Running your own business is one of the most fulfilling life experiences, but it is also one of the most exhausting. A lot of small business owners feel they need to handle all the tasks in their business, even the ones they don’t really like doing. This view is actually detrimental to both the owner and the business.
By juggling all the tasks of a business it means that whilst they are being completed, they may not be completed to the level they could or should be. For example, bookkeeping isn’t generally something most people like to do, but they will push on through and do it themselves rather than pay a bookkeeper to come in once a week for a few hours. Yet how much do they miss or overlook in the effort to get the work finished? If you dislike a task, it’s really difficult to maintain a proper focus while you do it.
Business owners tend to get caught up in the “yes but it costs money to outsource” scenario. The reality is that it actually saves, and in most cases, makes you money.
What you pay out.
When deciding to outsource you need to weigh the entire cost of a particular task not just the cost of the hourly rate of the person you are outsourcing to. In the case of bookkeeping for example, let’s say it costs about $55 an hour to have a contract bookkeeper come to your premises each week for around three hours. So it would be a total of $165 per week to have someone spend three hours doing your bookkeeping. At first glance you might think that is quite a lot, but when you really work it out, that $165 has the potential to earn you far more.
What you save.
Let’s imagine you own a mechanical business. The hourly rate you charge out your time at is $100 per hour plus mark-up on any parts you use. You are a mechanic, not a bookkeeper, so what would take your bookkeeper three hours would probably take you up to six hours. So at your hourly rate, that means it will cost you $600 to do your own bookkeeping.
What you gain.
If you outsource the bookkeeping it frees up six hours of your time so you can then take on more jobs at your hourly rate of $100 an hour. Therefore, by outsourcing your bookkeeping, you actually allow not only yourself the joy of not having to do it, but you create additional income for your business that far outweighs the cost of the bookkeeper.
This isn’t restricted to bookkeeping; think about the tasks you are not really skilled in and outsource them. Things like cleaning the premises, social media management, website updates and so much more. Each of these tasks may, on the surface, look like they would cost you money to outsource, but they will in fact make you money in the long run and save a lot of headaches along the way. Try the calculator on our FAQ page and see what time and money you can save.
Call us at Absolute Assistance and we will help you find ways to save you time and let you make the kind of money you could be making.