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This is a quick tip for the solo entrepreneurs out there. As a sole proprietor myself, I understand how passionate and attached one can feel to a business. I can hear some of you now, “I came up with the idea. I wrote the business plan. I raised the capital. I have the passion to work this business until it’s profitable,” and most important, “no one knows my business like I do.” While all of this may be true, you must recognize that running a business includes everything from talking to potential customers to to creating marketing plans to bookkeeping, billing and payroll. While you may be passionate about speaking to potential customers about your product idea, it is unlikely that you also get excited by creating new invoice templates or figuring out how to build a web site. This is where outsourcing comes in.
Don’t think of outsourcing as turning over the keys to your business or even giving someone else voting rights. Instead, see it as a way to manage your time more efficiently and better serve your customers. Research virtual assistants or ask business colleagues for independent contractor recommendations to ensure you bring in a professional. If your business sells products, you seriously need to explore the possibilities of sourcing the manufacturing of the product to China (i.e. www.AsianProSource.com) or other developing countries. This would help you to get a higher profit margin and would have a positive impact to your business’ bottomline. You could even use outsourcing as a way to give back by taking on a high school or college intern who is interested in your field of expertise. Delegating some tasks frees you up to focus on the areas of your business where you find the most joy. For example, by handing off the bookkeeping to a bookkeeper and the web design to a web designer, your time is now available for serving customers or developing your next product or service. This will not only make your business more effective but also make you happier. It could even give you more time to spend with family and friends…remember them?
Most start up businesses have the business owner doing practically every business function available. But, as the company expands, it would be strategic for the owner to select the tasks that he would be focused on and transfer the rest to an outsourcing provider. I agree that outsourcing is not a necessary evil. In reality, it is a cost efficient means to save time for company growth.
Usually, companies outsource small business payroll service. Payroll is a very time consuming task. It also requires a certain amount of expertise that only professionals have. Through payroll (Nevada) firms and accounting offices the business owner would be assured that there will be a system to organize company information. Also, specialized outsource firms does their job efficiently. Thus saving company time and money that can be allotted to other business functions.
Thanks for your comment Justin! I think some business owners just never learn to let go. However, outsourcing key functions (like finance) allows business owners to focus on what they really love – interacting with customers or performing the company’s core services.