Outsourcing helps manage your risks
Life for many small business owners is frenetic and it can be a challenge to devote sufficient time and focus to tasks that are critical to be done right. It is not uncommon for many tasks to be competing for attention at the same time, creating a potential recipe for disaster.
A significant financial risk is always at play. For example, the implications of a financial planner forgetting to do something, or not doing it right, for a client could be the cause for a significant good value claim.
Reputational risk to your business can also be addressed through outsourcing.
By bringing into your business a dedicated human resource to take care of non-client work can aid in the creation of certainty, clarity and a sense of ease, allowing the practitioner owner to concentrate on client facing work.
Outsourcing can save you money
Typically this can be achieved by reducing or eliminating in-house staff costs. Salaries, superannuation and payroll tax are direct costs of in-house general management or business services staff. Consider also the cost of office space, equipment, training (and re-training) and the simple administration overhead of those staff. When you outsource general management and business services functions to an external provider you transfer responsibility for all staff related costs to the provider in exchange for an agreed fee, usually far less than employing staff directly.
In addition, you gain access to a dedicated, experienced manager who can come in and get the job done efficiently and effectively.
Outsourcing supports greater productivity
Outsourcing helps you to maximise your productivity by ensuring that you are doing what you are most effective at, typically seeing your clients. When you consider the charge-out rate of most professionals, this is the space you want to be operating in, not on business administration.