Business Overview

These businesses are necessary because most businesses have a need for data entry, information tracking, organization, and analysis. Popular websites offer jobs that can be bid on by data entry businesses, which then enter data for any company that needs it. Most large companies contract with independent data entry companies for either part-time or full-time data entry needs.

Who is this business right for?

This business is best suited to business owners with strong managerial skills. If you plan on owning a one-person business, you should also be comfortable using a variety of popular spreadsheet and word processing programs. Running a data entry business is typically a “9-to-5 job,” but may also include weekends and nights based on the project.

What happens during a typical day at a data entry business?

Day-to-day activities of a data entry company include processing requests from customers and, of course, data entry. Most of an employee’s time is spent working at his or her desk organizing, sorting, entering, and manipulating data.

The owner of the company may be involved in marketing, so most of his or her time would be spent managing client relationships and attracting new clients.

What is the target market?

Preferred customers are larger corporate clients or those with ongoing data entry needs. The worst types of clients for this business are smaller accounts or businesses that have sporadic cash flows and cannot afford to pay for ongoing data entry services.

How does a data entry business make money?

A data entry company makes money by charging clients for data entry services.

What is the growth potential for a data entry business?

A data entry company can remain small, with just one or two people operating the business. These kinds of businesses typically take on a handful of clients and establish a relationship with them that lasts for years. A lot of businesses stay small like this forever.

As the client base grows, however, some companies decide to hire staff to assist with the workload. These companies can scale easily as long as they continue hiring data entry specialists, HR support, and management that is sufficient to handle the growth of the company.

An example of a large data entry company would be ARDEM Incorporated or Invensis. These companies are global, working with international corporations. So, the theoretical upper limit is huge.