How to Tell When It's Time to Outsource Business Tasks

When you first start your business, it makes sense to cut costs wherever you can and do it all yourself: bookkeeping, accounting, marketing and management. But as your small business grows, you start to feel like you're spinning plates. You're working from 6 a.m. till midnight to keep it from crashing down. Here are some tips about when to know it's time to outsource some of those tasks.

Instructions

Difficulty: Easy

1. Cluster administrative chores so you're doing them at one time. Not only is this more efficient, it makes it easy to keep track of the time you spend. Time how long it takes you to update your accounting software with your expenses and print out the checks. Figure out the number of hours you spend a week filing. Count the number of phone calls you take during business hours.
2. Find out what the going rate is for administrative assistants, accountants, bookkeepers, website consultants, and marketers in your area. Your best sources of information on this are colleagues. Tap into their experience at networking events. Ask on small business forums what experiences others have had. A good place to start is Small Business Owners' Idea Café, where discussion boards are categorized by topics such as Financial Feasts, Marketing Mix and Tech Talk.
3. Calculate how much it would cost to outsource your administrative tasks. Figure out if it's cheaper than what you'd make if you spent that time working for clients. Consider this carefully. Hire help only if you know you can get enough business to fill up those extra hours so you don't have more money going out than coming in.
4. Consider how outsourcing can bring in more money. Doing your own marketing is a great learning experience and may work in the beginning, but when you want to expand your reach, you should consult with a specialist. Consider hiring a web designer to make your website noticeable and included in search engines. A reputable accountant specializing in small business taxes is worth his fee.

Tips & Warnings

• Hire help as independent contractors whenever possible. Search the term "independent contractor" on the IRS web site to make sure you follow their rules.
• Make a short-term contract with your independent contractors until you know it's financially worth it.
• Don't hesitate to outsource tasks if you find yourself starting to experience burnout. A small cut in revenue that brings peace of mind is money well spent.