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Finding the Right Service Provider for Your Start-up Business

by: Sarah Joson

Wednesday, June 4, 2014 |

With the rigorous demands in the world of business today, owners of start-up companies - particularly the ones that are expanding rapidly - are often left needing external support the most. But like all new businesses, outsourcing is basically an uncharted territory.

A post at NuWireInvestor.com lists down ways that can help outsourcing beginners find the right service provider.  

Investigate and take down notes.
This will activate your entire process and will act as a foundation to your impending outsourcing operation. It’s usually referred to as due diligence, and it may involve some practices such as hiring a third party to do the research for you. You may also hire an individual who’s already an expert in the field to point out the strengths and weaknesses of the vendors.

You should even take a closer look at the track record of the executives of your selected vendors so you would have an idea what is likely to happen should you pursue outsourcing deals with them.

If possible, request for several phone references.
Occasionally, service providers will have a set of good references on hand which they will willingly provide if requested. Expect these references to give out nothing but positive reviews and comments. How do you go about this? Ask more than the usual number of phone references.

By exerting more effort in asking around, you will have an idea on how service providers work. It is similar to doing background checks on an applicant.

Will there be room for negotiations?
Negotiations are part of the entire contract process and are commonly overlooked by business owners. A lot of start-ups miss out on this opportunity because they are too focused on getting the best outsourcing service provider for their business. There’s no harm in asking. Negotiations could result to better packages and add-ons.

Create a schedule for services and payment.
When dealing with a potential outsourcing partner, present a services and payment schedule early on so the vendors will understand that you are firm with the timeline you have set. You should also discuss the practice for revisions and changes as the project is being rendered.

See to it that you set benchmarks according to industry standards then ask them to create business goals for you to review. This will help particularly in aligning your budget and your goals, so if all else fails in the middle of the contract, you will know where you stand with the money you have left.

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