5 Small Business Outsourcing Disasters to Avoid
Outsourcing is usually a good idea for small business owners—after all, you can’t be an expert in everything. However, we all have heard outsourcing nightmare stories. Here are a few of the most common scenarios and suggestions for dealing with them.
1. Your consultant doesn’t ‘get’ your brand. You have a unique small business brand that is one of the main factors your clients choose you. No one should have anything to do with your business without first understanding this brand and how it affects whatever they are about to do. Ensure that contractors understand what makes you tick before you hire them. Unless they are working on your wiring, they will likely need that understanding to produce a product that is right for you.
2. You haven’t defined success. Many contractors promise success, but no one bothers to detail exactly what this would look like. Make sure you have already thought about what success would look like for your outsourcing providers and that you have been clear about this vision. This will give them direction and make it easy for you to see if your goals and standards are being met.
3. You have no deadline. An outsourcing contract should have a set beginning and end date, as well as dates for all of the milestones that occur in the middle. While you should be flexible when the situation demands it, projects have a way of dragging on forever when you haven’t even set a goal for completion. Don’t let your projects languish on the back burner; keep them high priority by setting tight deadlines.
4. You don’t communicate. You would hope that a contractor would take the necessary trouble to communicate with you, but sometimes this simply isn’t the case. Some people are not born communicators. However, with your money and your small business on the line, you should take the initiative in this area. Be clear about what you want and when you expect to receive it. Remember that no one can read your mind; ou must let people know how to help you.
5. You have no Plan B. What do you do when you latest product is stuck on a barge that is lost on the China Sea? This is something to think about before it actually happens. Whenever you outsource, you are losing a little bit of control. You can retain a certain amount of power by developing contingency plans for the crises most likely to rear their ugly heads. Having a plan ahead of time will keep your blood pressure low and ensure a smooth, brand-consistent response.
Missteps in outsourcing can be expensive and even disastrous to a small business. However, by avoiding these five situations you can ensure that your risks are minimal. Think hard about what areas can be effectively outsourced and how you will hire a provider. Do the research and move smart, the way you would in any other venture related to your business. Outsourcing is a popular business tool, but how you handle it will determine whether it works for you.
