How to Make Outsourcing work for your Small Business

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Outsourcing for Small Business

Running a small business is no easy task in the unpredictable economic times. Many start-ups fail within the first 3 years. You definitely don’t want yours to be in these statistics. To achieve that, you must exploit all the income channels while keeping the expenditure at the lowest.

Outsourcing comes in handy here, allowing you to benefit from skilled external workforce without adding to your payroll.

Interview the Applicants

Just as you’re keen when hiring your employees, apply similar diligence when outsourcing. The goal should be to end up with experts who will give you good value for money. Go through all the proposals provided considering the skill sets and testimonials from previous clients and pick the best fit.

Give Clear Job Description

Don’t assume that the service providers will figure out what to do since they have worked with other clients before. Each job is unique. Provide comprehensive details on what you want done. Answer the what, how and when of the job. For instance if you want an equipment tracking device installed, explain the exact parameters you want the device to track.

Begin with Small Tasks

small task

For your initial outsourcing deal, start with small projects. Outsourcing major deals when you’re not certain of the outcome could jeopardize your business. As you get accustomed to service providers and their work, you can progressively increase the scope of work entrusted to them. There are also service providers who can give you a prototype at no extra cost.

Consider the Copyright

Think of the payroll software referred to above. Once you pay for it, does it solely belong to you or can the designer sell it to other businesses? The ownership of the final product should be discussed from the onset to avoid conflict. You can consult the applicable patent laws for guidance.

Agree on Payment Terms

Money matters can turn your outsourcing deal into an absolute distress. Assuming that you’re paying in installments, it is advisable to tie the payments onto well-defined goals as opposed to just timelines. Imagine you’re outsourcing a construction project, and you agree to pay weekly. Does that define how much work should be done within that week? No. You’ll be obliged to pay even when there’s hardly any progress to show. Set goals which the service provider must attain in order to get paid.

support

Agree on Support

Will the contact come to an end once the product is complete or will you require support thereafter? It is advisable to create a rapport with service providers so that you can be assured of support whenever necessary. Whether you’re talking of a website, software, construction, interior decor or any other project, it is best attended to by the service provider who knows it inside and out. This might cost you a fee, but it is well worth it.

These tips should ensure that outsourcing brings you topnotch skills while allowing you to keep your payroll lean. Remember to put all the agreements in writing and sign appropriately. Once successfully delegate some tasks, you can fully concentrate on giving your customers the best service.

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