How to Get Clients to Value YOU — (Whiteboard AdobeMAX)

Summary

This engaging transcript covers key business insights, including the importance of radical responsibility, setting boundaries, and taking risks for higher rewards. The speaker emphasizes the value of specialization over generalization, asserting that being deeply skilled is more profitable than being a jack-of-all-trades. They discuss the client-seller relationship, encouraging professionals to recognize their worth and charge appropriately for the risk they take. Clear communication is highlighted as a critical skill, and the idea of managing risk is explored through various examples. Overall, the session provides valuable advice for improving both personal and business success.

Takeaways

• 😀 Clients are the buyers, but you are the prize. You possess a unique skill or craft that they cannot easily replicate.
• 😀 Business profit comes from risk. The person who takes the most risk should earn more money.
• 😀 Generalists are usually a mile wide and an inch deep, lacking the depth of specialized knowledge. Specializing can bring higher rewards.
• 😀 Radical responsibility means being accountable for everything in your life, including situations that aren’t your fault. This mindset helps you improve and grow.
• 😀 To create change, start with the result you want, then define the action you need to take. This approach creates a roadmap for both personal and business success.
• 😀 Keep communication simple. Avoid word salad and focus on clarity. Speak simply as if explaining to a 5-year-old.
• 😀 The foundation of your success is your core skill or identity. Specialize and hone your craft to achieve mastery in your field.
• 😀 Be cautious when working with friends in business. Clear boundaries are essential to maintain both friendship and professionalism.
• 😀 Confidence comes from deep expertise and mastery. Generalists may lack confidence due to their broad but shallow knowledge base.
• 😀 When clients ask for a guarantee, they are seeking to avoid risk. Be prepared to price accordingly if you assume all the risk in a project.

Q & A

Why does the speaker say 'you are the prize' in the client-buying and selling cycle?

The speaker emphasizes that as a service provider, you have unique skills and expertise that clients cannot easily find elsewhere. They have money, but you have a specialized craft, which makes you the prize in the transaction.

What does Peter Drucker mean by 'all profit comes from risk'?

Peter Drucker’s quote highlights that higher profits are typically associated with higher risks. In business, taking more risks can result in greater financial rewards, which is why risk-taking is a central theme in achieving business success.

What does the phrase 'be a mile deep and an inch wide' suggest?

This phrase suggests that specializing in a particular niche or field is more valuable than having a broad but shallow knowledge across many areas. Being deeply knowledgeable about a specific topic can provide higher value and build confidence compared to being a generalist.

What is radical responsibility and why is it important?

Radical responsibility is the idea that you are accountable for everything in your life, even things that aren't directly your fault. It emphasizes the importance of understanding how you contributed to situations and learning from them, which can drive personal and professional growth.

How does the speaker suggest dealing with friends in business?

The speaker advises creating healthy boundaries between friendship and business. If your friendship compromises your business decisions, it's important to either set clearer boundaries or avoid working together to prevent issues like resentment or financial imbalance.

What is the key lesson from 'no context and no financials' in a business project?

This situation highlights the importance of clarity in business relationships. Not defining the scope or discussing financials upfront can lead to misunderstandings and misalignments, creating unnecessary risk and confusion.

Why is it important to start with the desired future state (DFS) in business decision-making?

Starting with the desired future state helps clarify what you want to achieve, which then influences the actions you need to take. It makes it easier to create a roadmap for success by focusing on the result and reverse-engineering the steps to get there.

What is the significance of clear communication in business?

Clear communication is critical for success in business because it ensures that everyone involved is on the same page. It helps prevent misunderstandings, facilitates better decision-making, and is a transferable skill that enhances leadership and professional relationships.

How does the speaker relate the concept of 'core skill' to business identity?

The speaker explains that your core skill is central to your business identity. It's the skill you’ve honed over time through dedicated practice and focus, which sets you apart in your field. This identity is important for building confidence and positioning yourself as an expert in your niche.

What does the speaker mean by 'charging more when taking on more risk'?

When you are taking on more risk in a business venture, such as providing guarantees or taking responsibility for uncertain outcomes, the speaker advises raising your prices. This helps compensate for the potential loss or failure associated with the risk you're taking.