Outsourcing is a great way to delegate some of the routine tasks in your business whilst you spend time on the money making activities. It can be a very cost effective route, but you need to consider the pros and cons before going down that route.
What are the benefits of outsourcing and what are the drawbacks? Are you ready to outsource, or should you hold off on it for a while? These are the questions you need to be thinking about?
The Pros of Outsourcing
There are many benefits to outsourcing. Some include:
1) It increases your earnings per hour
In any given business, there are tasks that are worth much more than other tasks. For example, buying a domain, setting up its hosting account and email accounts are all low cost jobs. On the other hand, if you do the figures a year later, managing your PPC account may be a £100 an hour job.
If you can outsource your low skill tasks in your business, you effectively raise your personal efficiency and therefore your earnings over time.
2) You move closer to putting your business on autopilot
When you’re doing everything yourself, you will never be able to achieve passive income. Your business will always be on your mind; because if it’s not it will fail.
That changes once you bring in other people. If one of your goals is to eventually have a business that runs itself, then bringing on board outsourcing partners is a good first step.
3) Your limit on what you can earn goes up
If you want your business to scale, you’re going to have to recruit others. In just about every business book by someone worth over £100 million, one of the top three things they say matters in business is working with the right people.
There’s no such thing as a multi-million pound business run by one person. Few businesses make more than low five-figures a month when run by just one person.
If you’re interested in scaling your business up, eventually you’re going to have to outsource or employ someone. When you do, your business becomes more scalable and has more potential to grow.