Top Things to Consider When Outsourcing

To build a great business quickly in today’s world, you’ll need to outsource in some capacity. The question is – how do you outsource operations while maintaining high standards across the board?

We talked to more than a dozen business leaders to hear their best tips and insights on outsourcing, so stay tuned.

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Find the Reason Why

Why are you outsourcing in the first place? You need a strong and logical set of reasons to make such a decision, so establish these first and foremost.

“If you want to outsource a part of your business, start with a crystal-clear strategy. What do you really need outsourced, and why? Run the numbers and map out exactly what you expect. The more specific, the better. Too many companies go in blind and end up less than satisfied.” – Lucas Nudel, Founder and CEO of Pride Palace

“The reason you outsource isn’t to immediately squeeze more profits and shower in cash for the short term. The real reason should be to gain an edge in terms of efficiency and agility. The money will come later if you do it right.” – Ramin Oskoui, Director of Growth Marketing at Nurosene

“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.” – Lee Kuan Yew, Former Prime Minister of Singapore

“I’m an advocate of outsourcing, but only if your company will benefit in some clear and tangible way. Never outsource just for the sake of doing it. Like all other aspects of business, approach it with strategy and finesse to get the best results.” – Ryan Rockefeller, CEO and Co-Founder of Cleared

Build Strong Partnerships

Vendors, accountants, designers, support – these third-party teams are now a part of your company’s mission. Make sure the partnership is built strong and sustainable.

“It’s a two-way street when it comes to outsourcing. You can’t expect to offload all your problems to a third-party team and have them magically be solved. It takes time to set up these partnerships and they need to be maintained wisely.” – Aidan Cole, CEO of TatBrow

“The best companies look beyond outsourcing and think in terms of ongoing partnerships that maximize results for both parties. This means frequent meetings and strategy revisions if necessary. The goal is to continually improve the partnership and benefit everyone.” – Hector Gutierrez, CEO of JOI

“Be ready to hold up your end of the bargain when it comes to outsourcing. Provide the contractor with the information and tools they need to get the job done right. Put in the groundwork everything else becomes easier.” – Mike Pasley, Founder of Allegiant Goods

“Don’t confuse outsourcing with a cleanup crew – your business problems won’t disappear before your eyes! With that said, outsourcing key functions can be a huge weight off your shoulders if you plan properly and form a trusted partnership with the freelancer or team members you choose.” – Matthew Mundt, CEO and Founder of Hug Sleep

Slow and Steady Progress Wins

The tendency to rush the outsourcing process is far too common. Don’t get ahead of yourself, and your business will enjoy the benefits of outsourcing with few downsides.

“No need to rush things when outsourcing, especially if you want to maintain a greater level of control in your business. Start by outsourcing some small and simple tasks, then progress to bigger responsibilities. That’s how you avoid trouble.” – Katie Kiernan, Co-Founder of Nue Life

“There is definitely such a thing as offloading too much, too fast. Instead of boosting efficiency, you end up harming the identity and structure of your business. Move slowly at first and ramp up later if needed.” – Michael Jankie of Natural Patch

“Master your strengths first, then outsource your weaknesses. You don’t want to end up an empty shell of a company by outsourcing everything all at once.” – Ryan Khan, Founder of The Hired Group

Avoid Outsourcing Mistakes

Mistakes happen, especially when outsourcing for the first time. Be sure to avoid these common pitfalls and keep your business moving full steam ahead.

“Watch out for freelancers or outsourcing services that seem too good to be true – they usually are. Before you sign anything in ink, be sure to speak directly with the people in charge and establish that trust. Don’t dive in headfirst without looking.” – Dylan Trussell, CMO of Culprit Underwear

“Price is one of many factors to consider when outsourcing, so don’t let it be the main reason for selecting someone or a certain company. When you go strictly by price, you’re way more likely to compromise on quality. That’s bad news for the future of your business.” – John Wu, CEO and Co-Founder of Gryphon Connect

“It’s kind of an unspoken thing, but the truth is that most service vendors are just going to do the bare minimum. That’s fine, it’s part of the deal when outsourcing. But you need to be clear in your terms and aim for transparency to avoid issues down the line.” – Dylan Arthur Garber, Co-Founder of Audien Hearing

“Companies that outsource sometimes find themselves in a weird zone of micromanaging their vendors or contractors, and not getting the results they want. From the very beginning, you must set expectations for performance and production to make outsourcing really work.” – Seb Evans, Co-Founder of Banquist

When done right, outsourcing can be the spark that ignites your business success. Watch out for hazards and stay ahead of the pack in any venture you pursue.

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