Outsourcing In Your Business - Why You Need A Written Agreement

If you’ve been following me for a while, you will have heard me talk about business legals, the importance of documents for professionalism, and prevention being better than cure. When I reference documents, this also extends to when you are outsourcing your business.

I believe outsourcing can be brilliant (when done well) because there is so much to be gained from outsourcing to those with the specific skills and expertise that a small business often needs. Outsourcing properly can be a game changer in sustaining and growing a small business. But if it’s not done well, outsourcing can cause more problems than it's worth.

It’s quite common in business to become so time-poor that pressure ends up being the sole driver of the decision to outsource. On one hand, that’s okay because it’s often the reality for so many small businesses. But on the other hand, it’s really important not to fall into the trap of getting help urgently while you really need it and leave your business exposed by not attending to the details. Like most things in your business, your contractor arrangements need to be documented clearly from the outset to ensure you don’t end up in a space where misaligned expectations arise and confusion exists around fees and payment.

Let’s take this scenario for example… if we outsource to somebody who we trust because we think they’re great at what they do. A quick discussion over the phone is all it takes to decide to bring them on board - then initially, when they dive in and help us in our business, everything often feels so much better. The relief almost lulls us into thinking nothing can go wrong… until it does, when the final services/outcome are delivered, and the accompanying invoice arrives, and they are not what we expected and possibly not what we understood would be produced. Then you have a problem on your hands once again. Now it’s just a new problem in a different form.

Reaching this point becomes tricky and awkward. Because going back to the person that's helped us to explain our concerns, can mean that person becomes a little disgruntled and perhaps even offended. Let's be honest, once we get into this space of confusion and uncomfortable conversations, anything is possible. And so if this happens, not only are we faced with a situation where we have an outcome that's not what we wanted, but we now also have an invoice we need to pay for work/an outcome we’re not happy with. We can then find these new issues we're dealing with have caused more frustration, and put even more pressure on us, because we're already pressed for time in our business and it would have been better if we had just done it ourselves. This is a very common scenario!

My view is if you are in a position where you need to engage somebody to help in your business and you have decided to outsource (which I'm in full support of because I do it in my business, I'd be lost without the consultants that I work with) you need to make sure that you have a written contractor agreement in place to protect your business. This should be a contractor agreement that has been developed for your business and tailored to the way you work and what you need – or if you are engaging a true professional – they will have their service agreement to issue to you.

With the proper document in place, if you reach a point with your contractor where they have completed the work for you and issued an invoice - at that moment, if it's not what you were expecting, you can simply refer back to the document and have a meaningful conversation. All of a sudden you’ll find you have been able to resolve the situation without confusion or added pressure. The working relationship is also preserved because you can continue moving forward on the same page.

In short, it doesn't matter how small your business is or how small the job is that you're seeking assistance with - the same reasoning applies. You need to have a written agreement in place from the outset.

If this sounds like something you need to have in place in your business, please feel free to reach out. Let’s chat and get you sorted. You can book a time that suits you for a free 20-minute consultation here.