The Value of Outsourcing
The Value of Outsourcing
Many people still associate outsourcing with manufacturing or global workforces, but it is much more. Outsourcing is an efficient way to manage special projects or overflow, expand staffing resources, and grow your business without the related increase in overhead and vacation pay. Many businesses outsource critical business tasks that require specialized knowledge such as bookkeeping, marketing, customer service, and sales.
Outsourcing is an effective way to manage business critical functions without incurring the expense of full time employees. Overhead costs are kept down. There's no office drama between two competing employees.
"But I'm so small it's cheaper for me to just do the work myself" is the common objection of many small business owners. However, what they don't realize is that it's actually a better use of time and money talent to outsource. In a Fortune 500 company, you are unlikely to find the CEO working in the mailroom or the Administrative Team putting together quarterly forecasts. Companies hire people to do specific jobs based on their expertise. Each employee contributes to the success of the organization by performing their specialty.
Every business must manage a budget and no one has infinite resources. But your budget is more than the tangible dollars in the bank; it’s also the value of your time. And the amount of focus you spend on revenue-generating effort. As a business owner, if you spend 15 hours per month on bookkeeping you have taken 15 hours away from other activities. Consider this example from a solo entrepreneur:
20 billable hours per week at $100 per hour = $2000
10 non billable hours per week (which might include bookkeeping or administrative work) worth $45.00 hour = $450
If the entrepreneur outsourced the non-billable tasks he or she would gain 10 more billable hours or $1000.00. Even after paying $450.00 for outsourcing, there is a gain of $550.00 and they are no longer burdened with a detail-oriented task that they might not be skilled at.
In addition to the financial gains, outsourcing provides a peace of mind that the task has been expertly managed.
In your business, are there non-revenue-generating tasks that you're doing simply because you've always done them or because you've thought that you couldn't afford to hire someone else to do them? You don't need to hire an employee, but you can hire someone else to do them and you'll earn more money doing things that you probably enjoy more!
The Value of Outsourcing - To learn more about this author, visit 's Website.
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The Value of Outsourcing
Many people still associate outsourcing with manufacturing or global workforces, but it is much more. Outsourcing is an efficient way to manage special projects or overflow, expand staffing resources, and grow your business without the related increase in overhead and vacation pay. Many businesses outsource critical business tasks that require specialized knowledge such as bookkeeping, marketing, customer service, and sales.
Outsourcing is an effective way to manage business critical functions without incurring the expense of full time employees. Overhead costs are kept down. There's no office drama between two competing employees.
"But I'm so small it's cheaper for me to just do the work myself" is the common objection of many small business owners. However, what they don't realize is that it's actually a better use of time and money talent to outsource. In a Fortune 500 company, you are unlikely to find the CEO working in the mailroom or the Administrative Team putting together quarterly forecasts. Companies hire people to do specific jobs based on their expertise. Each employee contributes to the success of the organization by performing their specialty.
Every business must manage a budget and no one has infinite resources. But your budget is more than the tangible dollars in the bank; it’s also the value of your time. And the amount of focus you spend on revenue-generating effort. As a business owner, if you spend 15 hours per month on bookkeeping you have taken 15 hours away from other activities. Consider this example from a solo entrepreneur:
20 billable hours per week at $100 per hour = $2000
10 non billable hours per week (which might include bookkeeping or administrative work) worth $45.00 hour = $450
If the entrepreneur outsourced the non-billable tasks he or she would gain 10 more billable hours or $1000.00. Even after paying $450.00 for outsourcing, there is a gain of $550.00 and they are no longer burdened with a detail-oriented task that they might not be skilled at.
In addition to the financial gains, outsourcing provides a peace of mind that the task has been expertly managed.
In your business, are there non-revenue-generating tasks that you're doing simply because you've always done them or because you've thought that you couldn't afford to hire someone else to do them? You don't need to hire an employee, but you can hire someone else to do them and you'll earn more money doing things that you probably enjoy more!
The Value of Outsourcing - To learn more about this author, visit 's Website.
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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