7 Most Common Outsourcing Mistakes Small Business Owners Make

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7 Most Common Outsourcing Mistakes Small Business Owners Make

7 Most Common Outsourcing Mistakes Small Business Owners Make

7 Most Common Outsourcing Mistakes Small Business Owners Make

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Outsourcing can be a valuable and advantageous decision that can help your business take off…if it’s done right. There are many decisions to make when it comes to delegating tasks in your business. Who, what, when… All extremely important. Customer relationships, cost versus expenses, time, expertise… the list goes on and on. These are the most common mistakes small business owners make:

  1. Outsourcing the Wrong Tasks: Don’t just outsource tasks you don’t want to do or that aren’t your strength. Outsource the tasks that someone else can do faster, cheaper, and better than you.
  2. Hiring the Wrong People: Always do your homework. Check out their work, talk with people who have used them. Written testimonials aren’t always the most accurate reviews to go by. Choose from a wide variety of applicants, not just the first person to cross your path.
  3. Value, not cost: Look at the value of what you are getting, not just the cost per hour. Quality is important to the overall picture, not just the dollar signs. Take into account the company’s reputation, work ethic, and overall productivity.
  4. Risk Management: Making any change in your business comes with a certain amount of risk. Consider the financial risk, operational risk and security risk. The most important thing to remember is to have an exit strategy planned out if something goes wrong with one of your sub-contractors.
  5. Management: Outsourcing is a huge time saver, but it doesn’t run itself. You still need to manage your sub-contractors. Provide them with clear expectations, feedback and be available to support them. The ongoing management is essential to successful outsourcing.
  6. Business Relationship: Be committed to your business relationship. Look for win-win solutions and be flexible. However, don’t be afraid to give constructive feedback to ensure product satisfaction. Be able to accept feedback too!
  7. Communication: Defining your project, expectations, financial limits, and your ultimate goals are essential to having a successful project relationship. Without clearly communicating these aspects of your business your outsourcing can become a nightmare.

Outsourcing can be an invaluable part of your small business as long as it is done thoughtfully and strategically. Keeping these common pitfalls in mind will get your business on the right track