Why outsourcing your bookkeeping can help you and your business growth.
Running a small business demands time and energy — sometimes more time than hours in the day, and more energy than you can physically muster.
Although outsourcing and delegating may seem intimidating at first, this can be incredibly beneficial to your business operation. When you can focus on what you do best, or the tasks requiring the most effort and time, both you and your business will be at the most productive.
‘Outsourcing’ refers to any task, operation, job, or process that could be performed by employees within your own business, but instead you contract to a third party — someone on the outside. Far from handing over the reigns and losing control, it’s a way of capitalising on the strengths of other professionals to perform the tasks involved with running your own business.
Common tasks that you can outsource include graphic design, marketing, social media management and of course bookkeeping.
In addition to buying back your time, outsourcing can also offer the following benefits:
Reducing overheads by decreasing the need for immediate office space for back-end operations
Creating staffing flexibility by bringing in or letting go of additional resources in accordance with cyclical change of demand
Ensuring skill in your staff mix by employing exactly the right people to perform specific tasks, rather than battling to manage them yourself
Ultimately, outsourcing will save you time and money!
Making your ‘secret sauce’
Before you make the leap to outsourcing, you should consider what your own time is worth, what your weaknesses are, and what’s most important to your business.
Knowing how much your time is worth makes outsourcing decisions practical and straightforward. If your time is worth £50 an hour, for example, you can save £20 an hour by hiring a graphic designer who charges £30 an hour to develop your letterhead. Furthermore, a graphic designer will do a better, faster job of graphic-design-related tasks than you or another industry specialist. This is a double saving.
Identifying your weaknesses is likely a harder exercise. After all, many small business owners enter into the small business sector because they are passionate about or talented in a specific area. Taking stock of your skills and pinpointing the tasks that you are either not terribly good and/or don’t enjoy can make the decision to outsource those tasks much easier. Put your energy into the things you love and are good at and let someone with the right skills and experience handle the rest.
Finally, set aside some time to determine what is unique about your business and what gives it its competitive advantage or potential for profit. These are the tasks that you want to retain for yourself. Seemingly inconsequential tasks for a manager, such as one-one-one customer service, may not be inconsequential at second glance. If your business thrives particularly on the rapport it develops with customers face-to-face, this might be an area in which to focus your own energy. Only delegate or outsource tasks that will not compromise your point of difference.
So, think of outsourcing as just another resource available to you as a progressive, responsive business operator. Think first, plan wisely, manage well — and put some zing back into your business.
Contact us to discuss how outsourcing your bookkeeping can help your business growth.