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5 Business Activities Every Company Should Outsource

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5 Business Activities Every Company Should Outsource

Running a business requires a lot of wise and critical decision-making. Being an entrepreneur is all about availing the right opportunities at the right time. However, not every seemingly profitable opportunity is beneficial for the organization. Making choices in business requires weighing the benefits against the costs to ensure the decisions prove successful for the company in the long run.

One such opportunity that has recently gotten immense attention in the corporate world is outsourcing. The concept involves hiring employees from a third party or assigning your support functions to a third party to do the tasks for the company. For example, hiring a marketing agency to design and carry out the promotional campaigns of the business is outsourcing. Outsourcing revolves around the notion that certain functions will yield better results when left to the experts. A company should focus on its core business activity and outsource the rest to other specialist companies in the market.

But often, entrepreneurs get stuck in deciding which functions to outsource and retain. Outsourcing business functions comes with certain costs, which means business owners need to decide on an outsourcing and retaining plan that maximizes benefits for the company. To simplify this, here we have a list of five business activities we believe every company can easily outsource without a second thought:

  • Accounting and Record-Keeping:

You might believe that accounting is a critical function in an organization, and outsourcing it does not seem feasible, and we do agree. However, accounting and record-keeping is a support task and not your primary business. Companies need to realize that the more resources they invest in supporting departments, the less they will be investing in their core functions.

Imagine you run a fashion retail outlet. To run an accounting function in-house, you will first have to hire a qualified accountant who can handle the tasks for you. For example, a professional with a MACC online degree will possess relevant accounting knowledge and the appropriate skills. If the work is extensive, you might as well have to hire a team of accounting specialists. Next, you will have to provide them with the necessary equipment such as computers, accounting software, etc. On the other hand, when you outsource the function, you hire an accounting firm to handle the tasks for you and give them a monthly contractual amount. It saves you from all the unnecessary hassles.

Moreover, companies that specialize in a particular field are in a position to perform that task at a much lower price than if you would do it yourself. A company with a team of expert accountants who deal with the record-keeping of several other companies can easily handle yours, too.

  • Social Media Management:

Managing social media presence is now an essential part of running a business. Without social media, any marketing campaign is incomplete and ineffective. Most companies now run extensive social media campaigns and have designated specialists to manage the company’s brand online. However, social media marketing is one function that a business can easily outsource. You can find several media agencies locally equipped with giving your business exactly what it needs. They have several experts on board who are well-versed in online marketing and know how to control the audience online.

  • Lead Generation and Customer Service:

Scoring sales is a matter of how convincing your sales team is and how effective they are in attracting the right customers. It may be a tiring job, but it is not a complex function. You can easily hire an outsourced team of call center resources to handle the business’s lead or sale generation. You can hand out a script of how you want them to deal with your potential customers and let them do the rest. The more calls you make, the higher the chances of you bagging sales. A third-party company will be more efficient in making calls and generating leads than an in-house team that can quickly get complacent and slack.

  • Administration:

If you did not already know, hiring virtual assistants is becoming common in the corporate world. As the name suggests, virtual assistants manage everything from sorting your emails and appointments to managing your social media activities. They are also cost-effective, and outsourcing your administrative tasks to a team of virtual assistants can ease the burden of housing a staff internally.

Administrative tasks are usually repetitive and not complicated, which means there is less risk of mismanagement. Also, relieving your employees of administrative duties allows them to have more time to focus on their core job. A less distracted workforce means better productivity for the business.

  • IT and Software Development:

While having an in-house IT team may be necessary, it is best to outsource the complex software development and management tasks. Companies specializing in IT Support Services are the right people to tackle your IT duties for you. Rather than hiring technical staff in-house, which can prove costly, it is best to avail the pool of talented individuals that work for specialist IT companies.

Conclusion:

Entrepreneurs are always on the lookout for opportunities that help them maximize their returns and minimize costs. Outsourcing is one such arrangement that promises businesses a reduction of expenses and better quality products and services. Outsourcing promotes the idea that work is done best by those who specialize in it. However, business owners should assess which functions are best left in-house and which they can outsource. Accounting and IT functions are not crucial for some companies, while for others, marketing or administrative. Depending on the nature of your business, decide upon which functions to outsource, keeping the benefits in mind.

