Are you about starting a transcription company? If YES, here is a detailed sample transcription services business plan template & feasibility report you can use for FREE.
Transcription business is all about the process of transcription, or converting voice-recorded reports into text format. If you’re planning on making a career from running a transcription services company, you’ll need to have a good sense of responsibility toward your clients and yourself.
There are transcription groups and freelancer associations in many countries and it’s a good idea to belong to them so that you can meet other transcribers, get information, seek career advice, and establish your credentials as a writer.
A quick search using search engines and social media should find organizations in your local area or country. Aside from your innate transcribing, data entry, computing and analytic skills, you would also need a workable business plan document to be able to run a standard transcription company.
A Sample Transcription Services Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
Transcription services firm is classified under the Document Preparation Services industry and this industry encompasses several services including letter or resume writing; document editing or proofreading; word processing or desktop publishing; transcription or dictation; and other secretarial services.
Medical transcription service which is a major niche idea in this industry writes down doctor dictated reports, procedures, and notes in an electronic format in order to create files representing the treatment history of patients. Health practitioners dictate what they have done after performing procedures on patients and MT’s transcribe the oral dictation and/or edit reports that have gone through speech recognition software.
If you take note of happenings over the years, you will notice that transcription equipment has steadily transformed from manual typewriters to electric typewriters to word processors to computers and from plastic disks and magnetic belts to cassettes and endless loops and digital recordings.
In this era, speech recognition (SR), which is also known as continuous speech recognition (CSR), is increasingly being used, with medical transcriptions and or “editors” providing supplemental editorial services, even though there are infrequent instances where SR fully replaces the MT.
Natural-language processing takes “automatic” transcription a step further, providing an interpretive function that speech recognition alone does not provide.
Statistics has it that in the united states of America alone, there are about 87,135 registered and licensed document preparation services firms (transcription services firms inclusive) responsible for employing about 145,354 and the industry rakes in about $5 billion annually.
The industry is projected to grow at 2.1 percent annual growth within 2014 and 2019. It is important to state that Nuance has the largest available market share in the industry. A recent report published by IBISWorld shows that the Document Preparation Services industry encompasses a broad range of services that prepare written or electronic documents for clients.
However, the industry has experienced heightened competition from other industries due to increased use of mobile- and software-based products. The report also shows that the industry revenue is expected to decline at an annualized rate of 0.5 percent over the period to total $4.8 billion.
The fact that transcription services firms can easily be found in cities in the United States of America, does not in any way make the industry to be over saturated. The fact that there are people and organizations out there who would always need professional transcription services, makes the business ever green.
Some of the factors that encourage entrepreneurs to start their own transcription services is that the business is profitable and can be started in any part of the world with minimal startup capital and employees. Starting a transcription services firm requires professionalism and good grasp of the Document Preparation Services industry.
Also, you would need to get the required certifications and license and also meet the standard for such business before you can be allowed to start a transcription services firm in the United States. One good thing about the business is that there is readily available market for its services. So, if you are well positioned and you know how to deliver results as a transcriber, you will always smile to the bank.
2. Executive Summary
Blue Ribbon™ Transcription Services, LLC is a registered transcription services company that will be based in Saint Paul –Minnesota, United States of America, but operate all over the United States. We have been able to secure a standard office facility in a busy business district in Saint Paul, the largest city in Minnesota where we intend coordinating all our business activities from.
We are a transcription service company that is set to compete in the highly competitive Document Preparation Services industry not only in the United States market, but also in the global market.
Blue Ribbon™ Transcription Services, LLC will offer audio or documental transcription services (transcription or dictation services) and other related services such as document editing or proofreading; word processing or desktop publishing; and other secretarial services.
Our business goal is to become one of the leading transcription companies in the United States and we will make sure that every transcription job that we handle for our clients if free of errors and can favorable compete with the best in the industry.
Our workers are going to be selected from a pool of highly skilled and talented professionals. We will make sure that we take our workers through the required training that will position them to meet the expectation of the company and to compete favorably with leading transcription companies in the United States.
At Blue Ribbon™ Transcription Services, LLC, our client’s best interest come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.
Blue Ribbon™ Transcription Services, LLC is founded by Jefferson O’Brien (B.A. Secretarial Studies) and his friend and business partner Jack Whyte (BSc Computer Science). They have a combine qualification and experience that will position them to perform excellently in the Document Preparation Services industry.
3. Our Products and Services
Blue Ribbon™ Transcription Services, LLC is established with the aim of maximizing profits in The Document Preparation Services industry.
