Signs That It Is Time To Outsource A Business Activity

While outsourcing can have many benefits, there is a certain time when you need it the most in your business. In this blog, we will tell you about signs that it is time to outsource a business activity. That is to say, choosing the wrong activity or choosing the wrong partners can be a big mistake. OrangeIQ is here to help you make the right choices. Below are some signs that it is time to outsource a business activity:

• You Don’t Have The Time To Strategize

Strategizing can feel like a luxury to an overstretched business owner. It is easy to slip things like creativity and innovation to the back burner. That is to say, this is especially true if you spend all your time pushing paperwork. According to a survey, small business owners spend over eighteen hours a month on average tending to payroll. Not only that, but just one in four small business owners feel they deduct and submit payroll taxes correctly. That is to say, they spend nearly half a workweek tending to payroll and don’t feel good about the results.

In addition, the survey also found that 70% of those who outsourced their payroll concerns were confident about paying on time and 50% felt good about handling taxes correctly. They also spend roughly an hour or less on payroll each month. You should ask yourself if you have the time to strategize for your business. That is to say, if you find your primary goal being interrupted by countless hours of admin tasks, that can be a major sign that you need to outsource some of your activities.

• Your Company Is Growing

If your company is successful, it will grow. As you strive to take your company to the next level, you may experience periods of rapid growth. These are exciting times, but they can also be stressful. If your company is growing fast, you may find that you are feeling stressed and stretched in multiple directions. This is one of the many signs that it is time to outsource a business activity. The problem is, as a company scales, tasks that used to be manageable can become too big to handle. For example, you may not have thought about things like IT when you only had five employees, but as you hire more people, you may find it hard and/or out of your comfort zone to keep your online presence secure.

That is to say, as you grow, keep an eye out for areas that used to be manageable but may have become too big to handle.

• You Don’t Specialise In An Activity

One of the easiest ways to peg an outsource-able function within your business is to consider if it is related to your field. It is no secret that specialised tasks require specialization. This is one of the simplest ways to see if your business function needs outsourcing. If you are feeling overwhelmed, consider how many tasks you are engaged in that are important to your business but not your field of focus, your goals, or your industry.

A department like accounting is an important function of a modern business. At the same time, it is not connected to the primary focus of a business. If you are buried in non-industry-related tasks, it may be a sign that it is time to pass these responsibilities off to others. In addition, there are many signs that it is time to outsource a business activity. The key is to take a look at your company and find the areas worth handing over to another party. If you can do that, you can reap the benefits that come from outsourcing.

Benefits Of Outsourcing

Now that we know about some signs that it is time to outsource a business activity, let us move forward to the benefits. Outsourcing parts of your business can feel like both an added expense and unnecessary additional work, especially when you first adopt a new approach. After all, it involves taking the time to explain your brand, vision, and goals to someone else. But, there are several benefits to outsourcing. Some of them are given below:

• Saves You Time

Outsourcing can free you up to focus on areas of your business that are more important for you to oversee personally and unique to your vision.

• Reduces Complexity

As you shift tasks to other qualified professionals, you reduce the complexity of your business. This includes reducing accounting, payroll, and other activities that come with in-house management.

• Gives You Access To Experts

Outsourcing means you’re taking advantage of someone else’s strengths, training, and knowledge. That is to say, you don’t have to become an expert in every area of your business.

• Reduces Costs

From more time to fewer mistakes to playing to your team’s strengths, outsourcing can help your bottom line and easily pay for itself when done well.

Outsourcing may not be the answer to everything. But it is a valuable tool that business owners should not take for granted, especially if all the little tasks are getting in the way of the primary goal.