A lot of outsourcing gurus out there would tell you that they can fix practically anything that’s wrong in your business.
Got money problems? Outsourcing can fix it!
Want to be more profitable? Go outsource!
Hate your employees? Replace them with outsourced workers.
It’s these outrageous promises that discourage a lot of business owners from outsourcing. They outsource with these expectations and they end up being burned when these expectations aren’t met.
What these outsourcing gurus fail to tell you is that outsourcing can’t resolve everything. In some cases it can be a quick fix. But it wasn’t designed to really be a troubleshooting solution.
Outsourcing was developed to be an option for business growth and development. Best case scenario is it should be part of your business model if you choose to outsource. Preparation and a thoughtful plan is needed before outsourcing can be executed.
What Outsourcing Can’t Fix
There are a few things that outsourcing can’t fix. First and foremost, outsourcing can’t fix a broken business model. If your business model isn’t bringing any money, outsourcing can’t get customers for you if nobody really wants it. If your business is inefficient which costs you time and money, outsourcing can fix that. You have to make your business more efficient first in order to get things done.
If your business model works in a smaller scale, it’s earning money, and it’s efficient, then outsourcing can help you. It can provide you the extra manpower you need to grow. It can give you the extra help you need to find more customers based on your model. But if your business model doesn’t work to begin with, outsourcing would simply be following a broken system and possibly compound the problem.
Second, outsourcing does not absolve you of responsibilities. Just because you’re delegating tasks to your outsourcing vendors doesn’t mean you don’t need to communicate with them regularly. If you’re outsourcing your local search engine optimization, you need to talk with your search engine optimization expert so he’ll know what your goals are. He needs to know what milestones you expect and you need to provide information he needs to get the job done.
You need to give regular feedback, monitor milestones, and provide input to help your outsourcing vendors do their jobs. They’re professionals, not miracle workers. So to get things done, they will occasionally call on you for support to make sure that what they’re doing is actually helping you achieve your business goals.
Last but not the least, outsourcing is not a cure for bad management. If you find it difficult to manage your employees, it’s possible you may have a hard time working with an outsourcing partner as well. Outsourcing requires trust and effective delegation skills. If you have a hard time doing both with your own employees, doing so with an offshore virtual executive assistant halfway across the world would be a lot tougher.
What Outsourcing Can Do For Your Business
I know it looks discouraging that outsourcing can’t fix a lot of things. But outsourcing done right can do amazing things for your business.
If your small business is doing well and turning a profit, outsourcing can make it more profitable by helping you cut costs. With outsourced workers, you don’t have to pay for taxes, benefits, or overhead expenses. You can outsource tasks that are too expensive or too time-consuming for you to do yourself. Depending on what you decide to outsource, you can significantly reduce your business expenses so you make a bigger profit or pass on those savings to your customers.
Another way outsourcing can actually help your business is with expansion. Expanding your business requires increased capitalization. And for a lot of small or medium scale companies, that capitalization might not be enough if they need to grow at a faster rate to become more competitive. Outsourcing can help you grow your business at less cost. You can delegate to an offshore team to help with your operations. Or you can outsource back-office tasks, marketing tasks like social media optimization services so you can put most of your capital into expanding your operations.
Last, outsourcing can make your business more efficient. If you have a great system in place and you have a great outsourcing vendor, you can simplify your processes in order to make them more efficient. In our case here at CoffeeBot, we have an operations manager or project manager that makes sure to do a quality check on our deliverables.
In addition to doing the administrative work, our project manager also studies our process and provides recommendations to make them better or more efficient. We troubleshoot problems and find ways to help our clients achieve their goals faster.
It’s sad that outsourcing can’t be that silver bullet that entrepreneurs pray for. You still have to work hard to build the foundation of your business. But once you’ve created a sturdy foundation, you can count on outsourcing to make the process of building a bigger business. With our help, you can reach your goals faster and better. So at the end of the day, you have more than a great foundation to show for, you’ll have a big beautiful, profitable business to call your own.