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10 Tips For Growing A Successful Service Business

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10 Tips For Growing A Successful Service Business

Entrepreneurs are brave souls who’ve taken on life-altering challenges and continue to make sacrifices to grow their businesses. Opening a venture poses multiple issues but also multiple opportunities if approached in the right way.

Pre-pandemic figures from the United States Small Business Administration revealed that one in a dozen ventures close yearly. Several reasons were cited for the closure, with personal reasons being the most common. Low sales, business dissolution, and retiring owners are among the main issues requiring a shutdown. (1)

Service businesses are often resilient and were the first to recover from the adverse impact of the pandemic. Whether re-launching or expanding, take heed of these tips to foster the growth of your successful service business.

  1. Automate business processes

Having business software installed is an essential investment to streamline operations, reduce costs, and enhance your reputation on the market. If you’re a housing contractor, drywall bidding software for scheduling and invoicing can make your operations much more straightforward. With it, you can monitor your staff, schedule services, and send reminders, quotes, and invoices to your customers. You can also communicate and manage client relations with it. Whatever industry or niche you operate within, you’ll be able to find software specific to your needs.

  1. Record-keeping

Enterprises must ensure their records are updated to ensure operational success. For instance, service companies must keep a database of suppliers and other contacts, customers, and leads to explore. Businesses also need to have comprehensive records of financial documents to know where they stand and to serve as the basis for future decisions on expansion. (2)

  1. Be professional

Whether you own a small, medium, or large business, being professional in dealing with customers is essential. Professionalism doesn’t only cover you and your staff’s behavior. It also shows in the documents and automated processes involved in every transaction. For instance, with today’s technological advancements, it’s more professional to use complete drywall invoice generators, like this free version from Jobber, to send to your clients or the equivalent for your business niche.

  1. Built the right team

Your staff is also integral to your success, especially if you’re a service-oriented venture. Your client-facing workforce will act as representatives of your company. Building the right team with the appropriate soft and hard skills can nurture your business to success. Moreover, the company workflows must facilitate them to work together towards your business goals and eventual success. Your staff must also be equipped with the right business tools to allow them to focus on core responsibilities yet collaborate simultaneously. (3)

  1. Focus on customer experience

Customers are the lifeblood of any service business. Thus, all transactions must be fast, efficient, and convenient to achieve great customer experience. This will set you apart from other companies.

Satisfied clients will likely spread the word and attract additional customers. They may also turn into loyal consumers. Some businesses often use satisfied customers as a digital tool by asking them to upload positive reviews on the website or your business’s social media accounts. Maintaining long-term customer relations helps you understand your audience better. For optimal results, companies must have customer relationship management software. (3) (4) (5)

  1. Study your competition

Analyzing the market and your competitors should be a continual process. It’s a highly beneficial exercise before launching, yet it’s critical when you’re already running your venture. Knowing the other companies’ best practices can help you determine whether you can apply these protocols or tweak them and make them your own. In addition, doing this enables you to determine how to offer the best possible services, getting you ahead of the competition. Similarly, analyzing how others work can help draw your attention to critical business processes. (2) (3)

  1. Publicize your expertise

Customers like to deal with the brands they can trust. Build your reputation and establish authority in the market by uploading “how-to” videos, webinars, e-books, white paper, and photos of your best works. For the latter, it’s helpful to present before and after images so consumers can see how good you are at what you do. (4)

  1. Diversify your offers

To groom your business for expansion, consider offering other services to help attract new clients and increase your revenue streams. Conduct market research and surveys for new opportunities and offer promotions and add-on services following these activities. For instance, consider adding pool cleaning or landscaping services alongside your lawn moving activities for better income. (5)

  1. Establish strategic business alliances

Keeping competitive doesn’t mean treating every other business as a threat. Study the market and consumer preferences for ideas on which businesses to reach out to for possible partnerships. For instance, if you’re providing spa services for women and many clients come with their husbands or partners, consider tapping a tea or coffee shop or nay business nearby where they can wait comfortably. (5)

  1. Set goals and measure success

To know whether your business is doing great, set performance indicators and don’t rely on the cash register. You’ll arrive at better business decisions after analyzing which aspects you’re doing well and which areas you must improve. In addition, don’t be afraid to make difficult decisions. For instance, drop it and switch to a new venture if you’ve just launched a new service that isn’t driving the results you expect. (4)

Conclusion

Consistency and novelty are essential in growing a business. The former is necessary for activities that drive revenues, while the latter is required to ensure you can provide the services your customers love. By implementing these tips, you’ll be able to provide the instincts and long-term traits you need to operate a successful service company.

