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The Power of Outsourcing for Small Businesses

The Power of Outsourcing for Small Businesses

The Power of small businessesHow big do you really want to be?
Successful corporations have been outsourcing for years.  Why?  Certain aspects of their businesses are no longer cost efficient for them to do in-house so they look for a partner that has a competitive cost advantage and they outsource those tasks to them.  The partner is happy to get the business.  The corporation is happy to refocus resources that were currently being used inefficiently and instead use them to complete tasks that the corporation can still perform profitably.
This is a macro view of business.  Only focus on those tasks that generate the most profit so that you can employ your resources in a way that generates the greatest profit.
For instance, Toyota purchases $300 million dollars in supplies every month from nearly 200 vendors.  They use 150,000 parts per month from outside vendors.
Why?  Is it because Toyota does not have the ability or technology to manufacturer their own parts?  Of course, not.  Toyota originally started some of its largest vendors.  Toyota, could buy practically any vendor that they wanted.  They choose not to because it would be inherently inefficient to own all aspects of the supply chain.  Toyota chooses not to waste its limited resources stamping out parts that it can’t manufacture with maximum efficiency.
So what does this mean to small businesses and even individual sales reps?
Simple, outsourcing continues to bleed into businesses other than behemothes like Toyota, Boeing, and Microsoft.  The philosophy of concentrating on your core business and outsourcing inefficiencies has become basic business sense.
As a sales rep and small business owner, your most critical resource is time.  The question is not whether you CAN prospect effectively.  The question is SHOULD YOU prospect if there is a more cost efficient way to accomplish a necessary, but inefficient task?
Your core business function is closing business.  Prospecting is merely an input into the more important process of signing deals.  Manufacturing signed deals has little differences (in a very high level view) to building and marketing cars.  You use inputs to get outputs.  The more efficiently you use your resources, the more profitable you will be.
So we ask you, would you rather build and sell a Lexus or concentrate your efforts designing tail lights?
Ready to take your business to the next level?  Ready to get off the tail light assembly line.  Iconic may be perfect for you!
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Jason Hutcheson

A hard working, scrappy entrepreneur with a passion for helping others succeed by mixing sales technique, creative design, and digital marketing into a potent cocktail of awesome sauce.

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