Tag Archives: How to start an outsourcing company

How to start an outsourcing company (2016)

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I wrote an earlier version of how to start an outsourcing company several years ago. I wanted to spruce it up a bit, so here is the new version.

1. Have Extensive Experience
I get emails daily from people who want to start a BPO, or who just got one but lack clients. There is a lot of competition out there and a lot that can go wrong. You need many years of experience in your industry to have a chance at doing well. Additionally, you need to be better at what you do than anyone else, otherwise, why should anyone hire you? I’ve read many articles about entrepreneurships and startups. The point that hit home is that people in their 20’s that want to start businesses have a high failure rate because they lack maturity and experience. A startup might be a new business, but the experience that goes behind it should be old. People tend to do a lot better at entrepreneurship in their 50’s as they are well seasoned, mature, have contacts, and have a ton of experience. I’m not discouraging young people from starting businesses. I started my first business when I was six, and another when I was fourteen. I did okay too and I learned a lot from it. However, I was very immature how I ran many aspects of my business. My businesses had small investments like a lawnmower and a rake. If you are investing in a 20 seat office and salaries, you had better know what you are doing.

2. Get Management Experience
Okay, so you know how to do your job and you worked for the best. There is a lot more to running a business than being a worker. Being a good worker is only one aspect to the endeavor. If you were a good worker, that shows you have the skills and patience to survive in the industry. But, you need to know how to manage expenses, do marketing, hire, fire, train, and assess workers. That requires many years in management to be any good. I recommend that you have at least seven years in management before attempting to create your own BPO.

3. Master your Marketing
As a BPO owner, you won’t survive at all if you don’t have clients. You need to be an expert at marketing. You need to be able to find decision makers at companies around the world to get clients. Some use LinkedIn, others go to networking meetings, while many have agents to help them find clients. You can also subcontract work from other people’s outsourcing operations. Having a great website and promoting it is often the solution while excelling at social media and blogging is a great boone to your business presence.

4. Excel at Customer Retention
If you start an outsourcing company, you will have customers. The difference between a good outsourcing company and a great one is how long you keep your clients. Do you do a good job? Do you keep in touch with clients? Do you help them find new reps quickly if they don’t like the old ones? Are you there for your clients, or do you just use them for money? To do well at outsourcing you need to focus on pleasing clients no matter what. You can’t grow your company if you are always losing your clients.

5. Give Free Samples
I grew my businesses by offering free samples or discounted trials. If you want to attract outsourcing clients, give them a chance to try your work with no contracts and low prices. They will be seven times as likely to give you a chance if you give them something for free or half price. If you do a good job, you might win them over for life. So you get by giving.

6. Offer Liberal Terms
Most outsourcing companies want people to sign rigid contracts that enslave them to stringent terms. Personally, I don’t want to sign a contract with a stranger. The contract ensures that I will pay a certain quantity of dollars each month. However, the contracts never ensure the quality of the service that I am getting. If I get poor service, can I pay with low quality dollars? Dollars are dollars, but no two services are the same. My suggestion is to have easy contracts in the beginning going week to week or month to month with very small deposits. Let the client get comfortable with you before you get demanding.

7. Have Clearly Defined Specialties
There is nothing worse than a call center that is not clear about what they do. Some do telemarketing, others do chat support, while a few do appointment setting. You never really know how good they are at any of their specialties. It is easier when there is a list of specialties in the “services” page of their website. That way you can be sure they do chat support — unless they stopped doing it three years ago and removed it from their site. If you claim to specialize in something, make sure you have multiple workers trained in it so a client can always get someone.

8. Flexible Office Space
Some call centers start with a huge office and then try to get clients. Many of them end up with huge losses from miscalculating how much space they need. It is better to have a flexible system for getting office space. Start small, and don’t get a big office until you have stable clients who are not going to end their relationships with you on a whim. If your workers are divided between two buildings, that is not the best, but it is temporary and you will have to deal with that as your company grows. Some offices offer shared spaces where you can rent space by the day, week, or month. Those would be excellent resources for a startup that doesn’t know how much space it will need.

9. Offer Training To Your Workers
Most BPO companies do not invest enough in training their workers. If you care about success, be like some of the top rate call centers and monitor your workers daily. Train them constantly. Make sure your workers are the best. I am tired of calling outsourcing companies only to hear them say, “hullo” when they answer. This is very unprofessional. If that is how the managers answer the phone, their workers are almost guaranteed to be horrible. If you aren’t professional yourself, how can you possibly train your workers to be?

10. Have Marketing Managers & Floor Managers
To grow your company, you can’t be two places at the same time. You need someone to manage the workers as well as someone to handle marketing and sales. If you hire people who aren’t loyal to you, you might be left high and dry. So, you might have primary managers and a few backups who you are constantly training.

11. Reward Worker Loyalty
You can’t build a good business with disloyal employees. Businesses that do well have a core of people who have been with them for ten or twenty years. You need to make sure you treat your star employees like stars. They deserve more money, better conditions, and appreciation. If you take them for granted you’ll lose them. Mediocre workers are dime a dozen — they are replaceable. But, you can’t build a business with them. Stars are the framework of your future success. Find them and find a way to keep loyal and talented people, otherwise your business will be tiny forever — or worse — it might be a collection of 50 dysfunctional nitwits!

I wish you good luck in business. But, the worst thing you can do in business is to go too fast. Get your foundation in order before creating a business. If you are not already a marketing genius, you’ll never survive. If you have to ask me how to get clients, you’re in the wrong field altogether. Additionally, I would like to add that the call center business is one that many Indians want to start. This type of business is almost exclusively being done outside of India. Even Indian companies are hiring Filipinos to do their call center work since the manners in India are very unpolished. Try to focus on an outsourcing specialty that caters to the talents of the workforce where you are. Indians are better at accounting and technical support than call center work. Keep that fact in mind as it can make you or ruin you! Good luck!

