To Outsource or Not!


A lot of small business owners think they can do it all themselves, they may think they can’t afford to hire someone to help them with their workload.

But the question arises can they NOT afford to grow their business.

I recently had a conversation with one of our clients that is currently a one man or woman I should say business. She found herself in the situation that there was too much work coming in for her to handle. Working very very late nights, starting early, something was going to give, her health and or let’s not even mention her young family.

When she approached me she was nearly at the end of her tether, so we discussed the options, we went down the track of a Trainee, Part-Time & Casual employee or do we outsource to a specialist in her field and only pay for work created.

So we sat down, played around with some figures, first we went down the track of the employee regardless of what type, we looked at hourly figures for each one, how could she financially cope at this stage having to pay for sick or annual leave to the Trainee or Part-Timer and  not forgetting if over the $450 in the month the employee would have to be paid Superannuation, so more number crunching.

There was one crucial thing she was forgetting among all this, her time.

Her time to train and guide the employee as she couldn’t afford a senior in her industry and would either be the Trainee or someone that had just completed their qualification and wasn’t demanding the big bucks. So with the lack of knowledge and experience if say the part-timer was just fresh out of University, she would still have to sit down with them, show them the ropes, and if something went wrong she would be the one to have to sit down and fix what went wrong.

So, then we did the figures for an outsourced firm, someone that would be a specialist in their field, that held all the right qualification, had years of experience in the industry and had the one stop shop help that she needed. We found that some firms gave her a project price or valued pricing per job, some preferred to quote on hourly rates.

What she basically would be paying for was the time spent on the project by the outsourcing firm after they were given their brief, not the down time in guiding and spending time to train which she didn’t have up her sleeves. Even though it felt the pricing of the outsourced firm was more, she saved as there was no down time, the work that came in was fantastic and more importantly she was able to cope with more work.

Now my client is and feels in control of her business, is not working so many late nights and has time for her children, now this is an important bit,

she is actually making a profit on every job she outsources.  Win, win I say

So think about it, ask yourself these questions:

  • Do I need help in my business?
  • Am i coping with the late nights, my family are they suffering?
  • Run the sums first for an employee regardless of what type
  • Then look at the outsourcing firms, you’re not restricted to just the one firm

An outsourcing firm in your field just might be the answer, and here’s a hint just make sure you find the right specialist for you!

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