Have you ever thought about what essential tips you need to get the most out of how outsourcing works for small businesses?
According to small business outsourcing statistics in 2019, more than one-third of small businesses currently outsource a business process, and 52% plan to do so in 2019.
Going by this, then you know already outsourcing is inevitable for your small business.
Having a good understanding of how outsourcing works is the first requirement for small business owners to get the most out of business outsourcing.
There are times when outsourcing tasks in your business is the right decision to make. Sometimes it’s because you lack the right skills to manage a particular task, or lack the ability to bring on a full-time employee, or you’re just too busy to handle it all.
Many small business owners find themselves in the puzzle of determining whether they need to outsource part or all of their businesses.
If you’re a business owner with a little to no time on your side, or you’re having financial constraint to employ a full-time employee to handle a core business function for you, hiring a contractor may be the best way to improve your efficiency and customer service.
And, if you’re already in a job but contemplating starting a business to complement your income, you may also want to consider hiring an outsourcing partner to handle the business for you.
Outsourcing, as it is, is something that nearly all business owners should take their time to learn about. There are just a thousand and one mistakes people make when going about business outsource.
Whatever your reasons for wanting to outsource your business there are things you need to consider. From why you need to outsource your business, to what things to outsource, there are fundamental rules you need to keep holy.
In this article, I’m going to share with you how business outsourcing works and 5 essential questions to answer to outsource your business quickly and effectively.
So relax and let’s dive into the meat of the article:
How Outsourcing Works for Small Businesses
So you’re ready to learn about how outsourcing works for small businesses, then you’re in big luck. Because as beautiful as outsourcing can be to small businesses, there are many things to learn about how it works to avoid the numerous pitfalls in it.
To get this right, you need to start with the essentials of outsourcing and that will lead us to…
5 Essential Tips to Get the Most Out of How Outsourcing Works
Tip #1. When Should You Outsource Your Business?
The first question you should ask yourself before taking the leap into outsourcing is: when should you outsource?
A lot of people simply take the plunge without considering why they really needed to give up on their business at that time they did. Although running your own business by yourself can be a great thing you should do at times, there are times when you may just need to quit and let it go.
The question is when should you hand over a task in your business?
Here are a few things that will give you an idea of when you should consider outsourcing tasks:
Multi-tasking: If you’re multi-tasking, then it might be just the right time to outsource those tasks you multi-task on. The reason is simple! It can affect your productivity and brain.
Skill-set: Do you have the skill-set for what need to be done in your business? If you don’t have the skill necessary for important tasks such as writing copies for it or filing taxes for it, you might want to consider outsourcing the tasks.
Time: Are you tired of running alone all the tasks and processes of your business? Are you too busy to handle it because of your office job? Then you’ll need to outsource for maximum performance and productivity.
Expertise: Do you think your business isn’t growing as you expect? Are there things you’d like to do but don’t know how to go about them? Then you just need to outsource it to the expert to handle it for you.
Tip # 2. How Do You Choose Best Outsourcing Partner for Your Business?
So you’re ready to outsource your business but don’t know how to go about choosing the right outsourcing partner, contractors, service providers, or freelancers. There might be a few things you need to do before going into the actual process of choosing an outsourcing partner. And, in that, you need to:
- Sign a contract spelling out all the terms and conditions of the project including when to start and complete the project.
- Set a goal and action-plans of what you want to achieve from the outsourcing.
- Consider the expertise, resources and skills the partner or freelancer has in the service for which you want to hire him/her.
- Consider the scope of the project.
- Consider the track records of the outsourcing partner or service provider.
- Decide on the extent of technological know-how and infrastructure you’ll require from the partner.
- Consider the level of competence and professional manpower the partner is able to provide for the job.
- Demand that your partner provides you more samples, references to back up his/her quality services and to verify his track records.
- Consider the level of understandability, cultural and business compatibility the partner has about your business.
- Put quality ahead of price.
- Keep in touch with the freelancer or service provider through constant but polite communication and monitoring.
- Consider availability of after-service support put in place by the outsourcing partner.
Tip # 3. How Can Outsourcing Help Your Business?
Outsourcing your business can help it in a number of ways. Here are some of the benefits you stand to gain from outsourcing your business:
Benefits of Outsourcing for Small Businesses:
- It helps in increasing business efficiency and capabilities without increasing staffing cost.
- It reduces risk since the outsourcing partner will take responsibility for the risk assumption and management for your business.
- It reduces capital and labor costs.
- It helps in reducing work overloads and fixed costs.
- It saves you time.
- It enables you to divert your resources and energy into another business.
- It enables you to have full attention for other aspects of the business in which you’re good at.
Tip # 4. What Should You Outsource?
Considering all the benefits above, you may be wondering why you wouldn’t outsource your business in the first place. You may even want to consider outsourcing not just an aspect of it but everything. Before you do that you may want to consider what downsides outsourcing may have on your small business.
Depending on your time and expertise, there are things you may consider outsourcing to scale up your small business:
- The content marketing aspect of your business.
- Book-keeping and payroll.
- Administrative tasks.
- Filing of taxes.
- Other core functions for which you don’t have the necessary skills to complete.
Tip # 5. Where Are The Best Places to Outsource My Business?
As you’re set to outsource your business, here are few places to go for outsourcing your small business:
- GraphicRiver.net, a freelance marketplace for graphic design gig.
Outsourcing your business need not be something of a headache for you if you understand exactly how outsourcing works and what essential questions to answer before taking the leap into it.
Doing too much of multi-tasking, may whittle you down and inhibit your productivity. If you think outsourcing that task is worth your time, or you’re not able to handle it, you’ve got to consider outsourcing as the best option.
However, you need to take certain factors into consideration if you finally resort to outsourcing. This will help get the most out of how outsourcing works for small businesses including yours.
Also, remember that in outsourcing, there are quite some pros and cons to it, and you should weigh the two against each other to decide which way to go.
Above all, this guide comes handy when considering outsourcing your business and you should let it be your guide.
What tricks and tips work for you when outsourcing your small business?
Do you think outsourcing offers more benefits than harms to businesses?
Kindly share your experience with us. Now your turn!
Thanks for reading!!!