5 Signs That Your Business Needs To Start Outsourcing
If you are an entrepreneur, you know that running a business can waste a lot of your time. It is very common to do multiple things at the same time to meet the different needs of your business. In the beginning, multitasking can be an advantage because it gives you and your core staff the ability to stay on top of everything. You can control what is happening under your nose, making it easier to manage.
However, as your business grows, so does your demand. It becomes impossible for you to cover up everything and chances are, the more you try to suppress yourself and your team, the more unproductive and less focused everyone will be.
The fastest and most effective solution to increase your productivity is to outsource some functions of your business. Outsourcing is an important strategy to build a good business. This allows you to grow and scale your business without the burden of high operating costs. It can effectively free up your time so you can stop focusing on the little things and start focusing on the really important ones.
Many business owners realize too late that they need to outsource. More often than not, they are already overwhelmed with work, missing client requests or have stagnant revenue. These situations can be easily avoided by immediately recognizing the hints you need to start outsourcing.
Here are 5 story signs that say it’s time to outsource some of your work.
You are missing the deadline
Are you always running after your projects, failing to complete them on time? Is there not enough time in the day to finish all the work on your plate realistically?
Whether it’s dealing with your accounting work, posting regularly to your company blog, or always cramming everything in the last five minutes, stress can be stressful and can greatly affect the quality of your output.
Outsourcing staff can solve this problem because you get extra manpower hours to dedicate to your work immediately. It helps you to work and complete your project on time because two heads are better than one with a clich.
Finding an outsourced employee is more advisable, especially when you are facing a tough time. Full-time hiring can be a long process that can take weeks. The best employees usually have existing jobs and you usually have to wait for their employers to resign, serve their notice period, transfer to new job and through training of employees you can fully enhance their skills.
On the other hand, if you want to outsource, you can choose people who are willing to let you go without long-term commitment.
You are striving to meet the needs of the customer
If your business grows beyond your expectations then this is definitely a good thing. However, if you do not plan for this unexpected emergence, you may be unable to acquire new business, place orders or produce more products due to lack of resources.
This is especially true for companies that experience a sudden marketing boost. Newcomer Amazon sellers are a great example of this. When their products start to get rich online, they are often unprepared to complete all the work involved in delivering, packaging and shipping their products. This often leads to delays which can lead to customer dissatisfaction, complaints and tarnish their reputation. It could even influence buyers to stop ordering from the Amazon platform.
This is why Amazon has introduced a full-fledged program by the Amazon program or FBA where sellers can only outsource inventory storage and shipping on Amazon by paying an Amazon FBA fee. In this framework, sellers do not have to worry about shipping concerns, which is usually not their strength. At the same time, Amazon gets to protect its platform by satisfying its customers.
Your employees are stressed and overworked
If you only have a small number of employees and they all already have dedicated responsibilities, the extra work can make the workload unbearable for you and your team. Although you know you need more people, hiring a full-time employee worries you because it has a huge impact on your operational costs.
However, keeping your employees overloaded can be detrimental as tired and unhappy employees tend to become unproductive. Instead of doing more work, the quality of work may go down.
Dissatisfied employees are easy to identify. Some of the symptoms that you need to see are always being late, absent, looking physically tired and stressed. When this happens, you need to take action and release the load.
Outsourcing some work will not only get the job done faster but will also show your employees that you understand that they need an extra set of hands.
You cannot fulfill a particular task
When you are faced with a project that requires a special skill, you can take different options. First, you can spend time training yourself or an employee to perfect that skill; Second, you can hire a full-time employee who specializes in those skills. Or third, you can outsource.
When you try to do it yourself or assign it to an employee who is not really an expert at the job, one advantage is that your company is acquiring a new skill without the cost of hiring. However, it can take a long time and there is no guarantee that the quality of work will meet the needs of your clients.
Hiring a new full-time employee is another option but it is only a good idea if you know that you will need specialized services for a long time. It is not wise to hire a separate employee for each particular job as returns may not justify full-time employment. Some work is very rare, unexpected or short term so in this case, it is wise to outsource.
Here is an example that happens with many companies:
How many times have you asked your IT people to fix a printer that has stopped working? Although they may specialize in computer networking or installing security software on your system, they are not printer experts – so it may take them several hours to diagnose and fix the problem. This can be a long downtime where your daily work is affected. Invoices, contracts and other relevant documents have been abruptly withheld due to this problem.
Hiring a separate staff to fix your printer is definitely unreasonable because your printer doesn’t break every day. You don’t want this new employee to sit on the rest of the day while receiving full pay and do nothing.
However, if you outsource this issue by calling a printer repair company or using remote diagnostic services, their specialty in resolving the issue will make your printer work in the shortest possible time. In this situation, you may think that it is more cost-effective to rely on an existing resource, but in reality, it can actually cost you more time and money in the long run due to loss of productivity due to delay.
You can’t focus on business
Trying to do this is a common mistake that most entrepreneurs make. Hard work is not necessarily the same as smart work. When you are stuck in a lot of work every day that takes you away from your main job, it means you have less time to focus on the big picture.
You and your senior team should focus on the strategic functions that help your business, not the tasks that can be easily accomplished through outsourcing. For example, instead of spending hours and hours fighting over how to post and what to write on Twitter, outsource this task to a social media marketer who is already an expert releasing your schedule and at the same time giving you the skills that You probably can’t learn in one day.
The key to effective outsourcing
In order for your business to grow and stay competitive, you need to use outsourcing practices and take advantage of the already existing global expertise through technology. Finding the right outsourcing partners is not always easy and you may face various outsourcing challenges along the way.
So, when you decide that it is time to outsource you, you need to make sure that you are looking for people who specialize with proven track record. Ask for a referral before making a long-term deal. When dealing with your partners, be clear about your expectations of the output they need. At the same time, earn their trust by having a reasonable timeline and respecting financial obligations. That way, you can build a valuable relationship that is critical to your success.
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