Small businesses can find the advantages of outsourcing to be significant to their bottom line. The history of outsourcing demonstrates that low cost labor and a focused specialization were key factors in successfully going outside the business for support. Small businesses need to focus on keeping costs down while they work on development and growth. They also need to invest resources in recruiting competent labor; and then training and developing that labor. Small business owners need growth for survival; outsourcing will support that growth.
How to manage your small business for business growth without increasing your employees? How to keep focused on your defined business scope and manage the day-to-day business activities? Outsource needs that you can't meet from within the business.
Outsourcing is about hiring outside resources or specialists to do what you can't, or don't want to, do yourself. You might not have the skills, experience or education to do everything that needs to get done. Or you might need more help than your existing staff can provide. For example, you might want to do a telemarketing blitz for the introduction of your new product. You don't have the internal resources to do it efficiently, so you hire a call center in Las Vegas to do the calling. Or you might be able to do the business accounting yourself but you don't have time in your day, so you outsource the bookkeeping.
Outsourcing specialized services can help your business contain and minimize payroll costs, reduce the need to recruit more staff and to manage more staff, and improve your utilization of resources (people, equipment, time and money). There are excellent benefits and paybacks to contracting out services, particularly highly specialized services.
There are many functional services that can be outsourced. Here is a short list of some of the most common ones: human resources support - including recruiting, training, salary surveys, writing of job descriptions, writing of employee policies, payroll and benefits; accounting support - such as accounts receivable, accounts payable, bookkeeping, financial statements; marketing - such as specific direct marketing programs, new product launches, promotional brochures, and email campaigns; information technology support - such as vacation relief, backing up remotely, hardware maintenance, and software analysis; transportation - such as warehousing, inventory, shipping; building and grounds cleaning and maintenance; sales - such as independent sales agents or distributors; management consultants; and more.
Keep track of your expenses on outsourced services and recognize when it's more cost effect to transition from outsourced services to a full time employee. Although you do need to analyze when your business needs more of a specialist; as compared to a generalist. For example, if you need a specific direct mail campaign to announce or launch a new product or service, it might be more cost effective to hire a specialist in the field; rather than have your marketing coordinator (who does not specialize in direct mail) handle it. Your marketing coordinator's efforts might take twice as long and not include some of the 'best of breed' measurement tools.
As a business owner or manager, you will always find a number of good reasons to outsource specific services or support. One of the best reasons is that outsourcing allows you to focus on what you do best and/or what others can't do as well, or as easily as you. Review the strengths and weaknesses of your organization when faced with a resource-constraint. Then assess whether or not hiring or outsourcing is the best decision (remember to look at costs, potential for profit, anticipated results, time required, and more). - 32171
How to manage your small business for business growth without increasing your employees? How to keep focused on your defined business scope and manage the day-to-day business activities? Outsource needs that you can't meet from within the business.
Outsourcing is about hiring outside resources or specialists to do what you can't, or don't want to, do yourself. You might not have the skills, experience or education to do everything that needs to get done. Or you might need more help than your existing staff can provide. For example, you might want to do a telemarketing blitz for the introduction of your new product. You don't have the internal resources to do it efficiently, so you hire a call center in Las Vegas to do the calling. Or you might be able to do the business accounting yourself but you don't have time in your day, so you outsource the bookkeeping.
Outsourcing specialized services can help your business contain and minimize payroll costs, reduce the need to recruit more staff and to manage more staff, and improve your utilization of resources (people, equipment, time and money). There are excellent benefits and paybacks to contracting out services, particularly highly specialized services.
There are many functional services that can be outsourced. Here is a short list of some of the most common ones: human resources support - including recruiting, training, salary surveys, writing of job descriptions, writing of employee policies, payroll and benefits; accounting support - such as accounts receivable, accounts payable, bookkeeping, financial statements; marketing - such as specific direct marketing programs, new product launches, promotional brochures, and email campaigns; information technology support - such as vacation relief, backing up remotely, hardware maintenance, and software analysis; transportation - such as warehousing, inventory, shipping; building and grounds cleaning and maintenance; sales - such as independent sales agents or distributors; management consultants; and more.
Keep track of your expenses on outsourced services and recognize when it's more cost effect to transition from outsourced services to a full time employee. Although you do need to analyze when your business needs more of a specialist; as compared to a generalist. For example, if you need a specific direct mail campaign to announce or launch a new product or service, it might be more cost effective to hire a specialist in the field; rather than have your marketing coordinator (who does not specialize in direct mail) handle it. Your marketing coordinator's efforts might take twice as long and not include some of the 'best of breed' measurement tools.
As a business owner or manager, you will always find a number of good reasons to outsource specific services or support. One of the best reasons is that outsourcing allows you to focus on what you do best and/or what others can't do as well, or as easily as you. Review the strengths and weaknesses of your organization when faced with a resource-constraint. Then assess whether or not hiring or outsourcing is the best decision (remember to look at costs, potential for profit, anticipated results, time required, and more). - 32171
About the Author:
As a small business owner or manager, your goal is to grow your business. The advantages of outsourcing will help you achieve that goal by saving you money and time, focusing your efforts, and achieving your plan. Find more proven strategies and resources from the More For Small Business site to better manage your business.
