This comprehensive guide on business outsourcing provides proven tips on what to outsource, the best time to outsource, and the right process to outsource a small business’s operations.
An Amazing Outsourcing Testimonial By a Renowned Entrepreneur
One of the most successful entrepreneurs of our time has this to say; “When I was leaving my position as a chief executive officer in one of the biggest financial outfit to launch my own financial service outfit, I determined from the onset that there are certain tasks I won’t handle in-house. One of the major reasons is that I’ve already worked out how much my proposed business will save (hence ploughed back as profit) by not handling such tasks in-house. And, just within the first 12 months after the business began, our revenues hit six figures!”
Why A Lot of Small Businesses Stagnate
The thing is, majority of the entrepreneurs out there are greatly talented, but they assume they can do it all on their own. Such assumption can substantially stagnate the growth of a business. An entrepreneur will create more time to concentrate on the core aspects of the business that generate income when he embarks on business outsourcing. At the beginning, entrepreneurs were not interested in outsourcing because they feel it’s a business solution for only big businesses. But, thanks to the ever-evolving technology, outsourcing has become increasingly accessible to small businesses and helping to boost their productivity, growth, as well as bottom lines.
Initially, trying to adopt outsourcing can be a daunting and time-consuming process. But, when you realize how fast and beneficial you can build your business through external professional help, gaining increased economies of scale and efficiencies, you are propelled to undergo the process.
So, What Do You Outsource?
These days, virtually every business operation can be outsourced, from payroll administration to help desk, accounting and even legal aspects. However, before you outsource any business task, sit back and review your business comprehensively to identify your strengths and values. If you don’t feel like carrying out a business task, that is not enough reason to outsource such task, especially functions that are like livewire to your core business.
According to an expert, the business functions that require outsourcing are classified under these three categories;
- Highly repetitive business tasks
- Highly skilled, expertise, or executive
- Special knowledge – e.g. information technology support
When to Outsource?
When it comes to the right time to embark on business outsourcing, it differs with each company. But, generally, once you discover you and your existing employees are no longer able to cope with the daily functions of your business in a satisfactory manner, it could be a sign to outsource. For most entrepreneurs, it comes with the feeling that you are the only one that can perform the task in an efficient manner. Experts recommend outsourcing from the inception of a business.
How To Outsource
Now, before you step out to hand over your business functions to an outsourcing vendor, make sure you are hiring the right provider. Ensure you adopt a profound selection process. Start with your network – your colleagues in the industry. Find out if they can refer a reliable outsourcing vendor for your type of business. Also, use online platforms like Twitter and LinkedIn. Another good option is to place an ad on notable freelance platforms.
Stop missing out on the great benefits that come with business outsourcing!
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.