There’s a lot required to make a business operate successfully. Many small business owners face the challenge of trying to wear many “hats” in order to accomplish the varied needs of the business. However, trying to “do it all” is not a good approach. Rather, the idea of leveraging strengths, as taught to individuals, applies well to business. So, consider focusing and leveraging your skills and energies on the things that are critical to the mission of the business, and outsourcing the rest.
When Should A Business Owner Outsource?
A smart business owner should evaluate the potential of outsourcing by asking four key questions:
- Will it help move my business ahead faster and more effectively than could be done with in-house personnel?
- Will it build-on and enhance the capabilities of the existing team?
- Will it make the existing team more efficient and effective in its work?
- Will it control costs better or free-up funds for more productive uses?
What are the Benefits of Outsourcing?
Outsourcing can make a business better in these ways:
- Labor savings. Instead of having full-time employees with the associated costs of salary, benefits and taxes, those funds can be used with more flexibility.
- Strategic focus. By outsourcing certain functions, executive attention can be applied to the most important areas that will drive profits and sustained growth.
- Agility and flexibility. With less permanent staff, a company can adapt more quickly to the demands of growth and business progress.
- Standard quality. With expert outsourced business partners, a standard of proven professionalism is obtained.
- Risk reduction. With competent professional assistance, the level of risk associated with compliance to laws and regulations is reduced.
Functions a Business Owner Should Consider Outsourcing
- Bookkeeping, accounting, payroll and taxes. These are complex functions, require a lot of detailed effort and require careful compliance.
- Human resources functions including background and criminal checks.
- Website design and maintenance and graphic design.
- Writing and social media, including blog posts, newsletter articles, content writing and marketing materials preparation.
- Website and business research.
- IT support and computer networking.
- Administrative assistance, including varied secretarial and clerical tasks that can be very time-consuming.
- Legal assistance.
- Credit card processing.
- Insurance selection and management.
Don’t Make These Outsourcing Mistakes
- Overestimating cost savings.
- Failing to provide consistent quality guidance to outsourced work and processes.
- Failing to measure outsourced work.
- Going too far with outsourcing, including outsourcing functions that directly connect with customers.
Get Expert Financial Assistance That You Can Rely On
Contact Doerhoff & Associates, CPA, based in Jefferson City, MO for professional accounting and financial assistance that you can count on. Doerhoff & Associates has one goal in mind, to provide comprehensive business accounting services designed specifically for your success.