Small and Mid-Sized Businesses Use Outsourcing to Attract Investors

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Outsourcing, once the exclusive realm of large well funded companies, is now a must have tool for small and mid-sized businesses seeking outside capital.

Outsourcing, once the exclusive realm of large well funded companies, is now a must have tool for small and mid-sized businesses seeking outside capital.

Outsourcing is the practice of using third party partners to perform non-core business tasks so that companies can focus on their unique business strategy. When properly executed, outsourcing reduces costs, improves time to market and brings in world class support staff and expertise on demand. Industry analysts estimate that business processing outsourcing to small and middle market companies will grow to more than $25 billion by 2009.

Robert Newman advises funds and small and mid-sized companies about integrating outsourcing into their fund raising activities. According to Mr. Newman, executives and investors should ask 3 questions about a company prior to the fund raising process:

1. Does the executive team and support staff spend less than 80% of their time executing the company’s core business strategy?

2. Are more than 20% of operating expenses incurred by the company’s non-core business cost centers?

3. Are more than 45% of the company’s expenses fixed as opposed to variable?

If the answer to any of these questions is yes, then an outsourcing analysis should be considered by management or recommended to management by investors.

The worlds of investment banking and outsourcing are now converging. Wealthy investors, venture capitalists and private equity firms who are in the know are demanding that executives in small and medium sized companies use outsourcing as a strategic tool to put invested dollars to their highest and best use. The bottom line is that outsourcing stretches the every dollar invested into a company.

Mr. Newman’s recent article, “Why Should Your Company Outsource?” is at:

http://ezinearticles.com/?Why-Should-Your-Company-Outsource?&id=186861

About Robert Newman

Robert Newman is a practicing securities lawyer who advises funds and companies about how to successfully raise money and buy other businesses by avoiding costly mistakes. Mr. Newman has served both as a management consultant, and in management, in major New York City commercial and investment banks. His unique value building approach to corporate finance integrates the best practices from the legal, financial and consulting professions.

Contact:

Robert Newman

Phone: 1-800-989-8260.

http://www.JonesGarneau.com

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Robet Newman
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