ANY function of your business that does not add value to your product or service and does not affect your customer experience, should be outsourced.
Payroll is definitely something at fits into this category and saves money over doing it in-house!
What work should you do?
First: If a task occurs one time – contract it out.
v Setting up a computer
v Legal work on an employment contract
v Creating a meaningful chart of accounts
Second: If a task occurs on a regular basis but has no impact on your customer’s experience, outsource that task – your efforts are better spent elsewhere.
v Sales Tax reports
Third: If a task occurs on a regular basis and has a direct impact on your customer – FOCUS.
v Product/Service Quality
v Customer Experience
v Customer Service
Speed is critical to positive cash flow, the faster you can get things done, the less cost. That is where efficiency comes in. By outsourcing, you can benefit from businesses that are specialized and efficient in doing these tasks, at a lower cost than doing it in-house.
1st - Your goal is to accomplish your task accurately – while delivering usable information that will direct the business toward better cash flow and more profits.
2nd - Your goal is to spend as little time as possible on clerical details which do not add to the customers experience with your firm (like Payroll).
3rd - Your goal is to assist the manager in isolating the 20% of your daily operations that drive 80% of your net profit to the bottom line, including production bottle necks that slow the cycle.
Recently Dan Sullivan, a Canadian Business coach, was asked the difference between businesses that make $100,000 a year and those that make $1,000,000 a year.
“The guy making $100,000 a year is __________. (Trying to do it all himself)
“Business people that are rich _____________ (Focus SOLEY on what they do best and delegate the rest to easily reach the 1,000,000.00 mark and more)
The guy making 100k is… trying to do it ALL himself (payroll, bookkeeping, marketing, sales, product development, etc) He will NEVER grow to his potential in this case.
Not only does outsourcing save you TIME and MONEY it allows you to FOCUS on the IMPORTANT areas of you business! And that's really what we all want right? So, do yourself a favor and try outsourcing and help your business grow!!!
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