We want to compete favorably with leading transcription companies in the United States which is why we have put in place a competent quality assurance team that will ensure that all our services meet and even surpass our customers’ expectations.
We will work hard to ensure that Blue Ribbon™ Transcription Services, LLC is not just accepted in Saint Paul – Minnesota, but also throughout the United States of America. Our service offerings are listed below;
- Audio or documental transcription services (core service)
- Medical transcription
- Desktop publishing services
- Dictation services
- Editing and proofreading services
- Letter and resume writing services
- Word processing services
- Other secretarial services
4. Our Mission and Vision Statement
- Our vision is to establish a standard transcription services company whose services and brand will not only be accepted in Saint Paul – Minnesota, but also throughout the United States of America.
- Our mission is to provide professional and highly creative transcription service that will assist businesses, individuals and busy corporate executives in achieving their business and personal goals.
- We want to build a transcription company that can favorably compete with other leading brands in the industry.
Our Business Structure
Blue Ribbon™ Transcription Services, LLC, is a transcription services company that will be launched in Saint Paul – Minnesota, but hopes to grow big and secure outsourced jobs from big corporations and top corporate executives from all over the United States of America.
We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hire the best hands (freelancers/transcribers and back office staff) within our area of operation.
At Blue Ribbon™ Transcription Services, LLC, we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer
- Human Resources and Admin Manager
- Sales and Marketing Executive
- Client Service Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
- Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Design job descriptions with KPI to drive performance management for clients
- Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Defining job positions for recruitment and managing interviewing process
- Carrying out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversee the smooth running of the daily office activities.
Sales and Marketing Manager
- Manage external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Model demographic information and analyze the volumes of transactional data generated by customer
- Identifies development opportunities; follows up on development leads and contacts
- Writing winning proposal documents, negotiate fees and rates in line with organizations’ policy
- Responsible for handling business research, market surveys and feasibility studies
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Create new markets cum businesses for the organization
- Empower and motivates the sales team to meet and surpass agreed targets
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides management with financial analyses, development budgets, and accounting reports
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting for one or more properties.
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensuring compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
- Responsible for handling audio or documental transcription services and other related services such as document editing or proofreading; word processing or desktop publishing; and other secretarial services.
- Responsible for developing records management processes and policies, identifying areas to increase efficiency and automation of processes, identifying, evaluate and implement external services and tools to support document / data validation and cleansing
- Produce and track key performance indicators
- Monitor and audit transcribed scripts quality
- Liaise with internal and external clients to fully understand audio content
- Design and carry out surveys and analyze survey data
Client Service Executive
- Welcome clients by greeting them in person or on the telephone; answering or directing inquiries.
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the chief executive officer in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensures that accurate and helpful information is supplied to clients when they make enquiries
6. SWOT Analysis
Blue Ribbon™ Transcription Services, LLC engaged the services of a core professional in the area of business consulting and structuring to assist our organization in building a well – structured transcription business that can favorably compete in the highly competitive Document Preparation Services industry in the United States.
Part of what the business consultant did was to work with the management of our organization in conducting a SWOT analysis for Blue Ribbon™ Transcription Services, LLC. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Blue Ribbon™ Transcription Services, LLC;
Our central strength no doubt is the power of our team; our freelance and back office workforce. We have a team of highly proficient people with excellent qualifications and experience in various niche areas in the Document Preparation Services industry.
Aside from the synergy that exists in our carefully selected freelance and back office staff, our services will be guided by international best practices in the industry.
As a new transcription services company, it might take some time for our organization to break into the market and gain acceptance especially from top profile clients in the fast growing and highly competitive Document Preparation Services industry; that is perhaps our major weakness. Another weakness is that we may not have the required cash to promote our business the way we would want to.
Healthcare services providers are one of the industry’s primary markets and account for the largest percentage of industry revenue.
An increase in total health expenditure, in addition to more stringent health record management laws, generally boosts demand for the medical transcription services provided by this industry. Total health expenditure is expected to increase in 2019, representing a potential opportunity for the industry.
Advances in communications technology can have varying effects on demand. Even though technology can lower the cost of providing services, an increase in the percentage of services conducted online also helps businesses to do more work in-house and use overseas services via the internet, hurting demand for industry services.
The percentage of services conducted online is expected to increase in 2019, presenting a potential threat to the industry.
7. MARKET ANALYSIS
- Market Trends
Notable trends in the Document Preparation Services industry shows that businesses have increasingly outsourced their transcription needs, directly benefiting industry operators. As a matter of fact, most companies lack the internal capability to handle their transcription needs efficiently and consolidation is expected to be the dominant trend among the industry’s larger companies.
