people act as if they had endless amounts of it to spend. Entrepreneurs can network their way to the poor house if they're not careful about this.

 

Courtney: I agree completely.  Unproductive meetings are an incredible time-suck for business owners. Moving on to what you do in your business...The word "consultant" can mean a lot of things nowadays. Can you describe what you do in 10 words or less?

 

Dave: I help people start businesses and grow businesses.

 

Courtney: Okay, and if you're allowed more than ten words?

 

Dave: My vision is making entrepreneurship accessible to people who classically have not had access to it for a variety of reasons. For instance, women have told me they feel they are not taken seriously by men in networking groups. Ethnic minorities have expressed frustration about how they are treated. I personally found that being an introvert worked against me back in 2007, because if you aren't talking a lot and shaking every hand in the room, people will perceive that as a lack of self-confidence.

 

Courtney: Business ethics and social consciousness come up a lot in your talks and writings. Is there any particular life experience that drives that?

 

Dave: If there's any experience that really ties this all together, it was the experience of going through my early life feeling like a second-class citizen. Starting from going to school as a child, through my adult career life, feeling like I was passed over for promotions because I didn't know how to ask for what I wanted. I didn't know how to use effective body language, how to project the right tone of voice, or how to communicate effectively. I found that people who knew how to say the right thing in the right way to the right person at the right time were more likely to move ahead, even if they were the least qualified for the actual job. I wanted to create tools to help the quiet people with rich undiscovered talent, which is what led me down this path.

 

Courtney: Do your customers face those same "pain points"?

 

Dave: There are two types of businesses I like to work with.

 

I love to work with established businesses in growth mode with a small handful of employees, when they're expanding the size of their teams. Any business that's hiring has the same pain points. They have trouble retaining employees because there's not an effective system in place. They don't delegate effectively and they rely on verbal instructions instead of writing. The business owner forgets what they told an employee to do, or the employee doesn't understand what they are supposed to do. Business owners tend to overestimate their employees' ability to self-manage. Sometimes it may be a matter of weeks or months until the disconnect is identified and the business owner realizes that things are not getting done. By that point, the situation is usually well out of hand.

 

In a start-up business, the biggest problem I see is confusion resulting from not knowing how to start or run a business. What tends to happen (especially with someone just leaving a 9-5), they are used to having the structure laid out for them and being told what to do each day. The tendency is to lose focus and say yes to too many things instead of focusing on revenue-generating activies. Startup entrepreneurs often don't know how to build a foundation for success, and so they set themselves up for failure. It is highly rewarding to help people put the right systems in place from the outset and avoid the hard and expensive path filled with unnecessary struggles.

 

What can affect both groups equally is health problems. When someone gets sick, they realize how much of the business depends solely on the efforts of one person. Many businesses go out of business or take an unrecoverable hit when the owner is knocked out of commission. Many business owners can't take a real vacation, because they have to stay glued to their phones and laptops the whole time. A good system is one that allows the owner to unplug without any disruption of revenue streams. A system also makes succession planning and exit planning much more manageable.

 

Courtney: What can you, as a consultant, offer that other consultants can't?

 

Dave: I think the most unique thing I bring to the table is my mix of professional skills. I spent my first ten years as an electronics technician and computer programmer, and my next ten years in the consulting arena, and the lion's share of my work was initially in marketing copywriting. This gives me a unique perspective for pulling apart business problems and developing solutions that other people might not think of.

 

When you write computer code, it forces your brain to rewire itself and think in terms of one simple instruction at a time. Computers are dumb machines. They will do exactly what you tell them to do, for better or for worse. As a programmer, I had to learn to break problems down into small pieces and write out the solutions as algorithms, one simple instruction at a time. I use that same basic approach when setting up processes and procedures for small businesses. I develop an algorithm for solving each business problem.

