If you own and operate a recruiting business, time is limited and resources are tight. You’ll spend countless hours gaining knowledge on topics that are ever-changing (understanding ACA compliance, or becoming a master at Excel pivot tables, simply to keep your business running optimally). When what you should really be doing is focusing on your core abilities: selling or recruiting.
Building a successful and growing business takes more than industry skills and unending tenacity – it takes people. People = more time. It takes more time and expertise than you alone have to give. If you’re going to successfully run a business you need the right support and tools so that you can focus 100% on growth by being in front of Employers and Candidates.
Inevitably, there are going to be lots of tasks that you don’t want to deal with, though; whether it’s accounting, payroll or marketing. So what is your alternative?
The answer is to delegate. Here’s how you know it’s time to outsource your back office tasks:
1. Your business is growing
A growing business is a great thing. But if your business is growing at a fast rate and you can’t keep up, it might be time to outsource your back office. Get the help you need to process your growing payroll, manage your billing and collections, and handle risk mitigation and insurance. Plus, if you’re expanding into different geographical areas, you’ll have a whole slew of new employment standards, payroll regulations, tax rates, and other compliance issues to learn and follow. By outsourcing your back office tasks, you can get the support you need for growth and expansion.
2. Your overhead is too high
Handling everything in-house can be costly. The case for handling activities in-house usually depends on if your business has unique needs, but more often than not, back office tasks are not unique. Considering the advancements in recent years in technology and flexible subscription models, you may want to question whether you should really be ignoring the potential benefits of outsourcing payroll, benefits management, compliance, and other functions. Outsourcing can reduce overhead costs significantly – and may improve performance in the process.
3. You’re not focusing on what you do best
Most business owners never expect the administrative distractions of owning a business. These distractions are an absolute time vortex. In fact, most small business owners spend on average one-third of their time dealing with administrative tasks, rather than focusing on the core of their business. In our industry, we’ve seen cases where the owner’s time is 100% spent on administrative burdens outside the core business. The opportunity cost for a good producer (assuming $300K in annual gross profit production) starts at $100K!
Outsourcing your back office is imperative to any long-term success you hope to achieve. Without delegation, the sad truth is that you will unintentionally stall the growth of your business because there is only so much time, energy, and creative focus you can provide.
Small business owners have long seen outsourcing as a strategy reserved for big business, but technology has made it a more accessible tool for small businesses, often making a powerful impact on their growth, productivity and bottom lines of the businesses that take advantage of delegating their workload.
Our world has evolved, making delegation and collaboration easier than ever. We have entered a “Platform Economy”; one in which tools and defined processes permit collaborators – users, peers, providers – to utilize a range of “platform service” and delegate tasks.
Having access to a platform doesn’t just mean you can do certain things faster. It means you don’t have to do certain things at all. This means that you don’t need to know how to do them now, nor will you ever need to learn how. This allows you to get even better at building your business.
When you combine this type of support with access to the right tools, the results are undeniable. In today’s fast-paced economy, support and tools can truly catalyze the execution of work, especially in our industry. Innovative, successful entrepreneurs are empowered by the people that support them and the tools that work for them. In doing so, they also are giving themselves a competitive advantage using the principle of comparative advantage.
The smartest things business owners can do is focus on what you do best and find support to handle the rest.