Drawing up a business plan gave me greater confidence in starting up my enterprise
Adapted from Laura Barbasio – Paolo Iametti – Stefania Spallanzani, Dieci regole per mettersi in proprio – e le storie di chi ci è riuscito, Milano, Etas, 2004, € 14.
Sector: Business services
Gianni Davico has transformed the casual work he did as a student into a real business. And it was the drawing up of a business feasibility plan, after having taken a course for aspiring entrepreneurs, which allowed him to take the important plunge into starting up a business. For it was the business plan which revealed that his idea for a translation agency held all the right cards for success. And success it has had.
As a student of the Faculty of Arts, Gianni Davico from Turin, now 36 years of age, dreamt of a future as a literary critic. Then graduation brought the impact of a not very pleasant reality: the difficulty of living off literature. Thus, from aspiring literary critic he became an entrepreneur and succeeded in exploiting his passion for the Italian language thanks to Tesi & testi, a company specialised in proof-reading, editing and translation services.
"I graduated in 1994," says Gianni, "but I had already been working since 1992 to scrape together money and not weigh on my family." Instead of thinking about his thesis, he worked on the theses of other students, typing and proof-reading them. In doing so he perceived a new potential, and added the service of editing résumés for young people bound for the labour market. "I thought it was a job I would only be doing as a student" Gianni recalls, "but then I enrolled in a course for aspiring entrepreneurs organised by a consultancy firm. It was during the course that I drew up my business feasibility plan, from which I learnt that there were good reasons why a small services business specialised in résumés and translation from and into English ,which I spoke well, should succeed".
So he opened his own sole business, purchased a PC, a printer, and an answering machine, and rented a small office. He sent out 256 promotional letters to introduce his translation services, and immediately acquired three customers. Then he began to offer translations in the widest range of languages, relying on a network of freelance translators to whom he outsourced work as it arrived. On the rates charged by the translators he applied a 40% mark-up, necessary to cover expenses and make a small profit. Business continued to improve year after year, such that today, Gianni is the managing director of a company which relies on a network of 200 translators and can translate texts in a variety of languages. "The drawing up of a business plan" stresses Gianni, "was fundamental in my growth as an entrepreneur. It allowed me to start up a business with greater confidence and, above all, greater faith in my future."
The reasons for success
- Service Quality. Enthusiastic about his work, Gianni offers top quality service, selecting his suppliers with great care and closely checking the quality of their translations.
- Service Range. Thanks to his extensive network of translators, Gianni offers translations in the widest range of languages - from Hebrew and Portuguese to Russian, Czech and Dutch.
- Marked predominance of variable costs. Gianni relies predominantly on a network of freelance translators, who are paid on the basis of the work they actually carry out. As a result, burdensome staff overheads do not weigh on the business.
Keep an eye out on...
- Strong competition. Businesses in the sector have to face up to cut-throat competition, not only from other various translation agencies but also from the many self-employed translators who offer low prices.
- Profits are slow to arrive. Before the bush telegraph begins to have its effect, you have to wait a couple of years to see results, though in the meantime, investment in attracting new clients is vital.
- Good translators are hard to find. To offer a top quality service, it is essential that you rely on skilled translators, which is not such an easy undertaking, considering that many are extempore translators, working above all in their free time.