The fact that operators in the Document Preparation Services industry help their clients handle everything that has to do with their transcription and other document preparation services makes it an interesting service-related business to venture into.
During the recession, low corporate profit and low per capita disposable income discouraged individuals and companies from hiring transcription services companies, though loads of transcription companies entered the industry during the recession because of its low barriers to entry.
As the economy bounced back, the demand for transcription services is expected to return to the industry, with solid revenue and enterprise growth over the next couple of years.
The fact that the Document Preparation Services industry is a service-based industry makes it easier to set up. While products may include monthly or yearly subscriptions, mobile apps and online memberships, players in the industry thrive on the scope and niche of services they offer.
As a matter of fact, it was projected that over the next five years, new technology will continue to emerge that will make it easy for more players to come into the Document Preparation Services industry hence increasing the competition in the industry.
8. Our Target Market
Before starting our transcription services company, we are certain that there is a wide range of clients who cannot successfully run their businesses without outsourcing some of their transcription related operations to a third-party service providers.
In view of that, we have created strategies that will enable us reach out to various corporate organizations and individuals who we know can’t afford to do without our services. We have conducted our market research and survey and we will ensure that the services we offer well accepted in the market place.
Below is a list of the people and organizations that we will specifically market our services to;
- Busy top corporate executives
- Busy businessmen and businesswomen
- Banks, Insurance Companies and other related Financial Institutions
- Corporate Organizations
- Real Estate Owners, Developers, and Contractors
- Research and Development Companies
- Entrepreneurs and Start – Ups
Our competitive advantage
The competition in the Document Preparation industry is getting stiffer by the day, you have to be quite thorough and come up with detailed services and concepts in order to survive in the industry. The Document Preparation Services industry is indeed very prolific and at the same time highly competitive. Clients will only hire your services if they know that they can get nothing but the best from you.
We are quite aware that to be highly competitive in the Document Preparation Services industry means that you are not only expected to be able to deliver consistent and highly detailed jobs, but you must be able to meet set targets. No one would want to continue to hire your services if you don’t always meet up with the target date of completion of projects.
Our competitive advantage lies in our effective quality control system, having a cost-effective distribution system, ability to quickly adopt new technology and of course, the power of our team and management; our workforce. We have a team of competent and highly proficient transcribers, a team with excellent qualifications and experience.
Aside from the synergy that exists in our carefully selected workforce, our fees and services will be guided by best practices in the industry.
Lastly, all our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and achieve all our business aims and objectives.
9. SALES AND MARKETING STRATEGY
The Document Preparation Services industry is experiencing growing competition; hence we have been able to hire some of the best marketing experts to handle our sales and marketing.
Our sales and marketing team will be recruited based on their vast experience in the Document Preparation Services industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall business goal of Blue Ribbon™ Transcription Services, LLC.
Blue Ribbon™ Transcription Services, LLC is set to make use of the following marketing and sales strategies to attract clients;
- Introduce our business by sending introductory letters / emails alongside our brochure to corporate organizations and key stakeholders.
- Promptness in bidding for transcription services from the government and other cooperate organizations
- Advertise our business in relevant business magazines, newspapers, TV and radio stations
- List our business on yellow pages’ ads (local directories)
- Attend relevant international and local expos, seminars, and business fairs et al
- Create different packages for different category of clients in order to work with their budgets and still deliver excellent services
- Leverage on the internet to promote our business
- Engage direct marketing approach
- Encourage word of mouth marketing from loyal and satisfied clients
Sources of Income
Blue Ribbon™ Transcription Services, LLC is established with the aim of maximizing profits in the Document Preparation Services industry and we are going to ensure that we do all it takes to meet and surpass the expectations of our clients. Blue Ribbon™ Transcription Services, LLC will generate income by offering the following services;
- Audio or documental transcription services (core service)
- Desktop publishing services
- Medical transcription
- Dictation services
- Editing and proofreading services
- Letter and resume writing services
- Word processing services
- Other secretarial services
10. Sales Forecast
One thing is certain, there would always be corporate organizations and busy business owners who need the services of transcription services companies.
We are well positioned to take on the available market in the Document Preparation Services industry and we are quite optimistic that we will meet our set target of generating enough income/profits from the first six months of operation and grow our transcription services company to enviable heights.
We have been able to examine the data entry cum data processing market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below are the sales projection for Blue Ribbon™ Transcription Services, LLC, it is based on the location of our business and of course the wide range of our services and target market;
- First Fiscal Year (FY1): $120,000
- Second Fiscal Year (FY2): $260,000
- Third Fiscal Year (FY3): $450,000
N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and arrival of a competitor offering similar transcription services like us. Please note that the above projection might be lower and at the same time it might be higher.
