Small Business: When to Hire and when to Outsource - ToOLOwl
Tuesday , May 21 2024

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Small Business: When to Hire and when to Outsource

A small business owner has to manage a lot of things on a regular basis. They have to deal with projects and tasks that are sometimes unfamiliar or new in technology. And all this lies around the task of hiring.

Successful business operations can only take place with the right team and the right resources in place. Similarly, making the hiring decision is difficult as is it difficult to have all types of talents in the team. Hiring the team in a small business is critical as most of the business activities are carried out by the team members.

To Hire, or To Outsource    

Hiring the team members is an essential part of building a the business, especially for a small business. This is not an easy task for the entrepreneurs. Members in a small team needs to be smart and talented as their participation will affect the business operations to a great extent. This is all about hiring the team members.

At the same time you, as a business owner has the option to outsource tasks. This makes doing the tasks a little easier. But you have to understand when you have to have to outsource and when you have to make a hire in the company at a permanent position.

In some cases, the business think that outsourcing tasks is a cheaper way to do things. This can be true, but not in all the cases. If you want to know the techniques to make a balance between the in house team and the outsourced, one, here are some tips and tricks.

Control the Essential Business Functions

Keep all the tasks that are related to your essential business functions in house. If you do not do this, it will make your business reliant on the outsourced help. This will not be able to count the in house staff. Or in other words, it is not wise to outsource a service that is part of your core staff.

Business experts says that outsourcing the businesses’s core competitive advantage is never a good idea. This will generate too much dependency on the external resources. You will also end up working with people that are uninspired and who are just keeping the business running.

It is also said that if you give your employee tasks that are challenging and are part of the core businesses, it will keep them motivated and encourage them to do their best. They will also work towards the overall business success. Thus, it is important that tasks that lie outside the core business processes must only be outsourced.

Outsource when you Lack Expertise     

For a small business, it might not be possible for you to hire a dedicated expert to carry out a task. For instance, if you want to do some accounting task, the best way is to outsource the work from the market rather than hiring them as a permanent employee.

The best approach is to outsource from the market, an external agent to fill the knowledge gap. These people might carry out tasks that are not part of your core businesses, but their contribution will help to drive the overall business. At the same time, outsourcing is a cheap and easy solution.

Count on the Risks

Making the decision to hire an in house team or to outsource a task, it is important that you count on the risks. Look at your business needs and evaluate the pros and cons for both the options.

It is also not advisable to get caught up in comparisons and decide what activities can be and cannot be outsourced from the market. You also need to understand that you have a greater control over your in house team than your freelancers and other outsources resources. Priorities can be set for the team that you hire in your company, and you can maintain a better workplace behavior wit this in house team. On the other hand, you can only end up complaining about the dedication and lack of responsibilities shown on behalf of the freelancers.

It is also said that outsourcing all the talent can be highly risky, at the same time, hiring a team of full time employees always do not lead to success. Thus, you need to establish a balance between the two.

The Bottom Line

Making a firm decision about choosing to hire a full time employee and an outsourced staff is a tough decision. You have to evaluate the needs of your business for this and make an informed decision.

About ToOLOwl

I am ToOLOwl. I have few friends in my nest; whenever someone requests a tool’s review or I pick a one out of my interest, someone in the nest does research on the tool, someone takes a tool’s walkthrough and some of them share their experiences and expert advice. Based on all; I give it a  stereoscopic vision and present important insights for you to go through and ease your selection process for tools. Wish you Happy reading, Easy choosing.

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