100 Leading Outsource Company Mistakes and How You Can Convert Them To Positive Business Value

100 Leading Outsource Company Mistakes and
How You Can Convert Them to Positive Business Value

Mistakes, obviously, show us what needs improving. Without mistakes, how
would we know what we had to work on?
Peter McWilliams, Life 101
Companies in the early formative stages are prone to creating problems that cause irreparable harm. A
person once said that one mistake can last you an eternity while your many right deeds are expected.
The following list of mistakes that outsource suppliers make is based on our extensive global
outsourcing experiences dealing with some of the leading providers and buyers. Keep in mind that
some may BE interconnected with other mistakes or can be a single lone item. Regardless, mistakes
while being a powerful learning tool should also be avoided through better planning and preparation.
We know you will find the list useful in evaluating YOUR organization’s path for right business conduct.
How Organized
The list of mistakes is divided up into three (3) foundation sections;
 Business Enterprise,
 Visibility/Marketing, and
 Sales.
Each listed mistake is elaborated upon to provide clarity and direction as deemed appropriate.
How to Use
Essential to getting value from the list of 100 Top Mistakes that Outsourcing Companies Make is
honesty. Looking objectively and critically at your business, services and people while provide
invaluable opportunities to correct present issues and to avoid those that are lurking on the horizon.
Isolation, removal and correction are only a start to the process of mistake avoidance. Regular and
vigilant attention is necessary in order to reduce the potential of trivial mistakes having catastrophic
impact. While it is difficult to anticipate a level of regularity a purposeful self‐examination should be
conducted at least annual (or more frequently if conditions warrant).
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Stage 1 –Business Enterprise Foundation
1. Wrong Motivation for Starting the Business
Regardless of whether there are sound business reasons or personal goals a business must have
as a part of its motivation the care and support of customers. If the motivates are selfish and
fail to acknowledge a part in the social network with other businesses it will be at risk to fail.
2. Lack of Planning
a. Business Strategic and Tactical Plans
b. Marketing Plans
c. Sales Initiative Plans
Planning deficiencies are often characterized by spare of the moment decisions rather than
evaluated, discussed and purposefully executed (and measured) events.
3. No Marketable Services
Hard to imagine but there those companies that have nothing to market except possibly an idea
or something that they have never done before. While it’s possible to attract interest the real
situation will soon become evident to the buying public. If you are in the formative stages
promote the unveiling rather than to announce the service before it exists (and you have time to
develop the operational infrastructure around it).
4. Lack of professionalism
This can be both at a corporate and individual level. Included in professionalism are image,
conduct, critical decision making, values, customer obligations, peer obligations and social
responsibility. Remember, what might be regionally and culturally acceptable to you may be
offensive to clients that you are attempting to win over.
5. No time
Rather than addressing the problem each step that is suggested to win market and sales
opportunities as unnecessary. Sometimes considered unnecessary, other times a minimalist
view is taken… if it is needed then command the attention that it deserves. There are no short
cuts to gain success.
6. Cash flow
Since many outsourcing startups require little capitalization companies will use operating cash
flow to build this business. Unfortunately this becomes a starving principal for growth. It robs
the company of the necessary nutrients to grow and flourish (i.e. new ventures or expansion).
In addition, it also robs the operation and places excess demands on sales quotas which put the
operation at risk.
7. Overspending
We would call this the drunken pirate syndrome, spending money where you think it makes
sense without a plan for how much should be spent and what the results should be. While
there are uncertainties about results one should focus on those areas where a known degree of
delivery can be seen as being produced.
8. No business plan
A business plan is not reserved for only large companies. Strategically a business plan is more
essential for a fledging new business that it is for a large prominent organization. It forces you
to address who you are as a business, what you wish to accomplish, what needs to occur and
the resources required to make it happen. It must be honest, specific, based on facts and
devoid of wishes. Business plans may be lacking or totally inferior and these can be as
catastrophic has having none at all. Bad plans fail to establish goals, provide operational
direction and form a means to monitor/modify progress in fulfilling the plan.
9. Fuzzy and conflicting priorities
Small flatly organized companies are prone to allot of powerful and innovative leadership. As a
result of this alpha behavior allot of confusion can occur over what needs to be done, how it’s to
be done and in what timeframes. To those that have a more right/wrong viewpoint there may
be reservation to give a decisive leadership answer causing fuzziness.
10. Poor quality
While quality is difficult to quantify the lack thereof is not. It is devoid of your opinion and rich
in the opinions as viewed by your customer. This can range from how your company is
presented in promotional materials to the upkeep of your business facilities. Always strive to
provide the best possible image for your company and insist upon the highest quality for the
work that you provide.
11. Unreliable Service Delivery
You will fail if the services that are offered are of poor quality and unreliable. Likewise top
quality and services will fail if marketing and/or sales are poor in the discharge of their
respective duties. A holistic view must be taken where service, promotion, and sales are reliable
and with exceptional quality. Any deficiency should be decisively dealt with, making sure it’s
been resolved at the root and not just at the obvious symptom level.
12. Expediency
There is a balance between failing to fulfill expectations, even with cause, and delivering too fast
(and raising suspicions about the goodness of what is produced). On new relationships it is
absolutely essential that you deliver to stated expectations. Expectation control starts with
those early discussions and remaining in control of delivery timeframes is import. You may feel
pressured into commitments that are beyond your abilities be strong enough to advise and
propose solutions to accommodate in a realistic and quality minded sense.
13. Distractions
The world is full of distractions from internal and market pressures, to heavy customer demands
with every changing technologies. To help minimize the effects of distractions plans can play an
important role to determine if it is IN or OUT of scope. Additionally distractions can come from
too many so‐called opportunities presenting themselves. These need to be carefully examined
and viewed in terms of resource commitment and likelihood of become a reality.
14. Product development
The question becomes whether work produced, or elements thereof, are owned by the buyer
(funder) are determined contractually. These stipulations concerning intellectual ownership
rights remain in the balance and are often weighed in as owned by the customer. However, are
you giving away what could be reusable components or product elements that have commercial
value if made generic? Consider all ramifications before leaping for the sale which by
comparison could be minimal.
15. Doing the minimum
As service suppliers there is a certain amount of buyer expectation that you will not only deliver
but will also go a little bit beyond what is expected. Maybe offer some advice, suggestions or
even ideas that possibly haven’t been considered. When delivering just what is required it
leaves the client experiencing a void of emotion and you without a solid over the top reference.
16. Optimism/Pessimism
It’s ok to have a bit of either optimism or pessimism it’s only when it is not couched with an
appropriate level of detail does it come across to the client that you pre‐empting the future with
excuses. If there is reason for concern, in either instance, provide sufficient detail and
encourage an open dialog to put everyone on notice. Buyers like leaders who remain in
command despite adversity or reasons for being optimistic.
17. Motivation
Ill founded motivation can lead to desperate measures. Whether under pricing, over staffing, or
simply over management of client engagements. On the other hand being so comfortable with
your message, delivery and command over control can leave the customer feeling a bit
concerned. Motivation is important when done with an appropriate degree of balance.
18. Management
What can you say about them? Often small start ups have talented management from a
technical perspective but unfortunately week in managing a business. Either the skills need to
be developed or talent needs to be obtained in order to fill this void. Management that is too
close to the action can often side track a sales opportunity by discussing outcomes and not
presenting an appropriate value argument.
19. Leadership
Leadership involves honesty, forward‐looking, competent, inspirational and intelligent. One

