Signs It’s Time to Switch Vendors
April 20th, 2011New to Outsourcing? Expert Advice to Get You Started
April 15th, 2011
Small to medium sized businesses are increasingly turning to outsourcing as part of their overall growth strategy. Research firm Gartner estimates that 90 percent of new businesses in the U.S. are in the SMB category.
Smaller companies have begun to realize the same benefits from outsourcing that larger organizations enjoy. “There is a small but growing legion of SMBs that are considering outsourcing,” says Robert Brown, a research director at Gartner.
• A word of caution is in order, however, for businesses that are just beginning to outsource. Brown’s advice? “Don’t do outsourcing as a knee-jerk undertaking. Do your homework. Do it in steps. Really understand the motivations for outsourcing.”
• This involves exercising due diligence before sending out requests for proposals. Begin by thinking strategically; analyze your reasons for outsourcing. Gather input from everyone involved in the process.
• Beginning with the end result in mind, create a project plan that details exactly what you will expect from your outsourced provider.
• Consider vendor size. There are some distinct advantages attached to both larger and smaller vendors. Many larger vendors, responding to changes in the economy, have begun catering to SMBs. Working with a large vendor can give you access to the very latest technologies, which smaller providers may be slower to implement.
Larger vendors can also offer lower pricing that some of their smaller counterparts. On the downside, their large clients are still the main source of revenue for these providers, who could turn their focus away from smaller clients when the economic outlook improves.
“If you’re an SMB and all you require is things like guaranteed availability and a good price point, you can get that from larger vendors,” says Brown. But you don’t necessarily increase your risk by working with smaller vendors. “A lot of the smaller outsourcing vendors that I’ve had occasion to work with are fairly solid companies.” And smaller vendors are accustomed to providing high levels of personalized service for their clients. “The smaller guys can bend over backward for your business and will really cater to you.”
Onshore vs. Offshore Call Center: Which is Best for Your Business?
April 11th, 2011
Outsourcing call center operations has become a given for small to medium businesses and the only question remaining is whether to use an onshore or offshore call center. Below are a few factors to weigh when making your decision.
Onshore Call Centers
With an onshore call center, you eliminate the language barrier, as most onshore call center agents will be native English speakers.
A mainland call center will be easier to visit for hands-on training and management purposes.
Some customers may be more comfortable making credit card purchases via a call center that’s closer to home.
The main disadvantage of an onshore call center is the higher price. Be sure to compare, as pricing will vary. Some in the Midwestern United States offer lower rates than their East and West Coast counterparts.
While the issue is still debated, some businesses have chosen to stay with onshore call centers because they believe this leads to greater customer satisfaction and retention.
Offshore Call Centers
In a recent study by Duke University, 73 percent of companies surveyed said they turned to offshoring to save costs and promote company growth.
Offshore labor costs are much lower; your company can save up to 70 percent over onshore call center pricing.
Many offshore companies require their agents to have specific educational criteria, experience and skill levels.
Some offshore companies compensate for the time zone difference by employing workers around the clock, giving you and your customers access to 24/7 service.
One of the main disadvantages of offshoring is the physical distance; you don’t have as much opportunity for personal contact with agents and managers. However, many overseas call centers provide teleconferencing so you can be involved in the training process.
English is the second language for most representatives in overseas call centers, which can result in some communication difficulties. Search for a company that only employs reps whose English is clear and understandable.
Consider your company’s objectives. If your call center operations will not require diligent oversight, then an offshore call center might fit your needs adequately.
How to Develop Successful Vendor Relationships
April 6th, 2011VoIP for Growing Companies
April 1st, 2011
Improvements in reliability and sound quality and a substantial cost advantage over traditional phone systems have made VoIP the communications system of choice for many businesses.
According to Forbes.com, “small- and medium-sized businesses (SMBs) have perhaps the most to gain from the explosion of new VOIP services. In one move, businesses can outsource their communications, doing away with clunky, on-site PBX equipment and reduce their monthly phone bills.”
Some of the newer VOIP features for smaller businesses include tools like “unified messaging” (converged voicemail and e-mail) that can actually improve productivity.
Because there are so many VoIP providers, it can be difficult to research and choose a vendor. Do a Google search about your potential VoIP service providers to see what others are saying. Below are a few other factors to help you in your search.
VoIP vendors offer a wide variety of features ranging from voice mail, faxing, and toll free lines to conversion of voice mail messages to emails or text messages. Many VoIP services allow you to integrate your voice traffic with SalesForce and other CRM solutions for easier access to customer data during sales and customer service calls.
The price for VoIP service varies a great deal depending on the number of phones a business uses, the features desired, and the vendor itself. Pricing can start as low as $20 per month. It’s a good idea to decide in advance how much you will be willing to pay for your service.
Should you go with a hosted VoIP service or purchase a premise-based system? A hosted VoIP system is owned and hosted by someone else, and is usually the best choice for smaller businesses. The telephones themselves are the only equipment you will need to buy. Service is provided by the hosting company, as are any upgrades.
A hosted PBX or virtual PBX VoIP system comes with all the features of a standard premise based phone system including voice mail, call attendant, call forwarding and faxing and you can usually choose from a variety of additional feature packages.
