Outsourcing Options For Small Business

A couple of days ago I mentioned the excellent posting from Kathie ” Virtual Assistant or Virtual Worker” followed by my own post of yesterday “Grow your small business – success or failure will follow“. This all leads us to the next question what to do when you decided you are going to get help for your small or start-up business.

Kathie highlighted two options, the virtual worker – who like her husband works as a contractor or the virtual assistant who takes care of certain work on a timeshare basis for an indefinite amount of time. The only other option is employing staff full time into your business.

Virtual Assistants will enable you to outsource – what I call non core business processes, like bookkeeping, call handling, typing, etc. – to a professional person, well equipped to perform these tasks for you in a cost-effective manner and I do not mean cheap, I mean cost-effective. It is also noteworthy that you will not have to provide office space, work-tools, computer, heating, etc. for virtual assistants, as they usually work from home. look at it this way, you are getting a professional on a timeshare basis, and believe me when I say, having you phone answered in a professional manner makes a lot of difference to your business, or keeping up with your bookkeeping, so you know where you are – this all will make your business much more professional. Businesses and people like to do business with professionals.

Virtual workers can be from a “Temp-Agency” or a from contracting firms. These relationships are for finite projects or to fill a cap, due to permanent staff illness on a temporary basis – they are limited by time or project. So again you can afford to bring in professionals, to perform tasks for you or your clients.

Both of these relationships are good for your cost-planning because they are not fixed, permanent costs, they are variable cost, meaning, when the project is finished the contract for your temp-workers, contractors finishes too. If times are harder for your business and you need save cost it is often easier and faster to terminate a virtual assistant – but remember to explain your decision, so that when your small business is doing better again you can start working with your virtual assistant again.

Employing people full time should only be considered for “essential, ongoing and full-time” work, this way you can provide a more secure workplace for your employee and look forward to a peaceful and unstressed work environment.

Building a support network community for your small business and start-up business, like SOHO-, SME, SMB-, Micro-, Lifestyle-, Home-, DIY-, Hobby-, Boomer-, Professional-, Personal businesses is essential to your survival. Remember, the contractor you hire today, may hire you tomorrow on a project he or she is working on – networking is the way to go.

47 Responses to “ Outsourcing Options For Small Business ”

1. THE SMALL BUSINESS BLOG » Blog Archive » Virtual Assistants Round Up At Katie’s
   
   Said on October 10th, 2007 at 8:24 am

   [...] Outsourcing Options For Small BusinessFocus on your business, timeshare professionals. [...]

2. THE SMALL BUSINESS BLOG » Blog Archive » Cynicism rules, tell them what’s in it for you.
   
   Said on October 11th, 2007 at 6:30 am

   [...] Outsourcing Options For Small BusinessFocus on your business, timeshare professionals. [...]

3. THE SMALL BUSINESS BLOG » Blog Archive » Q & A: Can You Give Me A Cost Example For A Small Home Office?
   
   Said on October 16th, 2007 at 1:11 pm

   [...] Outsourcing Options For Small BusinessFocus on your business, timeshare professionals. [...]

4. THE SMALL BUSINESS BLOG » Blog Archive » Q & A: What Are The Problems With Staff In A Small Business?
   
   Said on October 17th, 2007 at 12:21 pm

   [...] Outsourcing Options For Small BusinessFocus on your business, timeshare professionals. [...]

5. THE SMALL BUSINESS BLOG » Blog Archive » Q & A: What are successful cost-cutting solutions in small business?
   
   Said on October 18th, 2007 at 11:50 am

   [...] Outsourcing Options For Small BusinessFocus on your business, timeshare professionals. [...]

6. THE SMALL BUSINESS BLOG » Blog Archive » Q & A: What does “Fixed Costs” mean and why should they be as low as possible in a Small Business?
   
   Said on October 25th, 2007 at 8:18 am

   [...] Outsourcing Options For Small BusinessFocus on your business, timeshare professionals. [...]

7. THE SMALL BUSINESS BLOG » Blog Archive » The Week Ender: 2008 And The Party Is Over Or Is It?
   
   Said on January 4th, 2008 at 7:32 am

   [...] Outsourcing Options For Small BusinessFocus on your business, timeshare professionals. [...]

8. Virtual Miss Friday
   
   Said on January 29th, 2008 at 11:38 pm

   Hi, Just wanted to say a big thank you for the mention on Virtual Assistants, as an industry professional it is so refreshing to see more people offering awareness of our services. Michelle.

9. James
   
   Said on March 24th, 2008 at 1:13 pm

   Hi,

   I am pleased that you’ve covered about virtual assistants, I know that I can’t do everything myself, I’d rather pay someone to do the boring jobs, so I can focus on the more important things.

   Many Thanks

10. Mizpah Magazine
    
    Said on April 10th, 2008 at 4:02 pm

    Considering doing this myself, tried a while back but I know of one company that went under by outsourcing everything, so be careful!

