In 2018, business all over the world are using more and more outside vendors to supply outsourced workers and fill parts, if not most, of their workforce. Although this trend has meant a loss of jobs in some parts of the world, on the flip side it represents a great opportunity for entrepreneurs to carve out their own bit of space in this sector.
So how do you get started with your own outsourcing company? We put together this step-by-step guide on setting up your own startup outsourcing business.
1 – Do your research
The first step in setting up your own outsourcing company is the same as one embarking on any new enterprise or start-up – conduct thorough research of the market, and of the competition. Before you do anything else, it is critical that you determine which services and products are in high demand by the market, as well as who the competition is and what they offer. You need to have a thorough understanding of this first in order to plan your own business, what services you will offer, and how you will set yourself apart from the competition.
2 – Define your scope
Once you’ve got a good idea of what services are out there and what is in demand, you need to decide what services your business will offer. More specifically, will you offer a wide range of services or will you focus on one particular niche – for example focussing on one very specific service such as website design, or on services for a particular type of company, for example the financial industry. Opening your company to a broader range of services of course means a bigger pool of potential clients, however focussing on a particular niche can be advantageous as it lets you focus your efforts and brand yourself as a niche expert, both of which can bring higher returns.
3 – Get your start-up financials in order
Once you’re ready to get started, the next step is to make sure you have the start-up cash available to launch your business. So before anything else, you will need to work out how much money you need to get started. This should be calculated based on all business expenses (including your own salary) up to a point that you can realistically predict that you will be making enough money to cover all running costs.
Once you have determined this figure, you will need to raise the cash! There are a variety of options for this – perhaps you have your own money that you will invest in the business (or plan to save up until you have this money before you launch your start-up). Alternatively, you may look at getting a loan or raising money from investors.
4 – Write a great business plan
This is a step which is sometime overlooked by entrepreneurs who are keen to get into it, but it shouldn’t be underestimated! Writing a solid business plan will not only guide you in what you should be doing as you start your business, it will also keep you on track and accountable, and finally it is a great tool to show to potential investors.
5 – Take a leap of faith
Congratulations – you are now ready to launch your own start-up outsourcing business! All that’s left now is to take a deep breath and jump in. It can be scary to go out on a limb with your own business, but it will be well worth it in the end!