Is small business becoming part of the outsourcing trend?
Yes. Small businesses are moving into an outsourcing model as the benefits are clear.
For small business owners, one of the biggest challenges is wearing all the hats and the smaller the business, the more aspects of it you need to look after yourself.
We originally go into business because we have a passion and skill for a certain service or product. However, our skills may not include the operational, marketing or financial end of the business. Every small business has some essential but non-core business activities which can eat into time that could better be spent servicing existing customers or developing new ones.
In the past we were limited to two choices:
- Wear every hat, fill every role to the best of our ability hoping there will be time to seek new clients and take care of servicing our existing clients.
- Or hire employees to fill those roles so that we can focus on growing our business. Hiring employees can keep us from the business of doing business: personality issues, fixed expense whether we need them or not, scheduling conflicts, learning curve, training obstacles and on and on.
However a third choice is growing in popularity: Outsourcing, also known as temporary staff, virtual professionals or consultants.
Time for an Audit
If you haven’t already done so, spend a week logging where your business time goes. How much time do you spend on non-core essential support work: answering the phone and dealing with customer enquires, doing paperwork, delivering stock, queuing at the bank or post office, or just getting to work? Compare this with the number of hours you spend on your core business activities, and ask whether you could improve this ratio.
Avoiding the Pitfalls
While there are many good reasons to outsource aspects of your business, there are also steps to take to ensure you get the best possible results. Outsourcing a job or service can take a big load off your plate, but don’t just pay your money and take your chances. Here are a few tips for getting it right:
(1) Seek advice from specialists – Companies like Consulting WorX who specialise in connecting businesses with consultants for a project build up a good knowledge of their consultants and may even gather feedback from previous projects that you can request.
(2) Monitor – Any work that you outsource must be carefully monitored, to ensure that you are actually getting what you’re paying for. In real estate the mantra is location, location, location. In outsourcing it is communication, communication, communication.
(3) Protect yourself – Make sure that you have proper protection against theft, fraud or damage that could impact on your business as a result of actions by the consultant.
(4) Be clear on ownership – Consider the issues of intellectual property and ownership, and make sure that you’re keeping hold of your product. This can be a particular issue with designers. Who owns the property, you or them?
(5) Insist on confidentiality – If you are dealing with highly confidential material draw up a tight non-disclosure agreement.
Patrina Kerr is a Director and Co-Founder at Consulting WorX Pty Ltd.
Consulting WorX www.consultingworx.com.au is a website that connects businesses and consultants for various projects across Australia. We provide a new way of doing business that gives consultants and businesses a better work life balance as well as a great online network and community.
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