should expect strength in all five areas but not always at the same order of magnitude. The U.S.
Marines even go so far as defining 14 leadership qualities that they feel are necessary. A service
provider must exhibit leadership in the outsourcing arena and be strong enough to command
positive leadership attention from client organizations. Unfortunately many companies chose to
remain followers and not leading.
20. Ethics
We all have an idea as what ethics is, often it characterized as “doing the right thing or behaving
in the right way”. What can become confusing is when the ‘right’ is acceptable in one region
and is unacceptable in another. It is more than simply accepting the other’s model. Changes
can sometimes create challenges in your supplier based culture. Ethics related matters need to
be defined, understood, adapted and adopted.
21. Financing/Capitalization
A new outsourcing organization can be started on a shoe string. Investment in infrastructure
(computers, desks, chair…) can consume a large amount of capital leaving the company in a frail
fiscal state. The result is a threat on viability, a foundation risk that buying companies examine
and can easily jeopardize a delivery capable company from obtaining sales opportunities.
22. Values
Establish and understand the values that are most important to the client. These may be
include value decisions relating to the outsourced engagement but can extend on to business
decisions and the importance that it contributes to the company. Overlook client values
creates the potential of placing effort into areas that lack importance.
23. Purpose
Too vague, too narrow (a threat for long term viability), or attempting to everything to everyone
are sure signs for missing sales opportunities. Clearly defined purpose and vision (next) item
gives buyers a chance to understand, acknowledge and accept your reason as something they
can feel comfortable with in the context of the serviced relationship.
24. Vision
Vision is more than making money vision creates the organizational purpose to accomplish
strategic goals through precise tactical objectives. The vision is used to help clients understand
why we behave the way we do.
25. Excitement
No one likes a burgeoning relationship that has no spark. Once the relationship gets underway
keeping the excitement alive is as important as deliver. This is what builds committed
customers and helps companies to grow rapidly.
26. Lack of Engagement
Winning a contract has all the potential of being lost if the players are not engaged. This
includes not just delivery personnel but senior and engagement management as well. Making
the sale is only the start to a long and ongoing commitment to the customer.
27. Uninspired Design
Copying that others do is the easiest way to self‐impose your unique identity. Studying and
learning from others provides valuable insight. But understand that their success formula might
not be yours. Numerous factors contribute to the inability of one approach not working for
another (e.g. timing, conditions, and audience being addressed are some examples).
28. Creativity
Buyers want innovative, creativity and leadership. If your company views your services as a
commodity buyers will expect to purchase these at a lower cost. Yet they will expect all of the
creative elements that might be required by them and are available elsewhere. View every
opportunity and your presentation to the clients with a mind toward creativity.
29. Regulations
Regulations are meant to be adhered to. Whether governmental, industry or even organization
policy regulations represent the boundaries that must be operated within. Buyers understand
this and chose locations and companies based on these regulatory mandates. As a supplier
showing adherence and awareness can serve to promote your business. Silence raises questions
about your regulatory interests, and may be something that your competition has been quick to
exploit.
30. International laws
Laws fall into two categories jurisdictional (within your country) and international. As a provider
of service you must be also aware of jurisdictional laws for your buyer. For this reason it is
invaluable to address this matter both in terms of initial discussions and final contract details.
Matters of ruling and arbitration are important selling points to provide comfort for the
customer and to alleviate unnecessary risk concerns.
31. Procrastination
Procrastination (and possibly paranoia) kills deals. Listening, putting forth a sound business
proposal that is fairly priced wins deals. Unnecessary worry about the perfect proposal, excess
levels of details, and in some cases dealing with too many solution options all lead to
procrastination. Buyers what responsiveness, not too quickly but not excessive either. Even the
mega deals address the issue of procrastination by introducing a roadmap for discussions, a
framework for the topic of interest and then break it up into small pieces that can give speed
while delivering to the point responses.
32. False and Misleading Titles
What is in a title? Does it reflect the person or does it simply serve to promote a level of
importance. False and misleading titles create buyer confusion that lead to mistrust. Buyers
what to know who they are dealing with, what they can do for them (and their needs), and how
that person will play a pivotal role in service delivery. There is nothing worse than working with
a person (such as Director) and discover that they are totally naïve, lacks authority and
unfamiliar with the services that the company provides.
33. Lack of Strategic Vision beyond Current (possibly limited) folio
Unless you are selling project based services (do the work and it’s over with) a strategic vision is
essential for you as a business. However, the buyer is also interest in knowing how your
business will be growing and how this will affect them. Is it growing in a direction that is similar
or counter to their interests, or does it really matter? Beyond the details of the strategic vision
buyers feel a level of comfort in knowing that there their suppliers have goals and plans. In part
this interest represents familiarity to their operations and how visions are instrumental in their
organizations.
34. Use of Generic email accounts
The use of generic email accounts raises concern about the legitimacy of the organization. Your
business is asking buyers to establish trust and yet the generic email account is the equivalent to
a postal box as an address. Establish official corporate email addresses and restrict the use of
generic addresses for supporting messenger services.
35. “Bigger is Better” Paradox
Bigger is not always better. Size is a measure of capacity but this does not insure competency.
Suppliers continue represent themselves in terms of size, hoping that this will persuade a buying
decision. Often the opposite occurs, size that lacks flexibility, capability and competitive pricing
drives opportunities away. Promote ability and capacity as one.
36. Promoting a Commodity and Not a Hosted Service (use where applicable)
Unless you are offering the same exact service to each customer, don’t sell your services as a
commodity. Commodity services are packaged and used many times to reduce cost. Buyers
understand this and will expect low cost but services unique to their needs. Package and
promote your services but discuss how it is designed to be customized to the specific needs of
each client. Use the service as the foundation and not the final offering that gets offered to the
buyer.
37. Lack of Business acumen
Outsourcing start ups require very little investment and the ability of a group of people to do a
job. For this reason basic understanding of how to operate, market and sell business services
are often lacking. Take the time to develop business acumen (knowledge/understanding) and
not wander about creating an embarrassment for your company to overcome for years into the
future.
38. Copycatting… trying to Look Like Someone Else (not yourself)
As noted earlier, following what someone else has done is easy. However, a unique identity
(something to remember for) is key to gaining business success. This is commonly called
‘branding’ and goes beyond a logo to reflect who your company is and possibly entice buyers to
take a further interest in you. Copycatting can include marketing literature, service offerings,
and even special promotions used to make sale. It is best to lead and set the pace than to
copycat and try and keep up.
39. Single Product Offerings that are Not a Niche
The risk you face with single non‐niche products is that they are not unique and if they falter you
put the business at risk. While focus and service concentration is valuable one must not
overlook the need to sustain a business and show to the buying public that you have more to
offer than just one thing. Even an ice cream parlor has more than on flavor.
40. Relying too much on opinions from the general population
Opinions are important and essential to developing your business. However, all opinions
require careful scrutiny and evaluation as to their authenticity. General population comments
may resonate concerns, fears, apprehensions that are based on instincts and not on concrete
facts. For this reason consider general opinions as simply one data point amongst many.
41. Believing in instantaneous results
Everyone ones things instantaneously whether it be personal gratification or business success.
