Before you rush off into promotion overdrive, there are a few items of business we need to spread out on the table and subject to a good, hard look. Let’s look at how outsourcing can turn your business into a profit machine.
Number One on the list…
- How many clients do you actually need and want?
One of the worst things you can do is over-promote your business and end up turning clients away, right, left and center.
This particular phenomenon usually occurs because (a) you’re great at what you do and (b) your business model depends on doing everything yourself. And – face it – there’s only one of you: Even if you work round the clock, seven days a week, you can only serve X many clients. And no more.
What Not to Do:
And here’s the most common mistake new online service providers usually make. They land one client who gives them more and more work. Before you know it, the new service provider is getting rid of small, occasional clients and devoting every spare minutes to Big Client’s business.
It seems to the new business owner that their business is becoming a profit machine with their one client who is giving them an abundance of of activities.
And here’s what happens…
One day, Big Client decides to try someone who is cheaper or faster or just plain new. Or he decides to change his business model and no longer requires your services. Or you make a mistake and he reacts by firing you (usually because he has a new service provider who is cheaper or faster or just already in his sights).
Or your client just “wants a change”.
No matter how hard you work or how diligent you are, sooner or later you will make a mistake, misunderstand an instruction or be late with a deadline. That’s just a fact of real life; and sure, there are ways to minimize this but the fact is, your client may suddenly find a million and one reasons to change to someone else (or leave the business altogether) – and with all your eggs in one basket, you’re up the proverbial creek.
So don’t do it. Diversify. Take on at least three clients; and invoke the age-old stage principle of leaving them wanting more…
That way, if one client suddenly decides to part ways, you can segue seamlessly into picking up more work from clients #2 and #3… or better yet, make sure you charge enough so #2 and #3 can carry you while you hunt for a new client to fill the gap.
To turn your company into a profit machine, you don’t have to follow the business model of being your own employee. (In fact, it’s not the best one!)
You have several alternatives and scenarios available, so decide which one is right for you.
Plan to grow your business right from the beginning and become a client magnet. Decide how many people you want to ultimately employ (or how many contractors you plan to outsource to). Decide on how many departments you’re going to need as you expand.
Plan a time frame for growth and expansion to build your business profit machine.
Here are some scenarios to consider to turn your business into a profit machine:
- Become a fully-fledged company with employees. You can grow this type of company as big or small as you like. You can migrate it to a physical building – or even multiple branches. You can have multiple departments. You can plan to stay local or even become multi-national. Obviously this will all greatly affect your client-finding strategies and plans to build a profit machine.
- Grow, and then sell, your business. You can plan to grow your business until it verges on expansion: Then sell it as a successful business with enormous client-generating potential.
Knowing you’re going to do this is crucial, as it will affect the way you register your business, your domain and the type of web hosting you need to choose.
For example, if you know you want to sell a company down the road, brand it as a company and register it as a Limited Liability corporation or similar. And you will want to host your company website either on its own single domain or on a Reseller account, so you can transfer ownership.
(A trip to a business lawyer to check out exactly what you need to do for your unique business plan is advisable.) - Run your business yourself. This is ideal if you are performing a fairly narrow service and you are perfectly happy never having more than a handful or less of clients.
- Run your business yourself, but expand by outsourcing. Many online virtual business owners choose this option for a variety of reasons; not the least of which is convenience, simplicity and the fact that you are not bound by the sort of restrictions you would be if you hired employees.
Need to find a virtual assistant for your business? Online service providers can go to VANetworking.
Plan your outsourcing from the beginning,
You should plan your outsourcing from the beginning to build a profit machine, however, know:
- What you are going to outsource
- The type of contractor you’re going to need
- Current market rates charged for the tasks you want to outsource
Leave a Reply