Outsourcing… As a new business, you are understandably protective over the processes you have created, but there comes a time when your expertise is diverted from where it should be focused and you’re spending more time on administrative tasks when you’d rather be doing what you love.
As you scale your business it is very likely you will need extra resources. Many businesses struggle to justify the investment for hiring in the first instance, so let’s look at the external support that is available, and the signals to look out for that tell you it’s time to consider outsourcing.
How to tell you’re ready to explore outsourcing
Here are some signals that let you know when your focus is being pulled in the wrong direction:
- Feeling overwhelmed by tasks that you don’t enjoy or you feel you’re not good at
- You are doing too many administrative tasks that stop you from being strategic
- No time to find new clients/customers
- Dropping the ball with clients or missing deadlines
- Seeing yourself as the bottleneck of too many things in the business
- Working all hours of the day and compromising on your personal time.
There may be other triggers that you’ve already noticed yourself, but there will be a definite sign that you’ve had enough and that running your own business just isn’t what you thought it would be. That’s when you can look at what tasks are taking up your time, your patience and your sleep!
What tasks or processes can a new business look at outsourcing?
Let’s get you back in the right headspace and free up your creativity in your business…
Bookkeeping, Tax and Accounts
One of the most important tasks to get right is your tax and accounting. If you’re not familiar with the systems, the deadlines and the process on the whole, this could be a good place to start looking at outsourcing.
Dealing with HMRC for a novice can be daunting and difficult but bookkeeping and invoicing can be made simpler by using automated systems in software like Xero, so look for an accountant that offers free consultation to work out how you could work together.
This type of ‘fractional’ expertise will help you better understand the most important part of your business. The numbers. Not just those in your accounts but also your real numbers.
IT
Often overlooked by the startup business owner until something goes wrong, IT is vital to get right to protect not only your data, but that of your clients, customers and supply chain too. A good IT outsource provides you with a safe place to store your data, protection against hackers and viruses and 24/7 support.
Speak to someone in IT that also talks about saving you time and money, streamlining process and scalability.
Human Resources
Do you know how to write contracts and policies? Do you know what clauses need to be included in an employment contract or which policies need to be in place when you hire someone? The law changes rapidly when it comes to employment and HR, so it really does pay to have an outsource take on that responsibility for you.
You will get updated policies, support in conflict mediation and resolution and peace of mind that everything is done legally. A good HR outsource also knows how to help you with those difficult conversations, those often avoided, and even when it’s time to call upon a business lawyer for further support, so that saves you having to find another resource.
Recruitment
You may have started your business with a partner or a staff member already, in which case are you ready to outsource your Human Resources management? In the meantime though, if you are ready to recruit a staff member, an outsource can help you find the right candidate much sooner and save you time and anxiety in the process.
Recruitment companies help you write compelling job ads and descriptions and take the responsibility of vetting candidates before you meet them. They may even actively headhunt for you.
I recently attended an event with Steven Bartlett (Diary of CEO), who highlighted the fact you should be constantly hiring for world class talent and persuading them to join you. Thought provoking.
Marketing
Spending too much time on Facebook or learning about Google Ads? When it comes to marketing, I often say, ‘Do what you can, what you like, and what you can’t give to someone else.’ Then pass the rest to an expert.
For example, you may outsource to a social media manager to ensure a consistent presence, but you can also keep updating your platforms yourself. Perhaps you love doing all the social media, but find blogging too much to keep up with, or you really don’t want to spend your own time learning Pay Per Click advertising and would rather pay for someone else’s time.
Too often business owners keep hold of the marketing because they enjoy it, but only really build brand awareness, and lead generation is limited. Therefore consider the expertise available and the results should then pay for themselves!
Calculating the cost of outsourcing – Is it the right time, financially?
I bet you’d like a nice simple formula here to work out if you can afford to outsource, but it’s different for everyone. To get a really good idea though, begin by working out what an hour of your time is really worth. Can you then put a value on your time outside the business? You may have to try if you’re compromising on family/friends/hobbies…
Outsourcing might feel like a huge expense to begin with, but if you choose wisely, it can actually be the best thing you ever do for your business. And you can always stop or change if you need to.
Business mentorship is not an outsource…
I’d like to wrap up this article by asking if you’re ready to outsource, you can ask me, but mentorship and coaching isn’t an outsource, it’s a service. I hope my articles give you the advice and encouragement you need to really make a difference in your field of expertise and grow your business, but if you do need a sounding board, or some tools to give you clarity, that’s what I’m here for.
You can access free business advice or consultation with me on my contact page, or feel free to download my free business development e-books.