The truth is that the majority of entrepreneurs believe they can do all by selves, which actually slows down the development of their business. It’s important for them to realize that everyday back-office tasks can be done by others through outsourcing, while they are then enabled to concentrate on increasing income.
A different view to outsourcing
The thing with outsourcing was that many entrepreneurs saw it as a powerful tool for big companies, thinking that their small business simply doesn’t need it. However, due to the development of technology, a small business can greatly benefit from the outsourcing as means to an end. Not just that – it can boost their productivity and indirectly generate income.
When you are outsourcing, the freelances you find and hire are usually subcontractors that will save you a headache caused by payroll taxes, the employee’s compensation, and health insurance. In case you have a home office, it’s normal you won’t be able to perform all the work there due to physical constraints. It’s one more advantage of outsourcing – you don’t have to make changes to your home office as somebody else will do that part of work.
The right time to start outsourcing
The right time to start outsourcing is different for every company. At one point, a new project will occur that will demand additional staff in order to be handled successfully. That’s not the time to employ a full-time employee if the project will be over in a couple of months or less.
Another turning point can be when you and your permanent employees can’t handle the day-to-day activities on your own, which is preventing you to focus on helping your business thrive.
However, very small business could start using outsourcing from the very beginning and develop the company from there on.
Whenever you choose the time right time for outsourcing is, there are several parts of your business that could be successfully outsourced.
1. Administrative tasks
The fact is that 40% of your time at work is spent on administrative tasks could, to be completely honest, easily done by anyone else.
The point is that your time is very valuable, so you need to spend it more wisely. You can easily find a person, like a virtual assistant, who will charge far less for performing those tasks than the amount of money you would waste while concentrating on that instead of generating more income. Instead of a virtual assistant, you can also consider hiring a part-time administrative assistant that could deal with traveling arrangements, personal errands, compiling reports, document management etc.
2. Legal services
Forget about in-house lawyers – even the most inexperienced ones are too expensive for a small business to employ them on daily basis as a part of the permanent team. It would only make sense if you had a significant volume of legal work to be dealt with on an everyday basis.
In any other case, it’s possible to outsource legal service from a marketplace specialized for these type of services, such as Upcounsel. It is also possible to buy legal documents from different vendors.
3. Financial management
The truth is you can’t handle this aspect of business on your own. If you don’t keep up with your financial records regularly, you could easily get into trouble at the end of the year and end up paying a lot more than you have expected. It’s much safer and easier to simply send your data to an outsourced bookkeeper to organize it for you and send you back the reports. Also, professional bookkeeping services will also come in handy when you are in need of financial advice on a certain matter. No need to wonder – simply consult your bookkeeper. If you want to have stress-free tax returns, don’t bother with it on your own but simply outsource this aspect of your business.
4. IT services
Yes, you could learn how to manage your own website and deal with other technical aspects. The problem is you will waste an enormous amount of time until you really get a handle of the codes, the optimization, and the website security. Outsourcing an IT tech is much safer and even though it will cost you more than to deal with it on your own, the amount of time it will save you is substantial – and it is the same time you could use on doing what you do best. Leave the learning of IT basics for some other time (when your business is stable and thriving) – find a professional to keep your data secured and your website maintained and optimized.
5. Marketing services
In the beginning, when the business is still developing, a big part of your focus will be on marketing. However, once the business gets bigger, it’s very easy to neglect the marketing aspect. When that happens, simply outsource it to someone else to take care of that. However, don’t transfer that aspect completely to another professional, just some parts. You need to stay included in marketing strategy, as it is how you actually grow your business. Choose which aspect of marketing would be better done by an expert, and try to stay present in other aspects.
Outsourcing has clearly become a reality for every kind of business, no matter how big or small it is. Entrepreneurs are starting to realize that it doesn’t pay off to have full control of all the aspects of their business. Not only they waste valuable time but they also waste money every time they don’t focus on their expertise.