Mature industries like banking, pharmaceuticals and insurance have been outsourcing for decades – even before the term became popular. These verticals have standardized processes in their industries which enable them to easily scale – based on the economy and market conditions.

Because outsourcing has become available to small business owners and online professionals, you can now expect the same level of scalability, efficiency and cost savings that exists in other well-managed businesses that leverage outsourcing.

According to a report titled “Global Sourcing Trends in 2009” by U.S.-based law firm Morrison and Foerster:  Most outsourcing transactions intend to produce immediate improvements to the bottom line for businesses. While this is a common reason to outsource, with fluctuating economic times like we have been experiencing lately, the flexibility to scale up or scale down (based on the business’s needs) has been the determining factor to outsource.

Smart executives are using outsourcing to build flexibility and scalability into their businesses—and to gain access to a global pool of skills at competitive cost.

The recent economic downturn led many companies, especially those who don’t have existing outsourcing contracts, to consider outsourcing. But companies who already have outsourcing agreements are re-evaluating their outsourcing decisions to find providers that offer more business continuity and integration.

In an environment where Fortune 500 companies have disappeared overnight, a successfully executed outsourcing partnership could make the difference in a company’s ability to ride out these challenging times. The flexibility to bring on needed help and expertise in times of growth – without committing to a project contract or adding people to the payroll, has been an invaluable solution to the small business owner and online professional. In addition to providing scalability, this also allows the owner to focus on core competencies of the business.

Outsourcing provides businesses with instant scalability and service flexibility, as well as reducing overhead costs.  One of the major advantages of outsourcing is that companies can now get the best from new developments without the expense.

In terms of new technologies, new processes and new ways of doing things, you don’t have to invest to do that in-house.  Outsourcing is also particularly beneficial for new businesses, or those looking to expand their operation. This includes those who do not necessarily know what hardware or software they will need.

Outsourcing providers with more experience should be able to advise companies about where to spend their money, so that they do not waste time and resources.

Any hesitation to outsource may be affecting your company’s chances to effectively scale for growth in this highly competitive business environment. As a small business owner or online professional, carefully consider your outsourcing partner when looking to expand your business and make it globally competitive.  When considering a company for outsourcing, make certain that they are equipped to handle the ebb and flow needs of your business when scaling up, and when scaling down!

Introduction

Sri Lanka is a rapidly growing nation in the Asian Region with the GDP growth of 8%. After the end of 30 year ethnic conflict it is heading to an era of prosperity and development. However, when it comes to starting a business in Sri Lanka, it has been a tough task. Especially those who start from the scratch level have to face a lot of challenges before they start to run. Recently we show a rapid growth in start-up businesses in Sri Lanka, especially in IT and Tourism Sector.

Starting a Business in Sri Lanka has to be done after a great deal of research. If you are a foreign investor it’s better to come through Board of Investment (BOI) which is the government authority for Foreign Direct Investment (FDI). BOI can help you in many ways such as giving lands, technical supports, making links with other government bodies, marketing helps, market information etc… Step 1 – Registration There are three categories where you can register your business.

01. Proprietorship

02. Partnership

03. Company

a. Private Limited Company

b. Public Limited Company

c. Limited by Guarantee

According the Company act of 2007 one director can be in the board of Private Limited Company. It gives the flexibility of starting a company only with one director. To start a Public Limited Company (PLC), particular company must have issued share capital.

Step 2 – Tax Registration

Once you done with registering your company registering with Tax authority should be done. There are two general types of taxes have to be paid by all businesses and many different taxes should be paid according to the industry you are in.

2.1 Value Added Tax(VAT); Sri Lanka’s VAT system is same as UK system. VAT registration can be done at Inland Revenue Department (www.ird.gov.lk). VAT department is located in 3rd floor of IRD Head office. 12% VAT is applicable on all types of products and services.

2.2 Business Turn over Tax (BTT); 3% BTT also should be paid on all types of products and services except few. See www.ird.gov.lk for more info Step ]

3- Setting up your business location

Finding a place is very easy since there more place to be rent out. You can easily check out some Sunday papers to find the best place. Or you can directly contact a real estate agent. Very easy way is to buy the Sunday Times (Weekend English paper) and pull out the classified section HitAd, you will find more places. Other way is to find a place, just type “Office rent in Colombo” in Google.

