More and more small businesses are relinquishing control over certain operations everyday. They are following in the footsteps of many larger companies and outsourcing work to allow them to focus on those aspects that are truly critical to the growth of their businesses. The functions that small business owners choose to outsource vary widely from business to business, but the overall process typically remains the same. You choose those operations that you?d like to outsource, select the vender that?s right for your business and then make it work.
The first thing you need to do is take a look at the core function and mission of your business. The general rule of thumb is that if the operation is one of the things that defines your business, then you should keep it in-house. Most other operations are fair game. Some of the more common operations outsourced by small businesses are payroll and human resources. Such services have little to do with your volume of sales or level of customer service. Bookkeeping and public relations are also frequently outsourced tasks. Both can often cost far more money to do in-house than it would done by an outside vender.
You'll also want to evaluate the nature of the work that will potentially be outsourced. Projects that require a large amount of teamwork, interaction and brainstorming are probably not great candidates for outsourcing. It?s usually best to farm out self-contained operations and projects that won't get entangled with other important business functions. This will prevent any possible derailment of those functions.
Another great way to look at this part of the process is to clearly map out the strengths and weaknesses of your business. What do you struggle with? What are you great at? Or what are you just OK at? Figuring this out will go a long way in helping you decide which operations to keep and which to farm out.
The best way to start your search for a vender is to look for someone who has experience in your particular industry and fits within your company culture. Call around and ask as many questions as you can. Set up meetings with your top candidates. Find out how much their services will cost to see if you?ll actually be saving money. Ask who they?ve worked with and what their experience is. Make your expectations known and make sure the vender is capable of meeting them.
Once you've settled on a certain vender, get everything in writing. Prepare a written contract and seek aid from legal counsel if need be. Clarify the services you expect to receive and the level of quality you expect them to be received in. Consider your strategy behind payment. Will it be a fixed rate? Or will it be tied to performance? Also determine whether there will be a notice period for termination by either party.
Once your intended collaboration is solidified, there are a number of things you can do to make sure that you get exactly what you?re looking for. If this is your first time outsourcing, don't immediately dive in head first. The last thing you want is to be locked in to a two-year contract if things aren't progressing the way you?d hoped they would. Start out with one stand-alone project and build your relationship from there. Taking things slow will help you get a feel for the process and allow your employees to grow accustom to the idea.
While you're working with your vender, schedule regular meetings with your point of contact to make sure that everyone remains on the same page. You'll also want to review their performance regularly. See where they're meeting expectations and where they're falling short. Keep your lines of communication open so that your vender is aware of where issues are occurring.
One way to make the whole outsourcing process run smoothly is to appoint a liaison to manage the relationship between your business and your vender. If you outsource multiple operations to multiple venders this is especially important. The accountability needs to be there, and it needs to lie within your company.
