Should Micro-Businesses Outsource?
May 28, 2008
I had a conversation recently with a small business owner who realizes that her work is piling up and she needs to hire additional help for office management, filing and marketing tasks. She is currently not outsourcing or hiring employees as she knows she would have hard time losing control over certain aspects of her business.
After further discussion I realized that the main issue for her was TRUST. How can she find someone she can trust? Can she rely on recommendations and/or probationary periods to figure out that a certain person /company is a right fit? Would it be a good idea to hire friends or relatives, especially when someone has had bad experiences in the past?
Then we talked some more about pros and cons of outsourcing.
PROS:
>Reduction of stress.
>Decreased workload.
>Delegating unpleasant tasks.
>Efficient use of business owner’s resources and time.
CONS:
>Added expense.
>Finding the right person/company may take time.
>Delegation can be difficult.
>Idea of signing a long-term contract not appealing.
>Training issues.
We agreed that she should thoroughly assess her needs and make a list of most frustrating tasks causing her stress. In addition, she needs a SPA day as she has not taken any time off for a long time.
Maybe a massage chair in her office would be a good idea?
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The first hire is always the hardest, since only the owner can be as dedicated to the business. Letting go of the dedication, what role does the owner want in the business? What roles do they do, but feel less-than-competent in? What roles do they dread doing? Also, create a backup plan, in case the new help doesn’t work out.
A great book recommendation for the small business owner: The E-Myth Revisited (Michael Gerber)
Great suggestions, Jay! I agree, every small business owner should definitely read The E-Myth Revisited by Michael Gerber.