Today, with the rise of digitalization and the IT sector it has been seen that the need for data entry is rising. Almost every business needs a data entry to record, track, analyze important information.
Data entry refers to record, update or enter important information into a computer system. Generally, the data from the loose paper sheet is entered into the computer systems.
These days, the data entry business is becoming popular among everyone including homemakers and teenagers. It is seeing a great start to their career with just a little capital.
Data entry business can be a great business start if people are seeking a side business. If you are skilled and have a fast-typing speed you can go for this business. Initially, the typing will be slow but it will gradually become fast. There are several online tools where you can improve your data entry skills before plunging into something.
If you want to know, how you can go further with this business idea then you are in right place, please go through this whole blog for ample knowledge.
Data Entry Career
You know, how everything is happening on the computer screens from purchase to sell. Similarly, to record all the necessary or related information on the computer screens we want a data entry operator, who enters all the required information into the computer screen. The demand for data entry operators is rising in the market, as everyone is searching for a data entry person to track and record important information about their organization.
There is no doubt that a data entry career is a great choice for someone who has good knowledge of computer and concentration skills. The data entry operator works in different private and public sectors where the demand for their work is generally high.
If you are looking to that how to start a data entry business on your own, you can go with this idea because it is prospering and it will prosper more in the future. You don’t need a huge capital or manpower to start this business. You can start with little and grow into big.
Data Entry business Requirements
When you are getting into a business, it becomes a huge responsibility to manage the business, you must be accountable for everything. You may start alone or with few partners, but you should have management skills besides data entry skills. If you are managing a business without any knowledge of management you may not be able to fix things that needed your attention.
So, to cater to future contingencies you must have the following skills to run a data entry business successfully;
- Computer literacy is important.
- IT skills and software knowledge are required
- Typing speed
- Reading skills
- Typing accuracy on the digital platform
- Managing team of freelancers and employees
- Meeting deadlines
- Excellent writing and verbal communication skills
- Managing finances
- Interpersonal skills
All these above skills are important without these skills you will not be able to make profits. You need to have command over these skills to grow in this field. Further, every day is a new task which you have to cater smartly and this is how you will build new skills on this journey.
Things you should keep in mind before starting a data entry business
This is quite imperative that when you indulge in a business, you must know a few things about how this business can help you grow or how this business will grow. Both of these things are important. So, let’s start with the things which are important for you to know before starting a data entry business;
- Scope of the business– As we have discussed before that how digitalisation is rising rapidly, which causes this business to grow. A lot of opportunities are coming from foreign countries into this business. IT sector is one of the prominent sectors of India where opportunities are in abundance for data entry business.
From filing forms to complicated data entries, this business is holding a pace of growth in the market. Data is the most important part of any business and to make it stored safely on the computer screen is what data entry business is all about.
So, if you are just starting a data entry business then you must not concern about the projects. You will be going to get a lot of projects if you know how to pitch clients. If you are doing good at your job, there are enough opportunities. You just have to look deep.
2. Difficulties in the business– When you have an idea about the scope of its business, you must know the difficulties you might face. The difficulty you are going to face in this business is brutal competition. Because the skills and scope of this business are easy to acquire, more people are driving towards it, which is resulting in high competition.
Only your fine skills can save your clients. You must have to constantly focus on accuracy. Another most challenging part of the data entry business is the security of data. As you know, how important is to secure the data of any organisation. It is the most crucial part of this business. Your client is trusting you with its important data which may create a nuisance or incur a loss if it becomes available in the market to any other party.
Another thing that can create difficulty for you is poor financial management. Although, the expenses are on the lower side in this business if you have poor financial management you may end up costing a lot of money.
So, every business has its difficulties what is important to find ways to cater to such difficulties.
3. Profit margin in the business– Almost everyone thinks of this before starting a business. How much profit they can earn from this business? This is the constant question they have been indulging in. People try to maintain a balance between their investment and profit. They try to earn more profit with less investment.
So, you must know that you are not going to incur any loss there will be a huge profit margin because the expenses are comparatively low than any other business.
Profit will constantly rise if you will manage the business more accurately.
The forms of setting-up data entry business
Like any other business, a data entry business can also be set-up in different forms. It depends on the capital you are having for the business. So, without wasting any further time, let’s talk about different forms of business of data entry business;
- Sole Proprietorship– Sole proprietorship business is one of the oldest forms of business. Under a sole proprietorship, the proprietor is the only person bearing all the liabilities and investments of his firm. He is solely responsible for everything going on in his business. He has to take charge of everything.
A proprietor invests his capital into the business and runs the business of his own will. In case, any misfortune happens he has to bear all the penalties and unlimited liabilities. He may have to pay his assets to pay off the liabilities.
If you are planning to set-up a data entry business in sole proprietorship form then you have to make it registered under the Companies Act as limited liability. So, your business assets weigh against your business liabilities in future. And you don’t have to pay your business liabilities against your assets.
