Outsourcing for entrepreneurs: How to get it right

As the founder of a consultancy focused on enabling entrepreneurs to build better businesses, I’ve discovered that many clients get "taken for a ride" by outside companies providing services that range from marketing to finance. To help them navigate the difficult task of identifying when and how to hire an outsource provider, I’ve researched the subject. My findings are surprising: although outsourcers can help companies keep costs down while benefiting from expert advice, there is nonetheless a considerable downside.

The best reason to retain a third party is to gain expertise. Smart entrepreneurs know what they know and what they don’t know. They resist diluting their expertise by trying to know it all. Instead, they focus on their strengths and hire experts to balance out their weaknesses. That said, outsourcing hurts when founders farm out tasks in advance of needs or hire the wrong individual or team. In addition, most entrepreneurs make two more mistakes. They hang on too long to the wrong contractor, and they forget how to treat and nurture a good relationship with the third party. Here are five tips to help you get outsourcing right, save your pot of gold, and maybe even avoid a few gray hairs.

By Kathleen B. Schulweis, Confidence Connections
Reprinted courtesy of EntreWorld.org

Full Story: http://www.usatoday.com/money/smallbusiness/2005-07-13-entre-4-jul_x.htm