Published on December 7th, 2021 | by Sumit Bhowal0
4 Tips For Small Businesses to Outsource Effectively
For many small businesses, scaling to prepare for increased business can be difficult. There’s a need for more manpower, space, and specialized work, but you don’t yet have the funds to hire more people or expand your space. That’s where outsourcing comes in. Here are a few tips for making sure you’re outsourcing effectively.
1. Do Your Research
One of the biggest mistakes businesses make when outsourcing is not doing enough research into who they’re partnering with. Just because the outsourced business isn’t under your authority does not mean you should take a hands-off approach when deciding who to work with. Vetting candidates properly means that you’re taking a deep dive into their history and making sure that they’ve received positive reviews from past clients, whether they’re handling accounting work or CRM for small business.
You should also be on the lookout for any red flags that might indicate that you won’t have control over the work that is done, or that you won’t be given regular updates along the way. If you outsource to a business that does shoddy work, it won’t reflect poorly on them – it’ll reflect poorly on your business. Being able to trust who you work with is just as important with outsourcing as it is with hiring new employees.
2. Have a Plan B
If you’re relying on third-party work to solve your business’s biggest problems, you’re putting yourself in a precarious situation. While you may have to trust another company to put you back on track, it’s a good idea to make sure you have a plan B in place. There’s always a chance that things could go south with your outsourced work, whether that means having to let go of a company that isn’t performing up to your specifications or realizing that the work you outsourced wasn’t the biggest area of need within your business. This is also why it’s a good idea to maintain good relationships with businesses you’ve worked within the past, just in case you need them to step in and resolve a difficult situation.
3. Communicate, Communicate, Communicate
There’s a big temptation that comes with outsourcing to take your hands off the wheel and just let the third-party company do its thing. But at some point during their work, you’ll probably realize that they’ve misunderstood your original intent or that they’re taking a lot of freedom with the way they’re doing the work. That’s why you need to establish and maintain clear communication from the very beginning of this partnership. There should be regular points for you to check in on progress, and your partnering company should be willing to give progress reports whenever asked. An unwillingness to communicate is a big red flag when it comes to outsourcing – you deserve to know what’s going on with the services you’ve paid for.
4. Ensure Quality
Again, whatever the third-party company does with the money you pay them is going to end up reflecting on your business. It can be tempting to see the low fees that some companies charge for their work. But at the end of the day, if outsourcing doesn’t give you the same quality of work that you’d expect from your own employees, it’s not going to work out. The quality of your products should be your biggest concern when deciding who to hire. Even a company that has years of experience and great reviews may not end up being the best fit for your business if they don’t understand your goals and what you expect from them.
Hiring an outside business to handle the thing you can’t manage at the moment is a great way to take some of the pressure off while ensuring the work is done to your standard. Outsourcing can be a great way to help your business grow while you wait to get the funding for permanent hires. Doing it intelligently and carefully will make sure that your outsourced work is being done effectively.