Many business owners are reluctant to outsource either because they are scared to lose control or because they simply don’t believe in it. But refusing to delegate is what could be preventing you from getting bigger, and if you want to eventually scale your business, you may be forced at some point to outsource some functions.
There is a strong chance that someone out there can perform these functions better than you or anyone on your team. And this could help you run a more efficient business in so many different ways. Let’s take a look at why outsourcing could be essential in helping you scale your business.
It Will Allow you to Concentrate on Revenue Generating Tasks
When you run your business, you should be spending most of your time on what you like doing and what you do best. If you’re in the clothing business, you want to spend most of your time designing and creating your clothes, not working on account receivables or customer service. This is one of the reasons why outsourcing could help you.
When you don’t outsource, you’re actually losing money since you won’t be working actively on your business. So consider the true costs of not outsourcing, and don’t forget that your time is money too.
It Could Help You Stay Out of Regulatory Hot Waters
Another factor that many people overlook when it comes to outsourcing is how much it could help them stay away from tax and legal problems. The regulatory landscape can change pretty fast when you start hiring more people or when you start expanding to new markets. This is where people like PEO organizations can help.
If you want to know what is a PEO and why you should hire one, they are a type of service that will handle all of your human resource operations for you. Not only that, but they will be liable for all the legalities surrounding employment. So, you won’t have to worry about breaking labor regulations anymore, and you won’t have to think about things like tax reporting or payroll tax amongst others. This will help remove a lot of weight off your shoulders, and again allow you to concentrate on what truly matters.
Access to Better Talent
Another thing that many people don’t think about when they consider outsourcing is that an outsourcing service can get access to much better talent than the average small business. While you may have the power to recruit top talent later on, you will have a hard time competing with a specialized service right now. So, consider outsourcing if you need talent in areas like IT, HR, or marketing where talent tends to be picked up very fast.
As you can see, there are tons of reasons why outsourcing makes perfect sense for small businesses trying to expand. Try to see where you could delegate functions and only work with proven providers you can trust.