Resource Intermediaries Limited: Building and Sustaining an Outsourcing Business
UNDERSTANDING OUTSOURCING
Outsourcing connotes hiring a party outside an organization to carry out tasks that the employees would ordinarily have done. That is what we do at Resource Intermediaries Limited (RIL). We are an indigenous company registered to engage in Human Resource Outsourcing, Recruitment and Training services. In the last 15 years, we have built a clientele spread all over Nigeria and Ghana.
WHY COMPANIES OUTSOURCE
Outsourcing non-core FUNCTIONS activities like data entry, janitorial services, cashier roles and more, lets companies focus on their core business operations.
Source: UGC
WHAT IS IN IT FOR YOU AS A VENDOR?
The industry is growing, though not all entrants are doing it right. As many companies are looking to outsource their non-core activities, there are huge business opportunities in the industry for new providers. Outsourcing is lucrative.
In building an outsourcing business, here are a few simple steps to consider:
1. Decide on the BPO you prefer
Identifying your business niche is a key first step because when you zero in on a niche, it helps you determine: the specific sector, the activities your firm will need to undertake and your target market.
When starting, please pick an outsourcing service you’re familiar with.
2. Develop a working Business Plan
This document is a living document. You need to analyze the intricacies of your niche and look at what competitors are doing. It should have a long-term direction, clear business budgets, milestones and business structure. This would help investors understand your business and see the prospects better.
While it’s important to develop a good plan, you need to review and update it regularly. This ensures that you’re always able to adapt to market changes.
3. Do The Paperwork
Do all statutory registrations. Get a recruiters’ license from the Federal Ministry of labour and productivity. They usually would request certain documents. Sometimes, Laws and tax regulations can be complicated. Consult a legal expert to help with the registration and an outsourcing expert to help with the license.
4. INVEST IN THE PEOPLE, RESOURCES AND TECHNOLOGY
AT RIL, our people are our greatest assets, therefore, we are passionate about recruiting right and retaining them. We ensure that the needed resources are provided for ease of work. A BPO needs regular office things like office space and furniture or a shared co-work space, where you can have your staff all in one space and have access to Wi-Fi. RIL runs a co-shared workspace called theBUNKer. We have them located at Yaba, Lekki, Ibadan and Abuja. Other things like computers and Workforce management, Communication and Performance Tools tools are necessary.
5. GET HR CONSULTANTS TO SET YOUR STRUCTURE FROM SCRATCH
Most times, people dabble into business without structure. A business should be built to last and outlive the founders and several generations. Get it right from the little beginnings and apply the learnings as you expand. That is what you call a legacy business. You cannot have this if everything starts and ends with you. A one-man business does not always have to feel like one. You can run yours differently. With structure, your business can run in your absence. Staff would be happy and be retained. This brings positive growth to the profit line due to productivity. If it did not work for RIL, I would not be saying it. Sometimes, people wonder if we are internationally owned, and I gladly answer “WE ARE PROUDLY NIGERIAN”.
Source: UGC
Talking about SUSTAINING THE OUTSOURCING BUSINESS, you need to first understand the factors that affect Nigerian businesses.
Most businesses would succeed faster where the ecosystem and business environment are functional, unlike the Nigerian situation. These 3 factors always affect Nigerian Business.
1. Availability of the market – This is major because of the large population. With the last count of 180 million, if 25% (45 Million) is a possible market for different types of businesses, that is huge. Once you have a mindset that all you need is a percentage of that number, it’s a driving force to succeed.
2. Adequate Manpower – They drive the business and are critical in controlling quality, value and pricing due to costs tied to top-notch skills and labour. Unfortunately, the state of the educational system and ongoing brain drain in the country has had us grappling with available talents.
It’s tough for SMEs because industry giants get to entice these talents with better remuneration SMEs cannot afford.
3. Availability of funds- During the RIL Finishing School Training (For business skills of graduates, job seekers and Entrepreneurs), the major questions from the entrepreneurs are about accessing funds. We have our formula for that and we always give participants who attend. For more information on this, log on to www.resourceintermediaries.org This is one major issue Nigerian businesses have. However, in recent times, a few Nigerian banks are more friendly to SMEs.
Now that we have an understanding of the Nigerian market and business, here are a few tips on how we at RIL has sustained the business.
1. Ensure Quality service/product- The saying that ‘you are as good as your last product” is a general saying in the business world and there are no truer words. Dare to be different and do not follow the bandwagon of compromise. Treat every relationship like it is the only opportunity you would ever get. We use business managers and survey tools to get feedback from clients to get better and improve. When the prospect is negotiating too low, unbundle the offering by removing some services.
2. Be the best at what you do- This can only be achieved with intentional learning and growing daily. Continue to get better at what you do, learn, unlearn and relearn as much as possible. Keep up will business trends and the everchanging business climate for your organizational survival and this will place your organisation at a great advantage over competitors. Train your staff regularly. We can provide that at www.resourcfeintermediaries.org
3. Understand Finance – Business is beyond just making a profit. Profit may be made even when the business is not successful. You could have an unhealthily high expense ratio or need to understand certain financial treatment or budgeting. Know your accounting books and ensure staff are carried along. Every staff of RIL understands how to translate financial statements because they are all exposed to them during meetings.
Source: UGC
4. Be focused, dedicated and consistent- My MD would say, “when running a business and things don’t seem to be working, just stay there”. As long as you have your principles right, the business will grow. Lead your team by example and they would follow.
5. Get a Business Coach- This cannot be over-emphasized (pick any of our business coaches on https://coaching.resourceintermediaries.org Also get an experienced person already in the outsourcing space to hand-hold you while you learn from their experiences.
6. Let the structure work and Delegate- Allow your employees to handle their bit with coaching and supervision for you. Follow the laid down structure and policies and be consistent in the implementation.
7. Break the ICE- This is the RIL sales mantra. I- Identify the prospects, C Contact them an E-Extract value. Connect with people because as they say, your network is your net worth.
Written by, Shola Adekoya.
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Source: Legit.ng
