2016-12-11 00:00:00 Outsourcing English Find out how to determine when a business owner would be better off outsourcing certain business functions. https://d1bkf7psx818ah.cloudfront.net/wp-content/uploads/2017/03/08214629/Outsourced-employee-at-restaurant-register-serving-customer-near-industrial-equipment.jpg How to Know When It’s Time to Outsource

How to Know When It’s Time to Outsource

2 min read

For many people, starting their own business can be a liberating feeling. One of the reasons people start their own business is because they tend to be driven by the notion that “if you want something done right, you do it yourself.” While this can propel a person to launch a business, it can sometimes spell the beginning of the end for business owners who don’t understand their own limitations. It’s good to know when you should start outsourcing.

When You Can’t Keep all of the Plates Spinning

Any fledgling business requires a minimum number of functions to be performed on a daily basis. Products or services need to be created; employees need to be recruited, hired, and managed; customers need to be serviced; books need to be kept; strategy needs to be planned; new business needs to be created; and markets need to be developed. When all of these functions are performed by one or a few people, the business is relegated to a circus act of spinning plates. When a plate crashes, the business is set back, which costs valuable time and resources to get things moving again.

When Your Business Can’t Reach Critical Mass

From the moment businesses are launched, business owners strive to reach a critical mass where the efforts and activities of the business become sufficient to sustain its growth and development without any further investment. Unfortunately for many business owners, before critical mass is achieved, a point of diminishing returns is often reached where the activities of the business or the employees produce fewer results for the time, money, and effort expended. It’s at that point when outsourcing may be the answer.

When You Perform Non-Essential Functions

Sure, you can probably do the books better than anyone else, but why would you want to? If your business is projected to generate $200,000 in profits, which represents your income, this means that the time you spend on bookkeeping is costing you and your business as much as $100 per hour. Virtual bookkeepers, with solid experience, can be hired for a more reasonable rate.

Maybe you spent a lot of time creating a web presence for your business and, to optimize the site for maximum exposure, traffic, and customer interaction, you continue to tinker with it after hours or in the wee hours. To reach critical mass with your web activities, it’s a good idea to consider the advantages of hiring an SEO expert.

When the Business’ Life Blood is Threatened

Sales are the lifeblood of any business and require constant activity to fill the sales funnel and turn prospects into customers. Each moment that is taken away from sales activities can end up being costly if the sales funnel is allowed to dissipate. If a business owner or the salesperson is distracted with non-selling activities such as administration or customer service, there’s a good chance that sales will suffer at some point.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

Related Articles

Setting Time Off Policies and Expectations

When your business has employees, you should establish a time-off policy to…

Read more

Three Benefits of Tracking Time Spent on Individual Projects

You want your small business to be efficient and stay on track…

Read more

Addressing Incorrect Time Tracking

Whether it’s intentional or accidental, sometimes employee time tracking records don’t line…

Read more