 

My other skill set is marketing copywriting, which is mostly a matter of speaking the customer's language. That's not easy, but I've developed some simple methods for uncovering what's important to customers. It starts with asking the right questions, and I've been told I have a gift for that. Being a consultant is not about telling someone what to do. It's about helping a client create a solution that they feel good about. Most people already have most of the knowledge they need to solve their own problems, but they just haven't looked at their situation from the right vantage point. A good marketing message should help them see things in a new way.

 


In addition to being an established local entrepreneur, Dave is one of the breakout speakers at the upcoming Triangle Small Business Summit, sponsored by Affordable Promos and The Bookkeeper. Dave will be speaking on Using Technology and Automation to Grow Your Small Business.


Managing Accounts Receivable: Because sales are meaningless when clients don't pay you.

In order to stay competitive, many business owners find it necessary to extend credit to customers.  However, if you offer later payment options, it is crucial that you have a well-developed and communicated accounts receivable system.

Here we have listed a few elements of a successful A/R management plan, and how to implement them in your business.

​​Communication.  It's said to be the key to a good relationship, and that can apply to ​business relationships as well as personal ones.  Communicating well is key to managing receivables accounts.  Let's look at the who, what, when, and how, of A/R communications.

Who?  This seems obvious, enough...the customer, right?  But, in reality, it's not just the customer with whom you are communicating.  Assuming you're not a 1-person operation, you need to be in good communication with your employees or co-workers regarding what promises and agreements have been made with the customer.  If you contact a customer on Tuesday afternoon regarding a past due invoice, and they just told your partner that morning that the check is in the mail, your entire company looks disorganized and unprofessional.

What?  When alerting a customer to a past due payment, simply informing them of the amount owed is not the best option.  Providing a detailed statement, possibly with an itemized duplicate of the referenced invoice, is far more helpful.  Important information to include is the amount owed, days past due, what services were rendered, options for remitting payment, and contact information for questions regarding the account.

When?  Generally, you would expect to increase contact as balances get further past due.  A gentle reminder the day after the due date if payment has not yet been received is appropriate, with missives gradually becoming more frequent and insistent as the invoice gets to 15 days past due, 30 days past due, etc.  (However, it would be best to avoid multiple communications a day, as that could constitute harassment.)

How?  "The medium is the message".  For an account that is just barely overdue, a mailed or emailed statement (as described above) might be enough of a reminder.  If more time passes without payment or a response from the customer, a more direct phone call is in order.  This leads us to our next element of a successful accounts receivable management system...

Delegation.  To maintain a good working relationship with the customer, it is ideal if you can separate the less pleasant side of that relationship, collections, from the more positive side, which is the work and value you provide to the client.

Delineating separate avenues of communication between the service and payment sides of your business can help you achieve your A/R management goals without damaging the rapport you have built with your client.  Large companies have entire Accounts Receivable departments, but small businesses rarely have that option.

However, if you have more than one employee, someone other than the client's primary contact could act as the accounts receivable delegate.  If you're the sole employee, you can even do something as simple as set up a separate email.  (For instance, if your email is "[email protected]", you could set up an email called "[email protected]".)

The key is to avoid marring interactions with the customer which could lead to continued or future work by derailing the conversation into payment discussion.

Documentation.  Good documentation can prevent so many problems in every area of business, but especially in accounts receivable.  Before a single customer is invoiced, your A/R plan should be formulated and written down so everyone in your business knows exactly what the payment terms are, who is responsible for contacting customers, what to do in case of a dispute, etc.

Payment terms should be made clear to the customer before services are rendered, and should then be reiterated on the invoice.  If a balance does become overdue, remind customers of the payment terms, and document every communication with the customer regarding the overdue balance.  Reference previous conversations about the account in new discussions about them.  Established fact is far more effective in encouraging remittance than strong emotions or harsh words.

What should you do with a customer who isn't paying?

If the customer hasn't gone ghost on you (in other words, if they are still maintaining some form of contact with you), and would like to continue purchasing goods or services from you, do not cut them off.  Cutting them off completely is a great way to ensure that they will do no further business from you, and will not pay you the money already owed.