The route to these goals is comprised of internal (self‐ controlled) and external forces that shape
the way, the amount and the speed to which goals are realized. For example, if you employ a
person or a company to sell for you it requires time to establish the contacts, to foster the
relationship, to engage a purposeful discussion, present an offer (through sometimes many
cycles of change), closed and secure the deal, and ultimately deliver the service. This is not an
instantaneous process and one should not view those sales that are made in short times as
repeatable since they are being driven by the buyer who you have no control over.
42. Overlooking the use of information resources in these subject areas.
The higher the stakes the more important it is to engage advice. Sometimes a company is
fortunate to have this expertise onboard and they can be exploited. Even then a periodic check
should be carried out to insure optimum efficiency. If you don’t have subject matter knowledge
then seek advice. This will avoid excessive steps and wasted time.
43. Not considering the use or development of your own product to advance your business (or
specific marketing or sales campaigns.
Identity was described earlier in the context of market promotion. Unique identity is also
pertinent to the products and services you offered. Especially in the BPO (Business Process
Outsourcing) realm where non‐voice or call center services appear in similar ways how can your
company unique show what they have to offer that is different? Follow the simple guide of
HOW, WHAT, WHEN, WHY and VALUE with specific attention on risk. Buyers do not want to be
the laboratory experiment behind new products and services.
Stage 2 – Visibility/Marketing Foundation
44. No market niche
The world is a big place and especially for new companies focus is important to improve the
balance between investment cost and sales return. Being a generalist in a big world is the
easiest way to shorten the life of your business. Focus small and grow your success story in
order to use the testimonies to grown the market niche. Market niche can be for a particular
type of service or the community to which the services are being provided.
45. No differentiation
If you had your choice between product A and product B, both being the same but product A
was cheaper, which one would you choose? What things would determine that choice beyond
simply price? This is the same dilemma that buyer face and your company may be the recipient
of lost sales, not as a result of superior ability but purely based on price because you haven’t
been able to bring out those unique virtues (that clearly have to be presented within the context
of business value to the buyer).
46. No Networking
Being connected with others is invaluable. The recent growth in social network amplifies how
important it is to connect, reconnect and how they can be used to promote you company.
Without a network of friends, colleagues, former associates, business and community
connections a business faces going it alone. It is obvious that one person yelling the message is
less effective than the masses. However, while the network is essential to promoting the
positive message one must also be sensitive to negative news traveling faster in a network
environment.
47. Confusing Marketing with Sales
The roles of market and sales get confused. We see this in roles, we see it in the work that is
done and the message that is put forth. This confusion creates excessive bravado in defense of
these roles which leads to poor results. Marketing is clearly about promoting the business and
the services that the business offers. Sales takes this awareness message (promoted my
marketing) and makes customer facing contact to engage a discussion as to how a trust
relationship can be established and how a working relationship can be formed. Division of
duties is important in order to retain focus even though that some believe that a single hat can
be worn by both roles.
48. Social Networks
The introduction of social networks, beyond the ancient electronic bulletin board , has herald
great opportunities for broadening a global connection (personally and professionally).
However the easy and enticement of a new offering causes us to jump in with both feet before
we have fully determined how the social network can be put to best use (and safely).
a. Overused
Implementation, use and ongoing maintenance are costs that must yield business value.
It is easy to say that visibility has value but even visibility yield results. This also involves
how many and which social networks will be utilized, which will serve what business
purpose and how to effectively keep them up‐to‐date.
b. Underused
You’ve decided to jump into social networks now what? Is your involvement a work in
process, a finished and polished (static) example or it alive and breathing? Buyers are
guarded suspicious of companies who appear to be stale or stagnant not only on social
networks but on corporate websites.
c. Misused
Safety was noted earlier and this reflects the message that is put forth as a part of the
social network. Is it too personal, too rigid or simply sending a very confusing unofficial
and possibly unprofessional message? Misuse isn’t always intentional and sometimes
grows out of excitement with the technologies. Stand back and make sure that this is
what you want your company to appear as.
d. Lack of Governance
Social networks often evolve from non‐deliberate grassroots efforts, sometimes by a
person or a group within your organization. Your business has some catching up to do
in making or reshaping the commitment to the social network outlet involvement.
Beyond routine matters of ongoing support the organization must establish who will
oversee the carryout of the mission to be served by the outlet.
49. No online presence
As much as we know that we will sell very little online we must have a web presence. It’s our
storefront into the world that we are trying to sell into. Without this buyers are suspicious of
our existence, motives and ability to delivery. With this comes a responsibility that the website
is professional and not a conglomeration of too much information. Just enough to entice and
invoke further questions that allow you to engage a dialog (and form a bonded relationship)
50. Web sites that don’t work or have elements that tarnish your reputation
Broken links, misspellings, bad grammar, claims of grandeur, stale information, lack of current
updates raises numerous questions. At the core is the question of delivery credibility. Your
website (and other visibility outlets) is your calling card. Often you only have one chance that
allows you to proceed to the next stage of client discussions.
51. Collateral poorly constructed
Does your marketing collateral (print, non‐print, website, social networks, other….) look like it
was constructed by a child? Collateral must introduce and entice further dialog, not be an
unabridged account of every facet of your business. There is ample time to provide those
details but until you can establish interest extraneous details are unnecessary.
52. Internationalization Issues
There is literal translation and proper translations. What might be translated literally can
introduce grammatical and sometime interesting phraseology. A friend once said that he
wanted to have an “Intimate Affair” with his customer, when in face he simply wanted to have a
“Close Relationship”. While humorous it wasn’t exactly the message that he was attempting to
communicate.
53. Green/Non‐Green Formats
Choosing the right presentation is important. Selecting whether something is electronic or not
is not simply making a Green decision. Suppliers must choose the right form to encourage
results. Presenting something electronically that is more usable in printed form diminishes
effectiveness.
54. Too much information
Previously noted… too much information leads to confusion but also makes the selling effort
more difficult. Why is this? More information challenges control over the selling cycle. More
questions, often out of context, require response attention that takes away from listening to the
customer. Keep it simple and remain in control of the process and the flow of information. Less
is better.
55. Failing to See Purpose (to initiate a dialog) vs. Being a Catalog
What role does your company play? Is it a servant to the client or a partner in ongoing support
for a business objective. Often your service message is so strong that you fail to listen to the
lament of the buyer. Right or wrong the buyer will provide insight into their needs, goals and
timeframes by which the service delivery will take place. Failing to prepare for, listen and dialog
with the prospect will result in proposals that fall short of meeting key business objectives.
56. Collateral with bad grammar and misspellings
First impressions leave lasting images of about the quality consciousness of the supplier. Even if
these points are minor and infrequent buyer may have heightened concerns whether this will
spill over to the work you are doing on their behalf. Take the time to conduct in‐depth critical
reviews internally, by using external qualification or both.
57. Lack of focus
The world may be your oyster but if you wish to make wise use of your money don’t spread
yourself too thin. The more areas and organizations you are trying to promote and sell into the
higher the cost. Limited funds result in less money being spent per pursuit which jeopardizes
