Ramp Up Your Business
We’ve already mentioned a number of factors that can have a strong impact on your costs and the ways on how to reduce the amount of money that flows out of your business. Now it’s time to discuss how we can bring more money into the business.
In the previous installment, we identified the elements directly impacting your margins. The revenue that you get for your service is spent on covering your internal and external costs. The external costs are relatively the easiest to control as these are the costs which arise through hiring your vendors. The internal costs are much more elusive, as this covers not only the fixed costs of running your business but essentially the internal labor costs for managing your projects. And these costs can vary greatly from project to project. What you should be aware of is that these costs do not have to be related to the revenue from this project and don’t even have to reflect the size of the project.
We’ve all seen these kinds of projects, costing more than they bring in. So it is extremely important to identify and manage these projects in order to reduce the wasted effort and lost opportunities that they can bring. Managing these cumbersome projects helps in bringing your efficiency to a much higher level.
This efficiency can be translated into revenue in a wide range of ways. Just to name a few:
- Better efficiency creates the capacity and space for your business to process more projects with the same resources in the same amount of time. This splits the fixed costs of running your business on more projects thus improving their margin even further.
- Awareness of your efficiency and margins. You can start accepting and actively searching for projects which before were only a burden. Small, simple and low-budget projects cease being a hassle and can be treated as an opportunity, now able to be handled due to your improved capacity.
- The volume of these small, simple and low-budget projects, if coming from a single source, can create a steady stream of income. These types of projects are becoming more and more prevalent as they reflect the changes occurring in the translation market. Budgets are getting smaller or at best staying at the same level, followed by a constantly increasing workload and diversity. In such a market, it’s not enough to compete with better prices and quality, you need to offer better speed and a reduced project turn around time. Reducing the overheads to a minimum gives you the opportunity to compete for those projects – and ultimately win them.
As we can see, reduced overheads and improved efficiency doesn’t only lead towards increased capacity but should be seen as an opportunity for increasing the diversity of managed projects. Being able to provide services with a consistently short turn-around time and at a good price provides you with that important edge over your competition.