Organized Assistant » standard operating procedures

Should I Charge for Travel Time and Expenses?

Janet — Tue, 30 Nov 2010 13:47:16 +0000

As a professional organizer, you probably spent a fair bit of time figuring out how much to charge for your services, whether to bill by the hour or the project, and whether or not to offer free consultations. An equally important decision is whether to bill for the time you spend travelling to your clients' location and any expenses you occur doing so. There are many different ways to approach this, but as a business owner, there's one thing you must always keep in mind:

Time is money!

If you have a fixed service area, it's probably easiest to build your travel time and costs into your regular rates, but if you're willing to drive greater distances, you need to make sure you're still making a reasonable income once you factor in the amount of time you spend on the road, as well as the cost of gas and other expenses related to owning and maintaining your car. You may wish to charge a set amount per mile (or kilometre) and add it to your invoice. You will, of course, need to include this in your agreement with the client. The problem I have with this method is that it is too precise, and it can get complicated if you take a wrong turn or need to run an errand on your way to the client's location. When I was operating my organizing business, I developed a system that ensured I was fairly compensated, without worrying about taking the shortest possible route to my clients' locations so they wouldn't think I was gouging them. Here's how it worked:

Anyone within 45 km (approx. 30 miles) fell within my local service area and did not pay a travel fee. I made a list of the cities and towns that fell within those boundaries.
I also listed the places that fell within 50-74 km (approx. 30-45 miles) and 75-100 km (approx. 45-65 miles) and decided on a set travel charge for each of those areas. If the client was farther away than that, I would refer to job to another organizer who was closer.
I had a higher travel charge for downtown Toronto, which technically fell within 100 km, to cover the inevitable high parking costs and time I'd spend in heavy traffic.

I included all of this information along with my rates on the printed sheet I kept on hand while speaking on the phone with clients, so I could quickly, easily, and confidently tell them how much their travel charge would be. This system worked well for me, but it's not the only option. If you have a different approach, please tell us about it!

Checklists and Contracts and Agreements – Oh my!

Janet — Wed, 26 May 2010 12:50:35 +0000

It's amazing how many different forms you need in order to operate a professional organizing business! Some are just for your own use, such as client information sheets, assessment forms, and checklists. Others, such as invoices and letters of agreement, communicate important information to your clients.

Any forms you'll be using with clients must be completely error-free, easy to read, and reflect your professional image. This isn't quite as critical for those that are for internal use only, but you will still need them to be well-designed so they are easy for you to follow and so you're not stumbling over your words when you're speaking to your clients. It will be easier for you to develop an appropriate organizing plan for each of your clients by having a set of standard questions that you ask, whether this is done in person or over the telephone. Figuring out just what those questions should be can be a real challenge when you're just starting out in your business and don't really know what things are important to ask about. Writing up your first agreement can also be difficult, because until you've run into situations such as client cancellations, you may not think of addressing them in your contract. Fortunately, a lot of seasoned organizers have made their expertise available to you, so you don’t have to learn by trial and error. Here are a few resources that I recommend:

Geralin Thomas's Tools for Organizers include a detailed Client Intake, Assessment, & Activity Log, a Client Letter of Agreement, and a Client Invoice. The Invoice is a downloadable Word document, so you can customize it with your own branding and business information. The other two forms are in PDF format, so you can simply print them off and start using them right away.
When you sign up for the Comprehensive Training Program for Professional Organizers, whether you choose the in-person seminars, the on-demand webinars, or the self-study guides, you will receive fully customizable, industry-specific forms that every organizer should have, including letters of agreement, invoices, confidentiality agreements, needs analysis forms, receipts, and much more.
If you're handy with a word processor, you can create your own forms following the guidelines provided in Anne Blumer's guide for professional organizers, Get Rich Organizing.
Maria Gracia's Ultimate Guide For Professional Organizers also includes a collection of fill-in forms which you can copy and use. The Ultimate Guide is available in either PDF or print format.

Should you require assistance in customizing purchased templates or creating your own forms, you can always contact Organized Assistant. Above are samples of some of the forms we've created for our clients. Here's a question for the experienced organizers: what forms do you use most often in your business?

Getting Paid for Your Services

Janet — Tue, 20 Oct 2009 13:36:33 +0000

A reader sent me the following question: There are a decent number of people in my town with good income, but the majority are low income, and I am concerned with getting paid. How do you go about getting a deposit up front? Is there some way to ensure that you get paid for your services?

