Small businesses can consider outsourcing
June 29, 2012
When people hear "outsourcing," they may think of larger conglomerates hiring outside companies to handle things such as payroll, accounting, message taking and other crucial aspects of business. Many experts believe small businesses could also greatly benefit from hiring someone outside the firm to accomplish tasks.
Outsourcing may cost a little extra, but can result in less stress, increased productivity and revenue boosts. Before dedicating certain responsibilities to outsourced firms, however, there are a few considerations small business owners need to recognize.
One of the more popular reasons to outsource a task is when it can be done for less than dedicating a salaried worker to the project, Inc. Magazine reported. The source, using the example that not all startups need an IT department, indicated relying on contractors to take on a responsibility can save a firm money that would otherwise be spent on payroll.
Inc. also noted the owner can realize cost-savings benefits if the task to be done is not something that a company must complete year-round, such as a specialized project or marketing campaign.
Type of task to be outsourced
If the task is something that can be accomplished easily and more efficiently by contractors or specialty firms, owners may consider outsourcing, Inc. Magazine detailed. The source said as long as the responsibility is not something that is related to the primary service offerings of the company, it can be delegated to those outside the workforce.
However, Entrepreneur Magazine warned against becoming lazy and outsourcing a task simply because it's possible. "Don't outsource something just because you don't want to do it. Sometimes there are things you don't want to do but they are important to your core business," marketing expert Jim Lanzalotto told the magazine.
Some information should be kept in-house
In order to protect crucial business data, leaders may want to keep some tasks within the company. Small business owners may be uncomfortable having some operations completed far from the office.
For example, entrepreneurs may be uneasy at the thought of sending information on accounting software to another company over the internet or by mail to be completed by a random firm worker. Tasks like these could be completed in the office by a contractor who travels to the small business and does the job in the office, Entrepreneur explained. The source suggested owners can hire a skilled expert to come into the workplace to oversee bookkeeping or analyze the financial climate.