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Outsource Considerations for Small
Business
Today
there are hundreds of companies trying to sell various back-office
business process outsourcing (BPO) services to the small business
market. While outsourcing is becoming a viable and potentially
cost-effective method of doing business, there are certain factors
that must be considered before entering into an outsourcing arrangement.
You need to fully understand your business processes before you
can effectively outsource them. Two key considerations are recommended:
1.
Is the process core to the business, or is it a supporting process
(non-core)?
An
example of a non-core process might be paying the bills. While
paying the bills is an important part of keeping the business
running, it is not what the business is all about. If you own
a flower shop, then making and selling flower arrangements is
your core business. The process of paying the bills is non-core
to your business.
To understand
what is core and non-core to the business, you must create a business
diagram or model. Modeling business processes for a small enterprise
is not rocket science. It doesn’t have to be complex, it
just needs to chart out most of the basic tasks required in your
operations. It's unnecessary to apply too much big business process,
methodology, and complexity when trying to map simple businesses.
Continued...
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