Step 4 – Website, Email and Phones

Cost of Web designing is very less in Sri Lanka. You can develop a site by investing just 100 dollars. It’s that much cheap. Check out a very hot deal from Printonline.lk, the fist ever online printing company in Sri Lanka which gives a host of services for start up businesses.

There are three fixed line phone service providers and five mobile service operators. If you are looking for a cost effective communication method try Sri Lanka Telecom (sltnet.lk) or if you want a total communication solutions check out lankabell.net or suntel.lk. They more hot deals to suit your requirements.

Step 5 – Finding a Bank

There are about 23 commercial banks are in Sri Lanka. Intentional banks are HSBC, Standard Charted, Citi Banks, Overseas Bank of India, Indian Bank and ICICI. Local banks are Hatton National Banks, National Development Banks, NDB, Nations Trust Banks, People’s Bank, and Bank of Ceylon etc…. If you are in import export business better to find a bank with a strong international links.

Step 6 – Advertising and Marketing

One every thing is settled; start to promote your business. Set an advertising plan, find your target market and start your campaign. There over 50 news papers and magazines are in Sri Lanka and over 15 TV channels & radio stations. TV adverts are little bit of expensive than radio and press ads.

If you starting draft some articles and send to media out-lets. It’s an easy way to bring the message properly. We are done If you are done with all the above six steps you can start make money in Sri Lanka. If your idea is creative and totally new Sri Lanka making money won’t be a big issue.

Unfavorable factors in Sri Lankan Business Environment

Since Sri Lanka has a higher literacy rate it does not mean all Sri Lankans are well educated. But there are educated up to a certain level. People who live in main cities like Colombo and Kandy are well educated and they have a higher purchasing power. This would limit the expansion of your business.

Most of Sri Lanka business people are not trust worthy. We strongly advice you to write whatever the deal you make. Whenever you make some contracts put it in writing it will help you avoid unnecessary troubles in future. Be strong in getting payment. If not you will waste a lot of time in following up with your clients and paying a visit to their office.

Keep an eye on political situation and try to fixe some appointments with key political figures.

Help and support

Check out the one stop entrepreneur solutions package of printonline.lk, they can help you to build all the necessary foundation at a reasonable cost.

Visit: http://printonline.lk/Entrepreneur_Pack.html and see how they can help you to put the necessary foundations.

In order for you to be a force to be reckoned with in the business environment you need to keep your competitors on toes and also try as much as possible to keep track of what they are doing. The worst thing in business is always been caught unawares by your business rivals.

In this New Year, try to look back and see what you have done to influence the market. Ask yourself if you have lost your competitive edge in any way. Is it that your competitors introduced a new product thus influenced the market. Consider whether you have lost any good performing employee to your business rival and find out why he left.

To ask yourself the above questions, will greatly help you know whether your customers are jumping ship and what you need to do to gain back their confidence. It will also assist you in attending to the needs of your staff and hence ensure a favorable working environment. Overall, conducting a market research will tell you whether you are trailing or leading in your area of business.

Also, once you get the results of the market research, then you can draw a business strategy that will seek to address all these issues, thus ensure business growth. In addition, you will be able to allocate resources prudently to areas that need more attention.

If well implemented, a good business strategy will help you cancel out your competition. As you work out your business strategy also realize that your business rivals are doing the same hence have structures that ensure information of what you intent to do will not link out.

It is always easier to talk but walking the walk is the hard part. It is the same in business. Running a business might be an easy task but making it successful is otherwise. There are many things that a person should look out for before starting a business. The business world is not an environment where one can easily fit in. In fact, it is so competitive to the extent competitors are trying to kill each other off beginning with the smaller ones.

With that being said, it is important to decide what type of market you are planning to enter. If you already have a plan then you should observe the market properly to see the amount of competition out there. If the market that you are planning to enter is very competitive then you should give it a second thought. However, if you do not have a plan or you’ve just planned to start a business but not sure what type of business then you should probably survey the market properly before making a decision. Try to penetrate a market with less competition and with a potential to succeed.

You may have found the right market to enter and you have everything map out according to plan. However, do you have the capital necessary for you start your business? This is another important aspect of business. However, the amount of capital required is depending on the type of business you are planning to start. If you are just intending to set up a burger stall then the amount of capital required is very low. If your plan is to set up a boutique then your capital would be high. Without the amount of capital required it is impossible for you to start your business.

