OUTSOURCING & GROWTH

Get help so you can focus on the bottom line.

Small business owners wear many hats and assume responsibility for a number of tasks which are not their core competency. Yes, the work has to be done and there is no-one else to do it.

Let me start with an explanation of outsourcing: Outsourcing occurs when small business owners choose to pay outside suppliers to do work rather than complete the tasks internally. Outsourcing certain tasks enables a business owner to focus on core business activities, which helps generate growth as well as income.

As a small business owner your main function is to grow the bottom line, in other words to produce income. For the most part, that is accomplished through your marketing efforts. Every minute or hour that you cannot focus on bringing in new business is essentially non-productive time.

As an example, spending time, 3 or 4 hours a day keeping up with all the internal accounting functions may be something that has to be done. If you took that same time and spent it on finding new business, the income you generate should be more than the cost to outsource your accounting to a 3rd party.

A good way to look at this issue is to make lists of all the “non-income” producing work that you do. List the number of hours per week that you spend on each of these functions. Next, estimate the amount of revenue you can generate if you could spend that time and effort focused on producing additional income.

If you believe in your ability to “sell” your product/service, then an investment in outsourcing will not be a risk, but instead a wise investment of time and capital.

Be aware that the non-income producing time can also become a crutch to avoid having to go out and “cold call” on potential clients.

In a recent survey, 90% of firms worldwide say outsourcing is crucial to growth strategies. In my opinion, this statistic should also hold true for small businesses that need to make the best possible use of their time.
“Do what you do best. Outsource the rest.”  Marcus Brigham

Tips & Advice by Nick Petra – CFP, Mentor, and founder of BizQuack and Strategic Duck