How to Start a Business Doing Outsourcing Work
You may be able to start a small business to fulfill a need for a larger business that is looking to outsource. In a recession, large companies look to cut costs in every area, and in growing economies, businesses may look to outsource new initiatives or help manage overflows. Regardless, outsourcing is a popular way for large businesses to manage workflows and costs more efficiently.
When Americans think of outsourcing, we tend to think of large companies outsourcing to other countries. However, large companies also outsource to small businesses around the corner. Your business could be that small business. All you have to do is provide a needed product or service to larger companies that you can offer more cheaply, with higher quality, than they can get from their own staff.
Does this sound like a tall order? Maybe not. Consider the four success stories from our article “4 Small Business Success Stories for New Entrepreneurs.” All of these entrepreneurs found a market niche combined with a passion of their own. Then they took their business operations to new levels to achieve great success.
An Example of a Possible Business
Suppose you live in a small town or even a larger city and you’re an accountant or a bookkeeper. Some of the smaller businesses in your area may not want to pay for the services of a CPA to keep their books or do their taxes. They may seek a more cost-effective method of managing their bookkeeping and accounting and wish to outsource their work to a bookkeeper. There is a perfect opportunity for you to market your services. If you’ve been laid off and want to start your own business, you can market your services to those small businesses and save them money that they would otherwise have to spend on a CPA.
Take Advantage of Outsourcing Opportunities
Here are some tips:
- Skills - The type of small business you would like to start depends on your skills. If you are a financial type, you want to go that route. If you have training in web design, there’s your idea for a small business. You get the idea. Play to your skills and come up with an idea for a small business that fills a niche where you think businesses may outsource.
- Expand - If you already operate a small business, consider trying to expand your customer base by taking advantage of outsourcing opportunities. Are there small or large businesses in your local geographic area that have tasks they are outsourcing or would like to outsource? How do you find out? Whatever your area of expertise or small business, call the director of that area of the businesses in your local area. Prepare a pitch before you call them. Find out what they need. If you can supply it, let them know. Have price quotes ready.
- Online networking - There might be lots of online businesses that would like to utilize your services if they knew you existed. Use social networking sites like Twitter or Facebook. Also gain awareness of online bidding sites and keep your profile active for the most inquiries.
- Develop professional marketing materials - In order to sell yourself as a viable outsourcing source, you must have professional-level marketing materials available for potential clients. If you are an expert in desktop publishing, you can do this yourself. If not, then hire someone to develop these materials for you. It will pay for itself in the long run. You will need business cards, a brochure, and samples of your work.
Be Your Own Boss
If you can find a niche in your area of business where companies typically like to outsource their work, you can start a new business working for yourself and do quite well, or you can add to your existing business.