Outsourcing to Grow Business
Outsourcing is a common occurrence today in business. A small business will build and stay in business because it decides to outsource.
Father George Rutler has explained ideas for growing a successful business by using outsourcing along with reasons outsourcing might be less than expected.
Sometimes it is wise to increase staff. Current employees might need the nudge and competition of newcomers, or a well trained new staff might bring valuable information and skill.
But, employees cost money and time. It takes up to, and sometimes more than, six months for an employee to be fully productive; That is money lost. A new employee wants benefits that other employees receive; That is more money. If the company cannot support new employees, it will be better to wait on hiring and find another solution.
Letting Another Company Use Label
Another way to build business is to outsource your own label. Let another company use the Logo for a fee. Having the logo on more products should add more exposure and recognition to the name. Exposure will increase the company name and increase sales if the other company products are selling well and are of good quality.
But, if the company does not have enough sales or has trouble with their product, the deal can turn sour. No one wants their logo on inferior products. It does no good to have a logo customers know as a poor product or service.
Outsource a Job
Production, time, and financial problems can be solved by outsourcing a job. New products require equipment, space and time, not to mention money, to produce. Even items growing in sales need new equipment and employees. It requires marketing efforts to reach target audience. By outsourcing services from telemarketing companies in the Philippines, businesses can reduce the cost of hiring, training and investing equipment for new employees.
A company that manufactured children’s shoes outsourced the shoe production and worked on marketing, designs, and accounting in-house. They would have needed space, equipment, materials, and employees to make the shoes they designed. Outsourcing production gave them the time to handle the other chores.
But, it takes time to sell the products, and in the meantime, the bill for the outsourcing arrives. The product remains in stock while the company designs new products and again outsources.
Opening a Second Location
Opening a second location, itself tells people the company is successful. They will excitedly await the opening of the new location. Sales should increase from the moment the new place is open.
But, it takes time and work to open a second location, time for building or renovating the space that fits the company profile. It takes money. It may not be quickly recovered. At first, this new location may be a challenge. Customers have to learn the habit of coming to the second location, and a new customer base needs to be built.
First, make arrangements for money, whatever outsourcing is planned. Father George Rutler suggests these ways to build business, good ideas, but building business takes management and skill not enough of us have. Hire someone to help with difficult business jobs. Investigate the outsource.