You are likely to have had an internal discussion, even a debate, on why you should or shouldn’t consider seeking the expertise that your business may need. Any financial outlay should be given particular consideration, of course, and as the astute leaders or scalers can vouch for, outsourcing makes financial sense.
So why might outsourcing be a sticking point for some?
Those who are sceptical about outsourcing might believe they lose an element of control in their business, that there may be hidden costs, the security of data and information are likely to be compromised, the deal they get from a cheaper option to others when outsourcing produces inferior quality and that the culture of the business could never be upheld by an external party.
The handful of potential challenges are often placed in the ‘too difficult box’, probably because they are time deprived and do not feel they have the capacity to turn their attention to it in the first place.
This, with a sense of irony, screams out that they would benefit by outsourcing.
With clear communication channels, a watertight agreement in place, professional systems and regulations adhered to and by engaging with a professional who is an expert in their field and acts with integrity, outsourcing can and should maximise the ROI (Rate of Investment) and save a business money.
There shall always be pros and cons of any business decision in mind and with those that are up for discussion, if the benefits outweigh the less favoured elements of the opportunity, the answer can be reached; which is why outsourcing is becoming more favoured by business owners and leaders.
The ROI of a business is all important and so maximising that and saving the business money is the ultimate aim.
By outsourcing certain elements of a business will reap financial benefits that may include any of the following.
Cutting overheads in operational costs
Not having fixed costs for employees to include but not being limited to desk space, IT, and financial benefits such as pension, NI contribution, holiday and sick pay is a huge cost saving for a business.
Paying for what you need at exactly the time you need brings huge cost savings to a business.
Having less responsibility for people and having to budget for them can reduce the feeling of stress for a business owner.
Flexibility
Being able to adapt as business activity ebbs and flows makes outsourcing a perfect solution.
Ramping up outsourcing solutions as a business gets busier and reducing it as and when needed provides a business with just the right volume of support at any given time.
This feeling provides a business owner the sense of freedom and agility of being able to do what is needed and when.
Limited cashflow
As an SME (Small and medium-sized enterprises), the cashflow of the business is likely to be lower or more limited than that of a larger company.
It is more likely there is a much stricter handle on the purse strings as these businesses are launched with the aim of getting off the ground in order to develop and evolve.
Until such time that a company’s cashflow is consistently positive, outsourcing should be the preferred option in delivering professional services that could, ultimately, be sourced in-house.
Increased productivity and leveraging demand
Closely linked with flexibility, as a business becomes busier with limited expertise or resource, by outsourcing to receive specific services, it allows the business to gain market share through increased productivity.
Any limitations of that are often as a result of a business not taking advantage of the positive opportunities presented to them and pausing or halting their deliverables because it chooses not to outsource what they need to in order to continue and increase their outputs.
Equally, if demand on inputs are reduced, productivity will decrease. Being able to leverage demand by outsourcing effectively and strategically will allow a business to be productive at the right levels accordingly.
Reduce overwhelm of existing / in-house
People in a business are, arguably, its most important asset. Looking after those that help drive the business is key.
A real consideration of the people and their well-being should be made a priority, regardless of the size of the company, and by outsourcing by way of providing support to people in business is the most important drivers in business and can only bring a positive outcome in the short and medium term.
There are many senior positioned people that remain ignorant to this. A culture of overworking is an easy trap to fall into and this has the potential to not only create negative PR but it can also, as importantly, create extensive burnout which leads to compromised quality in results and productivity.
Independence
Probably the biggest advantages of owning a business is the independence that comes with it.
Calling the shots and being responsible for those actions allows a person to make business decisions independently which allows for a greater insight.
Outsourcing the important and critical elements of a business is derived from an independent viewpoint that it is required, will be beneficial in financial, operational and overall business terms with the resulting decisions creating an accountability that can be measurable.
Highly skilled experts
We can’t be good at everything!
It makes perfect business sense to outsource what cannot be delivered at the highest quality in-house.
In order for a business to set itself apart from its competitors and ultimately succeed, in today’s increasingly competitive environment, that business needs to produce the best.
The best in business can be achieved through outsourcing to experts in their field as they deliver the same projects quicker, more efficiently at a higher level of quality.
Frees up time
Time is often the thing that most people complain about not having.
This is most often down to business owners undertaking everything themselves. As a non-expert in many things, it is likely to take them longer to do something than it is a skilled professional and the perception of saving money by doing it themselves is false.
By outsourcing critical tasks or projects to an expert, it frees up time for core activities that generates money which is often forgotten.
The simple and clear formula to this is that if you calculate how long a task or project will take you and if your hourly rate exceeds that of which you would pay a professional if you were to outsource it, you need to outsource it and spend your time more effectively on your business.
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It has long been known that outsourcing is essential to a degree in any business.
Outsourcing often includes essential elements due to regulations or compliance (such as independent financial accounting checks) or IT provisions (highly skilled with specific applications, licenses and software that reduces the risk for companies should systems in independent in-house systems fail).
It is also an important business decision when considering how to operate a business as efficiently as possible.
Outsourcing makes financial sense to all businesses in one way or another and it is only when experts are brought in to support them that a business can truly become set up to reach its full potential and achieve the success it sets out to attain.
If you are ready to take your business to the next level and you would like to work with an expert who has decades of experience in business strategy, project management, business support and admin, please get in touch.
Anna
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