Today I want to talk about something that is very important for business owners and entrepreneurs. Many businesses these days, they follow an outsource strategy in order to increase profits and lower cost of production.
Now I want to talk about why this is not the best strategy for your brand to pursue.
Businesses outsource mainly these three things:
- They outsource production
- They outsource education
- They outsource know-how
So basically, what they are doing is educating their competition mostly companies from far away, how to make themself obsolete.
In the extreme case, you will get out of business because the company you hired to produce for you can do it cheaper. All they are missing is a strong brand but even that can change if you‘re not careful.
- That‘s why I propose the opposite. You should educate your employees yourself, so they have not only average know how everyone has but also specific know how about processes and strategies that are unique to your business.
- You shouldn‘t outsource production because because all you do is teaching the competition as mentioned before
- You should protect your know how, it‘s your competitive advantage.
For all these reasons, I think this is a better, more successful strategy in the long term, even if you make less profit in The short term. In the long term you will have a competitive advantage Nobody in the industry will have.
