Are you an entrepreneur thinking about how to take your business to new levels of productivity? Are you looking at streamlining your current processes to strengthen brand recall to target customers? And are you exploring outsourcing to help you achieve these goals?
This article walks you through the fundamentals of outsourcing so you can decide better if this will ultimately suit your needs and propel your business to new heights.
Slow Burn, High Returns in Outsourcing
Outsourcing is not an easy task. It requires tremendous time and energy from the company especially since it will look a lot easier to just maintain status quo. Small business owners are not realizing the compounded amount of time and money wasted on non-critical tasks.
Outsourced companies offer not just valuable manpower to run the process for you but also serve as free consultants and process experts to help review your current processes, suggest improvements and share best practices as they are most likely servicing your competition as well.
“Taking the first steps toward outsourcing can be time-consuming, but figuring out how to build your business with help from outside professionals can offer increased efficiencies and economies of scale.”i
Outsourcing often triggers separation anxiety from business owners and their staff as it requires letting go of tradition and set habits. The business owner would then need to step back, review all the processes within the organization, map each process meticulously and identify which of these can easily be outsourced externally.
Trust and Let Go on Business Processes
Most entrepreneurs have great talents but many times they think they can do it all and significantly stall the growth of their business.
Business owners fall into the trap of controlling every minute issue and troubleshooting each mishap for fear of being in the blind when things go wrong – and things will go wrong. The linchpin to all outsourcing initiatives is trust.
If you have decided to outsource a process – scout the market for referrals, investigate which companies are being used by your competition and ask around as to how these providers are doing as against performance metrics most critical to you.
Once you tap an outsourced partner, train them well and trust that they can do the job. Otherwise, micro-managing beyond what is needed places the business owner right back to the old state, thereby wasting money spent on the partner’s service.
Focus on the Customers, Not on the Process
Ask yourself, what exactly am I offering to my customers? What differentiates me from competition? What keeps my customers loyal and what is the primary product or service I would want to be known for?
Answering these questions allow you to identify a singular, non-negotiable value proposition where you can anchor your company’s strategy and core processes on to be able to reinforce it further to customers. This shifts your business model from extraneous activities that increase overhead and focus on processes that increase revenue. Strengthen that which what you’re already good and make it even better. Again, these are just some things to consider in helping you decide whether to outsource or not. Identify what’s important to you and your business – this is always a good way to start.