A small business has limited resources and capital and there comes a point when outsourcing becomes a very viable and helpful option. Moreover, it is a well-known fact that entrepreneurs and small business owners have the tendency to wear many hats at the same time and be in control of a multiple tasks and operations in the company. As the company grows, it is not possible for a small business or an entrepreneur to manage everything on their own and outsourcing becomes a necessity.
Is it better to hire more people to work for your company solely or is it better to outsource critical and complex business processes to the experts? When outsourcing, you should be able to justify the cost involved in doing so and whether outsourcing is actually helping you save and earn more. Here are a few ways in which outsourcing can help you maximize the earning potential of your company.
Think of how much you can earn
The most important question you need to ask yourself is how much your company could be earning if it could outsource one task and spend the same amount of time and effort focusing on more important things. For example, there is a lot of clerical work that needs to be done in an office. Should you be wasting a lot of time and effort doing this or hire someone and pay them for full-time work, when you could outsource this task to a company that specializes in the concerned area?
Most of the time, such clerical jobs and business processes like accounting, take up a lot of effort and time and offer very little in return. Also, if the company and these departments have not been organized well, they can cost a lot of money and cause stress and slow down other business activities. Outsourcing such complex, but necessary tasks to a company that specializes in them can prove to be an effective solution. Even if outsourcing costs more, it can be very beneficial for the company. Instead of worrying about completing ancillary tasks, you and your employees can focus on the core functions that your company is involved in.
What does your company specialize in?
It is obvious that your company specializes in a few areas. There is no point in being a jack of all trades and master of none when it comes to business. You need to figure out the activities that your company does well. If a lot of time and effort is being spent on areas that are out of your expertise, you need to outsource them. Doing something that you are not good at will only hurt the company and will lead to mediocre results.
For example, your employees may not be good at social media marketing or maybe you just don’t have enough time to devote to your company’s social media marketing campaigns. Outsourcing the work to a social media marketing or online marketing agency takes the burden off your shoulders and ensures that you have excellent and effective social media marketing campaigns. The results from successful social media marketing campaigns will significantly outweigh the costs of hiring an agency.
You can take on more clients
Almost all small companies are forced to turn away from quite a few potential clients for a number of reasons. This is because they do not have the manpower or the required expertise and experience in relevant areas to take on the project. Sometimes companies shy away from potential clients due to time constraints. Another reason why some companies reject projects is because the cost incurred by your company, in completing the project, may not be justified by the revenue it will eventually generate. Rejecting clients not only leads the company to lose a lot of money but also prevents the company from growing.
Even when you begin working with a new client, or on a new project for an existing client, it often requires different types of work to be done. In such cases, you need to figure out which aspects of the project your company should take on and which parts should be outsourced.
This will help you get more clients and build a network while allowing your company to gain more expertise. By outsourcing parts of projects, you will also be able to offer better solutions to clients and will be able to work with a diverse range of clients in an efficient manner. You will be able to take on more clients even if you do not have the required skill level in certain areas and more clients can only mean more revenue for your company.
Outsourcing certain tasks free up a lot of time for your employees and this allows them to focus on their work more, which automatically increases efficiency. Also, the fact that your employees don’t have to waste time on doing something that they don’t want to or are not good at, allows them to work on things they are experts at, which allows them to finish work on time and without any stress. Outsourcing can also help you improve the overall quality of the work delivered to clients and this, in turn, helps build more trust and better relationships with clients. More free time also means that people have more time to spend doing things other than work, which improves the work-life balance and keeps workers happy.