Posts Tagged ‘b2b’

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VoIP for Growing Companies

Friday, 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.

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Seven Tips for Successful Vendor Contract Negotiation

Thursday, 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:

  1. 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.
  2. Enter negotiations with the right mindset, making sure your expectations are reasonable. The best contract is one that both parties feel good about.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.



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How to Shop for Cash Advance Service Providers

Friday, February 11th, 2011

For companies that need a source of cash but aren’t interested in a traditional loan, a business cash advance could be a viable alternative. Watch the video to learn more about this fast and easy way to get needed funding.

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Five Reasons to Use National Vendors for Business Services

Tuesday, February 8th, 2011

When choosing a vendor for the business processes you plan to outsource, you might want to expand your list to include national vendors as well as local ones. Some business owners limit their choices by considering only locally based service providers, but adding national vendors to your list can offer a number of advantages, such as:

  1. Access to the best providers available. Business services can vary greatly, not only in terms of quality, but also in the variety of features and services offered. While there may be several B2B service providers in your area who offer excellent service, your local provider in any given category may not always be the best choice to meet your needs. Comparing services on a national level will give you a much broader selection and could result in finding the ideal provider for your company.
  2. Better price range. In some parts of the country, prices for local businesses services run higher than the national average. National vendors are often much more competitive in their pricing. Many of the larger companies have greater buying power when purchasing software, business supplies and other business services, and pass these savings on to their customers. Even if you do choose to go with a local vendor, researching the price range of national vendors will give you a good idea of what you should expect to spend for the type of business service you need.
  3. Greater scalability. After assessing your plans for future growth, you might find that some of your local business service providers are not as capable of handling your company’s increasing needs as a national vendor would be.
  4. Superior customer support. In some cases, national vendors come with a larger and more fully developed customer service and support center, with representatives available at all hours to help you resolve any issues immediately.
  5. Local branches. With many B2B services, having a local presence is not essential to providing excellent service to their customers. When, for example, was the last time you needed to visit your phone or Internet provider’s office in person? Nevertheless, many national vendors do have local offices in several cities across the country, so if being able to speak to someone face-to-face is important to you, choosing a national vendor with an office in your area can give you the best of both worlds.

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Ten Key Factors to Consider When Choosing a Web Host

Monday, January 10th, 2011

Computer hosting, or web hosting, allows you to have a business website under your own domain name, which will greatly enhance your company’s professional image. Web hosts abound, however, which can make the prospect of choosing a host seem daunting.  Here are a few points to help you make an informed decision:

  • Price - Web hosting accounts are typically billed on a monthly basis. Fees start at about $5 per month and increase based on the hosting vendor and add-ons.
  • Set-up Fees - These fees cover the cost to transfer files from another host as well as costs associated with getting your site hosted. Most hosting services waive the set-up fee for new customers.
  • Disk Space - Disk space is the amount of hard drive space your host allocates to you on their computer servers. This will include space for you to store all your files for your entire website as well as any data files that your company will need to periodically backup and store on the hosting company’s servers.
  • Data Transfer - Data transfer involves the amount and speed that your hosting company provides to you for sending and updating your data files.
  • Year Established - When was the hosting company founded? If a web host has been in business for a considerable time, then it is probably a safe choice. A brand new hosting company may not be as reliable.
  • Online Reputation – Perform simple Google searches on your preferred computer hosting vendors before making your final choice. By reading blogs and forum posts, you’ll be able to find out which services truly provide the solutions you need.
  • Email Accounts - Some hosts limit the number of email accounts that you can have associated with each website domain. Choose a provider that allows you to have as many email accounts as you need in order to operate your business effectively.
  • Added Features - Many web hosts offer features like content management systems, design software, and an assortment of widgets. You might not need many add-ons at first, but at least you’ll have the option of using them in the future.
  • Technical Support - Look for a vendor that has 24 hour customer service via a toll-free number. That way, if your website is ever down, you can contact a technical support team for immediate help to get your site back online.
  • Shared Host vs. Private Host – Shared hosts and private hosts offer different security measures. With a shared host you face the possibility of your website and data files being corrupted by a virus from the files of another company using the same host. A shared host, however, is generally far less expensive than a private host. Therefore, you should weigh the benefits and cost of having a private server against the savings and risks of using a shared server.

