by: Sidney Liquigan
Wednesday, August 29, 2018 |
Needless to say, it's always a good thing to have a fast-growing business. Your hard work is finally paying off and now it's time to expand to meet increasing demands. However, dealing with the growth can also easily get out of control. It’s important to have a growth plan in place and prepare in advance for the challenges ahead.
The first step that you could take is to be aware of the common mistakes that fast-growing businesses make and know how to avoid them through outsourcing. Recognizing what could go wrong makes planning easier.
Problem #1: Limiting Expenses by Keeping Everything In-house
When you are a growing business, you want to keep track of your company’s expenses and make sure that the money that goes out to third-party service providers are kept at a minimum. Because of this, businesses tend to hesitate to outsource some of their processes and choose to do everything by themselves. In reality, this is a lot more expensive and counterproductive.
How Outsourcing can Help: Do More with Less
Fast-growing businesses have limited financial resources which could put a strain on the growth potential of your business. Outsourcing enables you to increase capacity without having to invest in office space and infrastructure. It turns the usual capex items into opex, enabling your growth to be self-funding.
Problem #2: Multitasking
Fast-growing businesses have a lot on their plates, so it is inevitable for them to handle more than one task at once. Contrary to the intention of shooting two birds with one stone, multitasking actually hurts your productivity. Instead of giving your 100% to core operations, your attention is divided and therefore wasting 25-50% of your time on something you could have delegated.
How Outsourcing can Help: Focus on the Core Business
The owners and top management of fast-growing businesses need to focus on their core product or service offering and expanding their market share. Outsourcing can help top management stay focused by taking care of the infrastructure and overhead needs of your growing business. In the case of MicroSourcing, we enable our clients to focus on their core business by taking care of their office space and IT infrastructure requirements and by providing all the overhead and business support services they need to have a smoothly operating overseas operation.
Problem #3: Skills Mismatch
With limited financial and human resources available, local businesses tend to settle for what they can access and afford. Don’t settle for less; outsourcing opens up a wide range of flexible, specialized solutions that won’t break the bank.
How Outsourcing can Help: Access to Qualified Personnel
It can be difficult for a small but fast-growing business to attract the best talent in the marketplace. This could be due to the limited availability of talent in their own location or because the company is too small to attract the best people. Outsourcing companies can help by opening up a much larger talent pool to your business. In offshore locations, salaries will furthermore be much lower.
Going through the growing pains of a fast-growing business will be easier with an outsourcing partner. Contact us to learn how the managed operations model of outsourcing benefits businesses of all sizes.