the effectiveness for making sales. Narrow your scope based on your core competencies and
the services that you are delivering to. This keen understand of who you are and what you are
best at will help to drive which,
a. Regions,
b. Industry,
c. Size of Company and
d. Services Type
you are most apt to be successful in selling into.
58. Do not falsify facts about:
a. Company History
b. Company Health & Viability
c. Clients Serviced
d. Services Offered
e. Skill Capabilities
It will be only a matter of time before you will be caught in your lie. Even when you stretch the
truth in actuality you are attempting to cover up who you are. Being forthright is the best policy
to avoid unnecessary explaining and embarrassment.
59. Collateral that is too self‐promoting (overusing superlatives)
We have all be on the receiving end of promotional materials that make claims that would be
hard to defend. Best, World Class, State of the Art, Only…. Are a few of those catch words that
attempt to impress but can woefully fall short of reality. Let the facts speak for themselves.
Over or improper use of superlatives can make you one of many companies, thus losing your
brand identity.
60. Focus on Technology not on Value Contribution
It’s ok to talk about technology in proper context but don’t showcase it as the solution. Behind
every good technology is an able bodied technician that can ply its use properly. Ultimate the
use of any technology is to efficiently support a business process. Technology without purpose
can result in costs that exceed perceived benefits.
61. Insufficient publicity
Organizations cannot buy what they are unaware of. Publicity is important and should be
expansive. Today the use of social networks, working partnership/collaborations and exposure
opportunities allow companies to be seen. Where publicity can fall short is where suppliers get
promotion (marketing) and sales confused. Exposure is necessary but difficult to draw a
correlation to in terms of earned sales. Suffice it that without promotion sales are far more
difficult to make.
62. Fuzzy and Confusing Terminology
It is easy for companies to be sucked into using trendy terminology (like ‘innovative’ or ‘cloud’
services) to illustrate to the buying community their current and leading service position.
Misuse and out of context use of such terminology can discredit what might be positive service
offerings. Keep it simple and whenever possible avoid following the terminology pack. Leaders
set the pace for others to follow.
63. Reliance on One Marketing Medium
Buyers are unique. Some buy based on word of mouth referrals, others through industrial
research while some rely heavily on trade shows and other reference resources. Suppliers who
rely in only one marketing medium risk not being seen by a portion of the buying community.
64. Promoting Product without Company Identity
Your product can and should be the flagship for recognizing your company. Even without visible
branding the product/service should reflect your company. New supplier companies tend to
rely heavily on either company or product promotion but not together. This weakens company
visibility and product/service value.
65. Shotgun Marketing without Pinpoint Focus
As noted previously, a lack of focus is like shooting a shotgun at a wall. You are apt to hit the
wall but you will fail at placing a hit on a specific target. The combination of target market focus
and the use of multi‐media greatly improve the effectiveness of your promotional efforts.
66. Website Marketing Dependency
Your website is your storefront, it is a place to introduce your business, show your services and
illustrate your capabilities. However buyers don’t always buy from the web and may rely heavily
on print media, trade expositions and even email to better understand the buying sources.
Placing all of you trust in one source deprives you of other visibility outlets.
67. Being on too many ezine lists
Everything in moderation, maintain a fine balance with excessive visibility vs. insufficient
exposure. If you are tempted to be widely exposed , look for ways to make to make the
exposure interesting. Maybe it’s the cleverness of the advertisements or simply they offer some
entertainment value that makes potential prospect want to keep coming back.
Stage 3 – Sales Foundation
68. Solidifying the Relationship in the First 5 Minutes
Planning, preparation and artful execution of your message in the first 5 minutes is essential.
People lack patience and if your message takes hours to deliver, you have already lost the
opportunity to your competition. Key to 5 minute solidification is knowing your customer and
be on key top of making this known quickly. While you may not have all the specifics know
enough to entice buyers to allow a continued interchange.
69. Product pitching
Before you pitch your product allow the buyer to go first in pitching their service request. Allow
enough time to gain clarification and develop an understanding about the opportunity and what
they wish to accomplish (or how they services is to be delivered). Suppliers who are all about
what they have and focus on making it fit the client are going to miss the needs of the buying
client.
70. Poor product knowledge
There is nothing worse than not knowing your product cold. If you lack this competency seek
those that do and allow them to serve as the subject matter experts. Too often suppliers rush
to respond when it would have been prudent to ask for time to evaluate the situation and
propose a more durable solution. Know your products and services, understand how they can
be applied, what they produce for value and what level of adaption can be accommodated.
71. Inadequate Learning Development
An essential part of company growth is to accommodate learning development. This involves
not only the individual but also the company. Company learning deals with the strategic
interest of the business while the individual’s learning is of a tactical nature. Without learning
companies can lose market position and die a slow agonizing death.
72. No sales process
A sales process is necessary to insure and orderly pursuit of a sale. Without a sales approach
the supply company must rely solely on the talents and expertise of the individual. This inhibits
the sharing of knowledge in a consistent and control fashion. For the buyer a lack of awareness
of next steps creates confusion and a disconnection with the prospective supplier that is seeking
the work contract.
73. Lack of customer follow up
Buyers like to know that the supplier is interested enough to have a follow up plan. While this
may be in general terms it serves as a starting point for buyers to interject what time constraints
that must be taken into account. For the supplier a follow up program allow for maintaining
success probabilities. Each day without buyer contact reduces the likelihood for making the
sale.
74. Not understanding customer needs/not knowing the customer
Buyers like to know that a supplier takes interest in them. Interest involves knowledge of their
industry, some of the challenges that are faced, the operational makeup of the specific
organization being dealt with, and key players involved. One is not expected to know in‐depth
historical facts but enough that one can better understand how this effects current service
needs.
75. Pricing
A key goal for outsourcing is arbitrage (taking advantage of countervailing prices in different
markets). Although there may be other goals price can often make or break the deal. One must
be keenly aware of pricing from competitors and be willing to retain price flexibility without
jeopardizing the business. Key pricing consideration include,
a. Non‐Competitive Pricing,
b. Too Much Price Compromise,
c. Erratic and Inconsistent Pricing (across all buyers and during contract price
negotiations),
d. Thin or No Margin, and
e. Treated as Commodity when It’s Service Sale (diminished cost based on diminished
value of commodity vs. custom selling).
76. Proposal Management Issues
A lack of proposal management (development, construction and presentation) loses sales
opportunities. The art of proposal development must hit the needs of the buyer quickly, and
reflect professional care and attention that can be expected during the delivery of the service
relationship. Proposal should also give consideration to not such the leave behind document
but also the presentation that is made to introduce the proposal itself. Some proposal
management issues that can kill the deal include,
a. Lack of Governance,
b. Accepting Unattainable Conditions,
c. Demanding Too Much (Especially Payment Terms), and
d. A general failure to lead in the proposal and blindly follow what is requested.
77. Inventory (aka Sales Pipeline)
Time has been taken to pursue and accumulate leads in the sales inventory/pipeline. Failings
often occur in failing to work the inventory, add to it on a regular ongoing basis and improperly
classifying the inventory (status and probability of success). Sales pipeline management is
crucial to ongoing revenue generation as well as taking appropriate preparatory steps to insure
adequate resource availability.
78. Misjudging people/customers
Over confidence and assumptions can lead to improper preparation. This is often embarrassing
and increases the probability of failing to secure sales. The most common misjudgments
involve,
a. False Impressions,
b. Bad Background Data (stale, poorly assessed…) and
c. Drawing Uninformed Conclusions.

