Outsourcing is often an important step in the growth of a business. It’s frightening, though, because it removes part of your business from your direct control. If you are thinking about outsourcing any aspect of your operations, you should consider asking the three questions below.
What’s The Difference?
What can this company do for you that others cannot? There are many answers here, and how the other company responds will tell you quite a bit. Will they be able to make higher quality custom pieces or products? Will they be able to offer better service? Do they have a better price? The company should be able to respond not just with what is different, but also with what the company values the most. You should be looking for a company that offers you some kind of real advantage over the others in their field. For example, a company like Accurate Products Inc. that specializes in industrial rubber products might be perfect for an automotive manufacturer, but perhaps not for a toy manufacturer.
Who Have They Worked With?
When outsourcing, an established company is often a trustworthy company. Make sure that the company with whom you wish to work has worked with someone in your industry and preferably in your area. If there has been a problem in that relationship, you need to know why—and whether it was able to be resolved. If you can get actual contact information for the other clients, that’s useful. If not, you should be able to count on the outsourced provider to provide you with examples of work that’s already been done. The more established the outsourced operation, they more evidence they should have of their success. If they’re a new company, you’ll have to find evidence other ways. Give them a chance to show you what they can do. Sometimes a young company can offer better prices, service, and even products.
What is My Guarantee?
Finally, you should always ask about any guarantees of quality that are offered. You need to know how the other side will handle any mistakes they make and what they will do to make things up to you. You also need to know exactly how difficult it will be for you to extricate yourself from this business relationship if things go south. You shouldn’t be counting on a problem, but knowing what will happen in a worst-case scenario is always a good idea. It’s important to protect yourself and your company in the event that you need to part ways. Any requirements, guarantees, or other terms of your partnership should be put in writing, ideally in a contract signed by both parties, so both companies have clear documentation of the agreement. This will protect both your company and any vendor you work with.
Always be cautious when outsourcing any part of your business. Ask the right questions about what the other company brings to the table, how they’ve worked with others, and what they can do to make you feel comfortable. If they can answer everything correctly, you may have found a partner with whom you can work. This kind of relationship can help take your business to new heights if managed well.