11. Sammer
    
    Said on May 9th, 2008 at 11:56 pm

    if you consider yourself worth $50/hour then why do something which someone can do for $10/hour

12. Child Minder Judy
    
    Said on May 31st, 2008 at 2:23 am

    I have trouble managing my childcare business lately. There are so many things that needs to be taken care of. From housekeeping to teachers ….and not to mention getting people to develop materials for us. I am considering outsourcing some of those jobs..but i also am very concern that some of the housekeeping staffs will lose their jobs. They’ve been around a long time and its going to be a tough decision for me. One option i have thought of is helping them to be employed by an outsourcing company which then assign them to service my center. Hope this will work.

13. Stefan Töpfer
    
    Said on May 31st, 2008 at 8:39 am

    Hi Judy,

    Thank you for your comment.

    Letting staff go is never an easy option, especially when you have had a long term relationship.

    But consider this, it may be better to let some staff go now and with this help to secure the long term future of the other staff members. The option would be to risk the whole business and all jobs, nobody is going to be grateful for that.

    Here is another option for your staff, maybe they could work for you freelance, start their own business and look for other business opportunities to fill the books. You could help them to find some other clients, by giving them the endorsement you gave them in your above comment.

    But you are doing the right thing, looking at your over-heads and keeping your business safe.

    – Stefan

14. Amit
    
    Said on June 27th, 2008 at 2:32 pm

    Hi Stefan
    just came across your blog and found it quite useful for small/medium size businesses.
    I am taking this opportunity to introduce our company- CompuSystems and the services which we are offering to small,start up & medium size business which I am sure will benefit many of your blog users.CompuSystems provide cost effective ‘Remote Tech Support’& help desk services with quick response time to small,start up and medium size businesses with little infrastructure but a need for low cost & secure outsourced tech/outsourced help desk support.
    Small business can avail the following benefits by using our services: Rapid set-up,Scalability,High Quality,Predictability,Higher customer satisfaction,Flexibility to expand scope,Greater operational efficiencies & Cost savings.
    Any individual or company who are looking for such services are welcome to get in touch with us,we will love to help.
    Thank You
    Regards
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    amitoj@csius.com

15. Aruba Reviews
    
    Said on July 29th, 2008 at 6:55 am

    Sometimes you need to understand when outsourcing is the smartest decision for your company. It is never black or white… so you need to consider all the scenarios and the long benefit for your business.

16. Don
    
    Said on July 30th, 2008 at 10:54 pm

    For us as a small business, it’s vital that we continue to have a good working relationship with the companies we outsource with. Once we get to a point where we can carry most of those tasks in house, we will consider scaling back our outsourcing requirements. Until then, it is a must.

    Building that trust and solid working relationship is the key. It’s helpful to start off with small projects to see if the business connection will work, then move on to bigger more extensive projects.

17. LOGO DESIGN EXPERT
    
    Said on August 22nd, 2008 at 4:37 pm

    @Aruba

    Outsourcing can be black and white. The most important thing in finding the right person is his online or local reputation. References always reveal the true colors.

    Maybe for some businesses in regards to their specific products or services, outsourcing won’t work in terms of time differences.

18. Toenail Fungus tea tree oil
    
    Said on September 3rd, 2008 at 6:44 am

    Stefan, I think by nature small business are just scared of actually outsourcing, they keep thinking that that is only for the big players.

19. San Francisco Lawyer
    
    Said on September 9th, 2008 at 1:31 pm

    Virtual assistants can go much further than just filling temporary gaps in staffing. This is particularly true with small businesses and single entreprenuers. I used to work for a hedge fund and we contracted with third party marketers. Many of the third party marketers were solo in their business. They leveraged virtual assistants to tackle the administrative work leaving their time free to work with their clients. Many of the virtual assistants worked with 15 or 20 different clients. So if you are an entreprenuer looking to free up time from making presentations etc..having permenant virtual assistants may be the way to go.

20. Webmaster
    
    Said on October 14th, 2008 at 12:57 pm

    Great Job
    interesting topic , I would like to read more on this topic and Virtual Assistants Canada .

21. Software Outsourcing Company
    
    Said on October 14th, 2008 at 5:53 pm

    The benefits of outsourcing to a qualified VA are plentiful. VA’s only charge for actual time worked. VA’s use their own equipment so there is no wear and tear on your office equipment or a need for special equipment. By outsourcing to a VA rather than hiring an in-office assistant, you will never need to pay employment insurance, vacation pay, sick pay, or contribute to retirement plans and worker’s compensation.

22. California Tax Lawyer
    
    Said on October 17th, 2008 at 8:55 pm

    Interesting point Stefan, I think with new tax plans coming along, outsourcing will be a new way for businesses to keep up vs their competitors. Excellent post again.

23. Charlotte IT Outsourcing
    
    Said on October 30th, 2008 at 4:03 pm

    IT Outsourcing is a fantastic way for a small business to compete with the big boys. ROI is amazing, without having to hire full time employees and adding that overhead.

24. Bay Area lawyer
    
    Said on November 18th, 2008 at 2:34 pm

    I think the idea for small businesses to outsource office operations is a must for any small business owner that wants to either have time to expand their operations or have a little free time. You are more competitive when you have less administrative work to do. You have made some great points.