11. Publicity and Advertising Strategy
We have been able to work with our in-house brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the heart of our target market.
We are set to become the number one choice for clients in the whole of the United States and beyond which is why we have made provisions for effective publicity and advertisement of our transcription services company. Below are the platforms we intend to leverage on to promote and advertise Blue Ribbon™ Transcription Services, LLC;
- Place adverts on both print (newspapers and magazines) and electronic media platforms
- Sponsor relevant community based events/programs
- Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our services
- Install our billboards in strategic locations all around Saint Paul – Minnesota and other key cities in the United States of America.
- Distribute our fliers and handbills in target areas
- List our business transcription services company in local directories / yellow pages
- Advertise our transcription services company in our official website and employ strategies that will help us pull traffic to the site.
- Ensure that all our staff members wear our branded shirts and all our official vehicles are branded with our company logo.
12. Our Pricing Strategy
Usually, transcription services companies will bill on an hourly rate, and depending on the type of task, service charges can fluctuate drastically. Other companies bill a flat monthly fee based on the number of requests a member or client as the case may be is allowed to place each month.
At Blue Ribbon™ Transcription Services, LLC we will adopt both the hourly billing and flat monthly fee. We will ensure that we keep the prices of our services below the average market rate by keeping our overhead low and by collecting payment in advance from corporate organizations who would hire our services. In addition, we will also offer special discounted rates to our customers at regular intervals.
- Payment Options
The payment policy adopted by Blue Ribbon™ Transcription Services, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Blue Ribbon™ Transcription Services, LLC will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our client make payment for our services without any stress on their part.
13. Startup Expenditure (Budget)
From our market survey and feasibility studies, we have been able to come up with a detailed budget for establishing a standard and highly competitive transcription services company in Saint Paul – Minnesota and here are the key areas where we will spend our startup capital;
- Business incorporating fees in the United States of America will cost – $750.
- The budget for Liability insurance, permits and license will cost – $3,500
- Renting / leasing a small office space that will accommodate the number of employees for at least 6 months (Re – Construction of the facility inclusive) will cost – $150,000.
- Equipping the office (computers, printers, projectors, markers, server / internet facility, furniture, telephones, filing cabinets, and electronics) will cost – $10,000
- Amount required to purchase the needed software applications – $ 3,500
- Launching an official website will cost – $500
- Amount need to pay bills and staff members for at least 2 to 3 months – $70,000
- Additional Expenditure such as Business cards, Signage, Adverts and Promotions will cost – $5,000
Going by the report from the market research and feasibility studies conducted, we will need about one hundred and fifty thousand (150,000) U.S. dollars to successfully set up a medium scale but standard transcription services company in the United States of America.
Please note that you can successfully launch this type of business from any part of the world, even in your bedroom, with just a functional laptop, internet facility and the required software applications. But if you choose to build a business with structure, a business that does not revolve around one man or woman, then you should follow the above budgeting structure.
Generating Funds/Startup Capital for Blue Ribbon™ Transcription Services, LLC
Blue Ribbon™ Transcription Services, LLC will be owned by Jefferson O’Brien and his friend and business partner Jack Whyte. They decided to restrict the sourcing of the startup capital for the business to just three major sources.
- Generate part of the startup capital from personal savings and sale of his stocks
- Generate part of the startup capital from friends and other extended family members
- Generate a larger chunk of the startup capital from the bank (loan facility).
N.B: We have been able to generate about $50,000 (Personal savings $35,000 and soft loan from family members $15,000) and we are at the final stages of obtaining a loan facility of $100,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.
14. Sustainability and Expansion Strategy
The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Blue Ribbon™ Transcription Services, LLC is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to consistently offer excellent and error-free services at a very competitive price than what is obtainable in the industry.
Blue Ribbon™ Transcription Services, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
- Business Name Availability Check: Completed
- Business Incorporation: Completed
- Opening of Corporate Bank Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Securing a small but standard office facility: Completed
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting Feasibility Studies: Completed
- Generating part of the startup capital from the founders: Completed
- Writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents: In Progress
- Design of Logo for the business: Completed
- Secure trademark for our products: In Progress
- Printing of Promotional Materials: Completed
- Recruitment of employees: In Progress
- Purchase of the needed furniture, office equipment, transcription software applications, electronic appliances and facility facelift: In progress
- Creating Official website for the business: In Progress
- Creating Awareness for the business: In Progress
- Health and Safety and Fire Safety Arrangement: In Progress
- Establishing business relationship with vendors and key players in various industries: In Progress