Welcome to the latest outsourcing blog. In this week’s blog we are looking at the advantages of outsourcing. Overall we can see the advantages are, saving time and money. We will break them down using the following headings.
Advantages of Outsourcing
Focus on Core activities: In periods of growth and decline the company will have the resources available to continue to exceed your customer’s expectations of excellent service.
Cost and Efficiency savings: By outsourcing you have greater control over your spending; you will not have any costs for the service when you are not using the service.
Reduced overheads: The business is not liable for the cost of providing an office environment or the costs of training and development of the personnel to run the office.
Operational Control: A company’s marketing department may not have the staff to complete the operational targets and therefore require some projects to be outsourced.
Staffing flexibility: Outsourcing will allow businesses a lot more flexibility in that they will only pay for the times when the service is used, therefore they have the advantage of having extra staff without the need to go through the hassle of an interview process.
Continuity: If any members of staff become ill for a period of time or leave the business for any reason, outsourcing is a way of plugging the gap.
Internal development: By having your own staff working beside an outsourcing company, the company’s employee’s can develop a new skill set for future use, or can be seconded to another department to help through any particular project the company is involved with.
As we can see from the above there are many advantages to outsourcing, We at The Virtual Office are only too happy to help with your outsourcing needs.
Outsourcing for Growth
As we wrote recently, outsourcing is defined as any task, operation or process that could be performed by you or your employee’s within your business, but is contracted to a third party.
Many business owners find their business is growing or they are trying to spend more time on marketing but find the length of time to complete each task is taking up even more valuable hours on a never ending to do list! This can be very stressful, especially when everyone is looking for more of your time whether its suppliers or customers, and as a result certain aspects of your business begin to suffer, and, of course these harsh economic conditions are placing further financial constraints on businesses which mean it’s not feasible for a business owner to take on staff.
Outsourcing your administration takes off some of the pressure, giving you the freedom to spend more time working on your business rather than just in it
What tasks to outsource? Taking the decision to outsource some of your administrative tasks won’t be something you do lightly. It’s quite daunting when you find yourself having to let go of some tasks and relinquish them from your hands-on control. A manageable way to embark upon an outsourcing relationship is to start by delegating individual tasks or projects.
At the beginning each party needs to learn how to work together, how to communicate efficiently and effectively in order to get the best from each other. As you each start to see the results, you’ll get a feel for competencies and/or weaknesses and adapt accordingly. As trust grows it’s very likely you’ll feel much more comfortable handing tasks over.
The tasks to outsource are the tasks that are not profitable but take up a great deal of time such as credit control, telephone answering and other administrative tasks.
Outsourcing was once seen as a strategic tool to gain a competitive advantage over your competitors. It is now being used as a way of increasing a business’ survival during what is now seen as one of the worst period of our economic history.
Outsourcing is defined as any task, operation, job or process that could be performed by employees within your company, but contracted to an external third party.
The continuing downturn in the economy has seen the number of customers looking for goods and services dwindle, thus creating an ever increasing competitiveness amongst businesses.
As business conditions decline the same numbers of employees are no longer required, and business owners are faced with the situation that they now need to cut costs and cannot afford to keep the same staffing levels, however, there are still responsibilities that need to be carried out to keep the business moving forward.
In the above situation there is only one conclusion and that is to take the hard decision, and reduce staffing levels to ensure the business survival through this downturn but in doing so it ensures the ongoing business is now in a much better situation for when the economy turns around, and staffing levels can return to normal.
For your outsourcing requirements to ensure your business survival through this difficult time why not contact The Virtual Office, to see how we can help you to cut costs.
Next week we will be looking at outsourcing for growth.
Some people say “fake it ‘til you make it,” but I think that cliché has an unnecessary air of falseness about it. Still, if you are starting up or running a small business, making your company look bigger and more established to the outside world can have dramatic results.
Whilst we’re not suggesting you misrepresent yourself or your company, or you behave like a big, impersonal corporation. What we are saying is that image does matter, and you should cast your business in the best possible light.
Dressing up your small business sends a message of seriousness and credibility to customers, suppliers, and anyone else who interacts with your business. It also affects your own attitude; much like wearing nice clothes makes you stand a little taller. With so many cheap and easy tools available for the purpose, there’s no excuse for not making your business look like a business, even if the company is just you and a laptop. Start here:
1. If you work from home, lose the bunny slippers. If you’ve chosen to work out of your house, then create an impenetrable “work bubble.” That means a dedicated, quiet, professional, well-equipped and wired space that you, and anyone else in the house, treat no differently than an office across town. No exceptions. Get dressed up for work in the morning, even though you don’t have to. It affects your behaviour, not to mention it avoids embarrassing surprise Skype Calls!
2. Your phone sets a tone. I can’t tell you how many times someone has called me, representing a business, and I’ve heard kids or pets or TV in the background. Or I’ve called a “business” number and listened to an answering message saying “you’ve reached the Smith family and Smith Industries, Incorporated…” Get a good phone on a dedicated line, and clear, professional voice mail, and record a professional-sounding message. If it starts with “hi there!” it’s wrong.
3. Look good on paper. There is no excuse for inkjet-printed business cards or Microsoft WordArt logos. Proper cards and other printed materials are cheap and easy to get in small quantities from Printers. Hire a proper designer and printer to do your stationery for you.
4. Be the master of your domain. A good starter website is inexpensive and easy to build. It may not be the sophisticated enterprise-level site you will inevitably want or need, but a beautifully-designed company info or “brochure” site is better than cheap, shoddy looking anything else. It is probably the first point of entry for people doing business with you, and the best way to convey the image you want.
5. Don’t be a Yahoo. Few things stand out as credibility question marks more than a generic/free email account. Business people are always sceptical when they get a business email ending in yahoo.com, gmail.com, or hotmail.com. As part of your website project, set up proper mailboxes with the same domain name and don’t just use your first name, if your business is not well known. Use first name/last initial or first initial/last name. It immediately sounds more substantial.
6. Outsource to a company that can provide a professional image. Some businesses are ideally suited to be run from home, and lets face it, in this economic climate it certainly helps with cutting costs, however, there does come a time when your business will need to have an extra pair of hands to help get the work done, but what happens when your home office isn’t designed to accommodate more then you?
If you can’t move into an office or if you can’t justify the cost just yet, consider using a virtual office. These remote offices can help companies to look quite substantial to the outside world and building the most impressive image you can from the start is a key step in getting business visibility, being taken seriously, and getting people to want to do business with you.