Partner Article

Taking Advantage of Outsourcing to Expand Your Business

In these uncertain economic times many people are hesitant to invest more money into their small business, but risks can be minimised by choosing to outsource where possible rather than expand on your own. Read on to learn more about the advantages of outsourcing.

The truth is that expansion is growth and in order to remain competitive, especially in times of financial difficulty, it may be necessary to invest in your business. The important thing is to thoroughly research your options and choose the most risk-averse path possible while still increasing your potential profit. Often, the best way to do this is to outsource some sectors of your business to experts who offer a competitive package.

Why Outsource?

Initially, it may seem that outsourcing is an expensive option, however, when you consider the overheads required for certain ventures, you may find that this is the right choice for you. For instance, companies that sell a product online may find that hiring external fulfilment services seems expensive initially, but it is important to accurately weigh the pros and cons.

Yes, hiring an external company will cost you more money per month or year than your current set-up costs, but look at the big picture and you will see the potential gains. Hiring a company to pack and dispatch your orders will save you some of the labour costs that you are already paying and may well also allow you to cut back on your physical holdings. The company you hire should have a large warehouse in which your goods will be kept, so you should not need to store them in your own property.

In addition, you will find that the expertise of third parties may provide a smoother service for your customers, leading to repeat business and improved customer retention. This may also lead to growth, allowing you to sell more items and keep more stock, eventually increasing your turnover and profit.

Outsourcing Your Business

When thinking about outsourcing, it is important to have a clear picture of what it is that your business needs. What aspects of your organisation could be handled by someone else? Some companies will benefit from someone who will pack and dispatch items, while others may find the most advantage with an external IT company or appointment booking service.

Once you have decided what service is most important, you will need to approach vendors. Remember, their industry is competitive as well so you will want to review a number of quotes before entering into negotiations. Negotiating with these companies is the more important step here, so be 100% sure what it is that you require and aim for this. If accuracy is important to you and your customers, build a stipulation into the contract that only allows x% of errors without penalty. Tailor your needs to your business and outsourcing may very well make the difference between a small, struggling business and a successful enterprise.

Adriana Frederick runs several successful small businesses and has recently expanded with the help of outsourced fulfilment services. In her spare time she also writes articles on various business-related subjects for a variety of websites and blogs.

This was posted in Bdaily's Members' News section by Adriana Frederick .