able to invest more time and resources into the specific functions that generate revenue. Because of this, they can operate more efficiently and economically, which can help you compete more effectively than companies that do it themselves.

Information technology is a good example of this. The cost in personnel, benefits and training to keep pace in the rapidly changing world of information technology is prohibitive for most privately owned businesses. By outsourcing this function, management is free to focus its energies on the core aspects of the business-those that prov

Outsourcing has become a controversial issue and a hot topic among presidential candidates this year. But have you stopped to think how your business can benefit from the efficiency, functionality and cost savings of outsourcing? If you have, you might find that, like many others, you are already outsourcing-and enjoying its benefits.

What is Outsourcing?

Outsourcing simply means "contracting out" various functions of your business. It doesn't necessarily mean that you will be contracting out work to foreign countries because there are many American companies that provide outsourcing services i.e.. commercial printing services and cleaning services, among others.) The vendors who supply outsourced services may be self-employed contractors, consulting firms, temporary employee services or professional service firms. One common example of outsourcing is payroll processing. Other commonly outsourced functions that can be provided by professional services firms include:

• Succession planning

• Accounting and tax preparation

• Information technology (IT)

• Consulting (i.e. due diligence, business planning)

• Distribution services

• Pension management

• Manufacturing

• Assembly

• Staffing

• Grounds Maintenance

• Estate and income tax planning

Why Outsourcing Can Work for Your Business

Fortune 500 corporations are under the microscope for outsourcing thousands of jobs overseas to low wage workers, potentially leaving American workers out of work. But according to Forrester Research Inc., of the 2.7 million jobs lost over the past three years, only 300,000 have been from outsourcing. With that in mind, outsourcing means something different for family and privately owned businesses. With fierce competition affecting the margins of many businesses, companies are finding that they cannot afford layers of administrative overhead dedicated to operating their core business. They are realizing that outsourcing provides alternatives to doing everything for themselves. For example, if your business is distribution, there may not be a need to employ a large administrative overhead dedicated to support functions like those listed above. Companies that provide outsourcing services are able to invest more time and resources into the specific functions that generate revenue. Because of this, they can operate more efficiently and economically, which can help you compete more effectively than companies that do it themselves.

Information technology is a good example of this. The cost in personnel, benefits and training to keep pace in the rapidly changing world of information technology is prohibitive for most privately owned businesses. By outsourcing this function, management is free to focus its energies on the core aspects of the business-those that provi

provide outsourcing services i.e.. commercial printing services and cleaning services, among others.) The vendors who supply outsourced services may be self-employed contractors, consulting firms, temporary employee services or professional service firms. One common example of outsourcing is payroll processing. Other commonly outsourced functions that can be provided by professional services firms include:

• Succession planning

• Accounting and tax preparation

• Information technology (IT)

• Consulting (i.e. due diligence, business planning)

• Distribution services

• Pension management

• Manufacturing

• Assembly

• Staffing

• Grounds Maintenance

• Estate and income tax planning

Why Outsourcing Can Work for Your Business

Fortune 500 corporations are under the microscope for outsourcing thousands of jobs overseas to low wage workers, potentially leaving American workers out of work. But according to Forrester Research Inc., of the 2.7 million jobs lost over the past three years, only 300,000 have been from outsourcing. With that in mind, outsourcing means something different for family and privately owned businesses. With fierce competition affecting the margins of many businesses, companies are finding that they cannot afford layers of administrative overhead dedicated to operating their core business. They are realizing that outsourcing provides alternatives to doing everything for themselves. For example, if your business is distribution, there may not be a need to employ a large administrative overhead dedicated to support functions like those listed above. Companies that provide outsourcing services are able to invest more time and resources into the specific functions that generate revenue. Because of this, they can operate more efficiently and economically, which can help you compete more effectively than companies that do it themselves.

Information technology is a good example of this. The cost in personnel, benefits and training to keep pace in the rapidly changing world of information technology is prohibitive for most privately owned businesses. By outsourcing this function, management is free to focus its energies on the core aspects of the business-those that prov

ning)

Distribution services

Pension management

Manufacturing

Assembly

Staffing

Grounds Maintenance

Estate and income tax planning

Why Outsourcing Can Work for Your Business

Fortune 500 corporations are under the microscope for outsourcing thousands of jobs overseas to low wage workers, potentially leaving American workers out of work. But according to Forrester Research Inc., of the 2.7 million jobs lost over the past three years, only 300,000 have been from outsourcing. With that in mind, outsourcing means something different for family and privately owned businesses. With fierce competition affecting the margins of many businesses, companies are finding that they cannot afford layers of administrative overhead dedicated to operating their core business. They are realizing that outsourcing provides alternatives to doing everything for themselves. For example, if your business is distribution, there may not be a need to employ a large administrative overhead dedicated to support functions like those listed above. Companies that provide outsourcing services are able to invest more time and resources into the specific functions that generate revenue. Because of this, they can operate more efficiently and economically, which can help you compete more effectively than companies that do it themselves.

