The Benefits of Outsourcing to Grow your Small Business

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If you are a business owner, you are always looking for new ways to increase profits without increasing costs. Successful business owners get more done in less time, and outsourcing is one of the best ways to get multiple things done at once.

Most businesses begin on a small scale, with the owner doing everything themselves. As the business grows, the owner soon realizes that there is a limit to the amount of work that one person can do without sacrificing profits. The result is a growth trap, where the owner does not have enough time to expand business activities and the business stagnates.

If you think that your business may be caught in such a trap, then it’s time to look at outsourcing. Most business owners are wary of outsourcing because they don’t trust outsiders with their business information, but there are some compelling reasons to consider outsourcing as a way to expand your business.

The greatest benefit of outsourcing is the immediate boost to efficiency and productivity. It also frees up your time so that you can focus more on your business itself and plan for its growth. Outsourcing also gives you the opportunity to run your business around the clock if you hire people living in different time zones. By outsourcing specialized tasks, you can gain access to people with specific skills who can often perform those tasks much more efficiently.

Of course there are costs associated with outsourcing, but you can often recover the extra expense in a short time frame with all the extra work being done to increase revenue. Think of the outsourcing cost as an investment that will help to grow your business in the future.

To get maximum returns on your investment when outsourcing, it is important to:

Research­ – Before outsourcing, it is very important to do research and make a list of all your business-related tasks so you can identify which ones can be outsourced. It is best to outsource tedious, repetitive tasks that consume large chunks of your time but contribute little to your bottom line. You can also outsource activities that require specialized knowledge so that you don’t have to spend time and money learning those skills.

Start Slowly – Do not outsource everything right from the beginning. Start by outsourcing small tasks and once you start seeing positive results, increase the pace slowly.

Monitor Progress – It is important to monitor progress and keep tabs on results. Make sure that you convey deadlines to your contractors and get confirmation that they will deliver the work by the given date. When it comes to outsourcing, even a slight delay can lead to significant cost overrun, so make sure to minimize this possibility. Talk to your contractors on a regular basis and maintain clear channels of communication so that you are well aware of any delays or bottlenecks.

Mitigate Risk – When you outsource for the first time, make sure to mitigate risk by recruiting more than one contractor. This will not only help you get things done efficiently, but will also help you to compare the cost and quality of work delivered by different contractors.

Lower Your Costs – Once you start outsourcing on a regular basis, you can lower your costs further by forming your own team and negotiating rates with contractors. Most contractors are willing to lower their rates if you can provide them with enough long-term work.

Outsourcing is an amazing way to expand your business and boost your profits. Several people with specialized skills working together to get things done leads to faster growth. Need help deciding if outsourcing is right for you and your business? Pamela Finnesand, The Business Maximizer can assist you! Schedule your complimentary Business Breakthrough Strategy Session today.