Outsourcing is a relatively controversial topic when it comes to small business owners. There are so many arguments for and against the practice, that you can often be left feeling confused. But not to worry. We’re here to help! Here’s everything that you need to know about outsourcing in order to run your business effectively and turn over the maximum profit possible.
What is Outsourcing?
Outsourcing is also occasionally referred to as “contracting out”. It is a business practice which sees companies shift certain aspects of their work to external, independent companies. There are two main reasons for doing this: saving costs and improving the initial company’s efficacy. So how does this work? Well, let’s try an example. Perhaps you don’t have the equipment necessary to complete certain parts of your work. Maybe the equipment is extremely costly. In cases like this, it may be beneficial to hand over this aspect of your work to a company that already has the equipment. This could prove cheaper than purchasing the equipment yourself! They may also have a lot more workers with experience in operating the machines who will be able to complete the project much more quickly than you could have alone.
Should You Outsource?
If you are the owner of a small business, you can often get territorial over your brand, space, and work. However, it is important to remember that one person will not be able to do absolutely everything, no matter how organized and dedicated you may be. Having complete control over your company is beneficial. However, you will work yourself to the bone and this will reflect badly on your brand through the lower quality of your goods and service. So in short, yes, you probably should outsource certain aspects of your brand. This will free up your time, allowing you to focus on brand expansion, new products, new services and new designs.
What Should I Outsource?
As your business grows, you will become aware of more and more tasks that need to be carried out. A good place to start outsourcing is accounts. Unless you happen to be a qualified accountant and have the free time to deal with your business’ finances, you will want to call in a professional. A company with plenty of experience in accounting for small business will ensure that you have an accurate financial picture of your business and can help with book keeping too. A second place to outsource? Market research. Market research is essential for brand expansion. It helps you to understand your potential customer base as well as your competitor’s techniques. As someone highly dedicated to your personal brand, you may have subtle biases that could affect the findings. Market research needs to be neutral in order to have the most positive and rewarding effects. So conduct it through a specialist organization for accurate results and suggestions.
What Shouldn’t I Outsource?
If possible, try not to outsource your employees. You should know the individuals working for your brand (such as shop assistants). Hold interviews to assess their suitability to the role. Having a personal connection with your staff can help to improve their brand loyalty and performance.