Connect with us

Entrepreneurship

Outsourcing Makes Sense During COVID Restrictions

Published

on

The COVID pandemic has resulted in one of the worst economic crises the world has faced. Many small businesses closed down while others went through huge losses. With the pandemic dying down, normalcy is slowly returning but will still take a lot of time. One of the trends that became popular during the pandemic period was outsourcing.

Businessman talks with an outsourcing partner on the phone
photo credit: Karolina Grabowska / Pexels

Outsourcing refers to a business practice where a company outsources or transfers some of its work to another company. For example, the recruitment of employees is a process that could be outsourced to another company that specializes in recruitment. Another example would be phone answering, which can be outsourced to a phone answering service provider. It is not just those two processes but many other processes that can be outsourced to others.

While outsourcing has been a popular trend even before, it makes more sense in today’s COVID world. The COVID restrictions have affected many businesses. They can now be more focused on outsourcing supporting processes to competent companies.

We look at some benefits offered by outsourcing in today’s scenario. These benefits explain why it makes sense for companies to consider outsourcing some of their functions to professional companies.

Businesswoman outsourcing to Philippines
photo credit: Keren Levand / Unsplash

Benefits of Outsourcing

1. It allows companies to focus on their core work

The core work of a company is designing and producing its product, innovating it, and marketing it. Companies need to spend more time on their core work since it is the core function that would help them grow. A business would have many functions, including support functions. These functions are needed for the business but are not vital. Spending too much time on such functions can dilute the main focus of the business.

All or a few of such functions can be outsourced to other professional companies. This allows the company to spend more time on its core function, so it can work towards achieving its goals. Supporting functions like recruitment, payroll, inventory management, accounting, website management, telemarketing, etc., can be outsourced. It makes sense to outsource this work as it would be done by professionals and saves time that can be spent on other productive work.

2. Can get professional work done

Work done by professionals would always produce better results than that done by amateurs. When work is outsourced to a professional, a company is assured of getting the best results. A professional company that does outsourced work would be experienced in their field and also have the required expertise.

An outsourcing firm would employ skilled people who are good at their work. This ensures they can do their work in the most effective way possible. When work is outsourced to such a company, a business can be assured of getting the best results possible. Finding talented people to work on supporting functions can be difficult. Thanks to outsourcing, it is now possible to get the best and most talented people to work for the company.

3. Saves time and money

One of the biggest benefits of outsourcing is that it saves time and money for a company. If a company has to do operations like payroll and recruitment in-house, it needs to hire people and pay them every month. It also needs infrastructure, and the staff needs to be monitored. All this calls for a lot of time, effort, and money. Outsourcing can save all these. When supporting functions are outsourced to a professional company, it ensures the company doesn’t have to appoint employees or spend on their infrastructure.

Outsourcing saves time, which in today’s world translates to money. It also saves a lot of money, which needs to be spent on recruiting staff, training them, and offering them a monthly salary. The company that does outsourcing needs to be paid only for the work done. This saves a lot of money for the company, which can be used for core functions.

Call center outsourcing pros

4. Helps in risk reduction

We live in a world full of risks and uncertainties. Outsourcing can be very helpful in handling these risks. When work is outsourced to a professional company, they would be responsible for executing the work. They would also be responsible for managing any risks that crop up. Outsourcing thus has a direct impact on risk mitigation.

When outsourcing work is done by professionals, they would have the expertise needed to manage risks. When risks are reduced, it leads to stability for the company. This helps the company achieve its goals effectively.

5. Ensures business continuity

Business continuity is very important in today’s world. Work should not stop for any reason. Uncertainties like those posed by COVID can affect business continuity. This is where outsourcing can be helpful. When work is outsourced to a professional company, they will ensure that the work is completed on time. The outsourcing firm would have a team of people to take up the work.

Even if one or two of them are not available, there would be others ready to take up the work. This may not be possible if the work is done in-house since if a key person is absent, work may come to a standstill. Business continuity is a major benefit offered by outsourcing. This explains why it makes business sense for a company to outsource supporting functions to other companies.

6. Improved efficiency and customer delight

When supporting functions are outsourced to a professional firm, it ensures the work is done efficiently. When work is done in-house, it may be done by untrained people who need time to pick up skills. In the absence of experienced employees, efficiency can be compromised. This is where outsourcing is helpful. An outsourcing firm would have the best talent. This ensures improved efficiency.

When a company improves its efficiency and spend more time on its core functions, it has a direct impact on customer delight. Improved efficiency leads to customers being happy. Doing this constantly can achieve customer delight, which is what every company seeks.

Excellent customer service

Takeaway

When customers are delighted, it leads to enhanced business. A company can look forward to growth and achieving its goals when it delights its customers. This is a major reason for outsourcing.

Entrepreneurship

Eight Types of Company Missions These Entrepreneurs Think Are Vastly Overrated

Published

on


What’s one example of a common company mission that you think is overrated, and why? What should replace it?

Company mission

These answers are provided by Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most successful young entrepreneurs. YEC members represent nearly every industry, generate billions of dollars in revenue each year, and have created tens of thousands of jobs. Learn more at yec.co.

