Gift your Business an Early Christmas Present
OutSec, the UK’s leading online transcription company speaks with Will Taborn of Taborns, who gives some advice to businesses as we head into Christmas and 2021.
As the festive season kicks into life, our thoughts will soon turn to 2021 and a New Year of optimism after what has been a difficult year for businesses globally.
The importance of a business to business contract review from both the supplier and the buyer side cannot be overstated. Shareholders Agreements, Employment Contracts, Commercial Contracts of all types – in fact, anything you use to run your business that involves a contract of some type – form the foundation and bedrock from which you operate your business.
The Pot at the End of the Rainbow – Do not Forget the Journey
The context these contracts give, supply you with the understanding of what direction your business is going. For example, a contract detailing a service you supply someone will be different to something outlining a joint venture (businesses kept separate verses a joining of some type).
This then can direct your marketing and a consumer understanding of what you do. Equally, it also works in the reverse; your business profile giving a steer as to how a contract should be constructed.
Either way, they are vital and often overlooked in favour of the bigger prize of business and financial growth.
Whether you are building up your business to sell, or whether it is a lifestyle business; you want it to be successful.
This is where there can be a real disparity in the business direction and growth, against what your current contracts reflect. This can cause issues and here are just two basic examples:
- Employment Law regularly changes, so your contracts as an employee and/or employer should be reviewed. If you have people now working from home, do you fall foul of GDPR regulations?
- Commercial and Supplier Agreements – if your business has grown or changed direction from what it was at the outset are these fit for use or do they leave you exposed financially and legally?
More than ever, we are in an ever-changing world. As an example, Taborns recently advised a company with a £50 million turnover (the number is largely a bystander, though). The owner wanted to:
- Take on £2 million of investment;
- Remove a number of shareholders.
When we asked where the Shareholders Agreement was, he said he didn’t have one; he only had a basic Articles of Association.
The difference is that a Shareholders Agreement is a formal agreement between you and the shareholders about the running of the company. Articles of Association, of course, set out the administrative and company law elements you are bound by. The Shareholders Agreement can contain whatever you wish it to contain; so gives you options.
So, not having one in place causes potential problems if you want to take on investment or make changes, as there is no advisory route from which you can refer.
The result of this particular matter was that the cost to the business was significant and the investment delay was huge. The owner had to have a Shareholder Agreement drafted, the shareholders all had to agree and then he had to make the changes. All very convoluted and costly. If this had been constructed at the outset, when the business was small, it would have cost a lot less and taken less time.
Gift your Business an Early Christmas Present – Some Advice from Taborns
So, the early Christmas present from us at Taborns is to give you some advice:
- Make sure you have the right contracts in place from the outset for your business.
- Regularly review them (every 12 to 18 months is a fair period). You can easily put these in the draw and forget about them. So dig them out!
- Find an expert to review them in the language you understand. This will ensure you are covered legally and that agreements constantly change, and reflect, where your business is at, at that particular time.
Taborns are unique in this respect – bridging the gap between the business and legal world. We are a business like you, but just happen to be in the business of law.
For businesses we are able to offer a Company Welfare Check – this is a cost-effective, fixed price, first-pass review of your contracts, undertaken by an expert in the field; so that your options are covered.
Finally, if you currently have in-house typists or indeed, type documents yourself, why not think of switching to OutSec in order to achieve efficiency and costs savings for your business! Who doesn’t like to save money?
Taborns is a legal services firm which recognises that businesses and professional service providers (such as law firms and accountants) require a more affordable way of accessing legal services.
Taborns are dedicated to modernising and reshaping the conventional legal services practice to boost efficiency, productivity, effectiveness and to ensure a joined-up approach across services. Successful businesses in any industry outsource services to other companies who have core service offerings; this is what we seek to do to help businesses grow and operate more efficiently.
To find out more about Taborns and the services they offer please contact Will on 020 3745 1050. Or email him at firstname.lastname@example.org to arrange a no-obligation and confidential chat.
How OutSec Can Help Your Business be more Efficient in 2021!
Dictation brings with it 30%-40% Efficiency Savings
The simple fact is that we can all speak considerably faster than we can physically type. Don’t take our word for it, just look at the stats:
This means that dictation is up to four times faster than we can type. Therefore, simply dictating a document is more cost-efficient, giving you and your business more time to be working on other projects and bring in more revenue for your firm!
Typing Yourself v Outsourcing: A Case Study
Julie works in London and is paid, £80,000. Her hourly salary rate is approximately £41 per hour (she works Monday to Friday, 7.5 hours days a week). However, she has no access to any support.
Julie has been asked to type up a 10,000-word report.
Julie has two options available to her:
1. Type a 10,000-word document herself; or
2. Outsource that typing to a specialist transcription company.
What is the most cost-effective for the Executive Search Company and Julie?
To look at which is most cost-effective, we have to look at the time taken to type or time taken to dictate and the cost of transcription.
Typing The Document Yourself
Julie would spend 250 minutes typing a 10,000-word document herself. (If she was typing at a speed of 40 words per minute). Therefore the cost to her firm in producing the document would be 250 x 0.68 = £170.
However, in the process, Julie would be working less efficiently. In fact, by not dictating this document, Julie has actually lost her firm 179 minutes, meaning she would be generating less revenue for her firm.
This means that the true cost of Julie producing the document herself (cost of production + lost time to the firm) is actually £291.72.
Outsourcing the Document to OutSec
Julie can speak considerably faster than she can type. She speaks at a leisurely 140 words per minute to aid her typist. Therefore the same 10,000-word document would take Julie only 71 minutes to dictate.
The cost of Julie dictating the document would be £48.28 to the firm. The cost of outsourcing the document production to OutSec would be £85.20. This means that the cost for the production of the document is only £133.48. Saving £36.52 for the firm. However, Julie has also gained an extra 179 minutes in working time and has saved the company an additional £121.72 in salary time, making a total saving to the company of £158.24.
However, the true value of that 179 minutes’ could be higher (imagine a scenario where a firm charges out time per hour, which is considerably higher than an hourly salaried rate). So imagine if that 179 minutes’ worth of time, is charged out on an hourly basis to a client at say £100 per hour. That would mean the savings would increase from £121.72 to £298.33!
This is solely based on just one document. Imagine the savings (and the increase in productivity and revenue) that could occur by dictating! This is why lawyers, accountants and other professionals use transcription facilities (rather than typing emails and documents themselves). It makes profitability higher, especially where there are high charge outs (or salary rates).
Employment v Outsourcing
Want to know what the true cost is of employing a typist v outsourcing – why not check out our handy calculator here.
OutSec is the UK’s leading online transcription company whose business has grown substantially since 2002. We are one of the most successful transcription companies in the United Kingdom. OutSec provides secure outsourced transcription services to the medical, legal, property and surveying, universities, media and interviews, advisory boards, conferences & seminars, inventories, financial, commercial, HR, recruitment and Executive Search sectors. We are also ISO 27001 and Cyber Essentials certified.
Therefore why not add OutSec as a business continuity option for your business? Accounts are free. You pay on a per-minute basis (rounded to the nearest minute) on a pay as you go basis. With OutSec there are no contracts or minimum spend. What do you have to lose? Why not open an account today!
In the meantime, enjoy your Christmas and we wish you, your company and family a prosperous New Year.