Three Tips for Outsourcing with Small Businesses

By Daven Michaels - Apr 05 , 2011

People think outsourcing is huge corporations sending all their work overseas, including manufacturing and production and, as any one who’s spoken with a call center know, their customer service operations. But outsourcing isn’t just for the big guys. Small businesses, if they know what they’re doing, can use outsourcing effectively, domestically and internationally.

Here are a few tips:

1. Outsource as much as you can. But not your core business elements.

Figure out what you need to keep close at hand, such as scheduling. Marketing or payroll can be outsourced to save you time and money, allowing you and your employees to focus more on the essentials such as sales. This could lead to other outsourcing opportunities once you see what isn’t essential to  your in-house operations.

2. Use the same company for many different things

The more services an outsourcing company provides you, the more you’ll save. You’re buying in bulk. If, for instance, you consider a company for your printing, that company could also design your ads, mailing lists and mailings. Many printing companies today offer full-service marketing for your business. Or take accounting: Accounting firms can also handle your payroll and taxes.

3. Make sure you do your homework

This may sound like common sense, but many people don’t think about how important due diligence is. They go for the cheapest. But – as you’ve no doubt discovered, you get what you pay for. The cheapest company may give you the cheapest work, which may not the best solution for your needs. Evaluate outsourcing companies as you would a prospective employee. Check backgrounds, initiative, ethos, personality – everything you would when you interview a new employee. After all – even if you’re outsourcing, it’s still an important part of what your company is. An outsourcing company is, after all, a kind of employee at a distance.

In the end, you’ll want to make sure you have clear deadlines and specifications set for your different projects.  This alone will save you much frustration and time.  Having an external company doing this work for you will allow you to focus on the important things, like growing a small business.

Next, we’ll look at how to go about sizing up an outsourcing company.