References

  1. “Why Do Business Close”, Source: https://cdn.advocacy.sba.gov/wp-content/uploads/2019/06/06192013/Small_Biz_Facts_Why_Do_Businesses_Close_May_2018_0.pdf
  2. “How to Grow a Successful Business”, Source: https://www.investopedia.com/articles/pf/08/make-money-in-business.asp
  3. “13 Secrets for Growing Your Business Quickly”, Source: https://www.businessnewsdaily.com/7690-rapid-business-growth-tips.html
  4. “10 Proven Ways to Grow Your Small Business”, Source: https://articles.bplans.com/methods-to-grow-your-business/
  5. “How to Grow a Small Business in 10 Easy Steps”, Source: https://www.thehartford.com/business-insurance/strategy/accelerate-growth/how-to-grow-small-business
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Credit Card Misbeliefs That Can Harm Your Credit Score

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Credit Card Misbeliefs That Can Harm Your Credit Score

Credit cards can be an excellent financial instrument for managing finances if they are used and paid back in a disciplined manner. Credit cards, like most financial products, are subject to a variety of myths and misconceptions, which are not exclusive to credit cards. While some myths prevent users from getting the most out of their credit cards, others lead to improper use of credit cards, which can be detrimental to both your financial health and your credit rating.

This section will provide you busting of some common myths before you go for a sbi credit card apply online.

Credit cards are a gateway to falling into a vicious debt cycle.

Many people are reluctant to use credit cards because they are concerned about sliding into a debt trap. They, therefore, avoid applying for credit cards altogether. The likelihood of sliding into a debt trap, on the other hand, can only be true for individuals who lack financial discipline and/or the ability to manage their impulses to spend. For the others, a carefully chosen credit card combined with disciplined usage and payments would often result in savings, convenience, and lifestyle benefits.

Furthermore, for people who are new to credit, going for a sbi credit card apply online can be a great move for establishing a credit history and working toward the establishment of a high credit score over time. Given that credit card transactions are treated in the same way as loan applications, prompt repayment of outstanding credit card balances has the same positive influence on your credit score as timely payback of any other type of loan. Please keep in mind that persons with no credit history, or a 0 credit score, have a decreased chance of being approved for loans with favourable interest rates and fees.

It is preferable to avoid increasing your credit limit.

Many credit cardholders are reluctant to not only decide about sbi credit card apply online but even avoid increasing their credit limit because they believe that doing so will lead to increased spending and, ultimately, increased debt on their cards. The use of a higher credit limit, on the other hand, can have a significant positive impact on your financial situation if done properly.

It is not only possible to manage financial emergencies with a bigger credit limit, but it also lowers the user’s credit usage ratio, which is the fraction of the total credit limit that is actually used by the card user. A decrease in your credit utilisation ratio will progressively enhance your credit score, which will, in turn, improve your eligibility for credit cards and loans in the future. Maintain a credit usage ratio of less than 30%, as lenders perceive people who exceed the credit limit to be credit hungry, which leads to credit bureaus lowering one’s credit score by a certain percentage point. Those who tend to exceed this limit on a regular basis may request an increase in their credit limit from their current card issuer or consider getting a second card through a sbi credit card apply online.

Inconsistency in bill repayment has no effect on credit score.

Because a credit score is a three-digit numerical representation of a person’s creditworthiness, it is one of the first factors taken into consideration by lenders when analysing any loan application. In light of the fact that a credit score is calculated based on a person’s credit payback history as detailed in their credit report, irregular credit card bill payments can result in a worse credit score, in addition to the accruing of late payment fees and high finance costs. After all of this, a lower credit score can have a negative impact on a credit card user’s future loan and credit card eligibility.

