Is your business growing and you need to engage more hands? Are you keen on exploring options other than employing? The benefits of outsourcing are many however there are also some potential negatives to consider. Outsourcing is like a marriage and boils down to the kind of partner you wish to tango with. Can you trust them? Are they competent? And are your values the same?
Pros of Outsourcing
You’ll save money
Outsourcing beats hiring from a cost perspective. You’ll save on setting up a new office and equipment. Furthermore, you’ll not think about fringe benefits or wonder if you are keeping up with labor laws.
You’ll gain a different perspective
Since you are partnering with other people, you can borrow ideas or get inspired in different areas of your business. Furthermore, other entrepreneurs are likely to understand the dynamics of business better than an employee and can even help you to work things through when you hit a block.
You’ll focus on your zone of genius
All businesses operate with limited resources with time being the biggest issue. You can only focus your time and talent on a few functions in order to be efficient and do them well. When you outsource to skilled freelancers, it frees you from the peripheral activities of day to day running and you can focus on the income generating functions of your business.
Cons of Outsourcing
You risk exposing sensitive data
When you outsource, you share vital and sensitive business information, with the partnering person. It is vital that you ensure that there is a written legal agreement in place and that the freelancer is using a password security system.
Loss of Customer Focus
Since the freelancer you outsource to deals with several businesses, there is the chance that you may not receive the amount of time/focus that you require. When selecting a person with whom you partner, ensure that this is discussed in your initial meeting and that any changes in your time requirements are communicated clearly.
The fear of giving up control
You have built your business from the ground up and it is your baby. I understand how hard it is to trust someone else to treat your business as if it where their own. The whole point of outsourcing is to free you up to focus on other areas of the business, so you are going to have to learn to let go a bit. Take care when choosing a partner. Communicate your terms and expectations clearly. Carefully review the profiles of prospective candidates and check out what other businesses say about them and most of all, trust your gut!
Here’s the bottom line. Outsourcing different aspects of your business is a great move. However, you need to be aware of the pros and cons, and carefully scrutinize the prospective partner. Similar to a marriage, the right partner would mean bliss, but the wrong partner will cause misery.
I wish you so much bliss!
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