By Brett Farmiloe
As your business grows, should you consider outsourcing certain functions? From assessing whether you are spending too much time on non-essential tasks to deciding on which jobs to outsource, we asked business leaders to share their best advice.
How to strategically outsource work at your small business
1. Assess whether you are spending too much time on non-critical tasks
"As an outsourcing agency for businesses, small and large, we deal with companies that are on the fence about outsourcing. The best advice we can give them is to find out if they're at a stage where they need to consider outsourcing. Usually, smaller businesses are operated by one or two people trying to be jacks-of-all-trades and doing everything themselves. The first thing we recommend that they outsource is customer service. Whether that's email, live chat, phones, social media, or any other channel—it can be outsourced. Freeing up that time will allow a small business owner to focus on expansion.
"We've met brand owners in e-commerce and even thriving SaaS startups where the founders still answer customer support calls. Two questions we always ask are: 'How much time are you spending per day on [customer support] personally' and 'What else could your time be better spent doing?' After answering those questions, figure out support volume and price options to see if outsourcing makes sense financially."
—Joel Wolfe, HiredSupport
2. Adopt a strategic approach
"Taking a strategic approach is essential when considering outsourcing in order to maximize benefits and minimize risks. Here are key strategies:
- Define your objectives: Before you outsource, clarify your goals—cost reduction, accessing specialized skills, or the ability to focus on core business functions. While cost savings are essential, evaluate the cost-quality balance and consider all fees to ensure value.
- Evaluate partners: Thoroughly vet potential partners by assessing their expertise, experience, reputation, and case studies and references.
- Legal and compliance: Review contracts, intellectual property rights, data protection policies, and industry compliance, especially in regulated industries.
- Pilot project: Start with a smaller project to assess the partner’s capabilities and compatibility
- Set expectations: Clearly outline deliverables, timelines, quality standards, and KPIs to ensure there is a mutual understanding, and evaluate performance."
3. Begin with manageable tasks
© Duncan Andison- Adobe Stock
"I've been running a digital marketing agency for 15 years. Having managed digital marketing strategies for countless businesses—some of which were hesitant to outsource—it's never a good idea to jump into outsourcing headfirst. Begin with manageable tasks, gauge compatibility, and then expand the scope based on the success of initial collaborations.
"A startup I was working with aimed for rapid expansion and initially wanted to outsource a gamut of tasks. Fortunately, the owner changed his mind at the last moment and avoided a possible catastrophe—he opted for smaller projects, assessed performance, and then scaled up gradually, mitigating risks and identifying reliable partners as a result."
—Leslie Gilmour, BeFound SEO
4. Involve in-house employees
"One of the most overlooked aspects of outsourcing is neglecting the opinions of in-house employees. Involving insiders with the 'outside team' is very important. Gather them in advance, let them know what to expect, and assure them that their performance will not be affected."
—Stoyan Mitov, Dreamix LTD
5. Be knowledgeable about the tasks being outsourced
"Before your outsource, make sure you have a good understanding of the tasks you'd like outside help with. For example, let's say you want to outsource email marketing, but you have no idea what email marketing tools are out there or how they work. In that case, it's going to be a lot harder for you to hire the right person, because you won't know what to look for in a potential candidate. But if you're already familiar with a particular tool, you'll be able to say, 'I'd like you to do X' rather than 'Is it possible to do X?' Ultimately, outsourcing can be a great way to scale long-term so you can work less, but don't rush this step."
—Luisa Zhou, LuisaZhou.com
6. Identify and outsource non-core functions
"Before outsourcing, businesses should consider whether a particular task or process is essential to their core business objectives. Outsourcing non-core functions, such as customer support, IT maintenance, or payroll processing, can free up valuable time and resources. However, it's vital to retain control over and invest in areas that directly contribute to the company's competitive advantage and unique value proposition.
"Outsourcing should be a strategic decision aimed at improving efficiency and cost-effectiveness, so it's crucial to maintain a clear understanding of what truly drives your business's success. By focusing on outsourcing non-core functions, companies can streamline operations, reduce costs, and allocate resources more effectively to their core activities."
—Bruno Gavino, Codedesign
About the Author
Post by: Brett Farmiloe
Brett Farmiloe is the founder and CEO of Featured, a platform where business leaders can answer questions related to their expertise and get published in articles featuring their insights.
Company: Featured
Website: www.featured.com
Connect with me on LinkedIn.
