Outsourcing takes many forms. The reason why businesses outsource their non core services is usually to save money and time. For a small business owner, this is even more relevant. A small business owner or entrepreneur usually has to take on the task of CEO, accountant, personal assistant and chief marketing officer. This means that the average small business owner is too busy running the business to actually run the business.
Outsourcing conjures up images of large corporate organizations and tenders for jobs such as cleaning services, facility management, etc. But outsourcing can include anything from word-processing services, database management, website content management to copy and fax services. The list is limited only by your imagination. The services outsourced by a small business will usually be provided by a business support services provider.
What kind of services can a small business outsource? Whether you are a one man business running from a home based office or have your own premises with some staff, the services that can be outsourced include administrative services, event planning, accounting/bookkeeping, recruitment, payroll, procurement and so much more.
The best way to find out what you can personally outsource is to keep a work diary for a few days. While this may be time consuming and tedious, it will show up all those tasks that can be performed by somebody else while you get on with the business of growing your business.
The benefits of outsourcing for a small business owner are numerous. You save money by not having to pay a full time salary for services you only require part time. You also save money on equipment, and the inevitable huge phone bills that will result from having a not too busy assistant sitting in your office with nothing else to do but call his/her friends. And most importantly you give your self more time to make more money and reduce your stress levels.
Finding a good business support services provider is essential to reaping the full benefits of outsourcing. So you need to research your potential provider and ensure that their work methods are compatible with yours. A good provider will take the time to learn about you, your business and your customers. In no time, you’ll wonder how you ever did without one.
Some questions to ask when choosing a business support services provider for your business:
What are the fees and fee structure? If you know you will need their services on a regular basis, ask about retainer rates.
What is their confidentiality policy? This is very, very important, as you want to ensure that anyone carrying out work on your behalf maintains a strict confidentiality policy.
When is payment to be made? This could be at the end of the project or, if you are using a retainer service, then it may be once a month.
What is the method for sending/receiving work? Given today's technology you'd be surprised at how many options there are for sending and receiving work.
Thanks to the internet, it’s now much easier to work with your business support services provider. Communications technologies now mean that you don’t have to physically be in the same place to collaborate. You can send work to your provider via email, fax or regular mail. You can also keep up to date with developments via email. There are also various collaboration tools available on the internet which allows you to share files.
Bill Gates, Time Magazine, March 22, 1999 VOL. 153 NO. 11 - "As a business manager, you need to take a hard look at your core competencies. Revisit the areas of your company that aren't directly involved in those competencies, and consider whether Web technologies can enable you to spin off those tasks. Let another company take over the management responsibilities for that work, and use modern communications technology to work closely with the people -- now partners instead of employees -- doing the work. In the Web work style, [you] can push the freedom the Web provides to its limits".
Friday, August 10, 2007
How to Research the Market for your Product or Service
Before you start your business, test the market to make sure there will be demand for your product or service.
Instructions
* STEP 1: Learn about your market. Go to trade shows and network with other professionals in your line of business. Subscribe to trade publications.
* STEP 2: Spend time with potential customers. Randomly ask people in the grocery store checkout line or at the bus stop what they'd like in the type of product or service you want to sell.
* STEP 3: Set up a focus group to gather opinions about your product or service. This could be an informal gathering of your friends and family, or a more formal group assembled by a market research firm you hire. Be sure to get group members' reactions to your pricing model.
* STEP 4: Send out a survey to potential customers. Make the form easy to fill out by asking multiple-choice questions. Ask the respondents if they would buy this product or service.
* STEP 5: Analyze your findings to determine whether your idea is viable. How did people react to your product or service? What do people like or dislike about your product or service? Make adjustments, including the hardest one - letting go of your idea, if necessary, and finding another one.
Instructions
* STEP 1: Learn about your market. Go to trade shows and network with other professionals in your line of business. Subscribe to trade publications.
* STEP 2: Spend time with potential customers. Randomly ask people in the grocery store checkout line or at the bus stop what they'd like in the type of product or service you want to sell.
* STEP 3: Set up a focus group to gather opinions about your product or service. This could be an informal gathering of your friends and family, or a more formal group assembled by a market research firm you hire. Be sure to get group members' reactions to your pricing model.
* STEP 4: Send out a survey to potential customers. Make the form easy to fill out by asking multiple-choice questions. Ask the respondents if they would buy this product or service.
* STEP 5: Analyze your findings to determine whether your idea is viable. How did people react to your product or service? What do people like or dislike about your product or service? Make adjustments, including the hardest one - letting go of your idea, if necessary, and finding another one.
Starting a Small Business
Most people venturing into business do so not because they have an entrepreneurial zeal, but because they have seen someone else running that type of business and feel that is the in-thing and thus, jump on the bandwagon. Most often, the business from the outside seems to be making money because the owner’s lifestyle appears to have changed a bit; for instance, a new car, new house, maybe even a family vacation abroad.
