One of the main challenges we face is the influx of numerous small projects, which can hurt our bottom line. Every small request becomes a project in its own right.
Is there any other way of winning a new client, other than by offering the lowest rates? I have spoken with dozens of translation company owners and I often ask them what their main current challenge is. Their answer comes back like a mantra, ”Price pressure!”.
There are two ways of growing business profits: increase sales and reduce costs. A wise reduction of costs is key to improving customer satisfaction, winning customer loyalty and growing your business in the long term.
Vendor management can be regarded as one of the most important tasks of a translation agency. After all, the core of the business resides in the effective reselling of the work of your vendors, as a result, any inefficiencies in managing them must have a direct impact on your bottom line and your results.
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.
"You Can't Manage What You Don't Measure" The quote above from Edwards Deming sets the tone to this three-part report dedicated to the challenges of running a profitable translation business in today’s markets. And these challenges are numerous: language service providers have started competing globally while customers’ demand for services has grown without their budgets the following suit.