On top of pursuing their passion and taking their business forward, many business owners find their time occupied with daily administration tasks; writing newsletters, running payrolls or keeping on top of HR. So, how can you free up time and energy to focus on your business, while minimising risk? Outsourcing can be the key to simplifying operations and ensuring compliance.
Here are 5 tips to help you get started:
1. Set Realistic Goals
The first step in planning for outsourcing is to decide what it is you want to achieve. Do you need to reduce costs or increase efficiency in a particular department, or free up time to focus on the core business? Setting expectations and goals can help you determine what parts of your business need the most attention.
2. Decide What Function to Outsource
Step two when planning for outsourcing is to choose which function to move out of house. What part of the business is suffering or not functioning to your standards? Do you have insufficient expertise in one area? Are you falling behind with compliance requirements or struggling to keep up with new changes? How do the costs incurred by your in-house team compare to outsourcing that particular function? Asking these key questions can quickly help you identify what area of your business to outsource.
Using a cost-benefit analysis to decide on a budget for your outsourcing project is a simple way to give yourself a very clear overview of what returns you can expect from an outsourcing project. When doing your analysis, consider; the cost savings related to outsourcing; the expertise of the service provider and the opportunity cost of the time saved by outsourcing.
4. Choosing a Service Provider
Selecting the right service provider can take time, but you need to ensure compliance and be confident you have chosen a vendor you can rely on for a quality service. Pay attention to testimonials from satisfied customers, and whether any clients are comparable to your business. Consider the service provider credentials; do they have a dedicated team for queries? Do they have certifications in their respective field? Do they follow all compliance and regulatory requirements as required by law? Make sure to check the fine print as well – if there are lengthy service contracts or complicated terms, be wary of signing. Assess the IT infrastructure and security compliance of potential vendors and whether they will be able to fulfil your requirements.
5. Getting Started ?
Once you have decided it is time to begin outsourcing, there are a couple of things you can do in order to measure progress and monitor the quality of the service provided by your chosen service provider. Track your expenses and compare them against your budget; communicate openly with your provider and assess their processes; and ask your employees about their experiences with, and opinions on, the provider to provide ongoing feedback.
With outsourcing growing by almost 20% throughout 2017, there are now outsourcing options for almost every conceivable business function. More and more SME’s can benefit from the added expertise and cost and time savings that outsourcing can bring. To learn more about Payescape, and the business solutions and services we provide, click here
Need help to understand what solution is best for your business?
Payescape Limited is authorised by the Financial Conduct Authority under the Payment Services Regulations 2017 (register number 821826) for the provision of payment services.