November 16, 2023 by Matt Moseley
Outsourcing often takes centre stage as the magic bullet for common business problems. Need more time? Outsource. Tight on budget for staff? Outsource. Eager to grow your team? Outsource.
Undoubtedly, outsourcing serves a pivotal role when it comes to money optimisation, time efficiency and growth opportunities. Yet the truth is, many businesses in their outsourcing quest, attempt to delegate core business problems without the foundations or game-plan in place to ensure outsourcing success.
Rather than viewing outsourcing as a tool to solve issues of money, time and growth, view outsourcing as a way to enhance these factors. As such, a subtle paradigm shift from “I must outsource because I’ve no time to do anything.”, to “I can be using my time better and I am willing to invest in training, managing and delegating to someone.” will be the difference in securing your outsourcing success.
Let us dive a little deeper!
How to Know You’re Outsourcing a Problem
You can’t hand someone a map without knowing the destination.
If you don’t understand the role, you aren’t ready to outsource it. “I need someone to do my admin!” is something we hear every day, but many cannot articulate what this entails. If you, as a business owner or leader, don’t understand the intricacies of what’s required for your specific role, even the most skilled outsourced professional will go adrift.
You can’t plant a garden and expect it to flourish without tending to it.
Outsourcing will give you back hours when you outsource well. But many have a fantasy that outsourcing is “easier”. If you don’t have time, outsourcing is only the solution for your time problem if you are willing to invest time in training, delegating and managing your outsourced team member, just like an internal team member. They can take on this role if you’re lucky enough to have a team with potential managers. If you’re still growing your team, be aware that you will need to take this one to get the true benefits of outsourcing.
Don’t buy a parachute based on prices.
When it comes to outsourcing, you truly get what you pay for. While offshore outsourcing is excellent for cost savings, a hasty hire due to financial constraints may not yield optimal results. Outsourcing comes at a range of costs, and hiring “cheap” will reflect in the outcomes. The sweet spot for outsourcing really lies in team growth. Ideally, your first experiment of outsourcing should be within an existing role in your business, that has systems and processes that you know work.
Outsourcing is ideal as part of a strategic plan to increase profit by not only increasing margins but also your team size, and therefore the forces behind your growth. But the businesses who are best positioned to do this, are those who have established roles which they are choosing to outsource using systems and processes they know already work.
Escaping the Pitfalls of Outsourcing “Problems”
Having engaged in countless conversations about outsourcing, we've distilled three essential steps to ensure fruitful outcomes for those venturing into this realm.
STEP 1: Confirmation:
We consult extensively with businesses considering outsourcing, evaluating their readiness and addressing potential pitfalls mentioned earlier. Often in this process, we find that what businesses come to us for, is not actually the best outsourcing solution for them. This discussion is vital in ensuring the most strategic decisions for outsourcing.
STEP 2: Preparation:
Once outsourcing is confirmed as the path forward, we assist in crafting foolproof processes and systems, laying the groundwork for your team's triumph. After all, you can't outsource what you can't teach.
STEP 3: Integration:
With systems and processes in place, the next crucial phase involves investing time in seamlessly integrating team members. This onboarding and nurturing process ensures a smooth transition into your business ecosystem.
While outsourcing is undeniably a strategic solution to save money, gain back time and propell business growth, it’s really not a one-size-fits-all solution. Success in outsourcing hinges on having the foundational structures in place.
Ready to get started on your outsourcing journey? Let’s chat!