Outsourcing is good for business
In our last blog post, we touched on the value of time. Every pain a business owner feels is due to the constraint of time.
When the topic of outsourcing come ups, the responses I usually hear are:
“I can’t afford to hire someone.”
“Its a lot of money.”
“I can save money if I do it myself.”
I’m also guilty of this. But what I have learned to ask myself is:
“How much do I value my time?”
I see a lot of business owners doing their own bookkeeping or getting their spouse who works a day job to do it for them. The problem is, as the business grows, so do the transactions. If the books are not managed properly, the owner can run into a lot of cash flow issues. Sometimes invoices are not prepared or jobs being quoted are not profitable. Sometimes inventory is overstocked and just sits there.
Construction is booming in Vancouver. Ever wonder why the bakery owner down the street has never gotten involved in the construction business? Or vice versa?
Of course not!
If a contractor needs a cake for his kid’s birthday, he will outsource the work to a baker. If the bakery owner needs to renovate his premises, he will outsource the work to a contractor.
If the baker decides to complete his own renovations, it will take him at least twice as long to complete. During this time, he will be losing out on bakery sales and new customers because his focus is on completing the renovations.
No sales = decreased cash flow
Our society is built on specialization. This allows us to focus on the things that we are good at and outsource what we are not.
What are you really good at in your business?
What are the things you dread doing and leave until the very last minute? Can someone else perform this activity?
Hate doing paperwork and answering calls? Consider hiring a virtual assistant.
Feeling the stress of getting your books in order and filing taxes? Contact us