A guide for Business owners planning
to do outsourcing
Business and entrepreneurship is taking over the world in
many aspect. This is due to the fact
that, a number of people and business owners have adopted outsourcing
businesses. A number of the entrepreneur succeed in the outsourcing aspect
while others don’t. This articles therefore provides insight to business owners
who wish to start business activities and companies by outsourcing the
services. Remember success comes to those individuals who are dedicated and
busy searching for it to achieve efficiency and maximized on returns.
The outsourcing business has in many ways been related to
broking services. However, the outsourcing in simple terms, means using another
business entity, suppliers or individuals to perform a task for you. It is estimated about 60 % of business
globally in one or another may outsource for it services and operation. Now the
question of a person who need to tap into this business would be interest to know
is why business do outsourcing.
There are multiple of
reasons why business do engage into delegation of companies operations to
another suppliers or third party.
First of all, organization may give out part of its services
to be done by others firms because they want to reduce labour cost and over
heads associated with the activities. For instance, it is cost effective to use
a rider service to perform company delivering services that having to employees
firms rider because company you will need
to buy a motorbike and hire the person to operate, which would be in costly and
higher operational cost.
Another reason why business outsource and business owners
planning to do outsourcing need to know is: risk management. Business exit to make
profits and where are risk are high most entity would avoid it and thus
delegates. With areas why high risk are involved, it is huge opportunity for
outsourcing business since the higher the risk the higher the profits.
Moreover, delegation may be necessary so that it becomes easy
to downsize when the need be to an organization. Many business would confess,
the downsizing is on the most involving activity in any organization.
Most of the companies do outsource in order to improve
performance and its operation, and indeed focus more on its core functions and
process which contribute heavy to their profits and brand. Many firms may
delegate to ensure the more resources on major function thus the need to
outsource.
The Business owners planning to do outsourcing need to
understand why companies, business entities and organization outsource thus
able to strategies and know which areas to tap into and offer delegation services.
Before engaging into outsourcing business there are number of
vital factors you need to put into consideration or else as a service provider
you will be unable to settle on particular service you need to offer, or
confused your brand.
Determine the area you need to specialize in – a Business
owners planning to do outsourcing activities should identify which field him /
her understand best and would like his business to engage in. This will allow
the business owner to deliver effectively and build his own brand. Focusing on a specific area has proved to be
fruitful for many business or than engaging on all trades. For instance, an
human resource consultant may also want to engage in training activities and
other related aspects. However, it would be confusing if business engages for instant,
into insurance services.
Analyze your niche and
market – it is vital
for the business owner who wishes to engage in our souring activities to do his
homework well. Study the market of the services you would like to offer,
identify the untapped needs and see how you can fulfil it and more so learn
your client’s expectation and what other players are doing in the same field.
Human resource /
personnel - You may
need to determine whether the outsourced business will be done by yourself (if
it your area of expertise) or would use another third party or employ staff to
do it on your behalf. This is
fundamental for planning purposes and ensuring customer satisfactions.
Competition /
Expectation - it is crucial before engaging into
outsourcing business of any kind, check out what others are in doing in the
same industry and find out what you do
different or better than them. This will develop your brand, niche and in turn
give you continuation business.
Business- it is fundamental to know which
firms and which of business are likely to b delegates to your business. In that
regard, you will be able to know which combination of business activities can
be outsourced from your business. For instance, if you are offering graphic
design services, it is vital to know which kindly of design business are
available from individuals, corporate and press companies
Document and papers
work- it is crucial
to check which papers work is needed for particular time of outsourcing
business and obtain them before commencing operation.
Moreover, the cost of setting up the outsourcing
business may vary from business to business depending on the services being
offered. Some services may need assets, office premise, and storage while other
may not.
Outsourcing business have its own challenges and pitfalls, although this may vary from
business to business and services being offered, a business person who wishes
to engage in should be aware of the following.
Some activities are better done by yourself and when workload
is a lot you may need to employ others staff who may not met your expectation
of those of your clients.
Some of the business delegating the services may not have
full trust in you especially when you also don’t perform them yourself.
Delivery of services and time the work need to be done by
your client may become a huge source of hindrance and challenges. Some of the
work have very short notice and entails a lot.
Building yourself as a brand, especially when handling
several services may be a big challenge and confusing to your customers.
Finally focus on area where you are likely do perform
frequent task and activities that very business entity need for daily
operations. Business owners who plans to start outsourcing business should have
in mind that, for business to succeed it should be able to fulfilled untapped
needs and perfect on them.
