Business owners may have the guts to launch their own enterprise, but they don’t always have all the skills necessary to execute their vision. Getting the essential professionals on your team may be costly at the onset unless you have a sizable capital, too. The solution? Doing away with the traditional in-house mentality of the old corporations and joining the Gig Economy. This means short-term contracts, third parties, and freelancers–outsourcing, basically.
While it’s a tested-and-proven method for a lot of small businesses today, outsourcing needs to be done with caution. If your business is operating using only the handful of employees you have right now, it’s tempting to continue as such, and there’s nothing wrong with eventually moving all your services in-house. As a small business in a highly competitive market, however, it’s important that you know when outsourcing makes sense for you.
You’re expanding
There’s nothing like inflating your overhead and operations costs to dampen your company’s expansion. Growth is a critical phase for every business, especially when it comes to finances. When you decide to establish in-house departments to cater to all your back-office needs, you also have to consider the investments you’ll make in hiring, training, and providing the equipment for your new staff.
Ask yourself if you really have the time and finances to make this transition. In case the answer is no, then outsourcing is your best bet. The process of hiring a third-party and coordinating with them is far simpler and cost-efficient for a growing business. You’ll also be able to specify your preferences and switch to better alternatives without a long-term contract to hold you down.
Say, for example, you’re investing in third parties to create your marketing content. A per-project approach will give you better control over your expenses while teaching you how to coordinate with marketing professionals. If you decide that you want something else, you can easily hire another professional. Whatever you learn from this experience can help you turn this service in-house should you decide to go this path in the future.
You need to amp the quality
Here’s the harsh reality: simply hiring one or more professionals will not guarantee that your product or services will improve in quality at once. The rest of your workforce and your leadership will affect whatever outcome they produce, which means that if you really want to step-up your game, your company as a whole will need to do this all together.
When time isn’t on your side, outsourcing surely is. This is especially true for industries that provide medical devices, lighting, and safety and security equipment. Doing it yourself will mean getting new suppliers, creating new protocols, and possibly re-training your staff to reduce errors. Even then, the chances of mistakes are huge in the first few months of improving your goods. In the meantime, your competitors are getting their customized PCB designs done by third parties who are the most credible in their field.
Outsourcing to enhance the quality of your products and services is always a good idea. It will also enable you to keep up with competitors when it comes to pricing.
You need to focus on your core business
What’s the essence of your company? Is it selling security equipment to the military and supplying medical devices to hospitals? When debating whether to outsource or not, ask yourself if doing so will help you focus on what you do best. Don’t hesitate to outsource should your answer be a resounding yes.
Consider, too, the specific ways it will affect the productivity of your employees. You’ll want outsourcing to free up their time so that they can streamline their tasks and focus on both quality and quantity. Will it reduce their stress and create breathing room for a better work culture? Excellent stress management in the office can improve the relationship between your employees and therefore make it easier for them to grow as a team.
The reason a lot of business owners still hesitate to outsource is that they think they have to do it the way others do. Outsourcing is not the same for everyone, even if you’re in the same industry. Recognize your needs at the moment and assess the most efficient ways to get them. Should outsourcing be the answer, embrace it, and give yourself a margin for error. You’ll be surprised at how much faster and better your business growth will be this way.