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Outsourcing Can Help Your Business Emerge Unscathed During Tough Economic Times

Monday, November 8th, 2010

Despite hopeful predictions for the economic future, many businesses are still coping with the problem of sustaining growth in a down economy. Organizations continue to tighten budgets by reducing staff and work hours. However, some of these budget-trimming moves can have a negative impact on customer relations.

In a classic study reported in the book, “The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value,” by Frederick Reichheld, a mere 5 percent improvement in customer retention rates was found to result in a 25 to 100 percent increase in profits. Considering the fact that it costs more to acquire new customers than to retain existing ones, clearly it is prudent to give top priority to customer relations, even—and especially—during difficult economic times.

Many organizations, which are dealing with the current economic downturn, are finding outsourcing to be the ideal solution, allowing them to reduce expenditures while maintaining a high level of customer service. In its January 2009 BPO Index, Nelson-Hall reported that “BPO is holding firm in a difficult market.” One reason for this, the report states, is that “BPO has a major role to play in improving customer retention and facilitating new market entry, as well as reducing costs to serve.”

In their recent white paper, “Retain Your Customers in a Down Economy”, EDS, an HP company and provider of IT services, observed that, “By focusing on the value of existing customers, and by leveraging the cost and performance advantages of an outsourced service model, companies can manage costs, retain customers and position themselves to survive and even thrive in a difficult economic environment.”

Partnering with outsourcers that specialize in customer management can help your organization retain and acquire customers while reducing operating expenses. Outsourcing also lets you easily scale up or down as needed, which can be especially helpful during times of unpredictable change.

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Reduce Your Capital and Operating Costs by Outsourcing

Thursday, October 7th, 2010

The shift toward outsourcing continues as businesses seek ways to remain competitive despite streamlined budgets. According to the Journal of Accountancy, “Outsourcing is becoming popular even in small and midsize companies. Nowadays, a small business may not have staff members such as a human resources recruiter or a 401(k) specialist in- house…many of these functions are being handled by outsourcers.”

Here are a few ways outsourcing can save money for your company, according to the experts at AllBusiness.com:

Outsourcing human resource duties, for example, will save your company considerable expense by eliminating the need to hire and train HR personnel to perform duties such as benefits administration and payroll. Instead, your provider’s trained and experienced HR experts will be able to handle these duties expediently, resulting in substantial savings in terms of labor costs.

Outsourcing also releases capital for investment revenue-producing activities, which will in turn make your firm more attractive to investors.

In addition, outsourcing can save you the expense of hiring temporary employees for short-term projects, as well as the cost of paying benefits to in-house staff.  And it allows you to avoid large expenditures in the early stages of your business.

Companies that handle every function in-house have much greater research, development, marketing and distribution expenses, which are often passed on to customers.

Although cost savings remains the number-one reason most companies choose to outsource, there are additional benefits as well, such as:

Time savings – Outsourcing business functions such as IT and HR provides relief from the administrative tasks involved in employee-related responsibilities, allowing you time to focus on strategies that will create growth and sharpen your competitive edge.

Start new projects quickly – A good outsourcing firm will have the resources to take on your projects immediately. Handling the same project in-house might involve taking weeks or months to hire and train additional staff.

Focus on your core business – Business managers must set priorities in order to focus limited resources where they will do the most good. Outsourcing can help shift you company’s focus away from peripheral activities and toward serving customers better.

Level the playing field – Most small firms simply cannot compete with the in-house support services that larger companies can provide. With the help of outsourced providers, small firms can appear “big” and enjoy the same capabilities, efficiency and expertise of large companies.

Reduce risk – When an outsourcing provider handles your business operations, they also assume much of the risk inherent in those functions, removing some of the burden of compliance with government regulations and other considerations.

According to outsourcing expert Frank J. Casale, outsourcing “is the great equalizer for small to medium-sized firms. Growth-oriented entrepreneurs can benefit tremendously. Not only do employees frequently gain access to better benefits, the owner gains freedom to focus.”

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Experienced Management Builds Successful Relationships with Providers

Thursday, July 1st, 2010

When entering an agreement with a new vendor, businesses naturally hope for a successful long-term relationship, resulting in a measurable return on their investment. Assuming you have chosen a quality provider, some of the responsibility for a successful relationship lies within your management of it.

