Running a business is not easy and nobody can do it alone, even the most capable and astute business mind requires support. As your business grows there will be several areas of the business that you will need to outsource, deciding on which areas can be tough. You need to strike a balance between how much money you will be required to pay in order to outsource compared with what you will gain from the support.
Outsourcing or over-outsourcing can make or break a business, history has shown that many new businesses who outsource too early or outsource too much of their business have faced grave consequences as a result. In order to help you decide when and what you should be outsourcing, here are some key considerations that you need to make.
Cost vs Results
The number one consideration you need to make is what you will gain as a result of the cost that you will pay to outsource any particular area. For example if you are looking at calling in the services of a great financial advisor like, then in return you will have financial piece of mind, more time to spend on the business and give yourself the power to make smart financial decisions, in the long run this would be a cost worth making. On the other hand you may look to contract a factory to handle production, the problem here could be that if your business isn’t selling the level of products that you predict, you could be paying for over production as many factories operate on minimum production contracts as opposed to ‘as and when,’ this may not be a sound decision.
Can You do it Yourself
There are so many parts of business that you can do yourself in the early years when you are trying to keep costs down. Paying wages and dealing with HR for example, a lot of companies pay private HR and wage management companies when in actual fact you can do this easily enough yourself if you utilize some of the excellent software that is on the market. This will take up some of your time of course but in doing so you will save your business money, the most important aspect of your early business life.
Knowing How You’ll Use the Extra Time
Outsourcing parts of your business is not just about saving money, it is also about creating more time for you and your staff to spend on the day-to-day running of your business and focussing on growth. Something that you seriously need to consider is what you will do with the additional time and resources that you will have. There is no point in outsourcing your business if you do not have strong planning in place to effectively utilize the benefits that outsourcing will give you and your company. Before you even consider what and where to outsource, look at what areas of your business need more time given to them and what will be required to improve them.