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Why Outsourcing Is Your Best Bet

“Work on the business, not in the business.” If you aren’t sick of hearing or saying this, then you’re not saying it enough!

An entrepreneur often has no choice but to start out as the only employee in his organization. However, as the business grows and becomes successful, most entrepreneurs eventually realize they can no longer fill every role.

A busy owner shouldn’t get mired in the details of keeping up with bills instead of improving his business, which is why the smartest thing an entrepreneur can do is hire a capable administrative assistant.

The assistant’s role should be to take over the tasks that the owner shouldn’t be doing because his time is valuable and should be spent growing the business.shutterstock_241067758

A good way to start that process is to examine your daily tasks.

  • Keep track of everything you’re doing during the day for at least a week.
  • Determine what work you don’t want to do, don’t need to do, or shouldn’t be doing.
  • Any job that doesn’t generate revenue should be outsourced to someone else internally or externally.

Next, an organizational chart needs to be formed. It’s OK if you start your business with your initials in every box in the chart (à la “The E-Myth Revisited”). However, you’ll need to start populating those boxes with other people’s names or initials.

As you start to see your business from a much higher view, you can put the right people in the right places.

Even with a full roster of employees maximizing your internal “outsourcing,” most growing companies eventually recognize the advantages of outsourcing certain functions to outside companies.

After outsourcing, many enterprises are able to drastically improve their business by:

  • Examining the processes of the business.
  • Looking to hire the right people.
  • Creating better review systems and accountability systems.
  • Redefining processes and procedures and creating “playbooks” for everyone, even outsourced vendors.

Some obvious examples of outsourcing include bookkeeping, IT, and social media. If you’re not in any of these respective industries, you’re probably not an expert in them! However, there are experts who can do these jobs.

I recently spoke about the IT checklist and how to maintain the integrity of IT at #SUMtech15. If you missed this year’s event, make sure to subscribe to the SUM Innovation blog for the latest updates on the 2016 event.

Other reasons it makes sense to outsource include:

  • Payroll: Taxes, unemployment, vacation, and sick days all need to be monitored and managed.
  • Diversity: For example, a company with 10 IT employees will have more collective experience and a wider variety of specialties than a solo IT person.
  • Time: Spending time on tasks that could be outsourced costs you and your company money.
  • Work/life balance: You didn’t start your company to become a slave to it!

Think about the procedure you follow on a daily basis. Write it down, and when you assign that task to someone else, have him follow your procedure. At the end of the day, if you’re an entrepreneur, almost everything will fall to being outsourced. You’ll no longer be concerned with the everyday tasks. Your focus will be on the more important aspects of growing your company, such as the people, processes, and key relationships.

For a young company that’s about to take the plunge into outsourcing, it may be daunting to figure out where to start, but the rewards are many.

Do you have a question about outsourcing your IT department or outsourcing in general? Feel free to contact us for advice or a second opinion; we’d love to help in any way possible. Call 212-737-0608, or email us at info@contangoit.com.

CEO and serial entrepreneur Danny Mizrahi created Contango IT, a pioneer in cloud computing that’s dedicated to helping businesses lower costs while increasing the productivity, reliability, and availability of their data.

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