Outsourcing is a bit of a grey area for businesses. We outsource because we think somebody else can better manage the area in question. Just because you’re the owner of your own business, does not mean that you’re going to be able to understand every different component that makes your business tick. Think about your finances and marketing. Two big areas that nearly every business will outsource, just because it would mean learning a whole new subject. There are some things that you will pick up along the way with finances and marketing, but you’ll never make the effort to truly understand how they work. That is however, until now. We think the more you understand your outsourcing, the more you’re going to benefit from it. It’s understandable that someone else is always going to know more than you where their speciality is concerned, but your input when you do understand is going to be more valuable to your business. So, if you keep reading, we hope to show you how you can learn more about your outsourcing, and how you can improve it.
Marketing is an area that pretty much every single business outsources. It’s just so much easier to get another company to manage it for you, especially if you only really understand the basics of social media marketing. Don’t get us wrong, social media marketing is a powerful technique to understand, but there are many more than you could pay attention to. Instead, it’s easier to find a company who specialises in it, and get them to do the dirty work. The main thing you’ll monitor is how much success your business is getting from each campaign, and how much it costs to run one. But understanding it can be difficult, however, there are softwares out there that can help simplify it for you. When you’re trying to make a report, it’s often better to use software such as Whatagraph to put it in a more concise graph form. At least then you can better understand the success. To try and better understand the tactics, all you have to do is dedicate a little bit of time to research in your own. Believe it or not, marketing techniques are actually not that stressful to understand. We’re just geared towards thinking they’ll be complex, and they do take a lot of time and effort to organise. That’s one of the main reasons why we do outsource marketing so much.
Finances are going to get harder to understand as you progress as a business. It’s likely that you used to manage your own books when you first established as a business. Cashflow would have been relatively low, making it easy to manage them. This was some great experience if you had it. It allows you to better understand the processes an accountant will be going through when they’re managing your books now. This will allow you to make the process easier for them. But there are a few things you need to be aware of for your own accounting purposes. One is the dividend you take from your own company. Recently, Thomas Cook went into administration, and it was brought to light the top bosses had been giving themselves pay raises and bonuses, despite the fact that the company was in financial crisis. The company then collapsed. So it’s so important that you respect the amount of money that you can take from your company. When you begin to hire employees, you need to make sure you’re going to be able to offer them a good wage, so understanding how much you can pay yourself and the future employees of your company, will come with good financial planning. You should also learn about the taxes you have to pay, when you have to pay them, and things to avoid. It’s no use relying on your accountant to do it for you, because there will be steps that you will be involved in. For example, you’ll have to manage the recipes, manage daily transactions, and gather data to share with your accountant. There are strict consequences when taxes are paid wrong.
Unless you’re a business that sells services such as marketing, web development, or anything where you wouldn’t have to deliver anything, then you’ll be outsourcing your delivery. It’s only really local businesses who are delivering flowers and chocolates and things like that, that manage their own deliveries. Because when you start having to deliver things on a big scale, it becomes so hard to try and manage. Deliveries are late, you’re going from courier to courier and having no luck, so you outsource to one company who does it for you. For this, we can’t really comment on anything negative, or any reason why you should try and manage it in house. It’s too logistical, unless you get a logistics manager, then it might be more feasible. But to get to the level of speaking about that, you’d have to have an incredibly large and fast growing business, with profit to burn. So for all small businesses, you simply need to understand how you can better track your products. Although you’re outsourcing to a delivery company, you could use your own tracking software to track it through production, and then to the customers door. That way you can be sure that the product is on time, you can provide accurate updates to the customers, and you can prevent delays.
HR is essential as your business grows. HR is not just about managing employees, it’s about managing the whole company. As a small business without employees, you won’t have established much of an HR process. But as you begin to hire even just one, you need to think about making it easier for yourself. Rather than employing someone, you can simply use HR software to assist you with payroll, employee profiles, and much more. You can pretty much guarantee there’s software out there to aid you with everything.