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Outsourcing Tips for Small Business Owners

by: Sarah Joson

Monday, November 11, 2013 |

Nowadays, owners of small and startup businesses are burdened with numerous challenges. Apart from their limited resources, they are fighting tooth and nail to stay afloat as economies all over the world are relentlessly fluctuating. They also have to deal with the day-to-day operations which include managing the employees, quality control, and promotion.

A lot of these businesses seek respite in outsourcing, a process that enables them to reduce costs, focus on core processes, and address skill shortage.  

A post at TheGuardian.com shares several things that small business owners should do before striking a deal with an outsourcing service provider.

Perform due diligence.

Research online. Are they active in their respective industries and are their social media accounts legitimate and credible? Through their social media accounts, online recommendations from customers, and portfolio, you could at least see if they are professional and are in fact a stable institution within their industry.

What is the basis for their rates?

Most providers charge by the hour. Ask how the breakdown of their services will affect the contract and the rates, especially when services are not rendered on time. Better yet, give the provider an idea of how you want things done while taking their suggestions in consideration.  

What are their payment terms?
Look at their price points and package rates. Do they offer services in increments, or do you have to avail an entire service/product package? Ask as many questions as you can before setting things in stone.

Include everything in the contract.

See to it that the contract includes everything you need and your outsourcing partner fully understands how it will be integrated into the operation.




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