Niluh Djelantik with local shoes artists.

Don’t Forget to Do Business with Small Business

It’s common to focus most of our attention on trying to do business with government. In the process, though, it’s easy to forget about the direct impact we can have on our communities by partnering with small businesses. One of the simplest ways to do that is to outsource to small businesses, purchase, or contract with them. It throws business their way and helps your operations run smoothly, too.

According to IndieRetailerMonth.com, buying from an independent retailer supports local traders, their suppliers, and the people they depend on to run their businesses. Doing business with an independent retailer boosts the local economy, rebuilding confidence in the community and enabling local businesses to prosper and grow.

A Rupiah spent at an independent retailer is usually spent 6 to 15 times before it leaves the community.

From Rp12.000, you create Rp60.000 to Rp168.000 in value within that community. When you spend Rp12.000 at a national chain store, 80% of the money leaves town immediately. Therefore, when you shop with your local independent retailers you are doing your bit to keep your community ‘open for business.’

Here are five tips to invest in your community through outsourcing:

1. Know Your Niche and Hold Onto It

When outsourcing, you want to invest in a business that can accomplish tasks as well as you do—but you don’t want to give away the work you’re best at. Identify what you’re good at and hold on tight; you don’t want to outsource any of your core competency areas. There are so many things that go into running a successful business, and you don’t need to be a master of every single factor. Make one list of the aspects that you’ve got a firm handle on and another list outlining anything you struggle with, then consider small businesses in your area that you could outsource those tasks to.

2. Be Clear About the Outcomes

One of the best ways to keep your outsourcing in check is to be direct about what you expect. Make sure the business you choose knows exactly what tasks they’re responsible for, how they should be performed, what results you’re looking for, and how those results will be measured. It may help to create a manual that reviews your business policies and procedure so you have a physical outline and structure of what you expect from your outsourced companies.

3. Recognize Your Style and Your Strategy

Before you can effectively manage a team of outsourced companies, you must understand your management style. Are you direct and to the point? Do you prefer to chat over email instead of in person? Many factors determine the kind of management style you have, and understanding how you operate will be beneficial to the success of your outsourcing projects.

4. First Thing’s First—Check Credentials

Before you hire anyone to join your team, take a peek at their credentials. A lot of businesses build glitzy websites and market themselves well, but don’t have the experience or know-how to backup their claims. Look for key factors such as professional certifications and legitimate testimonials. Fact check the results they have achieved for other clients.

5. Develop a Communication Strategy

Let’s face it, you’re a busy entrepreneur. Outsourcing is one of the best ways to free up your time, but before you start assigning tasks, remember to first develop a top-notch communication strategy. Establish the best way to communicate and how often. Make sure all communication is well-documented and in line with your strategy style (see tip #3).

As small business owners ourselves, it’s important to invest in the small businesses within our communities.

—-

 

This article originally written and posted by Jean Kristensen.

Add your comment

Your email address will not be published. Required fields are marked *