You might also like:

Six problems that only someone working in a BPO company would understand

Marketing your BPO firm from A to Z

If you invested in training your BPO workers, what types of skills would you teach them?

See our 2011 version of how to start an outsourcing company!

How to start an outsourcing company part 2

Categories: Outsource Marketing | Tagged | Leave a comment

If you want to start an outsourcing company, and start with a bang, consider this.

(1) First, read our article about how to start an outsourcing company (the prequel)

(2) Then, read this article which is the sequel. This article basically consists of additional tips.

Be amazing
Most clients have a lousy experience with whomever they hire. Do you want your company to grow? Do you want to maintain your client base? What if you got work done for your clients better and faster than anyone else did? You will inspire loyalty on their part. If you are new in business, you might have extra time, since you have less clients. So, with the clients that you do have, you can afford to do an amazing job.

Have a web site that says it all
I am tired of visiting websites that have very little to say about the company. There are others with spelling mistakes, and useless content. Can you become an expert in having meaningful content that others want to read? Do you have a lengthy FAQ page as well as a Q&A page?

Have the best sales staff
A company that always answers its phone, and always answers questions with great answers fast will be popular with everyone — especially me. Also, great follow up througout the business relationship makes all the difference. We have written many other articles about outsource marketing that go over how to answer your phone, and how to train your sales staff. Please consider reading those articles.

How to attract more software business

Improving your credibility at a call center

Getting call center work – making your list

How to Start an Outsourcing Company

Categories: Outsourcing Articles, Popular Posts | Tagged , , , , | 5 Comments

How to start an outsourcing company

To start a BPO, Call Center, or Data Entry outsourcing company, you will need a lot of skills.

Be an expert in your field
You need to be an expert at your field, so that you can supervise work and know who to hire. If you know nothing about data entry, and have no clients, nobody will hire you, because you don’t know anything. People want to hire responsible experts, so if you are not an expert, please become one.

Get clients
How do you get clients?  Many people tell me they want to start a 20 seater BPO, but they are asking me how to get clients.  My advise is start with one seat, and then when you get more clients, get more seats.  The clients come before the seats.  No clients = being out of business. If you are asking me how to get business, you are really in trouble, because I am not in the call center business — I’m in the directory business with 10 years of experience.

Contact other call centers or data entry companies and see if they have any advice or overflow.
Contact call centers or other outsourcing outfits in America by phone and ask them if they need your services.
Contact companies in India by phone and ask if they need your services. Create a beautiful website and advertise on web directories
Facebook can sometimes be a great way to market a business too, as it is a way to network with more and more computer literate people.

Have a decisive offering
If you want to create a call center, but don’t know what you are offering, you will sound uneducated to your potential clients.  Figure out what types of services you offer, and then figure out what type of price categories to assign your various services. My advice is focus on being flexible and helpful if you want to attract lots of business. The other call centers are rigid, and half of them want to cheat their new clients. In the long run, the helpful and responsible companies win the game!

Free trials – am I crazy?
If you want to offer people free trials, thats even better.  Many companies will be skeptical about using a new outsourcing company who they never heard of before.  If you have an amateurish phone manner, they will question whether you even are a business, or some unemployed guy who is desperate for work.  If you offer a few hours of free trial work, so that the client company can test you out and get comfortable with you, you might win over some good long term contracts.

Short contracts or no contracts
Established call centers have a reputation and contacts. They can demand six month contracts for at least three seats and get away with it. If you are starting off, its best to let companies try you out for a short time and see if they like you.  It will be hard to get long
contracts when nobody has ever heard of you before.

This is not my industry, so you have to ask other local call centers what they use.  You need good computers and good phone connections for all of your seats. You will need to ask local utility companies what type of connections they can offer and how reliable they are. VoIP is popular these days, but thats all I know.

A place of business
If you have no clients, and want to get a 15 seater office, how do you intend to pay salaries and rent for fifteen people, when you have not a single client, and no knowledge of how to get a client.  Find a real estate broker, and find a small place to start off in while you get your business acumen  in ship shape condition.  Start small and learn the business is you are starting a BPO

How do I start a call center or outsourcing business?
Have a database of people in the area who can work part time.  Lots of ladies with kids don’t want a full time job.  Interview these people, make sure they can function well, and try them out on small projects. While you are doing your outreach calls, you will hopefully get a few contracts.  Hire these part time folks when you have work, and if the work dries up, they can go back home to their family life.  They can be your “on call” staff members.  One week you might be very busy, and the next week you might have hardly any work at all.  Once you develop some long term clients who are comfortable with you and your services, then you will have regular work, and can think about that 15 seater office.  Don’t jump ahead of yourself though.

Being a small company doesn’t mean you are worse than anyone else. You might have less resources, but you might have more caring!  If you have a system of overseeing your workers and coaching them so they can be their best, you might really impress your clients.  Obviously, you should start out with workers who have good skills, but refining their skills, and customizing their skills to the needs of specific clients will win you tremendous popularity and customer loyalty. You have to be on top of your workers, or they will not function optimally, and you will lose your business.

Where do I advertise my company?
Advertise on www.123outsource.net.  We offer free and paid advertising for all types of outsourcing companies.  Advertise in our Call Center, BPO, Data Entry, Software, or any other category.


You might also like:

How to start an outsourcing company — 2016 version

Marketing your BPO outsourcing firm from A to Z

Compilation of best posts about how to get clients for your BPO

Marketing your outsourcing company

How to get clients for your call center — CONTRACTS