However, do not provide any further service on credit.  Request pre-payment for any further work you perform, then apply that payment to their outstanding balance.  This allows you to maintain a working relationship with the customer and recoup the money you are owed.


The "First-Date Effect": Are you treating new clients like a long-term relationship, or a one-night stand?

Business partnerships, like any other relationship, can be very exciting in the beginning. You meet someone new, and the two of you click. You're on the same page, you have the same vision...You just get one another. Contracts are signed, meetings are arranged and, for a while, the two of you work happily in sync.

Then, something happens. Maybe they're your financial planner, and they stop answering your emails in a timely manner. Or your IT services provider shows up to your office dressed a bit more casually than you're comfortable with. You ask your marketing representative whether you should re-design your logo or leave it as is and they respond with, "Oh, whatever you think is probably fine."

When you first met, you fell in love with their customer service. But now? The thrill is gone, baby.

You don't like being treated like a sure thing, so you know your customers don't either. Here are some ways you can keep the spark alive with your clients so you know they'll stay loyal to your business.

Stay in communication.

Let's say you go out to dinner on a romantic date. You have a nice time, and think the other person did, too. You call them the next day and leave a voicemail thanking them and asking if they'd like to go out again sometime.

Then you wait. And wait. Three days later, you just get a text reading, "sure sounds good".

You probably wouldn't be too impressed. You definitely would feel like they were not as invested in the relationship as you. It's the same way customers feel if you don't respond to communications from them in a timely and appropriate manner. Some general rules:

1.) Respond via an appropriate medium. In other words, unless specifically indicated in the voicemail, don't respond to a phone call with a text or email. If they consider an issue important enough to warrant a phone call, and you shoot back with a casual text or email, it implies that the problem isn't as important to you as it is to them.

2.) Be timely. Don't leave someone hanging, waiting for your response. Many business etiquette guides advise responding within 24 hours to all communications. Faster is even better. If you are trading emails with a client as the two of you collaborate on a project, don't just log off at 5:00 and drop them until the next afternoon. If you have to attend to other business (even if that "business" is really just "having a personal life"), let them know that you have to run for a bit, and then resume communication with them as soon as you can the next morning.

3.) Be professional. This shouldn't have to be said but, sadly, it still does. No matter how friendly your client is, no matter how much you like each other, your communication still has to be professional. Every email doesn't have to include an attached notarized PDF copy in triplicate, but it does need to be free of spelling and grammatical errors. Taking the time to make sure your communications are professional is a sign of respect for your client.

While we are on the subject of professionalism...

Stay attractive.

One of the cliches of romantic comedies is a couple experiencing tension because of complacency in the relationship. At the beginning of the movie, when they fall in love, they go out to five-star restaurants in formal wear. The second act features them eating take-out on the couch in sweats.

When your customer service starts slipping, it is the metaphorical equivalent of you showing up to the client site, wearing sweat pants and eating pizza. (Also, please don't literally show up wearing sweat pants and eating pizza, either.) If you don't provide the same quality of service you did at the beginning, it makes your customer feel taken-for-granted, and like you misled them with false advertising.

Your business should always strive to grow and improve, and your customer service along with that. If you want to really shock your customers, surprise them by providing exceptional service, even above-and-beyond the high level they've come to expect from you.

Stay interested.

Nothing makes people like you more than when you make them feel attractive. Just like you try to remember your significant other's birthday or favorite dessert, your clients will be flattered if you can remember the intimate details of their business. You do not want your client to have to remind you of items discussed at prior meetings, or current issues being faced. No matter the size of the company or how much income they bring you, you want each client to feel like they are at the forefront of your mind.

There are small things you can do to make your client feel significant. This could be something as small as tweeting them a relevant news article, or as large as arranging a referral meeting to help them earn new business. By going above-and-beyond the minimum which is required of you, you can help ensure a lasting client relationship to profit you both for the long-term.