25. Keith
    
    Said on November 19th, 2008 at 10:53 am

    Outsourcing non vital office work is a perfect way to reduce you total financial burden, lower total costs mean great profit and security.

26. Leaflet Distribution
    
    Said on December 1st, 2008 at 11:09 am

    We often offer advice when we are selling our services so will pass on this knowledge.

27. Mark
    
    Said on December 9th, 2008 at 6:08 pm

    Now-a-day, virtual assistant companies, aka. Lifestyle Management companies will do just about anything from sending out emails to flowers!

28. Stefan Töpfer
    
    Said on December 9th, 2008 at 6:17 pm

    Mark,

    Great to see you here, I could not agree more. You guys are important to the success of micro business.

    Have a look at the OnlineOffice Assistant Program:- http://www.winweb.com/affiliate-partner-program/online-office-business-virtual-assistant-va

    Thanks for the post.

    – ST.

29. Last Minute Accommodation
    
    Said on January 1st, 2009 at 11:06 pm

    Difficult to say, because, the question we need to ask is; where do we draw the line, between outsourcing and sending all the jobs and money away from our country (I’m talking mainly about outsourcing to places like India, China, etc)

30. Gabriel
    
    Said on January 24th, 2009 at 12:59 pm

    I think the type of personality will affect our outsourcing choices. Some small business owners prefer to have their staff in an office and working together in a team.

    But like you said virtual assistants can make some activities like bookkeeping more cost efficient.

31. Will
    
    Said on March 13th, 2009 at 8:55 pm

    Great article! Virtual assistants can be definitely cost effective. Small businesses need to find the best option for them, personally I have been using a Professional Employer Organization to help with all of my HR hassles and it has been so helpful.

32. Ria Garcia
    
    Said on March 26th, 2009 at 4:30 am

    I was able to chance upon your site by researching about outsourcing. I would say it’s really very helpful and informative.

33. Joel
    
    Said on April 10th, 2009 at 7:16 pm

    Very informative article, and excellent writing style sir.

34. SME should...
    
    Said on April 22nd, 2009 at 11:17 am

    I share your views and feel that SMEs should outsource anything that isn’t ‘core business’.

    My top 3 picks for things all SMEs should outsource are:
    1. Website development
    2. PC support
    3. Book-keeping

    I’ve recently written about this on my blog: http://imhosme.blogspot.com/2009/04/outsource-non-core-activities.html

35. Sonal Maheshwari
    
    Said on June 4th, 2009 at 8:36 am

    Hey
    That was a great introduction to virtual assistant(outsourcing) for small businesses.

    @Stefan: The blog is really good and a guide for small businesses, exploring it and I could find some great write-ups. Keep up the good work.

36. Ben
    
    Said on June 18th, 2009 at 2:18 pm

    outsourcing option is really beneficial for the small companies…

37. TryBPO
    
    Said on June 20th, 2009 at 6:28 am

    Virtual Assistants are great if you’re only looking for a few people to handle non-critical processes. You run into trouble, though, when your projects/processes move into the “critical” territory…it helps to have some ownership or supervisory assistance.

38. garcia
    
    Said on July 3rd, 2009 at 9:32 am

    As a small business technology consultant, the outsourcing option has helped me a lot…

39. Insurance Guide
    
    Said on July 23rd, 2009 at 10:13 am

    Outsourcing and virtual assistance is an industry that has grown immensely in the past few years. This development is due in part to the growth of the internet and new technologies, which have made working with an Assistant, as simple as sending an email. It has also grown as a result of the number of entrepreneurs that simply don’t have the space and/or the money to hire an in-house Assistant.

40. Henal
    
    Said on July 27th, 2009 at 12:17 pm

    Outsourcing can be a great way to run your business but quality doesn’t come cheap.

41. Kobi
    
    Said on August 1st, 2009 at 8:50 am

    I think, outsourcing should be a firestarter, but in future i think it will not afford the costs of a developed business criteria.

42. amstore
    
    Said on August 20th, 2009 at 11:06 am

    Research is one of the most important keys to be successful in any marketing campaign. Actually, it is also the most difficult step in determining the target.

43. Anne
    
    Said on September 10th, 2009 at 2:59 am

    It’s true that outsourcing can save money, but that’s not the only (or even the most important) reason to do it. The flat economy caused many companies into huge layoffs and subsequently outsourced functions that were better kept in-house

44. Joe
    
    Said on October 2nd, 2009 at 1:02 am

    Outsourcing is a great way to not only free up time. But to save money as well. Many people frown on the though of outsourcing because they just don’t believe in it.

    Its articles like theses that help you to understand more about the topic.

    Thanks for sharing!

45. sunil
    
    Said on May 20th, 2010 at 8:09 am

    thanks for sharing this wonderful post

46. Mathew
    
    Said on May 20th, 2010 at 11:54 am

    If anybody wish to start their career as small business, my advise for them is start online jobs first as data entry jobs, content writing and ,jobs and so on.

47. Stefan Töpfer
    
    Said on May 21st, 2010 at 8:12 am

    Mathew,

    I disagree – when you start a business you do what you like and feel passionate about – starting a business is not always about finding work online.

    Thanks for the comment.

    VB, Stefan

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