Why Companies Outsource?
There is an ever-growing market for outsourcing contact center solutions. In the COVID-19 economic environment, developing an outsourcing strategy into an ARM solution allows enterprises to differentiate themselves, provide a comprehensive customer experience, and reduce costs. Most companies need to hone their niche products and services which often means they cannot afford to spread their core competencies thin. Now more than ever, being lean and flexible demands focus on what you do best and outsourcing all the rest. By definition, outsourcing is the strategic use of the outside resources where it does not make financial or functional sense to carry out those activities internally. Outsourcing enables businesses to gain skills and services that are hard to find or develop due to resource constraints. First party outsourcing provides the client with a seamless extension of internal operations either for new projects or old ones that are too overwhelming to manage. Uplift Your Brand Outsourcing is an efficient way to boost a company’s brand and fast track business goals. It allows companies to create a world-wide platform to launch products and to promote the company name without needlessly shelling out hard-earned revenue. By contrast, investing in a trained and certified customer service team sends a message to customers that a company is willing to put their best foot forward. The message to customers is “your satisfaction matters.” Companies have a choice between making internal resources pull double duty on the phones while other projects are on hold, or leveraging staff who have chosen customer service representatives as a vocation. Just imagine who will have a more positive impact. Outsourcing to customer service specialists will have a ripple effect of goodwill that reflects exponentially on brand positive reputation. Worldwide Talent Pool and Lower Support Costs In an overseas outsourcing model, companies gain access to a worldwide talent pool. This allows them to expand their language capabilities and add “follow the sun” 24/7 coverage, ensuring the representatives handling inbound and outbound calls are always alert and upbeat. Drawing from global talent sources offers unique perspectives on problem resolution. In addition, offshore staffing costs remain, as always, much lower than similar services delivered by their domestic counterparts. In a global economy where the playing field is leveled by remote monitoring tools and VPN connectivity, cost savings are substantial. More Versatility and Proficiency Dipping into another talent pool also means access to different skill sets. When an in-house team specializes in a specific core competency, it is not always easy to pivot customer service functions to support a new product or service launch. A BPO team can help organizations drill down their expertise by handling custom campaigns with greater proficiency. It starts with building a comprehensive, ever evolving knowledgebase or FAQ library, enabling representatives to expand their issue resolution or customer inquiry repertoire. Over time, those inbound and outbound dialogues become more effortless and second nature as representatives reinforce credibility and knowledge with customers. Since they are often the “department of first impressions,” call center representatives can make or break a company’s brand. Greater Scalability Organizations that experience fluctuating or seasonal call volumes find it difficult to adequately staff up or down to meet the peaks and valleys in demand. They also find it is costlier to bring on Full Time Employees (FTEs) over the short term. Not only does this approach place a strain on internal resources to recruit, train, and manage those representatives, but by the time new hire productivity ramps up, call volumes may take a nosedive. Outsourcing to a BPO team creates an overflow mechanism when inbound and outbound activities are less steady stream and more Murphy’s Law. Redundant Tools and Systems When force majeure becomes a force to be reckoned with, having redundant tools and systems is the ultimate “better safe than sorry” approach. Why settle for one set of telephony, ticketing system, or data center when an outsourcing partner can integrate with and replicate crucial systems, literally flipping a switch in the event of an outage? Outsourced service providers can safeguard intellectual property and ensure the most resilient service possible. BPO platforms and data are typically hosted in hardened, Tier IV data centers which are good enough to store crucial data for the likes of Google, Intel, and Deloitte. Getting on board with an outsourcing partner that invests tens of millions of dollars on Business Continuity Planning tools and systems means never compromising on IT data security. Enhanced Competitiveness and Productivity in a Post-COVID-19 Economy Outsourcing increases the competitiveness and productivity of a company and allows growth over competitors. A budget-friendly, hassle-free, time-efficient and balanced way of increasing productivity is outsourcing. The turnaround time for projects is easily truncated with the help of outsourcing. Leveraging an outsourcing partner enables internal staff to get their work done on time without compromising on quality. Simply put, outsourcing is a way to enhance productivity and efficiency by drilling down on internal functions that have the best ROI and offloading those that do not. The truth is the post-COVID economy has forced the hand of outsourcing as an ever more valid business strategy. As companies scramble to stay more connected and get more done while being further and further apart, outsourcing has built a case as the new normal for how we should conduct business today. And it is not an option that is likely to go away any time soon. Despite all of the social distancing, an outsourcing partnership remains close at hand.
You heard through the grapevine that “Charlie” just sold his business for a ton of money. What confounds you is you know from talking with him occasionally at the annual trade show, his business is pretty darn similar to yours.
