Pay Attention to These 5 Signs Telling You to Start Outsourcing
The Time to Start Outsourcing is Sooner Than You Think, and That’s a Good Thing.
You’re about to lift that stressful mental load and return to what made you great in the first place — the business fundamentals at which you excel.
When you’re concerned with the day-to-day operation and management of your business, your time and energy is scattered. Your mind is on a million different things. Are all your teams operating efficiently? Have you caught all the messages or complaints from workers and management? Which clients need your attention right now?
If that’s your case, you almost never have the capacity, time, or focus to get real work done.
The easiest way to manage this situation is to outsource work. You can outsource development, scheduling, or almost any other task and have a dedicated team take care of it, with flexible and affordable pricing models. In short, it could be just the answer you’re looking for.
So, how can you tell when it’s finally time to take the plunge… into outsourcing?
Sign 1: Too Much Work, Not Enough Time
The absolute worst problem you can face is not having enough work. In this case, business is a struggle and you’re in constant danger of failing. However… the second worst problem is having too much work.
While having a lot of work obviously means more revenue, it often comes with small hidden tasks, to the detriment of everything else. Little jobs like documentation, invoicing and collections, and solving small problems over and over again take up most of your time and leave you with almost no ability to actually work.
So you’re faced with two options.
You can outsource small tasks. Research, spreadsheet formatting, communications management, and other work like that can be given to virtual assistants.
You might choose to outsource important work. Outsourcing, development, design, or marketing to a remote team can double your work capacity while keeping costs down.
If you have strong project management systems in place, good workflows, and good communication, you can get all the benefits of outsourcing without any of the risks. Start with handing a small project to your outsourcing partner and, if they do a good job, you can trust them with bigger projects.
Sign 2: You Need to Acquire Additional Skill Sets
As the market expands, it might be lucrative to offer a variety of projects. The only problem is that acquiring additional talent could cost you too much, and be too permanent, before you’ve got a firm footing on the uncertain requirements of a new project.
In other words, it’s cost-prohibitive and time-prohibitive to bring more in-house team members before you’re absolutely 100% certain acquiring a new skill set to take on additional projects will be lucrative. What if it doesn’t pay off, the market isn’t interested, or your new employees aren’t up to the task? It’s a risky gamble.
In this case, outsourcing is an excellent option. Search around for an outsourcing partner who meets your needed skill set and assign a test project to that partner. If everything goes well and you get good feedback form the market, you can then decide to expand your in-house team or continue to outsource the work.
Sign 3: You Have To Choose Between Offering New or Current Services
You’ve scaled as far as possible.
With good foundations, you’ll grow a substantial amount with minimal bottlenecks. However, you’ll always reach a point at which scaling an in-house team becomes an expensive headache. To train a new in-office employee for a completely new service is expensive… especially if you can get the same results by outsourcing it.
If it ever becomes impossible to offer an emerging, competitive new service without discontinuing one of the services you’re known for, that’s a pretty big problem.
The solution is to outsource either the new service or the old one.
It might be in your best interests to outsource the old one. If you have skilled in-house employees, they can oversee the outsourced work and train and educate your new outsourced teams. That way, you’ll retain your expertise on the old service while quickly training your in-house team on the new service.
Or, you could outsource the new service. If you don’t have the expertise on-hand immediately, just outsource it. It’s hassle free and less expensive.
Sign 4: You Waste Time and Focus on Things You Hate
If you’ve ever been stuck doing this, you know what a terrible feeling it is and what a terrible effect it can have on your business.
Over time, focusing on doing things you absolutely hate will erode your effectiveness and your ability to provide value to your business. Just outsource those asks. If you absolutely loathe data entry (just to use an example) find someone who is really good at it and pay them to do it.
The time you free up isn’t just valuable in terms of focus… it’s also valuable in terms of opportunity cost. Now that you aren’t spending time doing what you hate, you can now do what you’re good at — work that directly brings in revenue.
The same goes for testing, developing, designing, branding, and more.
If you don’t love it, outsource it. Chances are, if you hate a task, it’s sucking away your valuable focus and time. These two resources are better applied to tasks which you love and which directly bring in money.
Sign 5: Outsourcing Becomes the Economic Option
Is it cost prohibitive to scale using an in-house model? Maybe.
If you need additional PHP developers, but each new one casts around $85,000 monthly salary, then you may look to outsource additional PHP development at a fraction of the cost. This will free up your core team to do the intensive work while your outsourced PHP developers can take on additional work. You can then have it checked by your core team. As you begin to trust your outsourcing partner more, you can give them more and more work — thus freeing up your core team to focus on the most lucrative projects while at the same time you bring in more revenue.
You’ve done everything right so far. Now, you have a decision to make. Outsourcing work and partnering with remote teams is one of the most effective ways to remove bottlenecks, offer new services, and free up your time and budget. If any of these 5 signs are pointing you toward outsourcing your work, it’s best to follow them. Your business will reap plenty of benefits.