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Pros and Cons to Outsourcing Business Management

Pros and Cons to Outsourcing Business Management

by | Mar 15, 2023 | Uncategorized

Although outsourcing business management is not new, it is still not often considered by businesses. When outsourcing business management you are choosing to allow a third party person or organization to come alongside you and meet your needs in various different areas. Outsourced business management can assist in human resources, financials, strategy, virtual assistance, project management, operations and more. As with all things, there are definite benefits and drawbacks to choosing to outsource your business management. 

 

 

Pros

Less Overhead 

Overhead is any cost that is not directly pertaining to a business’s goods or services output. This includes the cost of office space, software, taxes or even training and professional development. When you hire an outside  person or organization they are responsible for this independently. This leaves you with less work, less overhead and less to think about and accommodate for. 

Higher Level of Expertise

If you were to hire a trained employee with work history and responsibility of an outsourced organization or individual, you would be paying a high premium. Often a business is in need of such high level expertise but not able to afford them.   With outsourcing, you only pay for the hours you will need the expert.  You get to utilize a higher level of experience for a lower price. 

 

Cons

Larger Upfront Expense

Though you do not have to worry about paying taxes, software, in-office costs, or

professional development, the outsourced team does and must price accordingly.  This means the hourly rate may be as much as 30% higher than an employee.  However, most times this price increase is offset by the experience, and diligence in self and professional development. 

 

Higher Turnover Rates

Turnover rates must be considered when hiring an employee and an independent contractor or an agency. Many outsourced roles can have a high turnover. Finding someone you can trust as well as get along and work well with can be difficult. This can be combated by consistent and honest conversation about professional intentions. Establishing trust and a good flow of communication is the best way to prevent potential turnover. 

 

The benefits of outsourcing business management can be overlooked in response to sticker shock over the price tag. However, the pros heavily outweigh the cons. The avenues of potential business gain through outsourcing are endless. If you are ready to take the plunge, allow us to come alongside you and provide a strategy that serves. Our trademarked and purposeful process will leave you feeling refreshed with business strategy that serves your clients, your business and even your personal life.

 

It May Be Time to Raise Your Rate

It May Be Time to Raise Your Rate

by | Feb 8, 2023 | Uncategorized

Have you been wondering if you should raise your rates? Aside from time passing, there are specific signs to look for.

Below we have listed three of the most common signs it is time to increase your rates and your profit. 

  1. All of Your Quotes are Being Accepted

The amount of quotes being accepted varies based on the trade and industry you are in.However, no matter the industry, there should never be a 100% acceptance rate.If there is a 100% acceptance rate, allow this to trigger you to consider a rate increase. This does not mean that you should be receiving a surplus of denial based on rate. But rather the awareness of your business worth.  Do not under-sell or devalue your time, effort, and output. 

  1. You Have the Business, but are not Seeing a Profit Gain 

Your business needs to be profitable. If not, your hardwork is going to lead to burnout,

frustration and inability to sustain the business that you are getting. When deciding to raise your rates, it is vital to look at more than just bank statements.  Getting by or not being in the red, is not enough. Ensure that you are accounting for all of your business overhead and do not solely focus on one area. Are you charging for labor or time but not parts, software, taxes or a business emergency fund? Are your employees being paid appropriately? These areas are just as, if not even more, important as staying in the green. If your current rate does not provide the ability to put income into these areas, it is time for an increase.

  1. You, the Business Owner, are not Getting a Pay Raise

Business owners are often the last to receive a pay raise when the business is showing profit. If you find yourself pouring all funds into every other facet and your personal income is left stagnant, it is time to look at increasing your rates. Your business will not run without you. You are the most important employee and should be paid accordingly.  Business owners should not be taking what is left over, but being confident in prioritizing your income as well as the other parts of your business. Is your business booming but your personal income is dwindling? Raise your rates. 

It can seem and feel risky to raise your business rates. But you are worth it. Be confident in your business and value your time. If you are feeling overwhelmed or uncertain when looking at your business, let us help! 

Allow us to come alongside you and provide a strategy that serves. Our trademarked and purposeful process will leave you feeling refreshed with business strategy that serves your clients, your business and even your personal life.  

Strategic Planning Struggles in the New Year. You Can Still Achieve It All.

Strategic Planning Struggles in the New Year. You Can Still Achieve It All.

by | Jan 18, 2023 | Uncategorized

Oftentimes, just after the new year, business owners find themselves stressed and overwhelmed rather than filled with the excitement they anticipated.  They set goals in the last quarter and already have concerns about achieving them a month into the new year.  This is a common (and normal) occurrence we see when a CEO tries to do their own strategic planning.  

Here are a few of the most common pitfalls we see and how to avoid them.      

  1. Clearly define your goals and objectives. 

CEO’s and business owners usually have goals, and plenty of them. But they may not know the correct steps to take or even how to shape and design the goal into being something measurable and thus achievable.  If you do not have clearly defined goals, you will not know how or even if you actually hit them.  

  1. You may be overutilizing your human resources.

Most businesses know to watch their financial resources but human resources is another story.  Many times we have big dreams and don’t consider when we need to hire additional employees or when we should outsource. To add to the confusion, we often find that many CEOs are actually unaware of which employees are performing specific tasks.  It is not uncommon to find one or two employees carrying entire departments or small companies.  When planning a strategic mapping, ensure your team has the capacity and capabilities to carry out the tasks required to reach your goals.  

  1. Strategic Objectives 

Strategic planning should be focused in multiple areas of the business.   Our trademarked process utilizes specific questions to cover seven core strategic objectives every business needs.  This allows us to be able to fill holes and put out fires before they start. Strategic objectives should promote cohesive growth and these will be an essential takeaway from a high quality strategic mapping session. 

  1. Aligning your mission with your business strategy

This is such a simple, yet commonly overlooked, aspect of business planning.  Business owners often get stuck in the daily grind and forget why they started the business in the first place.  This can manifest as loose boundaries, or even as offering services or products simply because they were requested.  Keep in mind that every time we say “yes” to something we also say “no” to something else.  

The main goal of a strategic mapping session is to provide clarity, give direction and create a plan.  If your strategic planning has left you without clarity and you are unsure of how to achieve those goals, let us help.  Our trademarked and purposeful process will leave you feeling refreshed with a business strategy that serves your clients, your business and even your personal life.