Information technology is a good example of this. The cost in personnel, benefits and training to keep pace in the rapidly changing world of information technology is prohibitive for most privately owned businesses. By outsourcing this function, management is free to focus its energies on the core aspects of the business-those that prov

Graphic Designers: How to Waste Money on Direct Mail and Tick Off Your Clients
I bought a place about 4 years ago using a realtor here in Phoenix (there are over 65,000 realtors in this city now). Since I bought the place and she got her commission, she's never sent me one card, picked up the phone one time or sent me ANYTHING of value at all. Instead she sends out these “piece of garbage”, generic letters with the unprofessional white office labels printed on an office laser printer by her secretary. In the letters she includes a meaningless generic flyer that is provided by the parent company and a form letter with filler information that’s not even signed by this woman and her partner. Of course in the letter she asks for referrals and the opportunity to work with me again. Do you think I am going to give this woman anything beyond an unfavorable hand gesture? Nope. This is the problem that most business owners fall into when it comes to communicating with client

nd, outsourcing means something different for family and privately owned businesses. With fierce competition affecting the margins of many businesses, companies are finding that they cannot afford layers of administrative overhead dedicated to operating their core business. They are realizing that outsourcing provides alternatives to doing everything for themselves. For example, if your business is distribution, there may not be a need to employ a large administrative overhead dedicated to support functions like those listed above. Companies that provide outsourcing services are able to invest more time and resources into the specific functions that generate revenue. Because of this, they can operate more efficiently and economically, which can help you compete more effectively than companies that do it themselves.

Information technology is a good example of this. The cost in personnel, benefits and training to keep pace in the rapidly changing world of information technology is prohibitive for most privately owned businesses. By outsourcing this function, management is free to focus its energies on the core aspects of the business-those that prov

Corporate Canaries - A Book Summary
The Big IdeaLong ago, coal miners would put caged canaries in their tunnels. If the little birds fell silent or dropped, this would alert the miners of the presence of poison gas. This way, many miners were able to escape unhurt. The business environment you live in is very much like those treacherous mines. Hundreds of employees are laid off everyday and more and more companies are filing for bankruptcy. As a manager, you must learn how to detect threats to your business before disaster strikes.Corporate canaries are exactly like those real-life birds that saved hundreds of miners from certain death. “Canary” warnings will tell you whenever your business is threatened, enabling you to stop the bleeding even before it starts.There are five canary warnings:Canary Warning # 1 - You Can’t Outgrow LossesA lot of businesses fail because management chose to chase after sales, instead of focusing on making profit. What you mus

able to invest more time and resources into the specific functions that generate revenue. Because of this, they can operate more efficiently and economically, which can help you compete more effectively than companies that do it themselves.

Information technology is a good example of this. The cost in personnel, benefits and training to keep pace in the rapidly changing world of information technology is prohibitive for most privately owned businesses. By outsourcing this function, management is free to focus its energies on the core aspects of the business-those that provide revenue-generating products and services-and leave the other areas to vendors who specialize in performing those functions.

Benefits of Outsourcing

Proponents of outsourcing cite a variety of reasons for "letting others do it." Here are some of the most important:

Cost savings - By outsourcing functions that were previously performed in house, companies are often able to reduce their employee levels and related costs, such as recruitment, supervision, salary and benefits. By outsourcing a capital intensive function, you can also reduce the costs of equipment obsolescence and depreciation. A portion of your cost savings will go to the outsourcer, but outsourcing vendors have a tighter control of fringe benefits and run leaner overhead structures. They also know how to deal with vendors serving the function they are providing and therefore, are able to pass on to your company the benefits derived from bulk purchasing and effective leasing.

Quality of service - Because your company is the outsourcer's customer, you will likely experience a "can-do attitude," which may not always be exhibited by an in-house staff.

More capital funds - Outsourcing reduces the need to invest capital in non-core business functions, thereby freeing capital to invest in profit-making aspects of the business.

State-of-the-art technology - Outsourcers have to spend time and money on the most current equipment and on employee training to remain competitive. By outsourcing certain areas, you are assured of receiving the most efficient services and the latest technological advances within that particular function.

Price stability - By signing a contract to outsource, you will likely be able to obtain stable pricing, eliminating the future need to shop around. Stable pricing allows the company to budget operating expenses and capital purchases more accurately, while potentially preventing the likelihood of surprise expenses.

New business partners - Outsourcers clearly wish to be viewed as your business partner. And as a business partner, they share in the desire to keep your company operating at its maximum potential. Through this business partner arrangement, outsourcers are eager to introduce you to other outsourcers to assist in that goal.

More time to focus on core busines