79. Not saying thank you
As simple as this might be you are at the mercy of the buyer. They have opened their door to
you and have patiently told you their story and in return you have showed them how you can be
of assistance. Be humble and courteous, say thank you for the privilege to provide information
useful for their needs.
80. Not having fun
Taking yourself and your work too seriously reduces the opportunity to have fun. A positive
attitude and enthusiasm is contagious and people want to be around positive things. Make it a
point to have fun in the work that you are doing.
81. Being the ‘clown’ at the wrong time
Sometimes humor can be misinterpreted. It’s best to refrain, in the early stages of the
relationship to keep your humor to yourself. This will allow you to better understand the
players and develop a relationship with the client. Sometimes humor is ones nervous reaction
to a new engagement relationship but keeping in mind the impact of misplaced humor will help
you to keep your frivolity to a minimum.
82. Misplaced anger
It is tempting to lay blame and take cheap shots at your competition and even the industry that
you are a part of. One must understand that when you point a finger at someone or something
the finger is also pointing back at you in terms of your reaction. When upset find ways to vent
this anger in constructive ways that provide value and raise you above the occasion. Even a lost
customer is one that can still provide value to the business.
83. Selling to the wrong level; not all C‐Levels make the call
Even though C‐Level management directs the business and control the purse strings they
seldom are involved in the day‐to‐day decision making on outsourced engagement. Their
involvement is even less as it relates to critical evaluation and assessment of suppliers. Do your
homework, understand who are the power players, those that you will interact, negotiate and
work with. Also knowing who the approving parties are will help to facility and understanding of
the internal gauntlet that the operational decision makers must traverse.
84. Poor people skills
Just because you are in sales does not mean that you are a people person. Not everyone thinks
like you and certainly when selling to a foreign audience the gap is even larger. Practicing with
others and being will to ask for critical post‐sales feedback are positive ways to overcome some
of the things one might conclude as people related skills.

