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Bringing an Outsourced Service In-House

(April 2009) posted on Tue Apr 14, 2009

Many variables to consider.

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By Marty McGhie

Regardless of the line of work, building a team with the necessary capabilities requires some patience, an excellent training program, and great management. Your people will ultimately be the key to your success or failure when providing new services to your customers.

Create a business plan
Another key consideration is the logistics of your new line of business. Before you jump into something new, put together a business plan that outlines some of the issues you can anticipate. What about the required space in your building? Will you need to allocate some of that? Will you need to add additional equipment? I know when we started up our installation department, we certainly underestimated the amount of money that was required in just equipment, tools, and supplies.
What about insurance needs—both worker’s compensation and general liability? Will there be outside training costs for your employees? If you are offering a new product line, you will need to address the amount of inventory or raw materials that you will be required to purchase and stock.

While there are likely several more considerations, the point is that you need to sit down and really map out the business requirements. You’ll be amazed at how many little things you think of that need to be part of your plan.

Ensure a smooth transition
While building this new segment of your business, the transition must be seamless to your customer. The quality and service cannot slip just because you are now doing the work yourself. Trust me, your customer won’t understand. One of the best ways to ensure your quality does not suffer is to build a strong management team.