Q. We are a young business providing an innovative line of healthy breakfast products to commuters in London. We have been going for nine months and have four retail outlets but we are looking at creating significant growth by expanding the wholesale side of the business. We are faced with the question of whether to outsource production or invest in more advanced in-house facilities. What are the advantages and disadvantages of outsourcing?
Tom Mercer, MOMA Foods
www.momafoods.co.uk

A. The golden rule with outsourcing is not to outsource your “core competence”, but what is a “core competence?” It is that set of inter-related activities and processes that differentiates your business from the competition.