2. Partnership Firm– If you have friends or colleagues who want to work together in your data entry business with equal rights, then you can start a data entry business in the form of a partnership firm. Under the partnership firm, every partner will be solely liable for the wrongdoing of a business or each other. They have to bear all the losses and penalties together in the ratio they have fixed.
Whatever profits the business will earn would be equally distributed to each partner associated with the firm.
In future, if the business goes into winding-up their assets would not be touched to pay off the business liabilities instead the business assets would be payable. To run a partnership firm legally, you must have to register your firm under the Partnership Act, which is not mandatory but advisable for any future contingencies.
3. Private company– If you want to run your data entry business in the form of a company, you can do by setting up a private company. The benefit of running a private company is that there is no unlimited liability to be bear. You can also invest a good amount whose profits are huge in the long run.
Besides the benefit, you must have to register your company under the Companies Act so that you can work legally and safe from any future penalties. Taking legal licenses and registration certificate would help you get the benefit of Tax.
These are the forms you can choose to run your data entry business with more security and safety.
Types of data entry
There are two different types of data entry depending on the availability of the internet. There are still a few people who are not comfortable with the use of the internet or any digital software mode, so they prefer the other ways. When you are working in the form of a business, you don’t need to get only the same kind of people as your clients. Your clients may vary from business to business which they are running. That’s how your business will grow in the market.
So, here the two types of data entry;
- Offline data Entry– You may get an idea from the name that it is an offline way to enter data. It doesn’t require an internet connection to perform data entry services. The clients provide all their data to the data entry service provider, which is to be filled by them. In simple term, an offline data entry is a process of entering, recording and tracking information without the use of an Internet connection. Most of the companies run their businesses depending on the internet but several companies are still using the traditional way of collecting and writing the information offline.
Following are the ways offline data entry is being performed;
- Entry of documents, filed and papers
- Data entry of sale receipts and purchase receipts
- Data entry of accounting
- Compilation of surveys, personal information
- Filling forms
2.Online data entry– Online data entry refers to entering and compiling information with the use of the internet. The data is compiled to use in computers and any other digital mode. The data providers give all the files and copies of information to the data entry services which require to be entered into a digital platform. Today, almost every company is entering its information into the computer system with a secured password and locks.
If you are using an online data entry process, you can easily work from anywhere you just need to have the required data which you have to feed online. There is no such particular place you must sit at 8 hours for feeding data.
If you want to make real wholesome money, you need to be fast enough and precisely accurate with your work.
There are the following forms of online data entry;
- Online Accounting data entry
- Online mailing record entry
- Data mining where you need to submit hidden online data to the client
- Online Insurance claim entry
- Entering a lot of data by converting it into a merge data
I hope these two points helped you understand the vastness of your data entry business.
Benefits of data entry business
If anything has some sort of difficulties, then it also has a lot of benefits. Similarly, the data entry business has its benefits which we are going to discuss here.
Here are the following benefits if you want to start the data entry business;
- Low initial cost– This is true. If you are planning to start your own data entry business, then it is a great idea. Because initially, we fall short of investment, we cannot invest much in our business. But if you are looking to start your data entry business it would be a great choice even with low investment. You can run your business event at home, you just need a computer software system and a quick typing speed. And there you will grow and simultaneously expand your business.
- Less manpower required– In a data entry business, you don’t need a lot of manpower to support your business. You can run tremendously and grow simultaneously with just a few staff. This business is more dependent on a computer than people. So, you don’t need to hire a lot of people instead you can manage things initially on your own. You can perform the task on yourself at the start and start appointing people when your business expands.
- A lot of clients– In this business, you are going to have a lot of clients who are eager to outsource their data entry business to you. A lot of businesses don’t focus on data entry much they treat it as side work, they don’t give any preference to this job. So, what they do is outsource this work to someone who is wholly focused on this kind of work. In such a way, there are a lot of clients in the market who are looking for your business, you just need to reach them. They find it inexpensive to outsource than to appoint a full-time staff for this work alone. You can create a great client base by just focusing on your pitching skills. That too will get better with time.
- Working with or without the internet– As we have discussed above the data entry business can be operated with or without the internet, there is no particular need for internet as asked specifically. It lets you have both online and offline data entry clients. You can work with different clients, which will expand your knowledge in this field.
Steps to start a data entry business
- Creating a business plan
before starting anything, whether a business or operating something, you need to have a plan. A plan helps you go in a certain way without losing the race. If you are planning to start a data entry business you must create a business plan as to how you will manage things efficiently.
While making a business plan, you need to reach to set of answers to a few questions which are given below;
- Where I am going to start, whether at home or some other location?
- Do I have made a backup plan?
- Do I have calculated the investment I am going to pour?
- Do I have determined the cost my business would go to incur?
- Do I have a good knowledge of a few computer software?
- Do I need a team or I can go alone?
- Do I know how to manage the work and team simultaneously?
- Do I know how I can pitch the clients?
- Do I know what is my target market?
These questions must be answered before starting the business. If you haven’t decided on the answers to these questions, then you cannot go much further.
