Outsourcing your microbusiness

Is it time to outsource your micro business?

Outsourcing is a tough business call. For every micro business, it can pose a lot of risk as well as opportunities.

As a business owner, considering to outsource means that your business has come to a crossroad. Perhaps, you have increased demand, you have added services and you have gained more customers than what you can accommodate with your current staff. Outsourcing is the most basic go-to solutions. However, at this crossroad, a lot of considerations should be carefully looked into.

According to, here are 5 questions you need to ask before deciding to outsource your micro business.

  1. Does your outsourcing service provider match your business needs?

Imagine this: your micro business will be partnered with a third-party firm. All your activities between you and the third-party firm will ultimately affect your clients, your in-house staff and your business as a whole. So, it is important that your goals match that of your outsourcing partner.

Rob Rawson, an entrepreneur, says that it’s important to keep a variety of options, narrow them down into 2 or 3, and then choose. Don’t hire the first applicant or vendor you find online although that they might be the right choice.

  1. Will it deliver significant cost savings?

Companies choose to outsource mainly for cost effectiveness. When you outsource your task rather than having in-house employees do it, you save on labor costs. Moreover, your access to quality resources help you improve business outcomes.

Although, a lot of entrepreneurs say that it’s safer not to choose the lowest bidder. You always get what you pay for in outsourcing and it’s a good idea to balance your budget with the output you are expecting.

  1. Will it improve performance?

Planning is key. Before deciding to outsource, evaluate whether it will be beneficial for you and your business. Given that you can’t predict all outcome, it would still be valuable to know where to settle your expectations especially with your outsourcing partner.

  1. Do you have the resources to manage your offshore team?

Engagement between you and your offshore team is important in order to oversee their operations. Keep an open line of communication and always set goals and expectations. A solid contract could also be useful to avoid confusion in the whole deal. Have everything written and signed to secure your deal.

  1. What are you going to outsource?

Finally, your company should decide on which tasks are you going to outsource. Most companies only outsource their non-core business process.

Retain control over aspects that make you unique or define your business.

~Rob Rawson


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