How to Select the Right Collection Agency
March 30th, 2011Seven Ways to Increase Your Appeal to Potential Vendors
March 26th, 2011
Whether your company needs to outsource human resources, IT or any other business function, finding quality vendors you can work well with is always the important first step. This can be a time-consuming process, but you’re already halfway there if you run your company in a way that attracts quality vendors.
Vendor selection can be much easier if your reputation places you among the companies that B2B service providers prefer to do business with. If, on the other hand you are known for haggling over pricing, delaying payments or being difficult to deal with in any number of ways, you may eventually find very few providers who are willing to do business with you.
How do you know if yours is the type of company that attracts the best vendors?
- Look at your current vendor relationships. Do you have frequent misunderstandings with service providers? If so, the problem could lie with you rather than them.
- Examine your relationship with your own employees. Is there a high turnover rate, a history of disputes or low morale? Your relationship with vendors will likely follow the same pattern.
- When contacting potential vendors, do you make it clear you’re in the market to purchase and not just doing research?
- Do you project that you have a budget in place for the services you are seeking?
- Do you communicate your needs confidently? It helps to know in advance what you are looking for in a vendor.
Here are seven ways you can improve your vendor relationships and increase your company’s appeal to potential service providers:
- Improve your communication skills. Be clear, friendly and open to discussion. If communicating with your vendors continues to be a source of frustration, consider hiring someone to manage these relationships.
- Demonstrate respect for the other person’s perspective, even if you disagree with them.
- Avoid micromanaging; allow the vendors you work with to apply their expertise to your projects.
- Be available. Respond to emails within the same day whenever possible.
- Avoid giving the impression that you’re simply looking for the cheapest vendors. This doesn’t mean you should always pay the highest price for every service, but do be willing to pay a fair price for quality service.
- Maintain a good rating with the Better Business Bureau and keep your Dunn & Bradstreet profile up to date as well.
- Make sure your website projects the image of a reputable company.
Communicating Effectively Before Outsourcing
March 23rd, 2011Seven Tips for Successful Vendor Contract Negotiation
February 24th, 2011
Once you’ve found a suitable business service vendor you will want to arrange a meeting to discuss details of your contract. Successfully negotiating a contract that benefits both parties requires a degree of skill. Here are a few tips to keep in mind as you enter the negotiation process:
- Before the actual meeting, obtain a copy of the vendor’s standard agreement, or a sample contract. A good time to do this is when requesting an initial quote from the vendor. This gives you time to completely review the terms of the contract and decide in advance areas in which you will want changes made in your favor.
- Enter negotiations with the right mindset, making sure your expectations are reasonable. The best contract is one that both parties feel good about.
- Be clear in your expectations. Include detailed time frames for specific milestones. It is in the vendor’s best interest to allow some leeway in their service agreement, so you might need to change some of the wording to ensure the work is completed within your expected time frame.
- Stand your ground in areas that are the most important to you but not as high on the vendor’s list of priorities. But be flexible regarding aspects of the contract that have a lower priority for you.
- Remember that it’s not all about price. By negotiating for the lowest price possible you could end up leaving your vendor looking for ways to cut corners in order to make a decent profit.
- Even if the vendor’s opening price is well within your range, don’t hurry to sign the contract. Ask for some adjustment in the price or other concession in your favor, so the vendor does not end up feeling their offer was too low.
- Don’t give into pressure to sign within a certain time. If the vendor warns that their prices will increase after a certain date, you can see if they will accept a letter of intent pending an acceptable agreement. Bear in mind, however, that this could limit your negotiating power by placing a time limit on the negotiation process. Ultimately, you have the choice to walk away if you are not satisfied with the terms you’re offered.
Is a Merchant Cash Advance Right for Your Business?
February 14th, 2011
Perhaps you’ve heard of merchant cash advances for businesses–a process in which your merchant account provider purchases the right to receive a percentage of your future credit card sales based on your company’s credit card sales history. But if you are not sure whether this would be the best way to obtain funds for your business, here are a few key factors to help you decide…
Your business might benefit from a merchant cash advance if:
• You need short-term financing to help your business maintain cash flow or pay for equipment or other resources that will contribute to the growth of your business.
• Your business is seasonal in nature; a cash advance can help you get through the slower periods.
• You own a restaurant or other type of retail establishment that is considered high-risk by traditional lenders; a cash advance can be an easier way to obtain needed funds.
• Your credit history makes it difficult to obtain a traditional loan.
Some advantages of obtaining a merchant cash advance for your business:
1. No personal guarantee needed
2. No collateral required
3. No fixed repayment amount
4. Flexible repayment terms
5. High applicant approval rate
6. Will not show on your credit report
7. Good credit is not a requirement
8. Simple application and approval process
9. No credit check needed for quote
10. Fees are tax deductible
Additional factors to keep in mind:
The process for obtaining a business cash advance is quicker and easier than applying for a traditional business loan. However, because such advances are a riskier investment for the provider, the fees can be as much as 40% of the total cash advance amount.
The main reason for obtaining a cash advance should be to help your business grow. If you find you are using cash advances just to stay in business, this could be a sign that your business is in trouble. Many providers will require proof of how you are using your cash advance.
See the video below for tips on choosing the best merchant cash advance provider for your business needs.
