Benefits Of Outsourcing In Business – Focus On What You Are Good At
Every business has many moving parts and tasks to complete which is overwhelming. Here are the benefits of outsourcing in business!
Hi Trish Davies, here, founder of Build Your AU and personal branding expert. As a business owner you will be aware of what it takes to run a business either online or offline. Sometimes there doesn’t seem enough hours in the day to get things done which leads to stress and overwhelm.
You will in all probability have an active “to do list”, active being the word. When you look at that list it can appear that it never gets shorter because things are continually added. Yes things do get ticked off and removed but they are soon replaced with another task that must be completed.
Now that is just the life of being a business owner but if that list remains large it could mean one thing. That is, you are trying to do everything on your own which is common especially if you are a solopreneur.
It is very easy to don the hat that many other people wear, and it can be a juggling act. The trouble is that we all know what happens if you try and juggle too many things at the same time. Things tend to come down crashing around your feet which you then have to clear up.
No there is a saying that “prevention is better than cure” which can be applied to running a business. The prevention to chaos and overwhelm is to outsource certain parts of your business.
What Is Outsourcing?
Basically, in a nutshell outsourcing is to contract third party people to undertake tasks within your business. There are millions of specialist contractors that you can leverage to lighten your load and get things done.
Failure to outsource can sometimes hold you back and the growth of your business. You tend to get embroiled in something that you simply can get right even after multiple attempts. The result is that you get frustrated which then can have a negative impact on other aspects of your business.
For example, a member of my mastermind was having technical problems with his website. Whatever he tried he couldn’t get to work, and he raised this issue in our weekly masterminds.
Through discussion was clear that outsourcing this part of his business was the way forward. That then lives him the time to get on with what he is god at which is hosting his weekly podcast.
Benefits Of Outsourcing In Business
Before I get onto the benefits of outsourcing in business I want you to gain clarity on what outsourcing means. In essence it is you building a team of people to help you when you need it.
You will build a network of highly talented independent contractors. These contractors will either work in your business full-time, part-time or when you need them for a specific project.
If you have a team that you can trust then you will find your business runs smoothy and more efficiently. I have a team of people who help me run my Buying USA Real Estate business. Also, I have contractors who help me operate my online digital business.
I have control over everything but at the same time I am not doing everything. That makes a huge difference to my life and the performance of all my businesses.
It Helps You Focus On What You Are Good At
When you adopt the outsourcing into your business it enables you to focus on what you are good at. You have natural talents and gifts which you can leverage to the hilt.
These are the tasks that you should take ownership of within your business. Take some time to look at what needs to be done to run your business such as operational procedures, admin, bookkeeping etc.
Do the tasks that you are good at and then outsource the other tasks. Don’t try, as I previously mentioned, to be “a jack of all trades and master of none”. Focus on your core talents to make your business efficient. Every minute you focus on tasks that do not fit your skillsets is a minute wasted and an inefficient use of your time.
Outsourcing Reduces Your Labour Costs
Now I know that there is cost involved in outsourcing but must look at this as an investment. Look at it this way. Your time has a monetary value which only you can decide what it is, but it does come down to money.
Your investment is bringing people onboard and into your business when you need them. This is not a full-time role you are asking people to fill. Therefore, you are in effect saving huge amounts of money that full time staff require.
Usually when you outsource it is for a specific project when you need it done. For example, say you want to ecovers and images done for your online training program. You will have a graphic designer in place, and you simply send that project to him or her.
Rather than having a graphic designer that is full time on your payroll. These people are freelancers, self-employed contractors who handle their own tax and insurance. You don’t have anything to do covering their annual leave or sick pay.
You simply give them a job to do when it is needed, they complete it to your specifications, and you pay them. A simple transaction at a fraction of the cost of having staff.
You Control Your Cash Flow
This really follows on from the previous point I mentioned. If you have staff then you have huge overheads that must be met week in and week out. Businesses run on cash-flow, the more the better, to survive.
When you outsource you have more control on the money that is within your business. Hopefully you have regular transactions happening and that money is being funnelled into your account.
When you need a one off job done it is in effect a pay as you need service. This enables you to take more of that cash flow and invest in other aspects of your business such as marketing.
Another thing to consider that when you outsource those independent contractors have the required technology. Therefore, it saves you that investment if you tried to do it yourself.
For example, Photoshop or similar graphic design technology. Photoshop is around $29 per month at the time of writing this post which equates to $348 per year. That is a serious chink of change to be spending year in and year out, especially if you are not naturally talented in graphic design.
Your outsourcer will have the necessary technology, they have made that investment, not you.
Outsourcing Opens Up A Wider Network
If you have staff then it is your responsibility to educate them on how to do the job and on your business processes. When you outsource you don’t have to worry about this as it is the outsourcers responsibility.
They understand how their industry works in relation to any what licenses they need to operate. Also, they will be responsibility to any accreditations they need and be up to date on any new techniques to use. Basically, they are responsible for their own development and practices to run their business.
Another thing is that indirectly you are opened up to a whole new network. I say this because there may be certain things they need help assistance on. They will have their own contacts that compliment what they do. That access is simply not available to you, so you are leveraging their knowledge and network.
You Have Greater Management Of Workflow
There is nothing more annoying for a business owner than when someone leaves. There would have been a lot of time and money involved in hiring and training that person. That investment then walks out of the door to benefit someone else.
Also, it has a knock on effect to your business which can be disruptive. It means you must go through the process again to fill that void.
Outsourcing gives you more control over who you hire and when you hire them. Once you have built your own network of outsourcers you will have a great working relationship. That relationship is flexible but at the same time professional.
So, there are 5 benefits of outsourcing in business. Please leave me your comments on my thoughts in the box below. I recommend outsourcing 100% as it has worked very well for me. My network of specialists has grown which also has a physical presence in my Build Your AU mastermind.
Helping you build your authenticity, authority and audience.
Trish Davies
Build Your AU
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