Monday, 14 July 2014

Motivation: Outsourcing is Not Always The Answer

One of the key factors motivating many businesses in the last 50 years has been in the area of outsourcing. It is simply, sending out work to smaller companies to undertake jobs at normally a cheaper price. For many small businesses, outsourcing is now more affordable than ever before. However, it is still not a silver bullet for many businesses that will make them more money

The idea of sending the time consuming and tedious work to someone else to do is a great idea. In fact I have heard of people sending their everyday stuff to people so that they get more time. While this sounds fantastic, and can increase your motivation, and I have even done some of it myself, there is still a cost involved and even when it can be done cheaply, it can still prohibitive. 

It is not cheap to get someone to do work for you if you do not have the money in the first place. Unless you are actually making money that you can use to pay someone to do something for you then the only solution is for you to do the work yourself. This may not be the ideal solution, especially if you are time poor, but can you really afford to waste money on something that you can do?

While outsourcing to companies in such countries as India and China has become popular with small businesses, it should not be part of you start-up business plan. In fact, outsourcing your work to other people should not be on your agenda for three to five years. Of course, you can get some work done before that, but you have to be able to justify to yourself and your bank balance why you paid out extra money for someone to do what you could have. 

I will admit that I have use some outsourcing companies in my own business. They were utilized to improve areas of my business and make things run smoother. I used their expertise in areas that I am not an expert. However, while I wanted them to do more, I chose not to use them, and did the work myself as I could not justify the cost. And in business cost and reduction of cost is one of the most important areas that you should focus on. 

Another reason for not running to an outsourcer is the fact that you need to learn your business. It is important to learn what works and what doesn’t and know how it all fits together. If you do not learn the basics and simple hand your business over to someone else, then how will you ever know when things are not working, or worse, they are just taking you money and lying to you? You must know your business before you hand over control to others. 

Outsourcing has its place in many businesses and can be a great benefit in freeing up time, and even reducing some costs. However, you must ensure that it is used for the right reasons and not just adding expenses to your business. Learn your business; put it the hard yards, and then you can start to send work out to others. Remember it is your business and you must be in control at all times, regardless of how much outsourcing you do.

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