When you consider outsourcing the goal is to have a more profitable company while simplifying the business processes. The objective here is to let the business owner have more time to do the more important processes. Tedious and repetitive work should be handled by those who are capable of doing the task. When you outsource, you are spending less because you do not have to buy equipment or software to have work done.

The concept of outsourcing is an easy one but there are also pitfalls that you should watch out for. You can encounter problems if you are not conscious of these mistakes.

Below are 5 outsourcing mistakes that you as a business owner should be aware of and should try to avoid as much as possible:

1. Have a reasonable budget for outsourced work

Outsourced work rates should be given considerable thought. Some individuals or companies will work on tasks on hourly basis while some will accept retainer fees. Whatever business process you outsource, always have a budget that you can work with when negotiating with contractors.

2. Choose your contractors well

Just like in hiring people for a company, you have to conduct thorough interviews with the people who are bidding for outsourced work. If you will deal with a company you have to check this too. You should ask for character references for individuals to get more information. Since most of work will be made remotely, you should establish clear and regular communication with the people doing the work for you. The people you deal with should be trustworthy and dependable.

3. Do not underutilize your contractor and their resources

You should gauge the capacity of the contractor and the available resources that they have. Do not outsource to many individuals the same task. If one contractor can take on the work then it will be cost effective for you. There are contractors who will accept bigger projects or tasks at lower rates just to keep your business. These are the people you should try to deal with. Once you have established a good relationship with one contractor then it is better to stick to this person and find out if he/she can do more work for you.

4. Keep a good communication line with your contractor

Whatever you are outsourcing there should be good communication between you and your contractor. See to it that you give clear and precise instructions what you want to do. Establish a timetable and set deadlines as well. You also need to let your contractor understand your goals. By being clear on matters, contractors will understand what is going on with your business, what roles they have on the business and what your expectations are.

5. Your role as an Outsourcer

There is a need for you to understand your role in the sphere of outsourcing your business. You have to be clear on instructions, timetables and deadlines with your contractor. Communicating with your contractor is important. The reason why you are outsourcing is because you want to have more time on your hands to monitor and expand your business. Part of the monitoring work is the outsourced work being done. See to it that your contractor knows what you expect and when results will be given back to you.

Also bear in mind that you may not be the only client of your contractor. Be mindful of the time that they give to you. Always give feedback on their work so they can do a better job for you.

These are just some of the possible difficulties that you will encounter when you outsource some tasks. Outsourcing is a solution for many business owners and the benefits will always outweigh the problems. Do not be afraid to outsource tasks that you believe can be done by others fast and accurately.

Therese Prentice is a Social Networking Expert, Joint Venture Broker, Certified Marketing and Business Coach, Speaker, Teacher, Certified Teleclass Leader, Networking Marketing Trainer, Direct Sales Trainer teaches small business owners, entrepreneurs, authors and speakers how to integrate online marketing into their traditional marketing plan.

Therese is the founder of “In the Living Room” a boutique styled organization for women who are Lifestyle Entrepreneurs. Re-engineering the way women do business, build meaningful relationships and live amazing lives. Therese is the host of “Therese Prentice Teaches Women in Business How to Start and Grow as Profitable Lifestyle Entrepreneurs” – Blog Talk Radio Show.

Therese has an outsourcing service “The Outsource Squad” – helping Lifestyle Entrepreneurs, Coaches, Authors, Speakers and Small Business Owners make money online by outsourcing their online marketing strategies. – Make a Name and a Profit for Yourself Online.