Most small businesses operate under the tried and true adage of “if it’s not broke, don’t fix it.” What happens when the amount of work to be done is starting to eat into your profitability? Outsourcing is a solution that can revitalize your business. Here are a few reasons a business owner should consider outsourcing:
- You’re free to focus on the core day-to-day operations of your business. For many businesses, small and large alike, the primary motivation to outsource is that it shifts work from the owners, managers, and employees so they may spend their time on activities that directly generate income.
- Potential to improve growth opportunities. Resource availability is a key component to the expansion of operations and increased profitability.
- Increasing efficiency and effectiveness of your business. In most cases, outsourcing allows access to expert talent. Outsource service firms can offer innovative approaches, the latest technology, and creative, cutting-edge solutions previously unavailable to your business.
- Pad your bottom line by cutting your expenses. A skilled contractor can generally perform work less expensively and more efficiently than a full-time employee can. Best of all the costs associated with hiring, training, and maintaining employees are eliminated, along with taxes and benefits.
Here is what you can outsource to increase profitability and improve efficiency all while maintaining the integrity and structure of your business.
- Administrative tasks. Everything from scheduling and travel arrangements to data entry and email management can be expertly managed by a virtual assistant. While these tasks are vital to the operation of the business, they are not core business activities.
- Lead generation and customer service. Making sales calls is a numbers game, the more contacts made the more potential for leads and sales. Once the initial outreach has been made, closing the sale can easily be handled by an internal sales team. A skilled salesperson is better utilized for closing sales and the management of clients, rather than cold calling. It can also be beneficial to outsource customer support rather than maintain a qualified support staff.
- Accounting and financial responsibilities. Accounting firms or individuals can help with many financial related tasks from bookkeeping to accounts payable and receivable. Outsourcing the processing of payroll can significantly reduce cost, not to mention the accompanying headaches.
- Marketing. Effective marketing of a business determines how the consumer perceives both the brand and company reputation. A marketing firm or contractor can offer valuable outside perspective that an internal staff cannot.
- IT operations. It is often extremely expensive to handle IT operations in-house. The average business has limited ability to manage all of the IT needs that are necessary to operate. IT is a maintenance and repair function, not a core business activity.
- Human Resources. Talent recruitment and human resource tasks can easily be managed by an outside agency. External agencies are often more skilled at advertising, screening applicants, and checking references. Using an HR or employment agency to manage employee benefits is also wise, these professionals stay up to date on all the latest employment laws and standards.
Typically the best way to locate high-quality prospects is through recommendations from your professional network. A referral from someone you know and trust is a much more reliable gauge of quality and is usually based on the level of skill and not simply the cheapest cost.