These are some really important issues! Let's start with the question of the deposit. I highly recommend that you obtain a deposit at the time you book an appointment. When your clients pay a deposit up front, it shows that they are committed to working with you. If the organizing session is booked during an in-person consultation, they can pay you by cash or check. If it is booked by telephone, email, or online, they can pay you by PayPal (see my earlier post, Accepting Credit Cards, for more details). It is not unheard of for clients to cancel on short notice; I've even shown up for appointments only to find that the person who scheduled it was not there. When that happens, it's not likely you'll be able to fill that time slot with other paid work, so it's not unreasonable to expect to be paid for at least part of your time. Whether or not you will reimburse part of the deposit in the event of a cancellation, or apply it to rescheduled appointments, should be clearly outlined in your written agreement with the client. Your agreement should also address when subsequent payments are due – ideally you will be paid at the end of each organizing session – as well as any penalties that will be incurred for late payments. There are a number of sources for sample agreements, including Debra Milne's Become A Professional Organizer Manuals, Alice Winner's Tool Kit For Organizers, The FabJob Guide to Become a Professional Organizer, and Anne Blumer's new book, Get Rich Organizing: The Professional Organizer Survival Guide To Launch, Manage, and Grow a Profitable Business. Whether you use one of their templates or write an agreement of your own, it is best to have it reviewed by a legal professional who knows the laws in your area. Some cities have a small business center where you can meet with a lawyer at a lower cost than if you went directly to a law firm. You should carry a supply of blank agreements with you so that the agreement can be signed at the same time that the deposit is paid. This can also be done online, using EchoSign. This service allows you to upload your prepared agreement and email it to your client, who then signs it electronically. I've been using EchoSign in my virtual assistant business for several months, and I'm quite impressed with how quick and easy it is to use. It is free for up to five agreements per month. The other issue identified by my reader is the fact that many of the people in her area have a low income. This situation can make it tempting to lower your rates, but the harsh reality is that not everyone will be able to afford your services, no matter where you live. If you're not comfortable turning away those who cannot, you may wish to consider offering a limited number of hours per month at a reduced rate, or occasionally volunteering your services to someone in need. Just remember that you are operating a business, not a social service agency, and although you want to help others, if you don't generate a sustainable income, you won't be in business for very long. Established organizers are often approached by newbies looking for a job shadowing or training opportunity. Bringing in such trainees as your assistants at no extra charge to your client can keep the total cost of the organizing project down and make it more affordable for lower income clients. Another option is to offer alternatives to individuals who need organizing help but cannot afford to pay for a professional organizer. This could be in the form of customized organizing plans that your clients can implement on their own, organizing workshops or teleclasses, or information products (your own or someone else's). The benefit of offering teleclasses and/or information products is that it expands your market to people outside your geographic area and provides you with the potential to earn passive income. I'm sure that some of you will have some other suggestions and I welcome your comments. If you have a question of your own, please feel free to submit it at any time.

What is SOP, and do I need it?

Janet — Mon, 11 May 2009 15:04:16 +0000

SOP stands for Standard Operating Procedures, and it's something every business needs, even one-person, home-based businesses. It may cover financial issues, including deposits and cancellation fees; branding issues, such as how the telephone is answered and what font is used in correspondence; administrative issues, including the forms and checklists you use internally and when working with clients; and much more.

The best time to develop your SOP is when you are just getting started. Of course, it will need to be modified from time to time, as you revise your procedures and implement new ones, but at least you will have something to work from. This topic is covered in Michael Gerber's bestselling book, The E-Myth Revisited. Gerber recommends developing an organizational chart for your business, complete with job descriptions for each role you currently fill, right from the outset. This way, when you need to start delegating to employees or outside services, you will be well-prepared. Before you can successfully incorporate associates into your business, you need to have well-documented procedures to ensure that everyone on your team is on the same page. Even if your company never expands to the point where you need to hire employees or subcontractors, having Standard Operating Procedures will ensure that your work is performed in a consistent manner, which improves efficiency and lets your clients know what to expect. This is not to say that you can't customize your organizing services to meet the unique needs of individual clients. Absolutely not! What it does mean is that you are always prepared for clients' questions about your policies and procedures, and that all clients receive the same message. Administrative work can be less of a chore when you have streamlined processes in place, as well as forms and templates for all the typical situations you encounter in your business. It also means that when you delegate tasks to subcontractors or employees, you can ensure that they have everything they need to represent your business the same way that you would. Perhaps most importantly, you'll have a documented plan which can be carried out in the event that illness or another emergency prevents you from operating your business. Recognizing the importance of this process, one of my VA colleagues, Yvonne Weld, wrote a step-by-step manual which covers everything you need to know in order to develop standard policies and procedures, a customer loyalty program, or a contingency plan to ensure that your business continues if you become ill or take a vacation. The Ultimate Guide to Creating a Thriving Business includes a companion workbook and includes tips and techniques to help you:

Create your identity statement
Set short-term and long-term goals
Identify your target market
Find the right niche
Price your products or services
Work with subcontractors
Develop company protocols
Provide exceptional customer service
Store and back up your business data
Establish contingency plans

It's a bigger job to develop your SOP after you've been in business a while, because you probably have more procedures to document and less time to devote to the project, but it is never too late! If you haven't yet drafted your SOP, I strongly encourage you to start. If your SOP is already in place, what advice can you offer your colleagues?