In my last post we discussed what outsourcing is exactly. If you haven’t had a chance to read the post, you can do so here.
As I mentioned before, outsourcing can save business owners like you and me tons of money, but sometimes more important than our money is our time. As mother of three who owns her own business, I know how easy it is to get your mind set on nothing but business. You want so bad to succeed and grow your business. It’s hard to NOT think about working, especially when you are the one responsible for every part of it.
I see countless business owners sacrifice many parts of their life, including important moments with their family, their own personal interests, and even their health. All for what they call their “desire†to succeed. It’s not worth killing yourself over. Outsourcing can help you have both a successful business and happy, fulfilling life.
By outsourcing everyday tasks in your business or things that you don’t know how or don’t enjoy doing, you will give yourself more time to do the things you enjoy doing not only in your business, but in your personal life as well.
This is different for everyone. Some of us hate dealing with the massive amounts of email received daily while others may despise bookkeeping. Personally, I am one who doesn’t like dealing with numbers, so this was one of the first things I outsourced in my business.
Outsourcing will also give you the opportunity to strategically plan your business and market it effectively. If you’re so busy doing all the little tasks, it’s tough to focus on the big picture.
Think about what things you prefer to handle yourself as well as what can easily be done by someone else, you can determine what areas of your business to outsource. You will also need to consider your budget when determining what to outsource to someone else. Your answers will allow you to pick and choose what you will keep and what tasks to outsource.
Let’s face it as a small business owner you often wonder, “Can I get it all done?†and in most cases the answer is no; at least not without a little help. We’re all human and therefore need to realize we can’t do everything. That is where outsourcing can become the small business owner’s best friend.
Even if you can only afford to outsource one or two things, the benefits of doing so will be great and you will in turn be much more productive in the areas you are able to focus on. Outsourcing is truly “smart business†for a small business owner.
In the age of globalization, outsourcing is inevitable. Thanks for your entry. You are right to point out the other benefit of outsourcing- saving time. Most people just think of outsourcing some jobs to Asian countries to save money.
Thanks for the timely reminder to look outwards to others rather than always defaulting to looking inwards.
Sometimes as business owners we look to the dollars and say I can’t afford it so the only thing we can do is get somebody to do the task for nothing. THAT’S US and we work away earning sweat equity and never ever get ahead as fast as we could with the help of others.
Hi Alice,
Good advice, but I think the word “delegate” instead of “outsource” would be better accepted and more accurate. I think you’re saying that one should not try to do everything by themselves and instead should hire other people, which most people would accept is a good idea, and is usually called “delegating”. Outsourcing usually means having someone overseas do the job of a company employee cheaper so that you can fire the local employee and save money. While I’m not passing judgment on that, it usually isn’t as popular an idea. 🙂 ~Steve, custom portable exhibits
First I wanted to oppose Steve (see comment before) in playing words, but then I realized it’s the author of the article who does that. In the article the word “outsourcing” is played wrong, since it truly should be “delegating” as in “giving some one else a task that I, as a business owner, cannot do”.
To me outsourcing is inevitable tied to shipping products to India/China and then taking over because they are not done on time or budget or both. 🙂
Hi guys, thanks for your comment. The post I linked to above addresses your concern with the use of the word.
I believe the word outsourcing is being used correctly. Of course some people will have their own preconceived notions when they hear the word, but the word is what it is and is the way use it. It’s also is a term commonly used in the online business community.
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http://dictionary.reference.com/browse/outsourcing
1. (of a company or organization) to purchase (goods) or subcontract (services) from an outside supplier or source.
2. to contract out (jobs, services, etc.): a small business that outsources bookkeeping to an accounting firm.
–verb (used without object)
3. to obtain goods or services from an outside source: U.S. companies who outsource from China.
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I don’t think delegate really covers it as their is no implication that someone is contracted to do the delegated work – tasks can be delegated internally. Outsourcing means contracting outside of one organization and that’s what I’m talking about.
Outsourcing is the only way to go when you run an internet business. Plus, it allows you to focus on the things you enjoy and the tasks you are good at doing.
In my view, Steve and Vlad are focussing on only one option for outsourcing.
I agree with Alice’s original point. To give one example of where and why almost every business outsources: any person can study up on tax rules for small businesses and therefore any small business owner can compile and submit their own tax returns. However, it takes a lot of time and effort to become expert enough in tax accounting and tax law to enable accurate submission of a tax return. Given this, almost every business outsources this important function to an accountant. This accountant will usually be in your local area, not in China or India.
Any function that needs to be performed for your business outside of the core activities of the business (eg. a plumber will do plumbing activities) can be similarly outsourced.
My rule of thumb is that if: (a) it will cost you more to do the work – measured as opportunity cost at your hourly rate – than it will cost you to pay an expert; and (b) if you will do a worse job than an expert, then the function should be outsourced.
You are so right, I do not know what I would do without outsourcing, running multiple websites and blogs is nearly impossible without some writing help.
Outsourcing helps cuts a company’s overhead expenses in half. With the high cost of health care insurance and other employee expenses, most business owners have no other choice than to outsource. One company offers that offers communication applications for companies that outsource is http://www.orangepoint.net. They offer a variety of affordable services from Voice Broadcasting to Auto Dial Calls. Until healthcare, employee tax and other expenses are lowered, Americans will continue to outsource.
The other great thing about outsourcing items is you do not have to be the expert at everything. Business owners can hire a temporary expert to assist in getting them on track or you can outsource something you may not want to hire a full-time employee for.
Someone else mentioned it, but globalization really has helped business owners find talent they may never have had access to before.
Outsourcing is a requirement for those who expect to take their business to the next level. Small Business Owners need to realize that in releasing control via the Outsource Method, that they are in essence gaining greater control over the magnitude of their Internet Marketing. It’s a hard thing to learn for some, however.
Frank
I love outsourcing! Wish I would’ve understood how valuable it was 5 years ago. I think many small business owners still believe that only major corporations need to outsource but this is definitely not the case. Good post 🙂