1. Statements That Mention Being the ‘Best’

The missions that correspond to being the “best” are generic and overrated. Being the best there is at what you do is the pinnacle of success. If you get there, what’s next? Businesses don’t grow when they pursue excellence. They grow by making mistakes, learning from experiences and doing better next time. So, seeking continuous improvement can be a good replacement.

Jared Atchison, WPForms

2. Missions That Aren’t Measurable

Generally speaking, any mission statement that isn’t measurable can cause problems for your business. If you can’t track your progress, your statement is nothing more than words on paper (or a screen). People are more willing to get behind mission statements that focus on tangible long-term goals or aspirations.

John Brackett, Smash Balloon LLC

3. Statements That Could Apply to Any Company

Many mission statements contain generic terms that could apply to almost anyone. A common example is “We provide the highest quality service,” which is an admirable goal but doesn’t really tell you anything about what they stand for or how they deliver it. Terms such as “integrity,” “excellence” and “industry leaders” are similar. It’s better to pinpoint something more specific that you deliver.

Kalin Kassabov, ProTexting

4. Phrases About Pursuing Excellence

“We pursue excellence” is generic and overrated — not to mention, the definition of achieving excellence may vary from one person to another. What will be the metric for achieving excellence? No one knows, as not everyone in your company is on the same page. So, replacing this mission with measurable indicators like sign-ups, conversions and other growth metrics would be a good idea.

Stephanie Wells, Formidable Forms

Developing mission statement

5. Missions That Mention ‘Social Impact’

Many companies use the phrase “social impact” in their mission statement, but the impact is rarely evident. For example, a clothing store may mention that it is committed to helping women in poverty, but it will still charge the same amount for its T-shirts. Instead of writing a mission statement, a company should inform customers about how they are helping the world.

Vikas Agrawal, Infobrandz

6. Missions That Call for Perfection

Nothing is perfect! I’d rather see a mission that pushes others to embrace imperfection and to strive harder to be better every day, knowing that there is such a thing as a bad day. The best thing we can do is to stop aiming for perfection and just be better than yesterday.

Daisy Jing, Banish

7. Statements That Don’t Mention Your Industry or Purpose

I think mission statements that don’t directly mention your industry or what your business does can do more harm than good. Failure to mention these details makes your message seem more like a fluff piece than an actual long-term goal for your brand. Instead, brand leaders should focus specifically on how their company will help the industry evolve.

John Turner, SeedProd LLC

8. Missions That Lack Connection

Companies should be able to use their mission statement to connect with their target audience. However, I have seen a lot of companies create mission statements that are too broad and generic. For example, “Helping businesses grow” is far too generic and does not connect with anyone. However, if it was “Helping small businesses grow with our marketing services,” it would connect better.

Sujay Pawar, Astra

Continue Reading

Entrepreneurship

Want to Start a Business? Read This First for a Reality Check!

Published

on

Are you going to start a business and looking for some ideas and tips? Well, you are reading the right blog post, as I will tell you what you might not want to hear, but at the same time, I will give you some reasons why you want to start a business you love – with the right mindset.

Thinking entrepreneur

I’ve heard some cynical comments about entrepreneurs and entrepreneurship; one comment says that entrepreneurs are, well, becoming one because they simply can’t get a real job. Another one says that entrepreneurs are a group of people who use their parents and/or everyone else’s money to start a business and have fun with it without thinking of returning any of it.

Some say that entrepreneurship is easy – just get a product people want and sell it for a profit. Right. Some say that entrepreneurship is overrated – you won’t make more than a decent paid job. Right.

It’s sad, really… those naysayer just don’t realise that entrepreneurs and small business are two of the most prominent factors that make the economy moving. Just ask the mentors and experts about what a community could do if small business is not supported by the Government: Crippled. Then the butterfly effect kicks in, and eventually the whole economy of a nation is brought down just because investors, entrepreneurs and business owners are not well-supported.

Yet successful entrepreneurs thrive despite all the unfavourable policies, the naysayer’s boos and jeers, and the non-supportive friends and family, who laugh at their ideas of starting a business out of their garage.

If you are considering entrepreneurship, are you ready for such pressure? You will somehow face people who question your decision jumping into the entrepreneurship bandwagon. The worse part is, those who doubt you often your closest ones – your spouse, your parents, your friends…

Are you ready?

Startups are not for the faint-hearted

We can’t deny the fact that many startups are bound to fail. Well, did you know why many startups fail? There are thousands of reasons, but one of the reasons that I think as the main cause of startup failures is false hopes.

If you are thinking of running a business as traveling all over the world at will, riding a limo sipping champagne, or doing whatever you like in your pajamas or swimming suit – I apologise, but I need to pop your balloon.

Stop dreaming. Start looking into the reality. Entrepreneurship is not easy and if you don’t have what it takes to get a business launched and navigate your vessel through the storm, you’d better get a job.