Paying the bare minimum amount due is sufficient.

Many credit card users make the mistake of assuming that paying the minimum due amount is a safe haven for them if they are having problems repaying their total debt on time. This is incorrect. While timely repayment of the minimum amount due by the due date prevents the card user from incurring late payment fees, the card user is still subject to high financing costs, which range between 23 percent and 49 percent per annum on any unpaid balances. Keep in mind that failing to pay even the smallest amount of debt will result in not only further late payment fees but also a negative impact on one’s credit score. Furthermore, failure to pay credit card debts in full may result in the termination of the interest-free period on new credit card transactions until the outstanding debts are fully paid.

Consequently, if you are having problems paying your credit card debt on time and in full, you might consider converting the entire amount owed or a portion of it into a monthly instalment plan. Due to the fact that the interest cost of EMI conversion is significantly lower than the finance charges and that it is available for terms of up to 5 years, converting a credit card bill, either in full or in part, would allow one to make repayments at a significantly lower interest cost and in smaller tranches according to his or her repayment capacity, in addition to saving one from incurring finance charges on new transactions.

Having an excessive number of credit cards is detrimental to your credit score.

Another fallacy that exists in the world of credit cards and for people who are going for a sbi credit card apply online is that having many credit cards can negatively impact your credit score. However, it is the cardholder’s credit score that is influenced by his or her credit card usage and repayment behaviour. Habits such as prompt repayment of credit card debt in full, keeping the credit utilisation ratio (CUR) under 30%, and not filing many credit inquiries, especially within a short period of time, all contribute to the development and maintenance of a good credit score.

Furthermore, having multiple credit cards can be advantageous in a variety of ways, including higher benefits on spending across multiple cards based on their reward point structure, helping to spread out expenses according to each card’s interest-free period, and serving as a backup in the event of loss or theft of the primary card, among other things.

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How to Get Your Finances Under Control

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How to Get Your Finances Under Control

There has never been a better time to get a firm grip on your finances and know exactly what is coming to your household by way of money and what is going out. With the cost of living rising all over the world, getting on top of your finances while you still have a chance to sort them out, rather than leaving them until you are so far under is not to be sniffed at.

Check Your Finances Carefully

You must check your finances carefully and cancel any regular transactions that you do not require or that you do not recognize. This may seem odd, but there is a vast number of people that pay monthly subscriptions for things like magazines or gym memberships that they do not use, and this is therefore wasted money that can be put toward something much more beneficial for your household.

Draw Yourself Up a Budget

After you have gone through your finances, you are likely to be aware of the amount of money you have coming in every month and what you have going out on essentials. This is when you need to draw up a list of what is going out and how much money you have left over for things such as food bills, treats, and savings.

It is important that you budget for your treats as living a life without any form of treat, whether it is going out for a meal once a month or the movies, can seem like a hard slog and you are more likely to default on your budget by having no treats and nothing to look forward to at all.

Look for More Economical Options

It is a good idea to look for more economical ways of doing things, whether it is in the form of consolidating your loans, changing utility suppliers, or getting a more economical car. With gas prices rising all over the world and buying a new car out of most people’s financial reach, the next best thing is to look for a second-hand, economical, and reliable vehicle. In fact, many car suppliers offer their very own finance options. For instance, if you were looking to purchase a BMW, regardless of age, mileage, or model you would be able to ask about bmw car finance from that particular garage or showroom, so that you may not have to approach a lender directly.

Batch Cook Meals

When it comes to food bills, you could very well find that you can get on top of these and even save a bit of money by batch cooking your meals ahead of time. This means that you select a few different meals that have very similar ingredients, buy the ingredients fresh and spend a day or an afternoon cooking up meals that you can store in your freezer already portioned up and ready to warm up and eat when you need them.

It is important when doing this that you make sure you have enough containers to store the food in and that they are freezer-proof. You will also require a marker pen so that you can write on the lid of the container the name of the meal you have inside, this will prevent any mystery meals from happening.

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