Outsource Your Business and Life

While economists and technology professionals often call this the information age, I believe this is also the outsourcing age. The imprints on most of our products are a constant reminder that China is pumping out plastic toys, coffee mugs, guitars, and most anything really. In a way, most of our lives are outsourced. From lattes to e-mail services to oil changes, somebody else is often doing the work for us.

On the business front, some economists have argued the trend for business outsourcing to China and India has cut into the U.S. job market. While complaining may get a lot of lip service, the fact is corporations and small to medium-sized businesses can, and do, benefit greatly from outsourcing. The benefits of outsourcing include controlling capital costs, increasing efficiency, reducing labor costs, starting new projects quickly, the ability to focus on your core business, leveling the playing field, and reducing risk. 

Yet even in the outsourcing age, many small to medium-sized business owners are trapped in the day to day operations of a business. This often prevents the ability of owners to focus on growing the business. Or, as John Sanders of Premier Christian Cruises stated, "all of us have a tendency to work in the business instead of on the business." Our other winner, Software Testing Solutions (STS), also face this dilemma. Time for STS owner Jennifer Lyle is consumed by the business, which limits her ability to spend more time on growing the business.

There are different levels to outsourcing of course. Our finalists don’t necessarily need to go to India to outsource certain tasks, although it wouldn’t hurt, but can outsource parts of their business to new or existing employees. If they choose to outsource tasks to employees, systems and training manuals need to be in place. It may be difficult at first to relinquish control of a business, but if the right people are in place, with the right systems, the business should thrive.

Also, outsourcing tasks such as HR and accounting can not only free up more time for a business owner to focus on other tasks, but can reduce employee costs. Plus, not outsourcing certain tasks can actually keep a business stagnant. Our business expert David Finkel, who is in the process of transforming our two finalist’s businesses, believes a business will never reach level three, or a big business, if they hang onto bookkeeping duties.

And why not outsource as much as possible in business and life? With call centers, accountants, bookkeepers, technology professionals and housecleaners working under you, you can focus on creating wealth by growing your business and, perhaps, creating new ones.