Subcontracting is one of the biggest—and smartest—decisions you will make while running your business. It gives you access to a wider pool of talents at a lower cost and allows you to start your operations early. Compared to expanding your in-house team, however, subcontracting comes with more risks. Reckless selection could easily lead you to the wrong service provider.
To help you make the right choice, we’ve put together a list of mistakes you shouldn’t make when choosing a service contractor. You probably know some of these if you’ve outsourced projects before, but let’s go over them again as well as some other helpful tips.
Mistake # 1: Thinking that all contractors are the same
With so many service contractors in Metro Manila alone, each claiming to be the best in their respective field, it’s easy to get confused and make the mistake of hiring the wrong company. Because there are so many of them, some clients tend to think that they are all the same and only differ in how they advertise.
The truth is, no two service contractors are exactly alike. They may come from the same industry and house the same number of employees, but their expertise and resources most likely differ. Failure to consider these essential factors when gauging a service contractor’s capabilities could spell disaster for your operation.
Mistake # 2: Basing entirely on the service fee
Some businesses, particularly startups, are focused on saving money to increase their profit. While ideal, it has its share of drawbacks. For instance, they can get sidetracked by low prices and thoughtlessly cross out every expensive (outside their original budget range) option on their list. While cutting corners can save you money upfront, it can cost you more in the long run.
High-quality solutions don’t come cheap. The old adage “you get what you pay for” never really gets old. If you work with a cheap service contractor, expect a cheap output, and that could reflect negatively on your brand. Worse still, some affordable service contractors neither stand behind their work nor own their mistakes.
Furthermore, the price they show you is essentially just the service fee. It wouldn’t come as a surprise if they charge you later for things that other service contractors include in their initial quote.
Mistake # 3: Assuming that only service contractors much be loyal to you and not the other way around
As a customer, you are free to choose the service contractor you think is best for your project. But irresponsible use of this freedom has a number of downsides. If you keep hopping from one contractor to another, you won’t be able to maintain consistency in the quality of your products or services, and your customers will eventually notice it.
Additionally, some of your existing contacts may get dissuaded to keep you as a customer if you keep replacing them. Remember that some successful service contractors have a significant client base, and they can afford to let you go if they find a better deal.
If they notice that you gave a particular project you once hired them to do to another provider, you might not be able to get them to do it when your new provider suddenly declines. You have to take these things into account when shopping around for services.
Mistake # 4: Asking very few or the wrong questions
Before interviewing a service contractor, prepare clear and concise questions that can help reveal their true expertise. Remember that your goal is to compel them to flesh out their processes, such as how they choose and train their employees and how they monitor and evaluate them on the field. Also, ask about their affiliations, licenses, and compliance with government regulations.
Don’t forget to ask for proof. Then, take the time to verify it with an independent source. Don’t just take their word without a cross-examination. You can tell if a service contractor is reputable if they don’t bother to show you documents. Some companies, such as Triple Star, even provide them upfront along with their proposal. Only trust a company with a clean track record.
Making mistakes is part of growth, but you don’t have to go through that process to learn vital business management practices. Keep in mind that the more mistakes you make, the more money you lose. Start improving your decision-making skill by choosing the right service contractor for your projects.
Sources:
https://www.forbes.com | https://www.moving.com
