Welcome to the Small Business Ideas Forum! We are a community of over 100,000 small business folks with over 163,000 posts for you to browse. We pride ourselves on being the friendliest forum you will find and we'd love to have you as a member of our community. Please take a moment and register for a free account. If you need any help, please contact Chris Logan.

Small Business Ideas Forum

Small Business Ideas Forum

A friendly place to share small business ideas and knowledge, ask questions, find help and encourage others that are involved in the small business industry. Topics include small business marketing, generating revenue and small business computing.

Go Back   Small Business Ideas Forum > Specialist Website Forums > Small Business Trends Forum
Register Search Today's Posts Mark Forums Read

Thread Tools
Old 25th August 2006, 09:13 AM   #1
VIP Contributor
sannwood's Avatar

Join Date: Jul 2006
Posts: 164
Default Small Business Outsourcing - We Need Your Help

We received another question from a reader today that we would like your input on. . . .

I own a small handpainted suncatcher business that I need to outsource to cut my labor costs in order to keep up w/my competition. I have NO idea what I'm doing and am desperate for info and advice. I would prefer to stay within the US but again.. I'm so lost. I appreciate any advice or direction you could provide. Thank you for your time and consideration.
Thanks to all in advance for your responses!

Staci Wood | Small Business Trends Radio | Small Business Trends
sannwood is offline   Reply With Quote
Register or log in to remove this ad.
Old 26th August 2006, 12:52 AM   #2
Karri's Avatar

Join Date: Jan 2006
Location: Alberta, Canada
Posts: 473

Search Engine Guide Blogger


What are the business owners own core competencies? Is her artistry what makes these things sell? Or is this something that can be easily reproduced by someone else?

Sounds like tough questions are required at this point more so than the "right answers."

Just a hunch


Karri is offline   Reply With Quote
Old 26th August 2006, 09:39 AM   #3

Join Date: Jun 2004
Location: Colorado
Posts: 8,046

Even if it is something that can easily be reproduced by someone else, I think there can be flaws with making the following assumption -

I need to outsource to cut my labor costs
While you may be reducing your labor costs, based on my experiences you also may be increasing other costs. To me outsourcing doesn't 'always' equal cutting costs, there are often hidden costs that are not considered when comparing just labor costs .... but in the end there are still costs (outside of labor) when outsourcing that impact your bottom line.

I always wonder when someone says "i need to cut my labor costs by outsourcing" because my competition is. Certainly you are only following your competition, versus beating them.

I would consider that outsourcing might not be the 'best' solution. I just don't think it is a given as quoted.

Search Engine Guide - Small Business Guide to Search Marketing
Small Business Brief - Small Business Ideas Forum, Articles & News
Logan is offline   Reply With Quote
Old 27th August 2006, 10:47 PM   #4
VIP Contributor

Join Date: Jul 2006
Posts: 112

I'll second the idea of beating the competition, instead of engaging into the price wars. Improving product quality, service quality, adding more personal touch to the product would great immense value and certainly overrun competition.

A.N.Onym is offline   Reply With Quote
Old 12th September 2006, 07:39 PM   #5
hempsisters's Avatar

Join Date: Sep 2006
Location: New York
Posts: 7
Default Don't Outsource Core Competencies

HI, I have a small business too, it's an ecommerce site, hemp-sisters. About a year ago I was swamped trying to do everything... I was just dying with the workload. It was tough, but my background is sales and marketing... so I outsourced everything except product development (most important part of my business) and sales and marketing (which I can do). I found a great company teamworld.com. They do everything for me know. They warehouse my inventory, pack and ship, invoice, handle customer service and sales calls, process invoices, payments, take care of accounting, send out statements and call on past due accounts, order product when low. Basically everything that I was trying to do. It's expensive, but it's allowed me to have a life. My thought is that you should really consider outsourcing until you're big enough to hire your own staff. I'm still not at the point and may never do this. But when you do outsource, outsource to a company that is near you that you can visit frequently. Make sure they are financially stable, ask questions about their current clients, see how well they maintain their facility, mystery shop the service yourself (call them). I'd move the accounting/financial part last, if at all. That's a cruical piece. Hope this helps. Good luck.

hempsisters is offline   Reply With Quote
Old 20th September 2006, 05:10 PM   #6

Join Date: Sep 2006
Posts: 2

If you are seriously considering outsourcing your human resource department, I would consider a Peo. Our company has converted all of our human resources to a Peo. They handle our Payroll, workers compensation, health benefits, unemployment and more. Regardless of the peo you choose I would get several quotes as they all price differnetly. The company we use is PML Worldwide, which has been in business for over 21 years and is one of the longest operating in the United States but there are several others out there depending on what services you are looking for.

Last edited by TerryJunkyard; 19th October 2006 at 06:02 PM.
TerryJunkyard is offline   Reply With Quote
Old 26th September 2006, 10:39 AM   #7

Join Date: Aug 2006
Posts: 19
Send a message via Skype™ to Mousee

As I think any kind of outsourcing has to be efficient and either decrease costs or increase revenue. If you are thinking how to lower your costs you need to consider non-American outsourcing. So, you need to choose between saving money and patriotism. If you choose money than you may consider India, China, Belarus or any other country with the average salary lower than $300 per month.


Mousee is offline   Reply With Quote
Old 26th September 2006, 01:17 PM   #8

Join Date: Sep 2006
Posts: 1
Default Saving money vs. Patriotism

I have to dissagree with the previous post when it comes to choosing to save money or being loyal to "Made in the USA". Depending on the product that you are producing, there may be any number of factors that would allow someone to outsource a product to a domestic supplier and still realize cost savings. My company (Outsource Authority, you can find us on the web) does this all the time. We monitor vendor's material inventory, overhead costs, and workload to help our customers save time and money. It is amazing how much you can save by moving the production of a product from one part of the country to another.

Granted, if the production quantities are high enough offshore outsourcing can result in additional savings. But that is not the only way.


outsourceauthor is offline   Reply With Quote


Thread Tools

Get Updates
RSS Feeds:
RSS Feed for Small Business Trends Forum RSS for this Category Only: Small Business Trends Forum

RSS Feed for Small Business Ideas Forum RSS for Entire Forum
Forum Rules

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

Small Business Ideas Forum

At Your Business - Small Business Directory
Free Business Forms - Prewritten Documents
Search Engine Guide
Small business guide to search marketing

Small Business Brief
Fetching the Best Small Business Info

Free Links - Free Advertising
Free Guide - Online Directory

Advertise your business here
Contact us for more details!

Semantic Juice
Register now to access free Quick SEO service!

Rocket Lawyer
Sign up for free 7 day trial. Boost your biz!

Buy UPC Codes
Get your products listed online!

All times are GMT -5. The time now is 09:25 AM.

Powered by vBulletin® Version 3.7.3
Copyright ©2000 - 2019, Jelsoft Enterprises Ltd.
Copyright 2004 - 2018 - Privacy