85. Communication skills
English may very well be your second language. On a positive note your accent is apt to
captivate and even cause your customer to listen intently. But don’t over play this, rely on
supporting collateral and advance prepared presentations. Learn to speak up, speak slowly and
carefully choose the words you are going to use.
86. A lack of belief (Credo)
A company is only good as the conviction of its employees. Lacking enthusiasm, commitment
and belief is easily seen by the buyer. If you aren’t convinced you are the best for the job don’t
expect buyers to see beyond it. Company management must vigilantly support commitment on
the part of all employees, especially sales personnel.
87. Not enough drive/Too Much Drive
Everything in balance too little or too much enthusiasm can turn a buyer off. Best characterized
as soft selling, suppliers must adapt their interaction to the buying climate. Too little drive
might be interpreted as arrogance, laziness or a hidden agenda. Too much drive may indicate
desperation.
88. Poor results
There is no reason for it. Poor results don’t immediately occur they manifest, and a lack of open
attention allows failures it to become a reality. Any results bad or good require careful analysis
and an altering of approach. External influence may be the cause of poor performance results
but our reaction to them is the catalyst for responsive change. Poor results jeopardize ongoing
present and future relationships.
89. Selling services that are poorly defined by the customer
Unless everyone agrees that it’s an exploratory project it is dangerous to offer services around
vague or poorly developed customer expectations. Before making the deep commitment and
spend time that can be later viewed as wasteful work with the customer to acknowledge this
vagueness and gain commitment that some effort needs to be expended to better understand
and define their needs.
90. Pursuing brokered business where direct customer contact is not allowed
Sales are the name of the game and out of desperation suppliers may fall prey to brokered
business opportunities. Credible brokers allow full access to buyers and protect themselves
with contractual provisions and up front monetary compensation. There are however brokers
that either represent fictitious opportunities or are in collusion with buyers (split the fee deals)
whereby the supplier is held to delivery that is impossible to accommodate. If you are
prohibited from interacting with the customer BEWARE!
91. Quota driven staff turnover
Buyers drive hard bargains on many fronts. Aside from price the use of quote driven staff
turnover (holding turnover to an agreed a not to exceed level) is one way buying companies can
gain additional fiscal leverage. Realizing that you cannot force non‐turnover suppliers must
evaluate their historical turnover history and the measures that are being used to retain staff.
Based on these facts an informed decision can be made relative to accommodating the
contractual provision. As tempting as it might be to concede to provisions to gain sales the
consequences can be damaging.
92. Weak or falsified foreign sales outlets
It is tempting to list a series of sales (and service outlets) based on a colleague, family member
or friend who can answer a call or attend to an issue on your behalf. Unfortunately this is often
perceived as misleading by buyers. It’s best to state your reality in terms of locations but add
that you have brokered representatives that represent your interests in the region.
93. Broker sourced engagements that lack adequate qualification
Brokers may have opportunities, many have been presented by buyers looking for qualified
service suppliers. Very little may be known about the engagement and the buyer who you are
dealing with. Fundamentals like credit worthiness, payment history/method, and engagement
management may be poor defined or unknown. All engagements, regardless of source require
deliberate critical evaluation.
94. Utilizing commission only agents (or attempting to engage on a commission only basis)
During the 1990s, when demand exceeded, supply it was easy to find Western representatives
who would work on a commission only basis. Times were good and opportunities were
plentiful. Today we face lowered demand and excessive supply that makes getting jobs much
more difficult. This creates a protracted sales cycle and more effort being expended.
Commission only agents are becoming scarce because funding is necessary in order to support
their efforts.
95. No prepared sales agenda
Sales fall into varying types; the cold call, response to inquiries (also known as requests for
information RFI) and attention for requests for proposal (RFP). What is planned approach for
each of these sales situations? No plan results in missed targets and wasted time.
96. Sticking with a Script when Conditions demand a Change
Nothing worse than sticking with a presentation or a line of thinking when conditions change.
Be flexible and adaptive, things that you wish you could say or show can be done at a later date.
Customers like suppliers who can think and respond, this reflects the way their companies
behave.
97. Not being Direct.
If you want something ask for it directly. Customers don’t want to waltz around trying to figure
out what you want, need or are asking for. Come straight to the point or risk losing the sale. Be
courteous and considerate, and personal enough to have empathy for the situation. The same
can hold true for not being direct with those that are providing services to your company (like
sales agents and brokers).
98. Real Collaborations
The vast majority of suppliers simply want someone to keep an ear open to potential work. In
return a modest fee is paid for referred business. This is not collaboration but an agreement.
Collaborations involved a formal and defined interaction between the supplier and the
collaborative party. In involves sharing of strategic plans, coordination of effort and
measurement/adjustment to address outcomes. Suppliers need to be direct as previously
stated and be willing to recognize that external relationships need to be honest and properly
formed to facility the outcomes that you want.
99. Payola/Bribes/Grease Payments/Kickbacks
The norms of the West and the East can sometimes come into conflict when attempting to make
sales. Whether to facilitate the sale any form of ‘special fee’ or ‘compensatory bonus’ is strictly
prohibited. Even casual suggestions can be viewed as foul behavior and will quickly put you out
of contention.
100. Keep it Simple
Approach sales opportunities in a straight forward and simple fashion. A complex problem
doesn’t always require complex solutions. Simplicity kept in proper contrast to the problem will
allow affordable pricing for buyers and win deals for you.
A FEW Extras!!!!
101. Don’t Count Your Chickens Before the Hatch
The deal is not done until the ink is dry on the contract. Show restraint in your behavior and
your actions. Slow and methodical hardening of the opportunity keeps enthusiasm at the
proper level.
102. You are only as Good as your Delivery Partner
You can’t make sales without a close relationship with the delivery organization. Failure to
properly engage them in critical decisions, like delivery times and level of effort, will put sales at
risk. In the long term it will critically injure customer/vendor relationships. Use a team
approach to deliver proper organizational commitment.
103. Double Speak
Saying or quoting one thing and failing to deliver according to your commitments. This may the
result of internal communication issues, dependency in others or overlooking the complexity of
the task at hand. Be forthright and acknowledge your mistake and do it early enough to allow
for proper customer reaction and attention. Getting caught in a lie and trying to cover it up
(called Double Speak) will damage the supplier’s relationship with buyers.
104. Know when to walk
Not every opportunity is right for you. It can be issues relating to the type, amount and criteria
that you will be held to by the buyer. On the other hand it can be all about culture and
personalities. Being hungry for business is one thing, being foolish and taking on opportunities
that could kill your business is a totally different matter. Maybe the opportunity is such that you
will only serve in the lead role and you will subcontract/outsource the engagement to another.
Or maybe it’s better to simply thank the buyer for the opportunity but to walk away to fight
another day.
105. Never stop evaluating how well you are doing
Getting to the top of your game can be gratifying and rewarding, but staying there is a
challenge. Whether these assaults are from within through self‐righteous behavior or from
outside completion our livelihood will be constantly at risk. Continue to assess how well you are
doing, what mistakes you are making and how you can get ahead before it becomes a
catastrophe. Sometimes looking at what others are doing can provide invaluable insight into
things we wish to avoid (a mirror is a handy tool!).
Conclusion
No one makes mistakes intentionally. Errors in judgment, misunderstanding about our customers,
cultural differences and bad information foster us to make business mistakes. A single mistake may or
may not cause your business to fail, but is it worth the risk? Many of the points that have been made
are based on many years of experience and seeing first‐hand how buyers react to them. While it could
be argued that these are opinions, it is opinions that will define your success or failure.
We hope that you will put this list to good use and will share with us your experience in using it. All
comments, questions and suggestions can be directed to,
The International Institute for Outsource Management (IIOM)
4200 Vanita Ct., Suite 200
Winter Springs, FL 32708 USA
www.Int‐IOM.org
Info@Int‐IOM.org

