Here are some ideas for business owners and managers here based on my firm’s unique (I believe) approach to sourcing: 

• Don’t start with the realities of a current manufacturing or service base (plants, vendors, equipment), instead start with what current and prospective customers want, and what your competitors are doing and drive your plan from there (separate short term need from long term goal) 
• For example, if a major customer is going to China and wants you as a vendor there, be careful and understand whether that customer can generate the type of return on investment you need to get to justify the investment 
• Determine what core strength you need to be able to beat your competition. For manyanufacturers in Ohio, that strength is not in manufacturing locally but is in service, design and management 
• Answer these questions like these about offshoring:  
• Are you lean at home (reduced direct labor)? 
• What’s the value of manufacturing near your customers? 
• There are many countries from which to source product.  If you choose China, be sure to use an expert who can sort through with you which region to choose, which factories are good and ones to avoid and can scout, lead and spearhead this time consuming and expensive effort 

The complexity and expense of outsourcing often results in savings being overestimated by 20% to 50%.  However, for most business owners in our area outsourcing is not an option but a requirement for survival in this decade.

According to my notes:  "Our small team, with the addition of two key people from our client, conducted dozens of interviews, visited every processing site and analyzed thousands of telephone calls from customers.  As a result, we determined that the cost of poor quality in our client’s credit card customer service operations was 52% of the annual operating budget.  The main symptom of poor quality was the inability to resolve customer issues at the point of first contact.  For example, whenever our client’s marketing department would send a new promotion to card holders, the call centers would be flooded with calls from customers asking to have the offer better explained.  A simple solution that would pay off in millions of dollars of savings was to be sure that the outbound communication was complete and understandable and that the call center operators, if called, were trained well enough to answer the questions posed."

The main result of the study was a renewed focus, using training and technology, on resolving customer issues the first time.  

Any other business decision pales in comparison with respect to importance.

The most successful sales are the result of your good planning taking into account major questions to answer including:

• What are your (the shareholders) business, personal and estate goals?
• What is the plan to maximize net value to shareholders (after taxes and expenses)?

Another tip, if you possibly can, be sure that the last 3 years financial statements are audited.  That investment will be recovered in a higher selling price.

• How does making an acquisition fit into your firm's strategy?  What problem are you trying to solve (i.e. slowing growth, limited market penetration) and how would acquiring another business resolve it?
• What is your criteria for an acquisition?  Size, market, location, technology, management team and other factors have to be determined so that the search process can succeed.
• What transaction size is reasonable and how would a transaction be funded?  You need to have a sense of market valuations of target firms then plan what transaction structure would be practical.  By that I mean what amount of the price could be borrowed and what portion must be equity.  In today's market, you must generally figure on equity of 40% or so.  Before you commence on an active search, it is a good idea to talk with your financing sources and get their support for your effort.
• How will you integrate the acquisition?  The integration is the secret sauce and the art of a successful program.  Most acquisitions do not meet the acquirers' goals, primarily due to failed integration programs.

Hopefully, the above questions will stimulate you and your team to develop and execute a successful plan.  An acquisition can be the fastest and least expensive way to achieve a strategic goal.