The Outsourcing Journal recently analyzed the findings of a survey involving businesses whose relationship with outsourced service providers had been in place for more than one year. The survey revealed that 50 percent of these buyers had assigned an inexperienced employee to manage the relationship with the providers.

Of the 50 percent of participants who did use managers with previous experience, 22 percent admitted that they had chosen someone who had limited experience in this area, or whose scope of experience was limited to managing the process before it was outsourced.

This resulted in some common mistakes and challenges in managing the relationship with the providers, including:

  • A tendency to micromanage the provider. For the relationship to work smoothly, a manager needs only be concerned about the delivery of tasks. Details of how the work is carried out are best left to the service provider.
  • Trying to improve the provider’s performance level by imposing penalties or offering incentives. This might work with in-house processes, but is not likely to have the desired effect on your vendor.
  • Lack of effective communication between buyer and vendor; as a buyer, you will need to have some insight into how your provider plans to handle your company’s processes. A manager should be willing to listen to and understand the provider’s viewpoint on matters of mutual concern. He or she should also be able to effectively communicate the company’s needs and priorities.
  • Inadequate skills to manage changes, and to bring the buyer/provider relationship to an optimum level.

Some of the companies in the study did invest in formal training for their relationship managers, but nearly 30 percent did so long after the buyer/vendor relationship had begun to experience difficulties due to the lack of knowledge or experience.

To avoid this problem, and to pave the way for a successful relationship with your providers, be sure your relationship manager has adequate skills in areas such as change management, negotiation, communication, partnering, and project management. Relationship managers can also acquire a great deal of applicable knowledge by reading the latest white papers, books, and articles on the topic of managing vendor relationships.

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56% of Businesses Plan to Boost Growth through Outsourcing

Friday, May 7th, 2010

Companies are outsourcing more, not only because of economic factors, but also to utilize the talents of skilled specialists.

In a January 2010 poll conducted by Accenture, in collaboration with the International Association of Outsourcing Professionals, 56 percent of respondents indicated that they intended to outsource more of their business activities in the coming months.

This reflects an increase of 9 percent over the responses to a similar poll in September, 2009. As IAOP Chairman Michael Corbett observed, “Increasingly, companies are outsourcing to do more than cut costs but to add value, increase business flexibility and prepare for future growth. Companies that are using outsourcing are poised to emerge from the current economic crisis stronger.”

Businesses cited strategic considerations as a further reason for the increased use of outsourced talent. Outsourcing allows for a higher level of flexibility and scalability, making it easier to plan for future expansion, according to 50 percent of those surveyed.

Kevin Campbell, group chief executive, technology, at Accenture, expounded on this point, stating, “Outsourcing remains a strong option for businesses facing unprecedented market conditions and the imperative to change both quickly and dramatically. Most companies pursue outsourcing to not only realize immediate and sustained cost savings but to implement solutions to improve cash flow, achieve real business outcomes and to drive topline growth.”

Also a notable trend in outsourcing is the use of multi-sourcing, or bundled services. Knowledge-based outsourcing is also becoming a priority for many companies, with over 40 percent of survey respondents citing their increased use of highly skilled professionals. The use of lower skilled services is also increasing, however, as indicated by 30 percent of businesses surveyed, who plan to outsource more of these activities as well.

This increased use of outsourcing by both large and small businesses is reflected in the tremendous growth in the six trillion dollar global outsourcing industry. Many providers of outsourced services are responding to this demand by raising their standards of quality service through improved monitoring and training methods, and the companies who use them are reaping the benefits.


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What Results can You Expect from Outsourcing?

Sunday, March 14th, 2010

outsourcing1When considering a new strategy for your business, it is wise to do a little research to find out what experiences other companies have had in implementing the same strategy. If you are thinking of outsourcing some of your key activities, for example, an in-depth survey by Pricewaterhouse Coopers offers valuable insights into the subject of outsourcing. What were their findings?

The survey included small, medium-sized, and large companies, and found that 87% considered outsourcing as having delivered the benefits they expected.

These companies had outsourced a wide variety of business functions, ranging from IT and HR services, production and delivery of their core products and services, to call centers, accounting services, and procurement. The latter three markets have recently experienced substantial growth, and are projected to continue doing so as more companies see the benefits of outsourcing these services.

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