Your Not-So-Small Business: When to Hire and When to Outsource
An excellent metaphor for the life of a small business owner is found in the entertainer who spins plates at the end of long rods. As you watch the dizzying performance, the person runs back and forth between increasing numbers of plates, trying to keep all of them spinning fast enough so they don’t fall.
The entrepreneur very quickly finds that there are more and more plates that have to keep spinning. In actuality, there are so many plates that at times, some do fall, and the key to success is the knowledge and insight to let the right plates go. The speed of business today creates an increasing demand on time in multiple areas of planning, marketing, operations, finance and personnel. There is often simply too much for any small business to track and execute.
When to Hire and When to Outsource
The Role of Outsourcing
Two factors drive the use of outsourcing in any business, large or small, and the first factor is time. A continual balancing act exists between controlling personnel costs and having the capabilities to get the job done. There are many areas of business that demand attention, but do not require a full time employee, so these are natural outsourcing opportunities. Small business owners do this naturally with their legal and accounting needs, as it is very seldom practical for a startup or small company to have an attorney or CPA as full-time employees.
The second element that drives outsourcing is the issue of expertise, and this is an increasingly important factor, even beyond the traditional issues. It has always been understood that a small businessman cannot and should not try to keep up with the laws and accounting details that affect business. That, in addition to the time issue, is why outsourcing lawyers and accountants makes sense, as they stay up to date with ever-changing laws and regulations, and spread the cost of that investment over a number of clients.
New Demands for Outsourcing
An appropriate response to the flood of information and change in other areas of business is causing small businesses to use other sources and virtual employees. One prime example is in Utah I.T. services, as the ever-changing and evolution of the internet, Cloud computing and Big Data applications, quickly overwhelms many small businesses. Instead of hiring and managing IT personnel, more companies are outsourcing this function. A very significant advantage also comes in minimizing hardware and related IT expenditures.
The spinning plates of IT, such as security, upgrades, Utah network solutions, disaster recovery and Web infrastructure are effectively and affordably outsourced by increasing numbers of small businesses.