Reproduced with Permission from CartoonStock.com

APPENDIX Index
Appendix 1 Mistake Resolution Worksheets
Appendix 2 Other Sources
Appendix 3 Need Further Help??

Appendix 1
Mistake Resolution Worksheet: Business Enterprise Foundation

MISTAKE/PROBLEM AREA DOESN’T EXIST EXISTS RESOLUTION TARGET DATE
1. Wrong Motivation for Starting the Business
2. Lack of Planning
3. No Marketable Services
4. Lack of Professionalism
5. No time
6. Cash flow
7. Overspending
8. No business plan
9. Fuzzy and conflicting priorities
10. Poor Quality
11. Unreliable Service Delivery
12. Expediency
13. Distractions
14. Product development
15. Doing the minimum
16. Optimism/Pessimism
17. Motivation
18. Management
19. Leadership
20. Ethics
21. Financing/Capitalization
22. Values
23. Purpose
24. Vision
25. Excitement
26. Lack of Engagement
27. Uninspired Design
28. Creativity
29. Regulations
30. International Law
31. Procrastination
32. False and Misleading Titles
33. Lack of Strategic Vision beyond Current (possibly limited) folio
34. Use of Generic email accounts
35. “Bigger is Better” Paradox
36. Promoting a Commodity and Not a Hosted Service (use where
applicable)
37. Lack of Business acumen
38. Copycatting… trying to Look Like Someone Else (not yourself)
39. Single Product Offerings that are Not a Niche
40. Relying too much on opinions from the general population
41. Believing in instantaneous results
42. Overlooking the use of information resources in these subject
areas.
43. Not considering the use or development of your own product to
advance your business (or specific marketing or sales campaigns.

