By David Watton
Outsourcing is a model for managing non-core components of your business. Administration takes you away from revenue-generating activity; why not reduce the time you spend on it?
I wish that I had been more aware of the ability to outsource in past businesses that I have owned. I spent so much of my time on things that prevented me from growing my business the way that I would have liked to. The more time that you can spend focusing on your key components the more successful you will be at achieving your goals.
So what should you outsource? Frankly, everything that you can that does not generate revenue and/ or affect the services that you offer. Examples of good things to outsource include: IT, payroll, HR functions, compliance and benefit administration. HR and Benefit administration are complex.
Many small businesses utilize a do-it-yourself HR platform and find that they really are still doing it themselves! Working with a full-service HR outsourcing team can achieve the results you are looking for. Benefit administration is more than the basic service most insurance agents provide when selling you a policy. Developing a strong relationship with your agent can meet many of your needs. However, benefit administration includes billing, enrollment and terminations as well.
Of course, outsourcing only works if you choose the right business partner. Be sure to take your time and do research- as it can be difficult to get out of a bad relationship. One practice I have always found valuable is to ask for referrals and then call them! If the company, you are looking to partner with cannot provide you with glowing referrals walk away.
David Watton is a serial entrepreneur who has built and sold several successful businesses. Serial entrepreneurs are our favorite serial anything and David is an awesome one. Currently, David is the Director of Channel Sales for Ataraxis. We are happy to have him as a new business contributor.
Feature photo courtesy of Flickr, under Creative Commons Attribution-Noncommercial license