Labor is easier to find. Hiring means asking around, getting referrals, collecting resumes, placing classifieds, posting job lists, works. Hiring out means calling a temp agency, placing a help-wanted on guru.com or one of other work @ home website, or one a dozen other super easy ways to find quick work. You have benefit of a high supply of workers, low demand for work on your side.

The Cons: The biggest negative reduced accountability. In a traditional employment scenario you've got boss looking over each person's shoulder reminding them what their job is. Out-sourcing is not like this at all. It's important to structure payment in such a way that project gets done. If you spend thousands up front, there's always risk that they could bail out. This also means that you should take a look at previous work. If they have a habit of being dedicated to their past projects... then they'll probably be dedicated to you too. Due diligence is must. Outsourcing is not for micro-manager.

Repetitive or long term projects are also difficult to efficiently outsource unless you can get a long-term, reliable, maintenance agreement. Easier said than done. It's much easier (and usually cheaper) to hire someone for $20 an hour to work full time ($40,000k a year) and finish 40 different projects than to outsource each project and manage risks and payment headache. Especially if you're on a deadline or counting on each project to be done according to tight specifications.

Conclusion: Depending upon your needs, it may be a good idea to look around at your outsourcing options. I would definitely recommend trying domestic outsourcing first. If you're worried about losing touch with your contractors then hire someone local, if you're willing to assume added risk for improved cost then try your hand in national markets.

It's a great way to find people with different skills for your organization. Stop wasting your time trying to be "jack of all trades" for your company and let experts handle work for you. That's what efficient distribution of work is all about. Give it a try!

----------------------------------------------------------- Aaron Colman, helping business make money online.

Web design, custom PHP scripts, MySQL databases and more.

Free e-Course: Mastering Internet Lead Generation http://www.ibasics.biz/leads -----------------------------------------------------------

a. Operating statements.

b. Cash flow forecasts.

c. Balance sheets.

Optionally include:

d. Various ratios (loan to value, debt service coverage, etc.)

In addition to above, you should usually include a "Source and Use of Funds" showing sources of initial capital and on what it will be spent.

By this point you're either sure you have a winner (differing from "a sure winner" in that you recognize obstacles but are prepared to work through them) or you are going back to drawing board to rethink your project. If you "have a winner", step four is:

4. Write plan. Obviously, you need to be able to use good grammar and spelling. You should be clear, concise and complete. Fill your plan with compelling facts gleaned from your research. Do not avoid W and T from your SWOT analysis, rather, describe in detail how you will deal with them. Avoid platitudes and your own opinions - everyone knows that you like idea, readers need facts to determine if they like it. Try to keep your answers as short as possible while still giving complete information. With exception of Executive Summary, keep your answers somewhat dry and factual - "short, sweet and to point".

The Executive Summary, on other hand, is where you "sell sizzle". It is here that you make claim that yours is a dynamic project that deserves full consideration. You need to compel your reader to read your plan and tell them why you are excited about project.

There are likely as many ways to compile a business plan as there are authors of them. A sample outline is at http://www.fundableplans.com/sample_business_plan.pdf . (It requires Adobe Reader to view and includes our logo which is not included in our plans.) You will want to attach to your plan copies of documents referenced in it and historical data on business (if it is not a startup).

You've now done lions share of work leaving only step five:

5. Review and revise. The review should be first by author(s) and then by trusted advisors - more people that you can get to review your plan more likely you are to find any problems before they are found by a reader.

Follow preceding steps and you will have a business plan that will get read and, hopefully, funded. If you have questions about business plans, please feel free to contact me using below e-mail link.