Entrepreneurship requires to be able to juggle and decide on many things: Balancing your work-life; deciding from many strategic options; choosing between a list of suppliers; and so on. Initially, you need to be able to wear many “hats” – bookkeeping/administrative, marketing, development, production, procurement, and so on.

You need to be open-minded and be prepared for open-ended outcome of your decisions; you need to be ready for any circumstances requiring you to re-focus and re-strategise in the middle of your plan.

And those perks you are having while working for a boss, you don’t have them when you are an entrepreneur: Paid leave, managed retirement planning, and so on. You are literally on your own, supporting yourself with your own resources.

Whether you are a solopreneur or the owner of multi-business ventures employing thousands of staffs while running yours while having fun doing so (like what Sir Branson is doing,) “hard work,” “perseverance” and “delayed gratification” are three of the main “keywords” defining all what entrepreneurs are doing.

Indeed, entrepreneurs are hard worker and passionate about their business. What keep them going is their passion for what they do and their love for everything entrepreneurship, starting up and business ownership.

Entrepreneur dealing with self-doubt
photo credit: Andrea Piacquadio / Pexels

If startup is so difficult, why people are doing it?

Yes, this question is asked by many who are interested in entrepreneurship. This question might be your question.

It’s a fair question: With all the hurdles you need to take on if you are plunging yourself into entrepreneurship, why bother starting up?

There are many answers, but if you asked me, my answer would be this: I love this game.

I love the search of business ideas. I love the many sleepless nights working on my business to see it grows steadily. I love the possibility for me to create something useful for the community – while giving me the lifestyle and financial independent I want for my family. I love the ups and downs of running a business – sure, failing sucks, but I can learn a great deal from it personally and professionally.

I wouldn’t trade what I am doing right now (work at home, surrounded by the people I love) with any high-paying jobs requiring me to work 12 hours a day or more; I love the freedom money can’t buy. I love a business that is built around my lifestyle, not the other way around.

Of course, I don’t love ALL aspects of my business: I don’t fancy the back office operations – bookkeeping, administrative and so on – but you can always hire someone competent to do those for you 🙂

Takeaway

Indeed, entrepreneurship is one of the most risky careers of all. Well, if you want safety and security, just get a job. But if you love the unknowns and embrace risks, entrepreneurship is a path worth walking; it’s rewarding in every sense – financially and emotionally.

So, now you know some facts about entrepreneurship. I do hope you can start a business with the right mindset; I also hope you start your journey with humility; being passionate without arrogance; taking calculated risks, not gambling; eagerness to help others when you have finally reached the top; acknowledging the fact that without God and those people around you – friends, family, fellow entrepreneurs, mentors, investors, etc. – you won’t go far.

Dream big. Start small. Just do it, seriously!

Continue Reading

Entrepreneurship

Measuring the Health of Your Personal Finances

Published

on

Measuring the health of your personal finances can be as simple as evaluating four simple parts about your personal finances including the way that your money is spent and the methods that you are employing to prepare yourself for the future. Use these aspects to take an evaluation of your personal finance situations and begin to learn the techniques required to up the health of your personal finances.

Borrow money

How Much do you Owe?

It is important to determine how much money that you owe in debts. The importance of the total number is sometimes surpassed by the interest rates and terms at which the debt has been accumulated. Are you facing a cycle of debt living paycheck to paycheck and using additional sources of credit to repay outstanding debts? It is important to take a plan to get out of the cycle of debt; if you have found yourself becoming overwhelmed.

Establishing a solid repayment plan that includes fifteen percent of the income, every single month to the debts in the order of most expensive to least expensive is techniques that all debtors should take into account.

Are You Living Paycheck to Paycheck?

Are you unable to find room within the budget to establish a savings account and find all of your money being spent before it reaches your pocketbook? If so, than you are more than likely one of the thousands of consumers that are living paycheck to paycheck – and this is an unhealthy indicator of your finances.

Attack your debt with a solid plan and find ways to increase your income to establish a savings account to increase the health of your finances. Use strict budgeting skills for at least one month to establish a little wiggle room in the personal financial situation and get out of the trap of living paycheck to paycheck.

Impulsive shopping is bad spending habit

Are You Spending More than You Earn?

Living outside or above your means can often be an indicator that sometime in the future the finances will be in jeopardy. When a consumer spends more than they make, this money must come from somewhere. Many people use credit to cover the shortfalls in income, which can lead to drastic mistakes being made in the finances and debt being accumulated faster than the consumer realizes. One day, many consumers wake up and realize that they are shocked to living within their means as they have run out of credit.

Go over your finances and create a budget that allows you to spend less than you earn to increase your financial health.

Have you Established a Savings Account?

An emergency fund or savings account is an essential part of the health of your finances as it in part determines the security of your future.

A savings account should be established with at least ten percent of the income every single month, which should be deposited into a high interest savings account. This money can provide an alternative to credit card use and earn money rather than charging the consumer money through the use of expensive credit cards.

Experts recommend that individuals and families have three to six months of expenses saved within the emergency fund to become truly financially healthy. Does this inspire to you start saving?

Continue Reading

Trending