5 Things Small Business Should Outsource in 2020
Your small business is starting to grow and you are finding difficult to get everything done. Those ten hour days are turning into fourteen. You need some help, but is hiring more staff really the best option?
We will have a look at when you should outsource, what you should outsource and look at five options that are likely to be good for most businesses.
When Should You Outsource?
When you need to is the simple answer. When you find yourself micro-managing every aspect of operations of your business and things aren’t getting done. As described before your days have become longer – you haven’t seen the wife and kids all week.
These all point towards one of the times that you should outsource – you need help. Your decision not to get it is likely stopping your business from growing. You’ll be amazed when you look back in six months time and your business has grown and there is no way you could imagine doing all the things that are happening now.
The second time that you should think about outsourcing is at times when you just need a bit more help for a short period. Outsourcing allows you to get that help without going through the process of hiring and firing someone.
What Should You Outsource?
Right now you can outsource almost any aspect of your business. Everything position from admin to CFO can be outsourced. But just because you can doesn’t mean that you should. If you outsource the wrong things you will lose what made your business special in the first place.
The first thing is consider what is your core business. What are your core competencies and capabilities? What are your talents? What are your resources? These are the things that you should never outsource. For example if you are in accounting you shouldn’t outsource this service. It is key to what you do.
Three Main Types Of Outsourcing
These are those at the top of their game – professionals and executives, like the CFO discussed before. Continuing the example you probably can’t afford a full time CFO but you could afford to outsource a contractor to come in a few times a year to look over the books and make sure everything is running smoothly.
This is an area where outsourcing shines. We are talking data entry etc. Any basic tasks that need to be repeated over and over again. This is a great area to save yourself time to allow you to focus on your core competencies.
After you have looked at your business you know what you know. You also know what you don’t. The people with this knowledge are a great opportunity for you to utilise the outsourcing model. Things like accounting, IT and marketing.
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1 – IT
IT is a specialised area. If it isn’t part of your core business you should look at outsourcing this. An IT professional can help you save time and get results that you probably didn’t even know were possible.
Don’t believe us? Read about the pros and cons of outsourcing this vital service here
2 – Accounting
You are likely already partly doing this with your sales and invoicing. You should look at using an accountant to help you with your bookkeeping and tax so you can focus on your core business.
3 – People
You are good at what you do but there are things that your business will need from time to time that you aren’t good at. This is when you need to get a specialist in. There are freelancers in almost any field you can think of. Think of writers, interior designers, and admin experts. All of these people can do a job for you that will help your business grow.
4 – Marketing
You can end up spending a lot of time here that a professional could do much quicker and probably more effectively. If you are a small business you probably can’t afford a permanent marketing team. So outsourcing fits perfectly, allowing them to get the job done quickly and effectively either when you have a sale or on a more regular basis.
5 – Logistics
Logistics is fulfilment, warehousing and delivery. Once again, unless this is your core business you can probably save yourself a lot of time and money by outsourcing this to a professional. This will really depend on the sort of business you are in and the decisions that you make around what sort of logistics provider to use will be coloured by that.
There is a good article on logistics here.