Managing price pressure within the translation business
Sometimes, upon the end of a particularly busy day - the one that comes with demanding clients, challenging quotations and tight deadlines all at once - you might have a feeling that all your effort was entirely not worth it when you consider the financial aspect of work performed. Every now and then project managers find themselves inundated with multiple requests and projects that bring little to no financial gain.
Language service providers work within a particularly competitive field which undergoes constant, rapid changes; not all of them, however, are advantageous to translation specialists. Current trend towards stable influx of small-scale projects significantly contributes to the above-mentioned issue.
Solving this mystery is no easy task – yet it constitutes the only possibility to recapture financial balance and bring back full profitability of your company. Precise control over your budget allows also for accurate determination of margin in case of every single project. Such solutions demand exact data which can be obtained solely with the use of suitable tools and rules.
Implementation of procedures which allow you to precisely trace the margin will surely constitute a revolutionary change: you will realise in no time that there are still some projects which are completely not worth the effort. To say it out loud – their actual cost is significantly higher than the profit. Such requests are nothing more than a burden and removing them will significantly contribute to your time management possibilities, financial profit and quality assurance.
A key element in every project completion, the one that goes largely unnoticed, is the factual amount of effort put into it the process by your co-workers. Each hour spent on the preparation of a quote, file handling, as well as dealing with accounting issues, works to your disadvantage. None of these, however, require your staff to push their limits to the maximum; it is fundamental to develop smarter solutions instead of procedures that force everyone to work harder. The minimax strategy – minimum effort, maximum effect – should constitute the cornerstone of your company’s work ethics.
There are three simple clues to follow if you are determined to further your company’s performance, which eventually translates into the financial success of your translation business:
Take a closer look at each of the projects, paying special attention to their profitability. Such information is priceless when it comes to determining your most beneficial clients and projects; having such insight allows you to make wiser decisions. Sometimes it requires bold decisions, such as rejecting some projects – if they cost too much, the hassle is just not worth it. In cases where it is not possible to resign from project completion, try implementing automated processes and reducing manual work to minimum.
Remember that the factual cost of performed work constitutes only a part of total budget designated for project completion. Remember about the time devoted by both project managers and other contributors.
Handling multiple, small-scale projects requires tremendous amounts of manual work which could be effortlessly managed with the use of automation services. Minimising human involvement in such cases is crucial in reducing financial burdens.
Prevention instead of intervention – sounds familiar, doesn’t it? It seems to be a widely known fact, yet somehow not many people find it applicable to translation business. Find out where most mistakes happen; using adequate solutions and tools will help you put a stop to errors occurring within invoices, purchase orders or specifications.
Over the past few years, the issue of profitability has grown to become one of the most prominent elements in translation business. Many agencies are either reluctant to recognise their lack of knowledge and implement appropriate training incentives or overlook the general importance of financial benefits. The price pressure surrounding translation business is increasingly raising, with requested deadlines becoming shorter than ever. Taking a closer look at your budget and financial activities has never been this important – unless you actually want to fall behind your competition.