Thanks to the profound leap in internet technology during the 1990s, outsourcing became a business strategy for companies worldwide that are looking for a way to control costs and improve productivity. In turn, this has led to the rise of the virtual assistant business in the past decade.
These days a lot of people are involved in the virtual assistant industry because it is relatively easy to grow it into a profitable business venture. In this article, we will talk about the pros and cons of starting a virtual assistant business, so you can decide whether this is the path you want to take.
First of all, it is affordable to start. In fact, you don’t even have to spend a single dollar if you already have the equipment you need. To start a virtual assistant business, all you need at first is a computer, a phone, a printer with a scanner (for contracts), and most importantly, fast and reliable internet access.
You don’t have to be a university graduate to run a virtual assistant business. All you need are the skills and experience. You can start by offering services on whatever you’re already good at. You can also provide general virtual assistant services such as administrative work, social media management, etc.
You have the freedom to create your own schedule if you have a virtual assistant business, so you have the option to work full-time or part-time. There are plenty of projects that don’t require you to be online at the same time as your client.
With clients from all over the world, you can also use the time zone difference to your advantage, working past regular business hours. Of course, you get to set your own rates as long as they are fair and reasonable. Otherwise, you won’t be getting clients.
Has the journey to work been a daily grind? With a virtual assistant business, you don’t have to go through that again. You can work at home if you already have all the things you need for a home office, or you can even work while you travel? How convenient is that?
Yes, you need subcontractors because you can’t expand if you do everything by yourself. At some point as your virtual assistant business continues to grow, it will become necessary to consider getting additional help. Of course, you have to make sure you are getting quality people to subcontract for you, and get each one to sign a contract.
Unless you already have someone waiting to hire you, finding your first client can be tough. Fortunately, you can generate more leads by cold pitching and joining associations and groups to expand your network. Use LinkedIn to market your virtual assistant business. You should be able to make some connections there.
Let’s face it, competition is inevitable. It can be difficult to start a new virtual assistant business if you have to go head-to-head with a well-established competitor. You shouldn’t do that. Create an impressive portfolio first so you can win the clients over. That way, you can justify your rates.
Is your favorite show on Netflix? Are your kids running around the house? Is your dog chewing on toilet paper again? Now take a deep breath. Yes, you will have to deal with distractions if you’re working from home. It’s too easy to be distracted, and you may end up getting very little done.
You will have to find a way to focus on work. A lot of virtual assistants set up a dedicated workspace to avoid this, and it helps schedule your to-do list in advance.
Of course, you’re not getting any employee benefits. After all, you’re starting out as an independent contractor. You are now your own employer. You need to pay your own income taxes, and you don’t get paid vacations as well.
There’s no way to avoid this. You will get your share of bad clients, and they will give you a hard time. Some never pay on time, some are just plain rude, and others feel compelled to micromanage everything you do. When this happens, remember that you can drop the client if you feel that things are not working out for you.
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While you can offer a vast range of services, it may be wise to start with what you are comfortable with. After all, you’re likely to be doing everything by yourself at the start, so you have to concentrate on the things you are good at. Choose the services you prefer to offer. Some of the usual services offered by those just starting out include writing, bookkeeping, marketing, website maintenance, project management, and transcription.
You have to remember that you’re expected to cover your own overhead expenses, so you should make sure you’re earning a reasonable profit. Just don’t price yourself out of the market.
Do some research and check out your competition. You’re just starting out, so you have to start with a lower rate. But don’t worry. You can gradually increase your rate as you build up your portfolio.
In deciding your virtual assistant business name, you can keep it simple by using one or two words or even your name. However, it also needs to be something catchy for people to remember. A good way to come up with a name is to look at articles for ideas. You may even want to talk with a branding expert or utilize a business name generator for this. Remember, this impacts the image of your business.
Your business plan does not have to be sophisticated. It only needs to cover all aspects of your business: your services and rates, your unique selling proposition or what sets you apart from other businesses, how you are going to manage your business, and your costs and expected income. You can also rely on the internet for free business plan templates to help you get started.
Determining the structure of your business depends on you and whomever you are starting the business with. If you’re doing it alone, then you need to register your virtual assistant business as a sole proprietor. If you are working with someone else, then register your business as a partnership. And if you’re looking to scale up and put a team together, you can opt for an LLC. This step is best done with the help of a lawyer or CPA to help with the legalities.
The marketing plan includes your target market (clients) and where they are located. It also includes your means for promotion and other strategies that can help you pitch your services and your business as a whole.
Once you have everything laid out, it’s time to make it all legal. You may need to secure business licenses depending on where you’re based, and these are subject to change in your state, country, or even city. If you’re also using a business name different from your own, you may need to issue a fictitious name statement or fill out a Doing Business As (DBA) form. Again, this step is best done with a lawyer or CPA’s help because they can assist you with the legalities and other important aspects of the process.
Now that everything is set, the next step is to build your virtual assistant business through networking and referrals. Build relationships with others, whether they’re associates you knew before or new people that could help you or refer you to others. Building your network is a great way to find your first client and get the name of your business known. This can help you grow your client base.
Beyond your network, branch out by letting as many people know about your business. You can spend part of your budget on online advertisements or just use social media to promote your business for free. Blog posts and YouTube videos are a good way to do that as well.
Work to deliver the best quality services as efficiently as you can. This will help you get referrals and grow your business.
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That is everything you need to know about starting your own virtual assistant business. Starting one on your own won’t be easy, but it won’t take long for you to make this a profitable business with the right attitude and skills.