However, there’s more to starting a business than looking at someone in business and deciding to follow suit. It’s the Nigerian entrepreneurial dream to take a business idea from the concept, research and planning stages to the day when you open your doors to the public. Many who succeed in starting their own businesses have planned for every phase of their success. According to Thomas Edison, a great American inventor, who once said: “Genius is 1 % inspiration and 99 % perspiration.” The same philosophy applies to success in business.
To enhance one’s chances for success, a little bit of hard work is necessary to eliminate some common mistakes new business owners make.
According to experts, most people don’t spend enough time researching their potential businesses and the marketplace before they venture into the business. Another challenge is that as soon as an idea comes to their head, they just meet a consultant to do a business plan for them. Most times these consultants sit at their desks without actually going into the actual marketplace to get a feel of the market.
Not keeping in touch with market realities is one of the more common mistakes entrepreneurs make. This feel of the market is especially important in a society like Nigeria where access to data is a major challenge.
A business plan is very important, but before you start your plan, carefully research and answer some basic questions that will help set the tone for your business success.
Questions such as: What niche or void will my business fill? What services or products will I sell? Is my idea practical, and will it fill a need?
After these fundamental questions have been dealt with, one can now begin to determine other factors like Who the competition is? What advantages your product or service has over others in the market? Issues bordering on better service quality and the need to generate a continuous flow of demand for your product or service need to be dealt with properly.
Once you’ve determined that your business idea is feasible, you need to now focus on what skills and experience you need to bring to bear on the business. Many aspiring entrepreneurs fail to put up sound structures for their business and are surprised when things start to fall apart. A good legal structure is a must for any business that wishes to succeed. Proper record keeping and insurance coverage are other factors to consider. Another aspect that needs to be given serious a thought before you start out has to do with how you will compensate yourself? (This is very necessary; so, you don’t keep dipping your hand into the business’s purse) you need to determine what your resources are. What financing you will need, where your business will be located, and what name your business will bear. All these will help you create a positive groundswell of activity that will be crucial in the early going as you work to establish your product or service.
If you are starting a home-based business you should take time to factor in the effects running your business from home will have on your family, as they will most likely bear the major burden of the business.
You will need to answer some salient questions like: Does your home have the space (preferably separate) for a business? Can I successfully run the business from my home without upsetting the balance of my family? Can I deal with the isolation of working from home? Your answers to these questions will help you to create a focused, well-researched business plan that should serve as a blueprint that, hopefully, will guide you to achieving your dream of being an entrepreneur.
Good Luck
However, there’s more to starting a business than looking at someone in business and deciding to follow suit. It’s the Nigerian entrepreneurial dream to take a business idea from the concept, research and planning stages to the day when you open your doors to the public. Many who succeed in starting their own businesses have planned for every phase of their success. According to Thomas Edison, a great American inventor, who once said: “Genius is 1 % inspiration and 99 % perspiration.” The same philosophy applies to success in business.
To enhance one’s chances for success, a little bit of hard work is necessary to eliminate some common mistakes new business owners make.
According to experts, most people don’t spend enough time researching their potential businesses and the marketplace before they venture into the business. Another challenge is that as soon as an idea comes to their head, they just meet a consultant to do a business plan for them. Most times these consultants sit at their desks without actually going into the actual marketplace to get a feel of the market.
Not keeping in touch with market realities is one of the more common mistakes entrepreneurs make. This feel of the market is especially important in a society like Nigeria where access to data is a major challenge.
A business plan is very important, but before you start your plan, carefully research and answer some basic questions that will help set the tone for your business success.
Questions such as: What niche or void will my business fill? What services or products will I sell? Is my idea practical, and will it fill a need?
After these fundamental questions have been dealt with, one can now begin to determine other factors like Who the competition is? What advantages your product or service has over others in the market? Issues bordering on better service quality and the need to generate a continuous flow of demand for your product or service need to be dealt with properly.
Once you’ve determined that your business idea is feasible, you need to now focus on what skills and experience you need to bring to bear on the business. Many aspiring entrepreneurs fail to put up sound structures for their business and are surprised when things start to fall apart. A good legal structure is a must for any business that wishes to succeed. Proper record keeping and insurance coverage are other factors to consider. Another aspect that needs to be given serious a thought before you start out has to do with how you will compensate yourself? (This is very necessary; so, you don’t keep dipping your hand into the business’s purse) you need to determine what your resources are. What financing you will need, where your business will be located, and what name your business will bear. All these will help you create a positive groundswell of activity that will be crucial in the early going as you work to establish your product or service.
If you are starting a home-based business you should take time to factor in the effects running your business from home will have on your family, as they will most likely bear the major burden of the business.
You will need to answer some salient questions like: Does your home have the space (preferably separate) for a business? Can I successfully run the business from my home without upsetting the balance of my family? Can I deal with the isolation of working from home? Your answers to these questions will help you to create a focused, well-researched business plan that should serve as a blueprint that, hopefully, will guide you to achieving your dream of being an entrepreneur.
Good Luck
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