- Calculating the cost
When you have answered the above questions, the next step which comes is to determine the cost of starting a business. As you know, you need very low investment in starting a data entry business still you have to figure out a fixed cost to be incurred in setting up the whole business.
You need to figure out things where you would have to incur the cost like buying a computer (if you don’t have one), buying equipment, installing software, hiring manpower if you are not working from home. These are the main cost of incurring things which your business needs.
- Decide the form of business
Deciding on what form you want to start your data entry business is another thing to consider before starting the business. You are starting a business not a show, so you must follow the proper protocols to run the business successfully. You can choose any form to start a business, like a sole proprietor, partnership firm, or private company according to your convenience.
Also, you have to make sure whatever form you choose must be legally registered to run a business. Besides the formal registration, you have to make sure you register yourself under other required registration if you cross the limit like GST registration in India.
- Generate leads
A business is nothing without its customers. Without them, businesses are just like the sea without a shore. For any business to survive in the market leads play an important role. And data entry business is one of them, you need to find ways to approach your clients because that’s how you going to grow.
As you know, the competition of data entry business in the market is high. And if you want to survive that competition you need to know how you can generate leads in the market. For generating leads, you can use the internet where you possibly going to land up in front of so many leads.
You can also approach us for generating leads. We know how and when to approach people.
- Market the business
Marketing your business is directly linked to generating leads, if your business will have a marketing reach you will automatically generate leads. For marketing your business, you need to use a social media platform where you can show what you are offering and what your business is about.
You need to formulate strategies that how you can market your data entry business. If you want to advertise or promote your business in front of your client you will have to require a strategy, which you can follow.
To do so, you have to find out your specialty, whether it’s offline data entry or online data entry. So that you can pitch the market with a particular form. You can also consider Traffic Tail for marketing your business. We are a leading company dealing in marketing services.
- Deciding the charge of services
Now, when you have decided how to pitch the market, it’s time to focus on the charges of your services. Because at the end of the day you are working to earn and for that, you must have to charge.
There are two ways in which you can charge your services, the first is the Hourly rate and the second is the full-time rate. Both the ways are respectively good. But what you need to decide is which is your common way of charging to the client. You can charge depending on the client you are getting but if the client is asking you about your rate you must be ready with that. That’s how you are going to charge the right.
When it comes to charging your client, of course you need invoices. But you don’t have to start from scratch. In fact, there is a Google Docs Invoice Template available online. These templates are fully customizable, allowing you to tailor them to your specific requirements and branding.
- Deciding the name of the business
Deciding the name is another important thing that must be determined before. Name is what people first see about your business. Choosing the correct name will impact the minds of customers. Before selecting a name, you have to consider a few things which are necessary while deciding a name as it is not using by someone else or it doesn’t have any objection to stating in legal papers.
- Make a website
Creating a website these days is one of the necessary tasks to follow. It gives recognition to your business. Almost everyone is dealing online, in such a scenario if you have a business website people would know you better.
A few years ago, it was hard to build a website it costs a lot of money. But now with technological advancements, it becomes easy to create a website. You can easily create your business website with guides online.
Today, almost every business is having a website. If you want your business to fall among them then start building a website. For that, you can contact us. We at Traffic Tail build effective websites for your business.
I hope these steps will help you the same way as it has helped so many other people, before.
Frequently Asked Questions
Q1. How to start a data entry business?
If you want to dive into every little before starting a data entry business. Then, you should read our blog on “Want to start a data entry business; here’s how”. We have written everything you should know before starting a data entry business.
Q2. What is the cost involved in opening a data entry business?
The cost involved in starting a data entry business is very minimal. Because a data entry business can be operated from home or any affordable place, where you barely have to spend any extra money. All you need is the internet and a computer screen.
Q3. How much can you charge clients?
The charge of your services depends on you. Whether you want to charge as per hourly rate or you want to charge a full-time rate. You can fix a certain way to charge so that whenever a customer asks you for your prices, you know how and what to quote. The charge also depends on the type of services you are providing.
Q4. How to market the data entry business?
You can market data entry business through a social media platform or by advertising your services at different places. You can also simply contact us for marketing and promoting your business. We at Traffic Tail is one of the affordable companies in India that charge a very reasonable amount for marketing your business.
Q5. What are the skills required for the data entry business?
There are the following skills that are required to run a data entry business successfully;
- Computer literacy is important.
- IT skills and software knowledge are required
- Typing speed
- Reading skills
- Typing accuracy on the digital platform
- Meeting deadlines
- Excellent writing and verbal communication skills
- Managing finances
Q6. What are the steps to start a data entry business?
There are the following steps that you can consider before starting a data entry business;
- Creating a business plan
- Calculating the cost
- Deciding the form of business
- Generate leads
- Market your business
- Deciding the charge of services
- Deciding the name of the business
- Make a website
Q7. What are the types of data entry?
There are two types of data entry that a person can consider before starting a data entry business;
- Offline data entry
- Online data entry
Q8. What are the benefits of the data entry business?
There are the following benefits of data entry business;
- Low initial cost
- less manpower required
- A lot of clients
- Working with or without internet
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