5 Pitfalls of Transcription Businesses

When you're running a transcription business, the last thing you want to focus on is failure. But if you address these common reasons for failure up front, you'll be much less likely to fall victim to them yourself. Here are the top 5 reasons why transcription businesses fail.

1. Management has no idea about transcription
Most transcription businesses start off on a very high note/hope.  They get a couple of million dollar contracts and start hiring transcribers and proofreaders. And, a few months later you hear the company no more. 

It's rather unfortunate but when the management has no inkling of an idea about transcription the business always, always ends in failure. Having no personal knowledge about the business they tend to hire the wrong personnel or focus on the wrong things.

2. Corruption
When millions of dollars are involved corruption often rears its ugly head.  Most transcription businesses are funded by foreign capitals.  Often when the management is poorly paid or are too intent on making money on the side, the funds are not utilized where they are supposed to - on the best personnel they could hire, or appropriate office floors or equipment etc.


3. No Marketing
One big reason why transcription companies often fail is simply because they are not marketing their services at all.  It's hard to get new clients and maintain the old clients when you don't market at all. Many a transcription company do not even maintain an up-to-date, functional website. Forget blogs, social media and Facebook pages, you simply won't find them online.

4. Carrot and Stick Management
Simply put, most transcription businesses are run by unprofessional management team.  Their management tactics are simply not for today's business climate.  They are often quick to blame others (employees) and let them pay (often by firing). They are quick to delegate tasks but not eager to share the profits.

5. Employee Last Attitude
They often ignore the fact that transcription companies are as good as their transcribers - their employees. Customer first is fine; but employees should never take the backseat.  In fact, employees are their first and last customers.  Management should be accountable to their employees first.  Unfortunately, management treats employees with disdain and contempt.   They are overworked and underpaid.  Their hard work and efforts go unacknowledged.

It's true I've taken a potshot at (bad) management for failure in the transcription businesses. It's so because they are the ones who run such companies to failure and because of them the hopes and future of a hundred transcribers often hang perilously. If only management takes the initiative to acknowledge their employees will we hear of successful transcription companies where ordinary folks seek jobs and employment. Until that day, transcription will remain an industry with few takers for career. 

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