Growing Your Small Business— Pros and Cons of Outsourcing

As a badass female entrepreneur, you may find yourself wearing multiple hats. On any given day, you may need to juggle a wide range of tasks and responsibilities— from managing operations and finances to marketing and customer service. 

Wow, I'm exhausted just typing that.

I know it feels to say, "I did it all myself," but as your business grows, there may come a time when you can't do it all on your own. That's a good thing! It means your business is growing, and there's no such thing as a super successful one-woman company. 

Bringing new people into your business and outsourcing certain business needs can be daunting. Your business is your baby, and it's scary to leave it in someone else's hands. However, delegating parts of your business to others can alleviate the busywork aspects of your job and allow you to focus on your core business (i.e., the reason you started this thing in the first place).

As with any major business decision, there are pros and cons to outsourcing certain aspects of your business. This article will give you some food for thought on both sides and hopefully help you decide if it's time to take that next step in growing your business.

What Do I Mean By Outsourcing?

Outsourcing essentially means that your business would obtain a product or service from an outside provider rather than handling it "in-house." As a small business owner, outsourcing allows you to get more done and hand over certain projects to professionals rather than getting by on your own or growing your full-time staff. 

I'm guessing you hire a professional to do your taxes every year. Unless you're an accountant, doing your own taxes properly would probably cost much more time and money than hiring a pro to do the job. 

Small businesses often outsource:

• Accounting
• Marketing
• Sales
• IT Management
• Shipping/ Logistics
• Manufacturing
• Administration
• Customer Service
• Research

Pros of Outsourcing

Time Management and Resource Optimization

Outsourcing allows you to delegate non-core business functions to specialized professionals, freeing up your time and resources to concentrate on strategic planning and activities that directly contribute to your business's growth. Plus, you can delegate tasks you find boring and monotonous and reserve your energy for the parts of your business that require your specific expertise. By outsourcing tasks like bookkeeping, IT support, or payroll, you can streamline operations and improve the overall efficiency of your business.

Access to Expertise

You can't be an expert on everything, so if you want your business to thrive, you may need to bring in outside help. Outsourcing provides access to a pool of specialized professionals with the knowledge and skills necessary to handle tasks you may not be comfortable doing yourself. 

This can be particularly beneficial for small business owners who lack the resources to hire full-time employees for every function. Outsourcing allows you to tap into external talent and gain access to specialized skills that can enhance the quality of work you deliver to your clients.

Saving Money

Along those lines, outsourcing can be a cost-effective option for small businesses, especially compared to hiring and maintaining in-house staff. You can avoid costs such as employee benefits, training, office space, and equipment by outsourcing tasks. Additionally, outsourcing gives your business greater flexibility. You can scale services up or down based on your business's needs, ultimately saving on overhead expenses.

Devote More Time to Your Business's Core Competencies

As a small business owner, focusing on your core competencies is crucial for growth and success. By outsourcing non-core functions, you can direct your attention and expertise toward areas where you excel, such as product development, sales, or building customer relationships. 

Bonus— you won't be too exhausted to work after pulling an all-nighter trying to figure out the new website software.

Access to Advanced Technology and Tools

Outsourcing can grant your business access to cutting-edge technology and tools that may otherwise be financially impossible for your small business to acquire. For example, outsourcing IT services can provide access to the latest software, infrastructure, and cybersecurity measures. Hiring a professional marketing team means your business can use the latest photo and video equipment, professional product staging, etc. In essence, you can upgrade the quality and professionalism of your business without incurring significant upfront costs.

Cons of Outsourcing

Outsourcing isn't the best solution for every business. If you have the time and skills to get it all done on your own, then major kudos to you! 

In the beginning stages of a business, spending money on outsourcing a job you can do yourself may not make sense. Alternatively, if your business is growing rapidly and you have the financial resources to hire your own staff to fill those needs, there are benefits to that as well. Let's look at a few of the cons of outsourcing.

Loss of Control

This one's a hard one. As someone who's faced my own struggles with anxiety, I know how hard it can be to give up control. Especially when it comes to something as important as your business. It's hard not to feel like it won't get done right unless you do it yourself. 

I won't lie to you— giving up control comes with some risk. And not every third party you work with will be amazing. Do lots of research and be smart about who you hire.

Dependency on Third Parties

Outsourcing involves relying on third parties to fulfill critical business functions. If they fail to deliver as expected or experience disruptions in their operations, it can negatively impact your business.

Data Security and Confidentiality

Hiring someone outside your company to complete certain functions often involves sharing sensitive information and data with external parties. This can pose potential security and confidentiality risks if proper safeguards are not in place. 

For example, when you hire an accountant, you have to give them access to your financial data so they can do their job. Ensure that you thoroughly vet the security protocols and policies of your outsourcing partners to safeguard your business's data and maintain the trust of your customers.

Communication Challenges

Communication is tricky, especially when introducing new business relationships into your workflow. People work on different schedules, in different time zones, and communicate on a variety of platforms. If you're going to outsource, establish clear communication channels and concrete expectations.

My Two Cents

Every business is different. There's no set protocol for when and how you should outsource parts of your business. However, I want to encourage female entrepreneurs, especially, not to let their own pride or anxieties hold them back. 

When done right, outsourcing means you can grow your business and have more time to focus on what makes your business special.

Stay in that zone of genius, my lovely. It will help your mental health and the health of your business too! If you have any questions about outsourcing or need some suggestions, click here to contact me directly! I have a huge network and I can probably hook you up with someone that can help.