As the COVID-19 pandemic slowly fades, there are new fears of a recession. With many small-to-medium companies barely surviving, many businesses post-COVID have had to innovate dramatically. This is to stay afloat and acquire sufficient revenue to thrive. However, as a recession is nearing, an even more aggressive approach is needed to protect your business and to scale up more rapidly. This approach accepts using a virtual assistant business or BPO to assist companies with staffing solutions.
What is BPO, in simple words?
Business process outsourcing, or BPO, refers to a company contracted to another company to assist with their business processes. The BPO completes the business tasks structurally, aiming to help the business grow. .grow processes can be the backbone of a company, assisting in a business’s smooth operation and functioning. These processes can add a 70% success rate to a project if successfully implemented. However, these tasks are also mundane and repetitive and can be accomplished for less by a virtual assistant.
What is a virtual assistant?
Hiring a virtual assistant is the best solution when a task cannot be automated. A virtual assistant is a person who works remotely. Such a person can be located in a different country and time zone. Virtual or remote assistants differ according to their unique skill sets. There are various virtual assistants, from personal to graphic design assistants. Although not living locally, the assistant will come with a skill set that is on par with the best talent found in the country of the hiring company.
The two main benefits of making use of a virtual business assistant
Two notable benefits to onboarding a virtual assistant business are saving money and increasing cash flow. Even though it is widely known that a virtual assistant can save a business money, the lesser-known fact is that it can also help a company with its cash flow.
How a virtual assistant can save you money?
The noticeable savings are on staffing costs. When you hire a virtual assistant, the price is lower than hiring an onsite employee. What this means is that a company:
- does not pay the virtual assistant a pension
- plus. does not have to pay taxes
- does not need to offer paid leave
- also, does not need to hire a substitute employee to cover the staff member on leave
- does not need to pay sick leave
- and does not need to pay medical insurance.
Save on business operating costs.
Additionally, since a virtual assistant covers their costs, this also means savings to the hiring company. The remote assistant will be working from their own home office. The business will not be called on to spend money on office equipment such as laptops, cellphones, other technology, or office furniture. Also, you are saving on rental fees and business Wi-Fi costs.
How a virtual assistant can increase your cash flow
To grasp how a remote assistant can improve a company’s cash flow, you need to know the importance of cash flow itself.
Why cash flow is vital for a business
For a business, especially a small- to medium-sized business, to be prosperous and healthy, besides monitoring profits and petty cash, a business must keep an eye on its cash flow. Cash flow is the flow (in and out) of money entering and leaving a company. A positive cash flow means more money is coming in than going out; thus, a positive rather than a negative cash flow. For your business to be as healthy and prosperous as possible, you must monitor profit, cash flow, and petty cash.
Although all are important, there are differences between the three that are useful to know so that you can make better-informed business decisions. A business can have good profit margins; however, if the cash flow is negative, the business company gets into trouble. This can impede growth, hurt decision-making, and collapse a business. Remember, cash is king!
Your cash flow and a virtual assistant
Many entrepreneurs build a start-up venture but lack sufficient cash to scale their business. In many cases, they need either to hold back or to find alternative ways to drive growth. Moreover, in business, speed matters. Companies that are too slow, even those trying to recover post-pandemic, will fall short. A business must shape up and do so with speed.
However, the business’s cash flow is reduced since investing in a virtual assistant costs you less than an onsite employee. Here, most companies see savings of around 60% on their business expenses, mainly after only three months of hiring a remote assistant. The savings can stabilize the cash-flow model and help the business upgrade lighting.
Going the outsourcing route
Outsourcing can be beneficial to your company. Yet many business owners are reluctant to offboard mundane tasks. The result is that they are stuck with repetitive and time-wasting work that could have been achieved by a virtual assistant at a fraction of the cost rather than doing it themselves.
There are many more benefits to outsourcing, such as saving you time. The impact has been immense for those who have taken the plunge and hired a virtual assistant. These companies are now in a better financial position and can take their business to the next level.