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Looking After The Pennies

Six Reasons to Outsource ...

Posted by Jacqui Frost on 05/04/2012

And the pounds will look after themselves. I don't know about you but sometimes I feel like the Chancellor has it easier managing the country's budget than us small business owners. Perhaps he should come and work in a small business and try balancing our budgets.

sit back and watch the pennies grow

sit back and watch the pennies grow

I'm not trying to diminish the difficulties he faces, but he is one step removed from any errors in judgement, it tends to reflect on "The Government" rather than him. And any mistakes won't have the same impact on his livelihood that it does on mine and yours.

Many small businesses are facing rising costs and with the latest fuel crisis will now be worrying about staff members getting to work and wondering how long they can continue to run their company vehicles now fuel prices are so high.

This combination of factors has seen a real change in the outsourcing market, in both directions. We are seeing clients begin to bring things in house where they can control the costs better on the one hand and on the other we are seeing more and more people decide to outsource rather than hire.

The reasons for outsourcing are often not directly cost based: -

  1. There are unfortunately only 24 hours in every day and we do need to sleep. Many small business owners realise that they cannot do everything and that their time would be better spent on activities that generate money rather than back office stuff.
  2. Professionals are always better at things. By using a book-keeper or administrator you will find tasks are completed much quicker than when you did them and often to a better standard, causing you less queries at a future date.
  3. A lack of knowledge or resources within the company is a big reason for outsourcing; it is often cheaper than sending someone on training or hiring someone specifically to do the job in-house.
  4. One good benefit of choosing to outsource rather than to hire in-house is that you can do so based on trusted recommendations. The process is often easier than advertising and hiring an unknown quantity. It is also much easier to pull out if things are not working out than firing an employee.
  5. Outsourcing can be done for the short term and on an ad hoc basis, which makes it easier to organise than having an employee with nothing to do!
  6. The greatest thing for small firms is that outsourcing work doesn't need to increase your fixed overheads. If you only outsource in your busy months it doesn't have to be an added burden to your cash flow.

As Nigel Botterill says, "What are you in the business of doing?" Are you in the business of administration or in the business of selling your product? Ultimately as business owners you need to do what you are best at and what you are passionate about and I suspect that doesn't include day to day administration or book-keeping or typing, does it?

To understand more about the tasks you could potentially outsource to us call me on +44 (0) 845 901 1803. With our bespoke packages including telephone call handling, diary management, PA support and administration, I am sure The Office Genie can help you!

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