When I planned to switch my business from an Import-Export company to launch my own media agency, I knew from the beginning that there were many tasks I didn’t want to handle.
While operating my agency, my strategy was clear: hiring outside content writers and slowly building my virtual team of sub-contractors.
Within months, my business revenues reached six figures
Many entrepreneurs have great talents, but they think they can handle everything, and that can stall the growth of the business.
Business owners who outsource their back-office duties have more time to spend on generating revenue.
Outsourcing is a business practice in which services or job functions are contracted to a third party.
For a small business, outsourcing initiatives with talented professionals involves a wide range of business operations, from social media management, content writing, admin tasks to some personal assistants.
IT Companies may choose to outsource technical services onshore (within their own country), nearshore (to a neighboring country or one in the same time zone), or offshore (to a more distant country). Nearshore and offshore outsourcing are traditionally pursued to save costs.
Technology has made outsourcing a more accessible strategy for smallbusiness-and for many, outsourcing is the prime factor in their growth, productivity and cost-saving.
As we move into the second half of the year, I urge small business owners/ entrepreneurs to leverage this vital opportunity. Delegate all your non-core tasks to the best talent at minimum cost.And, get ready to scale your business at 10x speed!!
Outsourcing’s benefits are not well understood by many businesses. However, outsourcing isn’t just about saving money (or even the most important reason). In reality, you have very limited time to focus on your core business operations when you want to launch something new in your business.
Businesses that embrace outsourcing now will be in the best position to profit, while those who wait may find it challenging to transition to the next phase.
Understanding why other companies outsource could help you make the right decision for your company.
What advantages does it bring, and what value does it add? Let us look at some top reasons companies of all sizes look outside their company for their staffing needs.
You can focus on core business operations.
Remember the other areas of business: marketing, finances, management, lead conversion, lead generation and content writing. Considering each step in your business, you’ll discover that your support in each area will meet with some disadvantages. You should pick the main strength of your business — e.g. sales and marketing — and invest in the rest. Like outsource to handle online business management, content marketing, SEO etc.
Certainly, cost-savings play a major role in outsourcing. Outsourcing converts fixed costs into variable costs, freeing up your capital to invest elsewhere in your business and avoiding large expenditures in the early stages. Additionally, outsourcing can help you attract investors, allowing you to put more capital directly into revenue-generating activities.
Reduce labor costs.
The costs of hiring and training personnel for short-term projects or peripheral initiatives can be high, and temporary employees aren’t always reliable. When you outsource, you can concentrate your human capital where it is most needed.
Start new projects quickly.
With appropriate outsourcing services and resources, you can start a new project right away. In-house management of the same project could take weeks or months to hire the right people, train them, and provide them with the support they need. And if a project requires a huge capital investment (launching a new product line), the startup process can be even more difficult.
Invest in your core business.
As a business owner, you have limited resources, and as an employee, you have little attention and time. Outsourcing can help your business shift the focus from peripheral activities toward work that serves the customer, and it can help your managers set their priorities more clearly.
Unlike larger firms, most small businesses cannot maintain the same level of in-house support. Outsourcing can help small firms act “big” by giving them access to the same scale, efficiency, and expertise as large companies enjoy.
Limit your risks.
Investing in a business entails a certain amount of risk. Government regulations, financial conditions, markets, and competition all change very rapidly. Outsourcing providers assume and manage this risk for you, so they are better equipped to choose how to reduce risk in their area of expertise.
Outsourcing Checklist: Avoiding Potential Pitfalls
Every company outsources differently. Use these five tips to customize your strategy.
- Set clear efficiency goals.
Grow and increase efficiency together. Be more specific about your intentions. Like, are you trying to reduce costs, build a team, or free up resources for your new project?
Consider how outsourcing workloads in one area can free up resources and energy for focusing on the other areas.
What value will that deliver to your customers? Whatever the goal is, you should use it to decide when, where, and why to outsource.
- Change plan.
Outsourcing fundamentally transforms your company. Planning is necessary for such an exciting opportunity. Plan your staff, workflows, and company structure to facilitate your dream.
You will need to define how your team’s workflow will change around the tasks that will remain in-house.
Before you present outsourcing as a strategy, ensure you know the answers to a few questions that these decision-makers are bound to ask.
Think through your answers to the following questions:
Who will lead the strategy? Is this going to affect our current team?
Where will we use the cost savings?
How long is the duration of the project?
- Pick the right partner.
You can only get quality outsourcing services if you partner with a good provider. You want a partner who is flexible and willing to integrate wholly into your team. Check referrals and testimonials of providers to see if they would be a good match.
A reputable provider will offer a detailed proposal after several one-on-one conversations. Until you are certain you have found the right outsourcing partner, don’t move forward.
- Define success yourself.
Great outsourcing partners commit to high-performance standards, but they have to be defined by you. Identify the metrics and benchmarks that matter. Your key performance indicators (KPIs) will vary depending on which service you outsource.
If you’re outsourcing content, for example, make sure quality is measured. What kind of creativity is it carrying to meet your needs?
If you want to decide anything, be sure to ask the provider what its KPIs are. Importantly, you need to figure out how often you will receive updates from the partner. Depending on your needs, you can hold your service provider accountable weekly, monthly, or quarterly.
- Take a chance.
Instead of outsourcing an entire department, try a pilot project, which requires less upfront investment.
Additionally, you can observe how effective the outsourcing partner is before committing to them. Great partners will be flexible with your terms and will want to prove their worth.
Think how lean and efficient your company would be if its goal is to grow and evolve. You can reduce your costs by working with high-quality outsourcing providers.
Whether to outsource is a big decision, but many companies find that the results are 100% worth it.
Small businesses have many compelling reasons to outsource – to save money, improve performance, avoid recruiting headaches, and more. Despite its benefits, many small businesses are unsure how to get started with outsourcing and, as a result, are hesitant to proceed.
Outsourcing begins with deciding which workflows to outsource and which ones to keep in-house.
Generally, the most successful tasks to outsource are social media management and repeatable which consume a lot of time and resources. Some examples are accounts payable, digital marketing, administrative work, transaction support, data entry, and many more.
As outsourcing started as a business strategy, all of these low-impact tasks have added up to quite a large industry.
Research (from global outside revenue data) shows that business process outsourcing generated more than $23 billion in revenue in 2018 and that the overall market is projected to be worth $262.2 billion by 2022.
There is a constant demand for these services, which is driven by the desire of business owners/entrepreneurs to make their organizations operate more efficiently. With the right partner, outsourcing is a way to realize that goal.
At first, I felt like I was the only person who could do the work efficiently; I wanted control over everything. And also wanted my business to grow, and for that, I had to let go and start delegating.
And, guess what, letting go paid off!!
When speaking with clients, I’ve noticed that there’s always an urgency to outsource in certain months. Outsourcing has a lot of potential benefits, from flexibility to professional representation.
𝗜𝘁 𝗶𝘀 𝘄𝗶𝘀𝗲 𝘁𝗼 𝗰𝗼𝗻𝘀𝗶𝗱𝗲𝗿 𝗼𝘂𝘁𝘀𝗼𝘂𝗿𝗰𝗶𝗻𝗴 𝘆𝗼𝘂𝗿 𝗻𝗲𝗲𝗱𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵𝗼𝘂𝘁 𝘁𝗵𝗲 𝘆𝗲𝗮𝗿.