There’s one secret to every successful company – they outsource almost everything to outside vendors. Yes, that includes payroll, bookkeeping, virtual assistance and other information technology services. Businesses want to lower their expense rate and by outsourcing, they don’t have to provide employees with an office, which is a huge cost.
There are several benefits to using a third-party supplier – cost, convenience and a great working relationship are some of them. Once a client is satisfied with your services, this can lead to referrals and a long-term repeat business, which can be bountiful if you consider the overall earnings.
So, now that we know that almost every other business is searching for an outsourcing company to automate their work, let’s get into the nitty-gritty of how you can start a successful outsourcing company.
Step 1 – Market Research
Whether you’re starting a company, or just publishing an eBook, market research is the key to whether your new venture would thrive or die within the first couple of months.
In this case, you should research and determine the services that have the highest demands in established companies. You should research and find out whether the companies are outsourcing human tasks such as employee training, or maintaining payrolls. Or if the companies are more focused towards outsourcing manufacturing related tasks such as product design and its development.
This research will help you form a mindset and build upon those demands.
Step 2 – Do You Specialize OR Offer a Variety of Services?
This is the stage where you have to decide whether you want to provide businesses a wide variety of services or only one niche-focused service, such as maintaining payrolls, or designing products and developing them.
If you decide you want to offer product designing as a service, then you will also have to decide whether you want to offer the service in every sector (technology, food, marketing, etc.) Or if you want to just offer marketing-focused product designing services.
Step 3 – Calculate Capital
Now that you have decided what you want to offer, now is the time to decide how much capital/money you will need to get started.
Once you decide a particular amount that will help you successfully launch your outsourcing company, there are two options to get that financing – outside investors, or personal investment. This cost includes everything, ranging from business permits and facility costs, to staff wages and everything in between.
Step 4 – Your Marketing Plan
Nothing can be achieved without marketing. This is the way you let companies know that you are better than your competition (this is crucial).
The primary focus of your marketing plan should be to focus on understanding your target market and then finding out your competitive advantage over other competitors. Once you find that out, you should then plan on how you should reach that market to leverage that advantage to make a sale.
Step 5 – How Much Are You Charging
One thing you should remember, is that you won’t be able to get clients who are willing to pay a top-notch price right when you get launched. You should focus on building your reputation and also surviving.
At this stage, your fees should be able to cover the basic costs so that you’re not starting at a loss. A good rule of thumb, is to charge on an hourly basis on an estimate about how long a project might take to complete.
Once you’re established in your target market, then you can increase your rates to, of course, increase your profits.
Lastly, if you’re planning to start any business, you should remember one thing – the people who are the most patient, are the ones who get to the top.