Another thing to look out for is the connections. Yes, you are able to start your business but where are all you going to get your supplies? Therefore, it is important to look around for people who are willing to supply goods to you. However, finding a supplier may be easy but finding the right one might be hard. Some suppliers are willing to supply to you at a cost higher than the usual price. They might take advantage of you as you are new to the business environment. Therefore, it is important that you find the right supplier. Do some research to gain information on which supplier to go to. It’ll keep you off trouble.

You have a dream of owning your very own business, and for sure, you want it to be a successful venture. Once you have fixed on an idea, have secured your capital and started, you want to watch out for everything, but you want your staff to be happy also. When staff feel good at work and are working in the right working environment, they are going to do better. It might be very wise on your part to devote a little more time and money making sure your working environment is something that creates a very positive place to work. It makes money in the end.

Probably the one thing that most start-up businesses fear is high worker churn. If somehow you see you are loosing staff like sand through an hourglass, there may be some issues with your business environment. Its time to be asking yourself what the problem might be, and look around to see if anything stands out. Is the place simply dull and dank? Some people will skimp on the behind the scenes work areas and focus only on the forecourt or public areas. By doing this, the workers environment is far too often lacking in sunlight and openness. This can leave workers feeling somewhat depressed, lack of enthusiasm, and grounds for people to leave you.

Not only can you have a problem with your workspace working surroundings, you might also have a problem with your public area. You might want to focus on making sure areas are as soothing and modern as can be. If you have something that looks dated and tatty, your buyers are going to cop this as a mirror for your business. If your business looks to be out-of-date, your customers will believe your services or products are out-of-date also. Should you have no clue how to do this, you might want to locate some help.

What should be more crucial to your business than having buyers in the door? You might have an ideal product and a great service, yet you cannot hold buyers that feel uncomfortable in your business, or feel things are simply too out-of-date. When your customers cop those things, your customers lose faith in what you handle and what you sell. They might not even realize it consciously, yet your customers can all of a sudden believe as if they should go someplace else for what they want to buy. You might not know it, yet your choice in business furniture might be sending them away from you.Whatever you believe the problem is, you might have no clue how to make it right. When that comes about, you want to find someone who understands a little something about a working surroundings. This is when you want to ask around to locate a consultant that you trust with making over the many different areas of your business. They can assist you with areas that may be things you have not thought of, or have no clue how to deal with. They can be costly, yet are normally worth their weight in gold. You can still store their number on file if you run into trouble in the future.

Establishment of a business enterprise is not an easy task. It takes courage, vision, determination, purpose and commitment for any entrepreneur to set up a business venture and guard against bankruptcy. For such venture to stand the test of time, the entrepreneur needs knowledge of what works and does not work in a business environment. The following business tips are therefore important in ensuring the progress and growth in business as well as guard against business failure.

Why businesses fail:

Research has shown that there are varying causes of bankruptcy. The reasons range from inability of the entrepreneur to spot opportunities in business environment, as well as lack of appropriate business tips on how to ensure growth and good management. The reasons why many businesses fail include the following:

1. Insufficient fund

No business exists and survives without capital. Funding is the life wire of every business venture. Any entrepreneur planning to set up a business must ensure that there is solid capital base that will keep his business moving till it starts paying off in business environment.

2 Business location and clever business plan

The location of a venture is a determinant factor towards its success. A poorly situated business enterprise is an indicative of business failure. However, the business plan has to be carefully planned. Such a plan must put into consideration sustainability plan, marketing or promotion measures if it must survive competition in the business environment.

3. Business execution and good business management

There is no way an entrepreneur can effectively guard against business failure without proper and jealous execution of business plan as well as solid business management backed up with vision, courage and commitment. However, the entrepreneur has to gradually expand. The business should be adaptable to changing market places; the overhead cost should be kept low and never should competitors be underestimated.

4. Term- value

Entrepreneurs should endeavour to build long-term value of their business rather than concentrating on short term profits. Life-time customers and repeat business are effective tips towards guarding against bankruptcy.

5.  Creation of business opportunities and reception of feedback

Any entrepreneur who wishes to survive in the business environment and guard against bankruptcy should not stop seeking for business opportunities, which could come any time of the day. The opportunity could come in form of expanding old business, picturing a new side to old business, or come upon a new business idea. However, it should be pointed out that survival of any business enterprise depends upon how well the entrepreneur receives feedback. Feedback helps in ascertaining the performance of any venture, whether it is progressing or retrogressing.

Useful business tips are important for the survival of any business in the business environment. They help the entrepreneur to understand and internalize his business concept, ensure efficient management of the business as well as guard against bankruptcy.