Outsourcing means doing what you do best!

Outsourcing means doing what you do best!

Have you considered outsourcing? Well consider this… The weight of responsibility of running a business never lets up. The growth from startup → micro → small business is probably the hardest. Cashflow is king so establishing a positive bank balance to see you through the inevitable troughs is paramount. Escalating fixed overheads is a fast way to get into trouble – if your income takes a hit those bills still need to be paid. So rent, staff and materials have to be a necessity, there’s no room for luxuries.

But of course, in the early days you’ll want to be the jack of all trades; constantly swapping roles in a do-it-all-yourself from tea-to-MD position. And that’s all well and good but it can’t last forever. Get rich or die tryin’? Well if you’re a success the volume of work will exceed even your ability.

So what to do? Well depending on what is required within your business you could consider outsourcing. As opposed to employing, outsourcing allows you to pick an expert in a chosen field and then use them on a pay-as-you-go basis. But this comes at a cost and when competition is tough and you’ve become accustomed to a healthy margin, it can feel unaffordable.

So what is the answer? I say: Do it yourself but factor in the cost of outsourcing. This means that in the short term you’ll pocket the additional profit but when you are ready to outsource then the cost has already been budgeted for and you won’t have to increase your prices.

If you enjoyed this blog then you can read our other “OUTSOURCING” blog post here.

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