So you have a can do attitude with your fists clinching the purse strings. Is that really the fastest route from point A to point B?
Almost every small business owner’s concern is the budget. They typically think, “Why should I pay somebody to do that, when I can do it myself?” I would agree with this, especially in the beginning stages, but you will eventually get to a point where the opportunity cost of taking that project or task on yourself is too high. We have a finite amount of time and your time is best spent on your core competency.
At times, there are projects that are like a shiny new toy that you just can’t resist. You think it will be fun and easy at first, until you dive in and really find out how much of a time sucker it really was. There is always a learning curve associated with taking on new projects and this can translate into time wasted. What happens when you hit a wall with the project? Do you take on help to finish it? Or do you let it go and tell yourself you’ll come back to it later?
The reality is that many of the functions we perform in our business can be outsourced. If you put your business on a bar graph that ranked how well you perform each function of your business, what would it look like? You would obviously have very high numbers in you core competency and you probably have some other good business skills that rank up there too. However, there will be some areas where you will probably not rank so high. What if you could help raise the competency in those areas without taking on new personnel?
Let’s take human resources for instance. Hiring a human resources professional can come with a hefty price tag. The median income for an HR Generalist is $49,409 per year according to salary.com. A small business usually cannot afford this, but there are options.
You can outsource your entire HR function to a Professional Employer Organization that will do everything from payroll and benefits administration to hiring and even firing an employee for anywhere around 3% to 5% of annual payroll. So if you had $300,000 in annual payroll, your HR can be completely taken care of for $9,000 to $15,000. That’s a huge savings from the alternative of almost 50k for an HR manager.
Another favorite thing to outsource is my inbound calls. I have a service that answers the phones when there is nobody in the office or if they’re on another line. When they receive the call they route it to the person’s cell phone that the caller is requesting. If there is no answer, they take down the pertinent information. They weed out the sales calls and if it’s a new client they will take down all the pertinent information you require. So if you’re a service business, they take down the job address, billing address, and additional contact info like an e-mail address that you can send a proposal to. I can have all of this done for my business for much less that it would cost to hire a full-time secretary. Just make sure you choose a service that can handle your customers with the same level of customer service that you would give yourself.
There are many other functions that you can outsource and you just need to research who can do it better in the areas you’re lacking. Outsourcing can really take a load off and give you more time to focus on what you’re good at. Take a look at your business today and find out where you can use improvement to make your business that much better. Thank you for reading this and as always, “Stop Doing the Mundane, and Start Getting Weird!”