One of the biggest mistakes of new small business owners or budding entrepreneurs is thinking that they can do everything themselves. They think that doing everything in-house is always cheaper. Well, think again. Try to examine your business. There might be some things that will be cheaper if someone else does them for you.
Here are a few examples when outsourcing may be a better idea.
Your communications system
Are you struggling with maintenance and repairs? Do you experience long down times when your business telephone system is having some problems? Do you wait forever for the engineers to arrive to diagnose and fix the problem? It might be high time that you think about getting a hosted service.
A hosted service has many benefits. First, you don’t need to spend your capital on huge and expensive equipment. You save money and you save space. All the bulky equipment is in your provider’s office.
Second, if you need repairs, they can easily and quickly do it in their office. No need to travel to your office. Less down time means more time to make money.
Third, are you paying salaries and benefits to an expensive IT team to maintain your phone system? Think about the money you can save if you outsource your communications service. Let’s face it. Small businesses need all the cash they can get (and save) so this is a wise move, so it might be time to change your phone system.
Your raw materials and processes
Are you making your raw materials yourself? This does not only apply to manufacturing industries or food industries. It applies to almost all kinds of businesses. Making your ingredients or raw materials might be very time consuming and expensive. Imagine buying and maintaining all that equipment just to make raw materials when you can easily just buy them from an established manufacturer. For example, if your end product is juice, do you grow the fruits and vegetables yourself, prepare and process them and then make them into juice? Unless you have a very high standard or super secret way of preparing your raw materials, getting your fruits and veggies from a reputable organic (if that’s your thing) farm or company is the better route. You don’t have to deal with damaged or rotten goods. You will always get the best produce which in turn will yield an excellent product. You get amazing profits without investing a lot of time, effort and money.
It is the age of virtual everything – virtual assistants, virtual offices, etc. If you are struggling paying the monthly rent and electricity bills, it might be time to go virtual. You can outsource most (if not all services) from individuals and companies. You just need a few pieces of equipment, a good website and a good team to maintain your professional and trustworthy image. Not having a physical office does not necessarily mean that you are less efficient/effective/trustworthy than your competitors. You can still “run with the big boys” in the comforts of your own home.
Think about making a few changes in the way you do your business daily and you might find some hidden cash along the way.