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Advantages Of Hiring An Outsourced COO

By Mark Schmidt


If you started a company on your own, you are likely to be the only person in charge of solving business problems pertaining to finance, operations, marketing or human resources. As your company expands, you will learn that you need more skills to solve business problems. In case you are not ready to hire an executive, you can either learn the skills yourself, or you can hire an outsourced COO. There are several advantages to this.

As your company begins, you probably take care of managing business operations on your own. As it expands, you will find that further management expertise is needed to keep things in order and to meet your goals for your company. This will be your time to look for option in hiring an operations executive. You will only hire one once you determine that your business requires someone with more experience.

If you outsource your operations management executive position, you will likely find someone with a wide range of experience across various organizations and industries. This can work to your advantage since the person will have already acquired transferable skills that may also be applied to the company. Of course, there are still proprietary information that cannot be discussed outside of the company.

Expense is usually the major factor why small businesses do not hire an operations executive. There is a need for high annual pay, luxurious allowances, and enticing incentives. Only a few small companies can afford this. Yet if your business encounters an operations problem, a less costly option is getting a project based expert who may only require a fixed project pay and allowances.

The service provider or outsourcing agency has a list of talents in its roster who are available to assist you with the needs of the business. You just have to explain to them your current issues are and they may have a shortlist of people who are immediately ready to take a look at your operations problems and discuss with you your options to solve them.

Someone who works with your company on a project based basis will do his best to resolve issues or improve situations within your target time frame. He will have a set of metrics to meet so that he can maintain his relationship with your company. During this limited time, he will maximize all the resources he has to meet your goals so that both of you can move to your next projects.

In case your business relationship with an operations executive does not work well, you can call the outsourcing company to request for another recommendation who may be more suited to solve your issues within the business. It is easier to replace someone who is not directly hired by your business, unlike when you have offered the operations executive as a permanent post.

The executive positions in a company define the direction and the steps that the company will take to achieve its goals. These are important roles that have to be filled with care, especially that they will be have access to proprietary information and processes. For this reason, a contract must properly define the scope and limitations of the job.




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