How to Start an Outsourcing Business

Outsourcing is big business.

As companies look for ways to save money, they're turning more and more to outsourcing some types of work. This has created a great opportunity for freelancers with specific skills to work for companies but still be their own boss. Further, starting an outsourcing business can be affordable since you can use the skills and equipment you already possess (as opposed to getting more training or tools) to get started.

Instructions

1. Assess your skills. Make a list of the skills you excel at and would be able to offer companies including typing speed, writing quality, organization and communication skills. Common jobs that are outsourced include administrative support, transcription, writing, website design and maintenance, research, schedule management and customer support.

2. Research the market. You know your skills, but before you start your business you want to find out if there is a market for what you have to offer. Check places such as job boards and freelance job sites to see what types of projects are common and from what markets. For example, are there a lot of requests for virtual assistants from Realtors?

3. Set up your business. Decide if you'll specialize in one area such as transcription or offer a host of services. Draft contract templates to use when clients hire you. Create a price structure that includes one-time project prices as well as fees for being put on retainer for regular services. Contact your local city or county business office about business licenses or other permits. If you'll be running your business from home, check to make sure zoning allows you to work from home.

4. Obtain needed equipment and supplies. This includes a computer, telephone with headset, and software for the type of work you'll be doing. Buy software and equipment that is compatible with that used by the clients you'll be working with. For example, most businesses use MS Word for documents. While you could use Open Office for documents, sometimes formatting is changed when switching between the two, which the client may not like. Further, be open to investing in new or different software and tools that your clients use. It will give you more experience in a variety of tools and increase your market appeal to businesses.

5. Market your business. Identify groups that are in need of your service and that you're knowledgeable about. Start by contacting your previous employers. List other markets that could benefit from your services. For example, if you do transcription, speakers would be a good group to target. Create marketing materials that speak to your market and them where they will be seen, such as in trade or association magazines. Other marketing tools include a website, online advertising, business cards, networking (online and off), and establishing a referral system.

Tips & Warnings

• Identify other freelancers whose skills complement yours. For example, if you're a writer, find quality desktop designers or web designers you can refer your client to if needed. This can be a great help to your client when he needs services outside your expertise. And other freelancers will recommend you as well.

• As you grow, you can expand your business and offer more services by taking on other contract workers.

References

• Small Business Administration Small Business Planning
• Build a Better Business Through Outsourcing