Outsourcing - When does it make sense?

Outsourcing tasks will allow you to focus on what you do best in your business.

Outsourcing tasks will allow you to focus on what you do best in your business.

Whether you're in business start-up mode or already established, you no doubt have a long list of jobs to do in your business. Being a soloist or small business owner doesn’t mean you have to do everything yourself.

Outsourcing some tasks makes good business sense. It allows you to shift focus and effectively allocate your time to more important jobs such as marketing and generating sales.


What is outsourcing?

Outsourcing is a practice used by businesses to transfer portions of work to outside suppliers rather than completing the work internally.

The Australian Bureau of Statistics surveyed business owners on the perceived success of their business. The data suggested that businesses are more likely to rate themselves as UNsuccessful if they do not:

  1. Have a business plan
  2. Engage in training staff
  3. Outsource when it makes sense


Why outsource?

Employ a virtual assistant, bookkeeper, copywriter or IT specialist and discover the business benefits of delegating and outsourcing. If done well, business outsourcing can increase productivity and give you more time to spend on more profitable activities.

Outsourcing will add value to, and focus attention on, areas of your business that require the professional attention you can’t provide. It helps you play to your strengths whilst also learning from the experts.


How outsourcing reduces costs

It’s important to do an internal audit to better understand what tasks you and your staff do well versus those tasks you would be better off outsourcing to others. As a rule of thumb, any task that falls into the time-consuming category and costs less than your hourly rate could be outsourced.

You may for example, decide to outsource bookkeeping duties, payroll, admin or IT as it possibly could be a cheaper alternative than retaining in-house staff. In doing so, this will free up your time to focus on important strategic tasks that will shape the future of your business. It also means you don’t have to spend time trying to become an expert in new areas of business.

Many businesses find that outsourcing HR functions such as payroll and insurance saves enormous amounts of time, effort and energy. It has been reported that 16 percent of companies outsource some kind of task that deals directly with human resources.


Outsource when needed

Outsourcing cost savings can be summarised as:

Reducing overall operational costs. Businesses reduce labour costs significantly by outsourcing certain tasks.

For example; many small business owners have no idea how to write a blog. They acknowledge it’s a valuable marketing tool in today’s digital environment so they spend hours attempting to write one.

The result is wasted hours that would have been better spent by the business owner on generating sales rather than producing a piece of writing that is neither compelling, professional nor useful.

So back to the blog. For the cost of engaging a professional copywriter for an hour or two you end up with a blog you’re happy to put your name to for a fraction of the real cost (i.e. the cost of an hour of your time).

In addition to cost savings, companies can employ an outsourcing strategy to focus on core aspects of their business. Outsourcing non-core activities can:

  1. Improve efficiency, streamlining and productivity because another entity performs these smaller tasks better than the business itself
  2. Lead to faster turnaround times
  3. Increased industry competitiveness


Remember, outsourcing doesn’t cost – it pays.

Why not take advantage of our informative, free, no-obligation consultation that will further inspire you to consider outsourcing as an option? Contact Athol below.


With you in every success,

Athol Bailey


Business Strategies for Tradesmen, Ph:0418 177 947


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