Appendix 1
Mistake Resolution Worksheet: Visibility/Marketing Foundation


44. No market niche
45. No differentiation
46. No Networking
47. Confusing Marketing with Sales
48. Social Networks
49. No Online Presence
50. Web sites that don’t work or have elements that
tarnish your reputation
51. Collateral poorly constructed
52. Internationalization Issues
53. Green/Non‐Green Formats
54. Too much information
55. Failing to See Purpose (to initiate a dialog) vs.
Being a Catalog
56. Collateral with bad grammar and misspellings
57. Lack of focus
58. Do Not Falsify facts
59. Collateral that is too self‐promoting (overusing
superlatives)
60. Focus on Technology not on Value Contribution
61. Insufficient publicity
62. Fuzzy and Confusing Terminology
63. Reliance on one Marketing Medium
64. Promoting Product without Company Identity
65. Shotgun Marketing without Pinpoint Focus
66. Website Marketing Dependency
67. Being on too many ezine lists
Appendix 1
Mistake Resolution Worksheet: Sales Foundation

68. Solidifying the Relationship in the First 5 Minutes
69. Product pitching
70. Poor product knowledge
71. Inadequate Learning Development
72. No sales process
73. Lack of customer follow‐up
74. Not understanding customer needs/not knowing the
customer
75. Pricing
76. Proposal Management Issues
77. Inventory (aka Sales Pipeline)
78. Misjudging People/Customers
79. Not saying Thank You
80. Not having fun
81. Being the ‘clown’ at the wrong time
82. Misplaced anger
83. Selling to the wrong level; not all C‐Levels make the call
84. Poor people skills
85. Communication skills
86. A lack of belief (Credo)
87. Not enough drive/Too Much Drive
88. Poor results
89. Selling services that are poorly defined by the customer
90. Pursuing brokered business where direct customer
contact is not allowed
91. Quota driven staff turnover
92. Weak or falsified foreign sales outlets
93. Broker sourced engagements that lack adequate
qualification
94. Utilizing commission only agents (or attempting to
engage on a commission only basis)
95. No prepared sales agenda
96. Sticking with a Script when Conditions demand a Change
97. Not being Direct
98. Real Collaborations
99. Payola/Bribes/Grease Payments/Kickbacks
100. Keep it Simple
Appendix 1
Mistake Resolution Worksheet: A Few EXTRAS!


101. Don’t count your chickens before they Hatch
102. You are only as Good as your Delivery Partner
103. Double Speak
104. Know when to walk
105. Never stop evaluating how well you are doing
Appendix 2 of Other Sources for…
Common Mistakes Companies Make

Source: http://www.businesswealth.com.au/business/starting/advice/failure.asp

Ten Common Causes of Business Failure

1. Going into business for the wrong reason.
2. Choosing a business that isn’t very profitable.
3. Inadequate cash reserves.
4. Failure to clearly define and understand your market, customers, and your
customer’s buying habits.
5. Failure to price your product or service correctly.
6. Failure to adequately anticipate cash flow.
7. Failure to anticipate or react to competition, technology or orther changes in the
marketplace.
8. Overgeneralization.
9. Uncontrolled growth.
10. Believing you can do everything yourself.

Source: http://ezinearticles.com/?Seven‐Common‐Causes‐of‐Business‐Failure&id=98787

Seven Common Causes of Business Failure By Craig Dawber
1. Laying more emphasis on product, rather than market and marketing
2. Laying more emphasis on company image.
3. Getting into Undesirable or Bad Business Partnership.
4. Attempting to have a very complex business model.
5. Attempting to pioneer a new product or industry.
6. Getting involved in a business lawsuit and bankruptcy,
7. Getting involved in messy Divorce Proceedings.

Source: http://www.nick‐james.com/public/161.cfm?sd=2

The Top 7 Causes of Business Failure By Nick James

1. Putting the product first, with marketing second.
2. Overemphasis on image.
3. Bad business partnership.
4. Business model is too complex.
5. The business attempts to pioneer a new product or industry.
6. You and the business are driven into bankruptcy by a lawsuit.
7. Divorce.

Source:
http://www.associatedcontent.com/article/57473/10_causes_of_small_business_failure.html

10 Causes of Small Business Failure and How to Avoid Them
By Michelle Knudson
1. Most small business owners don't have enough money saved up.
2. Some companies don't have enough advertisements through out the year.
3. Some companies fail since they don't generate enough sales.
4. The company doesn't hire enough staff.
5. The company doesn't have a high enough budget.
6. The company can't survive during the slow season so they often fail.
7. A company doesn't have enough money to expand the business even though it needs too.
8. The company doesn't have enough money to keep a professional image.
9. Some try to be cheap on products or service then they often fail.
10. Some try to violate city rules or state regulations.
Continued
Source: http://www.businessknowhow.com/startup/business‐failure.htm

The Seven Pitfalls of Business Failure By Patricia Schaefer
1. You start your business for the wrong reasons.
2. Poor Management
3. Insufficient Capital
4. Location, Location, Location
5. Lack of Planning
6. Overexpansion
7. No Website

Source: http://mystrategicplan.com/resources/ten‐common‐causes‐of‐business‐failure/

Ten Common Causes of Business Failure

1. Failure to understand your market, your customers, and your customers’ buying habits.
2. Choosing a business that isn’t very profitable.
3. Failure to understand and communicate what you are selling.
4. Inadequate financing.
5. Failure to anticipate or react to competition, technology, or other changes in the
marketplace.
6. Overdependence on a single customer.
7. Failure to define your product/service offering.
8. Keeping your house in order.
9. Poor management.
10. No planning.

Continued

Source: http://www.fuelnet.com/daily/getting_new_customers/the‐ugly‐truth/

The Ugly Truth – 5 Common Causes of Business Failure by Ken Beaulieu
1. Drifting and squandering.
2. Wasting cash.
3. Operating from the hip.
4. Copying the competition.
5. Seeking mere satisfaction from customers.
Appendix 3
Need Further Help?

We hope that the information provide has helped get you on the way to
converting your mistakes to positive improvement gains. However we also wish
to extend our support and make ourselves available as a resource.

If you have a particular area that you need more information about, wish to ask a
question, or need further clarification please complete the form below and send it
along to: Info@Int‐IOM.org with the subject line “QG‐100Mistakes”.

Name: Title:

Company:

Email: Phone:

Interest Area(s):
Reference # Item

Business Enterprise Foundation

Visibility/Marketing Foundation

Sales Foundation


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MISTAKE/PROBLEM AREA DOESN’T EXIST EXISTS RESOLUTION TARGET DATE

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