However you know the value of your business is never going to bring in what you understand he drove off with!
What is it he knew that you don’t?
This happens all the time. See, you have a fine business, but it's a business built to sustain your lifestyle. It pays your bills, let's you go on vacation and pay your mortgage.
It's not a business built to sell.
And now that it’s time to sell, after 30 looong years of building it to where it is, you are scratching your head wondering how “Charlie” pulled it off. As much as you might think your business is worth enough to sustain your retirement and let you go sailing off in the sun; the reality is, it's probably worth a lot less than you think.
Plus, it's not just what you think about your business to sell it for a great price, it's about what a potential buyer thinks!
Here’s the 3 Secrets to Selling your business for a great price:
1. With respect to “Value”, EBITDA and Multiples are virtually EVERYTHING for most businesses.
2. Understanding how to manage the component parts of your multiple unlocks tremendous Value Creation… as in 25 – 50 even 100% greater value than today’s 'lifestyle business'. The 7 Pillars of Value Creation unlocks that door.
3. AND… you have no time to waste! Time is not your friend.
You see, what “Charlie” understood was how to reposition his company from a 'Built for Lifestyle' business to a 'Built for Sale' business.
He was able to improve the multiples as well as increase the EBITDA through 2 of the 7 Pillars, which when all combined, boosted the value of his EBITDA from $1.6million, to $2.1 million.
His multiple a buyer was willing to pay went from 4.4 to 6.0.
What does all that mean?
He turned a business valued at $7,000,000 a year or two ago into a sale for $12,600,000 in very short order. This is real. It is what happens when you understand how a buyer looks at your EBITDA, and how to improve the confidence that buyer has your EBITDA will still be there after you, the founder, depart.
To do this, we've created the '7 Pillars of Value Creation' that is designed to identify where your company is falling short, and tell you EXACTLY what to do to improve various aspects of your business.
Do that, and the multiple rises, and your sale price dramatically increases.
And now, Charlie is driving off into the sunset and his pals from the trade association are still working well past their retirement targets… with a great lifestyle, but not what they wanted, and not having any idea what happens around the corner…
If you want to discover how the '7 Pillars of Value Creation' can help you, it starts by taking our Saleability Survey. Your score determines your current position, and then we can show you EXACTLY where you need help to increase the value of your business.
“Streamlined” is an adjective most people wouldn’t normally associate with debt collection. B2C or B2B debt collection can be fraught with challenges, and it isn’t always straightforward. Yet developing a streamlined solution to debt collection is essential for businesses in order to keep cash flow positive and ensure the business always has sufficient working capital. When you can’t collect on what people owe you, business becomes more complicated. Not only do you have to pursue that debt so you can collect what you’re owed, you may have to deal with complications like bumpier cash flow and lower working capital. In other words, problems from uncollected debt ripple outward, potentially affecting your entire business. Debt Collection Get Results While Protecting Your Brand Streamlined debt collection services exist, and the best ones not only collect the money people owe you, but they also do so with utmost attention to protecting your brand, your data, and your customer’s data. Many small and medium enterprises simply don’t have the personnel and time necessary to devote to creation of a streamlined debt collection process. Brand protection is essential in the internet age, when people regularly do online research before choosing products and services. For B2B business in particular, brand protection is essential during the process of B2B debt collection, because business relationships have enormous influence on reputation and the ability to succeed long term. Accounts Receivable Management Can Prevent Debt Collection Problems One way to streamline your debt collection process is to prevent the need for it in the first place. However, managing accounts receivable (AR) is a big job, and many small and medium enterprises don’t have a designated AR officer who can focus on this crucial responsibility. Fortunately, there are debt collection specialists that offer a range of services, including AR management, and this alone can streamline debt collection for small businesses without a designated AR officer. And when the same debt collection specialist has to deploy more traditional debt collection techniques, they’re prepared to act without delay. Pre- and Post-Charge Off Services Help Maximize Revenues Pre-charge off debt collection is an excellent first line of defense in debt collection. Early intervention is essential when pursuing debts, because the likelihood of collecting decreases with every day that passes. When your debt collection service pursues early debt recovery, the result is fewer delinquencies and defaults, and maximum cash directed back into your business. Post-charge off debt collection is more challenging, but if your debt collection provider has experience in this process, you can minimize losses due to unpaid debts and help ensure healthier cash flow. With technological tools that allow faster skip-tracing, your debt collection specialist can more quickly locate the correct party and accelerate recovery of even the most challenging cases. It’s not easy for small and medium enterprises to stay on top of AR management and debt collection, yet these processes must be managed well to ensure good cash flow and sufficient working capital. TSI is a leader in helping clients of all sizes streamline their debt collection processes.