WHY SMALL BUSINESSES SHOULD OUTSOURCE THINGS THAT ARE NOT THEIR CORE COMPETENCY TO AN EXPERT – REASON THREE

Reduce Operating Costs

Companies that try to do everything themselves may well incur higher operating costs for non core areas such as accounting and marketing, which are then passed on to the customer. An outside expert’s lower cost structure, which may be the result of a greater economy of scale or other advantages based on specialization, reduces a company’s operating costs which in turn increases its competitive advantage.

Thanks to Next Level for this series of compelling reasons why it makes sense for small businesses to outsource during recession and beyond. For more great tips, check out Next Level's blog, site or FB page.. Find the pros you need and list your own business also on the OED Community.

Do I have what it takes to own/manage a small business?

“The starting point of all great achievements is desire.” – Napoleon Hill

You will be your own most important asset, so an objective appraisal of your strengths and weaknesses is essential. To determine if you have what it takes, YOU need to answer some questions about yourself:

Am I a self-starter?
How well do I get along with a variety of personalities?
How good am I at making decisions?
Do I have the physical and emotional stamina to run a business?
How well do I plan and organize?
Are my attitudes and drive strong enough to maintain motivation?

Delegation

The following list is of items that could be delegated to subordinates and make it easier on [you as] the manager:
1. Matters that keep repeating themselves.
2. Minor decisions most frequently made.
3. Details that take the biggest chunks of time.
4. Parts of the job the supervisor is least qualified to handle.
5. Job details that the superior most dislikes.
6. Parts of the job that make the superior overspecialized.
6. Parts of the job that make the superior under specialized."

A Once a Month “Sit Down”

A Once a Month “Sit Down”
Once a month sit down with this list and DO IT!
 PLANNING.
Review your business plan (You do have one, don't you?). Are you on course to your objectives and goals? Update your plan as may be necessary and make any additions and/or deletions based on any changes in your desired goals. Remember the importance of planning - without a plan in place, effective decision making is difficult if not impossible.
 CUSTOMERS.
Make a point to contact all your existing customers - remember, they are most likely to purchase your product or service. Have a "preferred" sale, send them all an announcement of some kind, ask for suggestions. Make them feel how important they are to your business. Make personal individual contact with your larger customers.
 SUPPLIERS.
Contact all your current suppliers and attempt to negotiate lower prices. Review your previous year's usage and consider a larger bulk buys in order to obtain additional discounts.
 ACCOUNTS.
Contact all overdue accounts. Decide if you want to continue to work with these customers.
 EMPLOYEES.
Make a point to sit down with each of them and ask for suggestions that might improve your product or service. Ask if they need anything that might make them more efficient. Be sure to give feedback at a later date as to how you usedany of these suggestions.
 TECHNOLOGY.
Are you using technology to the fullest extent possible? Remember that technology is one of the great equalizers between small and large companies.
a. Should you have an Internet site?
b. Is your telephone system adequate? (Do you keep customers waiting?)
c. Would a fax-back system help get information into your customers hands at a lower cost to you?
 MARKETING.
Set down ALL your marketing plans and plan your marketing budget.
 ORGANIZATION.
If nothing else, get yourself a good personal information manager (PIM) and use it.
Remember, the continued success of your business is dependent on many factors, most of which are under your control. It is up to you to take advantage of what you can do something about.

WHY SMALL BUSINESSES SHOULD OUTSOURCE THINGS THAT ARE NOT THEIR CORE COMPETENCY TO AN EXPERT – REASON TWO

Every business large or small has limits on the resources available to it. Outsourcing permits a business to redirect valuable resources, from non core activities toward activities which serve the customer. Energies that are currently focused internally can now be focused externally – on the customer, which in turn increases revenue.

Thanks to Next Level for this series of compelling reasons why it makes sense for small businesses to outsource during recession and beyond. For more great tips, check out Next Level's blog, site or FB page.. Find the pros you need and list your own business also on the OED Community.

WHY SMALL BUSINESSES SHOULD OUTSOURCE THINGS THAT ARE NOT THEIR CORE COMPETENCY TO AN EXPERT – REASON ONE

Access to First Class Resources:

Outsource providers make substantial investments in technology, processes, and people and they gain expertise by working with many clients facing similar challenges. This combination of specialization and expertise gives their customers a competitive advantage over their competition.

First in a  series of compelling reasons why it makes sense for small businesses to outsource during recession and beyond. For more great tips, check out Next Level's blog, site or FB page.. Find the pros you need and list your own business also on the OED Community.













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OUTSOURCING: Is it a four letter word?

Next Level Business Solutions kicks off a discuss and tip series on why outsourcing makes sense for small business.


During a recession, the term outsourcing congers up visions of thousands of American jobs streaming to emerging countries, however is outsourcing to US workers bad?

Let’s look at the definition of outsourcing: “Outsourcing or sub-servicing often refers to the process of contracting to a third-party.” In its simplest form everyone in the country outsources on a daily basis. Every time you go to the grocery, car mechanic, shopping mall, or doctor you are outsourcing. The same is true for your business. You hire (outsource) individuals with specific knowledge and experience to work for you, and the printing of fliers and marketing materials is outsourced to a printer. Next week we will look at why outsourcing is good for a small business in any economy.

For more great tips, check out Next Level's blog, site or FB page.. Find the pros you need and list your own business also on the OED Community.