Nowadays most of us wear too many hats. We quite often end up running around like a chicken with it’s head cut off, hats and all, only to find out we never got our tasks completed or we stress ourselves out. Then, even the tasks we’ve finally completed are substandard or late due to the lack of attention we should have given them if we were able to ‘stay on task’. Over many years in corporate sales and marketing, I believe I have learned the secret to this problem. If you are running your own business or are a partner in a small business, learning to stick to your core competencies, not only frees up your schedule, but allows you to focus on more important tasks. Outsourcing your other tasks to capable experts usually costs less in the long run and the work done by professionals usually elevates the level of quality.
So when is it the right time to outsource?
As in most business decisions, timing is always everything. Learning how and when to let go takes time and experience. If you and your team are wearing too many hats, I believe the signs to outsource are when the tasks are not getting done in a timely manner, when completed projects appear to be substandard and important deadlines are being missed when a priority was shifted to other work. For small business owners, it just makes sense to outsource services like accounting, payroll, IT services and marketing especially from a business startup. For more established companies, outsourcing is logical as your company grows. You can then spend profits on expansion costs and additional payroll. Without getting into manufacturing outsourcing and the political debate that goes with that, most outsourcing allows a good use of company funding.
Top Reasons for Outsourcing
- Reduce Payroll Burden – outsourcing services can saving money
- Focusing on Core Business – free up time to focus on core business processes
- Lower Regulatory Costs – reducing delay in regulatory choices
- More Tax Breaks – take advantage of lower corporate tax rates
- Improved Service – many times outsources professionals can increase service quality
- Risk Management – less risk outsourcing than risking internal resources locally
- Freeing Up Internal Resources – wasted time with employees in areas not focused on core functions
- Peace of Mind – contract agreements offer protection for both parties
- More Efficiency – companies can spend months training only to have staff leave
- Greater Flexibility – provides the ability to expand or downsize quickly
I would highly recommend the next time you need to reduce costs or expand capabilities outside your field of expertise, that you consider the benefits of outsourcing professionals versus keeping the tasks and projects with internal employees.