Most of today’s entrepreneurs are skilled, capable, hard-working and talented. But they make the mistake of thinking they can do it all. This avoidable mistake can really hamper the growth of a business. Any decrease in overhead allows entrepreneurs to use more revenue on operational growth and also frees up their time. By outsourcing back-office tasks, entrepreneurs and businesses can focus on other aspects of the business.
According to whatis.com, “Outsourcing is a business practice in which a company hires another company or an individual to perform tasks, handle operations or provide services that are either usually executed or had previously been done by the company’s own employees.” Entrepreneurs and business owners choose to outsource certain functions of their business to boost their growth, productivity and focus on generating income. Outsourcing can help with continuity, control over operational costs, minimize risk and improve an entrepreneur’s professional and personal life balance.
While every business is different from other, here are some services that one can outsource to boost their growth.
• Information Technology – Outsourcing Information Technology is when buying and servicing of computer hardware & software, printers, cell phones, servers, internet, etc is done through outside vendors and suppliers. Outsourcing IT functions can save up to 40% of the cost of doing the same in-house.
• Bookkeeping – Not all entrepreneurs have knowledge about a country’s tax law and making a mistake in your business’s finances can be catastrophic. Strong finances and proper bookkeeping are the backbones of a successful business. So, it is suggested that the finances and accounting should be left to the professionals. By outsourcing, you can hire people that know what they are doing, and you will have one less thing to worry about.
• Administrative Tasks – Every business owner should focus on the business’s core processes to facilitate its growth. But day-to-day back office tasks can become a hindrance. That is why it becomes important for businesses to start outsourcing their administrative tasks. This way, entrepreneurs don’t get bogged down with unproductive work.
• HR Services – This can be one of the most cumbersome processes if you are doing it in-house. Interviewing hundreds of applicants and selecting one from all those applicants can become a herculean task. By outsourcing your hiring functions, you meet the best candidates that have been pre-selected by the HR consultancy from hoards of people who had applied, saving your valuable time.
• Manufacturing – Another process that can be outsourced to save a lot of time and money is manufacturing. Building your own plant or factory can be daunting with all the permissions required and other logistical issues. Outsourcing manufacturing process to countries with already established plants, low labor cost and raw-material cost can be very feasible for businesses.
Don’t look at outsourcing as giving up the control of your business, but it is a way to focus on what you do the best. This helps you to become more flexible & efficient.