Subcontracting work is something that we often associate with large companies, maybe because they were the ones who popularized the concept throughout the 1990’s. However, business has changed since then, and technology has made outsourcing an accessible tool for small businesses and entrepreneurs. For some small firms it meant a steady boost for their productivity, growth and bottom lines.
Why Outsource?
You may have all the needed competencies in the house, or maybe you even have the talent to do it all by yourself. However, if you are forced to divide your attention among too many tasks, you might find yourself distracted from achieving the main goal – enhancing the prospects of your business. By outsourcing the day-to-day back-office tasks, you will have more time to focus on generating income. Setting up a good outsourcing network can be a little energy consuming, but it will lead to an increased efficiency in the long run.
Another plus is the cost-effectiveness of outsourcing. When you delegate part of the workload to other parties, you need not employ a number of people or rent office space to accommodate them. Also, mandated benefits like social security, health insurance and safety protection no longer apply. This means cutting overhead costs.
What to Outsource?
“Do what you do best and outsource the rest” has become an internationally recognised business tagline, first coined in the 1990s by the legendary management consultant Peter Drucker.Therefore, before identifying the tasks you are going to outsource, it is helpful to realise which areas of your business must not be externalised. Any tasks directly associated with the core areas of your business must be kept in the house, otherwise you would be giving up your unique selling point – a mistake a small business cannot afford to make. For example, a graphic design business should never use third-party providers for any tasks related to graphic design. However, the business can outsource tasks such as bookkeeping or payroll management.
Outsourcing is particularly helpful for accomplishing specific, specialised tasks that do not require on-going full-time work.Some organisations outsource IT, customer service, marketing, or legal services.
How to Outsource?
After you have decided which tasks to outsource, the next objective is to find the right partner. Ideally, you would do this by getting recommendations from your personal contacts and business associates. Alternatively, you may also find a number of contractors from online platforms specialised in connecting businesses with outsourcing partners. When picking an outsourcing partner, you want to make sure your requirements correspond with their qualifications.
After you have made your choice, draft a contract to specify every detail of the outsourced tasks.Because you are the one providing instructions, you may be the one to blame in case of any misunderstanding, so be as clear as possible. It is best not to assume anything.
Do not rush and make room for things to grow. Give yourself a trial run by hiring contractual freelancers first. If you are comfortable with this construction and like their services, continue their contract on a long-term basis. As your business grows over the years, you may consider expansion.
Keep in mind that the contractors you appoint may need some time to adjust to your work processes. Also, avoid micromanagement because it contradicts your outsourcing efforts.After all, the main purpose of outsourcing is to save time and allow you to focus on developing your business.
Veronika Bacova