Home   About   Services   Client Testimonials   Contact   Blog  
Tuesday, June 26, 2007

Over a year ago I posted about "Sales Outsourcing as a Bootstrapping Strategy".

I mentioned that "most of our start-up and small business clients are bootstrapping their businesses and our services are a low-cost and low-risk option for them."

This certainly hasn't changed too much. For international companies entering the UK market, many are investor backed, but they are still looking to contract us to test the market and develop a beach-head rather than launch full scale operations in the UK.

In fact, even if a company has raised a significant round of funding for international expansion, it is still a sound strategy to utilise third parties (outsourced sales/channel partners, etc) rather build your own local office and team.

In the book "Other People's Money", Michael Lechter talks about the sources of Other People's Money (OPM), which is generally equity investment, bank loans, as well as factoring, leasing, etc and also the concept of OPR (Other People's Resources).

Included in sources of OPR are co-venture, strategic alliances, partnering, licensing (including franchises) and outsourcing.

Michael's simple definition of outsourcing is "purchasing a functional service from another business" and he explains that it is effectively a way to leverage Other People's Resources in a similar way to Other People's Money.

In the same way that you pay a premium (or interest) for immediate access to money in the form of a loan, outsourcing provides you immediate access to resources without the time and expense of developing the capability or performing the task in-house.

Today, many people think of "outsourcing" as moving jobs to a lower cost region (which is off-shoring, really).

In reality, outsourcing could cost you more, even if some of that cost is deferred in terms of commission, with sales outsourcing, for example.

In the case of entering the UK, rather than paying the (large) up-front costs of recruitment, offices, etc and the time it takes get everything in place you could contract an interim sales manager to put feet on the street within days.

Instead of "buying it"... you "rent it"

Labels: , , ,

Posted by: David Regler @ 6:43 am |   | Links to this post  

Bookmark and Share


Post a Comment

Links to this post:

Create a Link

<< Home

When is the right time to bring investors on board...

So does Sir Alan Sugar finally want a Sales Appren...

Where's your next new business idea coming from?

What's the best sales outsourcing model?

Hooray for the smaller F1 teams

Business Development or Sales?

Assembling the team for "the big job"

"2nd prize is a set of steak knives"

Is 2007 the year for Business Social Networking si...

You Need a Dynamo to Grow Your Start-up

November 2005
December 2005
January 2006
February 2006
March 2006
April 2006
May 2006
June 2006
July 2006
August 2006
September 2006
October 2006
November 2006
December 2006
January 2007
February 2007
March 2007
April 2007
June 2007
July 2007
August 2007
September 2007
November 2007
December 2007
January 2008
February 2008
March 2008
April 2008
May 2008
June 2008
July 2008
September 2008
October 2008
November 2008
December 2008
January 2009
February 2009
March 2009
April 2009
May 2009
June 2009
July 2009
September 2009
October 2009
November 2009
December 2009
January 2010
March 2010
September 2010
October 2010
November 2010
December 2010
January 2011
February 2011
March 2011
May 2011
July 2011
September 2011
October 2011
November 2011
December 2011
January 2012
February 2012

Powered by Blogger

All content © Maine Associates Ltd 2010 All rights reserved. Read our privacy policy