Outsourcing: The secret weapon to scaling

I don’t want to pass up the opportunity to share an article I read about how small businesses are using outsourcing to scale up. Below are a few highlights.

In order to give your business the best chance of being successful, you can’t just grow without rhyme or reason. You need to scale up in an efficient manner that maximizes resources and avoids wasteful spending.

The challenges of scaling up

• Cash flow problems. You can’t scale up and maintain the same budget. If you’re set on growing, you’ll have to come up with a very specific plan for your cash flow. A failure to do so will come back to hurt you on the financial front.
• Tidal markets. This is particularly problematic when it comes to staffing. It’s easy to bring on a bunch of new employees when things are busy for a stretch, but once things come back down to normal, you’re left with high payroll costs and not enough revenues to justify the expense.
• Loss of focus. Instead of keeping your eye on the prize - i.e. satisfying your customers - you begin expending all of your energy and effort on growth (often for the sake of growth and nothing more).

Using outsourcing to scale with efficiency

The beauty of outsourcing is that it allows you to increase output without increasing your fixed costs. You get the additional productivity that an employee brings without the added commitment (financially or practically).

• Gain instantaneous scalability in an area of your business that would be too costly or challenging to expand in an efficient manner. 
• Use outsourcing to eliminate the most time-consuming tasks from your team members.
• Outsourcing should be used when you lack expertise in a particular area and have the ability to work with a partner that has the skills or knowledge you need to grow your business in a key area.

Find the full article here, and don’t hesitate to discuss your thoughts with me. You can email me at [email protected], or call me on 0488 548 854 if you want to talk about outsourcing for your small business.

Thanks,

Jess