How To Outsource Successfully
 By Lee S. Shaffer

Small-business owners can always use extra hands. But when hiring employees isn’t in the cards, outsourcing can be your ace in the hole.

You can outsource just about any job you think of:

• Bookkeeping

• Administrative support

• Sales

• Copywriting for direct mail, Web site content, sales letters and marketing materials

• Graphic and Web design

• Technology installation, repairs and maintenance

• Market research

And the list goes on. Regardless of what type of project you need to outsource, you can save time, money and hassles by following these steps.

Define what you want
Start with a clear definition of what you want accomplished by the vendor. Be specific about the project’s requirements.

The more details you can provide, the more apt you are to get realistic proposals and accurate quotes from the people providing the services.

Along with specifics of the project, you should be able tell potential providers:

• When you expect the work to be done or a deadline for a particular project

• How you expect it to be delivered to you

• What approval process and reviews you want

• When you expect to make a final decision on hiring a provider

Approach the right providers
When you’re ready to seek out suppliers, look for ones who have experience in the kind of project you need to outsource. You want to find potential suppliers who are a good fit with you and your project.

You can often do this type of research online.

Visit the Web sites of potential suppliers. Look at their client list. Are other clients small-business owners too? Look at any work samples posted on the site or descriptions of other projects they’ve completed. Are the projects similar to the one you have in mind?

Other areas to consider:

• How long has the supplier been in business?

• Are there any testimonials from previous or current clients?

• Do they have any industry certifications?

• What professional associations are they affiliated with?

Evaluate suppliers
After you identify several potential suppliers, contact them. Explain your project and ask them to provide you with a written proposal.

If you’re unsure about a provider, now’s the time to ask for further information. You can ask to see other samples of their work or inquire about their background and experience. You can also ask for references. Call those references to learn how providers performed for other clients.

Hire a provider
With proposals in hand, decide which provider is the best match for you and your project.

Your decision should be based on a number of factors. Don’t make your decision based only on price. You want to hire the provider who can deliver a quality product on time, someone who can meet your expectations at a fair price.

Determine payment terms
Payment terms will depend upon the scope of your outsourced project and the provider.

You may be asked to pay some percentage of the cost upfront with the remainder due at the completion of the project. Or you might be asked to pay at certain points as the project progresses.

To be safe, determine approval points during the life of the project. Ask for certain parts of the project to be completed by certain dates. After you review and approve that portion of the project, agree to pay the provider a certain percentage of the project’s total cost. Pay the remainder of the fee at the completion of the whole project.

These approval points will help keep your project on time. And by seeing the project at different points, you’ll be assured that the project is on target and up to your expectations.

Get everything in writing
From the initial proposal and payment terms to changes in the project or the project’s schedule, get every detail in writing.

Keep records of all communications. If you have a phone conversation in which you and the service provider make a change to the project, document that change in an e-mail and send it to the provider for confirmation.

By documenting everything, you and the provider will know exactly what’s expected and when it’s expected.

(Posted August 2007)

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