Oftentimes, a small business owner wears many different hats throughout the course of a day/month. It doesn’t matter the profession; typically, an accounting, HR, or possibly a legal matter needs to be dealt with, and normally, these situations are directed to the business owner. This may either be by choice or financial need, particularly with a new start-up venture. However, one might ask a few questions: how much time is really being spent on these types of matters, and is this time well spent? Is this the most cost-effective way to handle such matters? How much am I really “saving” working on such tasks?
Many businesses are created to offer a certain service or a particular product. So why spend time on these tasks when they can be outsourced? According to a Forbes Technology Council article written by Sam Darwish, Forbes Council Member, titled: “Six Reasons Outsourcing Could Benefit Your Business,” he lists them as: Grow More Rapidly, Retain Flexibility, Benefit from Top Talent, Maintain Company Focus, Increase Brand Loyalty, and Fulfill Compliance Requirements. There are valid points to all of these, particularly the ability to grow more rapidly by keeping a base of employees and outsourcing other tasks and the flexibility to outsource when needed. If you are a seasonal business, as an example, one can bring on staff for a specific period and then have the flexibility to cancel when services are no longer needed. Another important reason is Compliance, whether it be HR and following the Labor Law guidelines, keeping your accounting records clean and accurate for tax preparation and financials, or avoiding a possible audit. Contracting with businesses in their areas of expertise avoids having to train internal staff on ongoing changes in these fields. There is yet another reason to consider outsourcing: Time. And although time is not mentioned specifically in Sam Darwish’s article, it certainly is connected in one aspect or another. Time is truly a major factor in everything we do in business. The most glaring example is, does your business charge an hourly fee for services? If so, how much? Let’s say 15 hours per week is spent on bookkeeping/accounting functions which equates to $3,000 ($200/hrs. x 15 hrs. = $3,000) per week in lost revenue. Where is the savings? Most times, outsourcing would be a fraction of the cost. According to an article in Entrepreneur, Middle East, written by Steve Mayne, he highlights: “74 % of companies outsource IT, 52% of companies outsource HR, 43% of companies outsource procurement, and 39% of companies outsource finance.” These are quite some percentages! He also states, “by taking these tasks off your desk frees you to focus on growing and improving your business. The process is simple, fast, and cost-effective.” Makes sense!
So, with this in mind, the next time you sit down to tackle one of these tasks, think about it … take off the hat and pass it on to an expert who can focus 100% on getting the job done while you reap the cost and time-saving benefits. It’s a win-win for all!