Guide to Successful Small Biz Outsourcing

Question: If you ask me, outsourcing is the only way for most small businesses to grow quickly. We're an office equipment dealer and I look to outsource just about anything I can. Trouble is, we've had a few relationships go sour. So I want to get more professional about our approach to outsourcing. How can we do that?

Answer: When outsourcing expert Michael Corbett started speaking on the topic 15 years ago, he had to first explain what outsourcing was. No more. Now, says Corbett, most business people are savvy about outsourcing and also have strong opinions on the subject.

For big business, the issue of offshore outsourcing has acquired political overtones in this election year as candidates decry the loss of jobs overseas.

But small businesses started outsourcing long before there was even a term for it. By their very nature, small firms must outsource. They don't have the in-house expertise to perform many different functions. So they hire someone else to do it for them. An outside specialist can do everything from payroll, to building Web sites, managing computer networks or handling telephone sales and credit card processing more efficiently.

But picking outsourcing partners for vital tasks can be especially tricky for a small business. With so many to choose from, it's hard to know which one is best for your needs. And developing a successful long-term relationship with an outsourcing partner requires effort on both sides. Business owners who have been successful at outsourcing agree on these five tips for success:

1. Treat it like a partnership. If you decided to take on a business partner you'd want to know a great deal about that person. A vendor who supplies a vital service for your business is like part of your staff.
   
   
2. Don't disappear. So you've outsourced your telemarketing or payroll. Great. But that doesn't mean you can ignore those areas. Even outsourced functions need regular attention from someone in authority.
   
   
3. Opt for experience. Using outside service providers who have experience working with your particular type of business will pay big dividends. For example, a restaurant outsourcing accounting should look for a firm that works with other restaurants.
   
   
4. Look for cutting edge knowledge and technology. Asking lots of questions is the best way to determine if the vendor you are considering is on the leading edge of business.
   
   
5. Evaluate service and access. For most small business owners, accessibility and service are top priorities. If the firm you are considering won't be available to solve problems when you need them, look elsewhere.

Here are some top outsourcing resources for small business:

• The Outsourcing Institute is a professional association for the outsourcing industry and a neutral "go-to" resource for information, connections and solutions to help businesses both large and small become successful outsourcers. Membership is free, but much of the information at the Web site is available without signing up. Offers a handy Outsourcing Help Desk, lists of regional outsourcing events and solutions for small business buyers. Visit the Web site at www.outsourcing.com or call (516) 681-0066.
  
  
• FirmBuilder.com is an outsourcing information site created by Michael Corbett & Associates, a top research and training firm dedicated to outsourcing. The FirmBuilder site combines a decade's worth of Corbett's insights on outsourcing. You can become a registered guest for free and gain access to some of the site's services. Visit www.firmbuilder.com or call Corbett & Associates at (845) 452-0600.
  
  
• Outsourcing Center hosts a wealth of free research, case studies and other information. A suppliers directory lists hundreds of vendors in dozens of categories. Their "Outsourcing Journal" publication, which you can read at the Web site, includes in-depth articles on how companies of all sizes are using outsourcing successfully. Click on "Topic Areas" for an alphabetical list of subjects covered on the Web site. Visit the site at www.outsourcing-center.com.
  
  
• My Virtual Corp: Experts on Demand (www.myvirtualcorp.com) is a specialist in filling small business outsourcing needs in virtual office management, business development, tech and Internet services, public relations and marketing. Visit the site or e-mail info@myvirtualcorp.com.