I’ve been reading some articles and I thought I’d share this one discussing scaling up using outsourcing. Here are some snippets from it.
Entrepreneurs have long seen outsourcing as a strategy reserved for big business, but technology has made it a more accessible tool for small businesses–and for some small firms, outsourcing has made a powerful impact on their growth, productivity and bottom lines.
Taking the first steps toward outsourcing can be time-consuming, but figuring out how to build your business with help from outside professionals can offer increased efficiencies and economies of scale.
When to Outsource
For every company, the right time to outsource is different. Some businesses have in-house staff to handle daily activities, but may need outside help to undertake new projects that don’t warrant another full-time employee. When you and your current employees are unable to manage the day-to-day business of your company and build the business satisfactorily, it may be time to consider outsourcing.
What to Outsource
The types of tasks that are best outsourced fall into three general categories, according to Gregg Landers, director of growth management at CBIZ MHM, the nation’s eighth largest accounting and business services provider. They include:
- Highly skilled, or executive, expertise. You may not need to pay a CFO’s salary, but you could have a CFO-level person to come in a few times each month to provide financial analysis and ensure that the bookkeeper is handling the books well, Landers says.
- Highly repetitive tasks. Accounts payable, data entry and shipping inventory could fall into this category.
- Specialized knowledge. “An example might be the IT support for your accounting system or your network,” Landers says.
Finding the Right Contractors
Before handing over the reins, be sure you’re working with the right partner. While technology makes it much easier than it once was to find capable, reliable outsource providers, the selection process is still vitally important. A good starting place is your own network; ask other business owners or your accountant, lawyer, or banker if they can recommend a provider offering the services you need. Online networks like LinkedIn and Twitter make it easy to expand your personal networks and to ask for recommendations.
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