Most small and medium sized business owners struggle with trying to be all things to all people. Thus, there is no time or energy left over to spend on their key strengths and growing the business.
Perhaps it is time to conduct a cost-benefit analysis and see what the adage "it's cheaper to do it all myself" is really costing you. We are not disputing the fact that you can't do it, but are asking the question should you be doing it?
Cost-Benefit Analysis of Outsourcing
- Compile a list of the tasks that you don't do well – remember, be honest, as this exercise is for you.
- Estimate the number of hours that you spend on each of these tasks on a weekly basis.
- Calculate how much this is costing your business (# of hours x hourly rate)*
- Does this represent value to your business?
- Make a list of the things you would like to do in your business "if only I had more time"
Advantages of Outsourcing
There are many advantages of outsourcing the non-core functions of your business. These advantages can be grouped in the following categories:
- The Cost Benefit Analysis above has shown you what you can save just from your time
- Rather than paying for full time staff, you only pay for the hours that you need and with little or no overhead and no infrastructure expenses
- No pension plan contributions, employer expenses like EI, CPP or WSIB, employee medical benefit costs are ever needed
- If an activity that you don't excel at takes you 10 hours, someone who does excel at the task can likely perform it in half the time
Stay Focused on your core Business
By not spending time on the details, you can focus on the reasons you went into business for yourself, and the key strengths you and your staff can be put to best use.
As your business grows, or your needs change, an outsourced partner can adapt the services being provided with no infrastructure costs incurred by you.