As a provider of outsourced bookkeeping and controller services, we have a keen understanding of the ways in which fractional outsourcing can support businesses. Yet we are also the first to recognize that there are many situations in which clients are actually not a good fit for outsourced services. From simple limits in size and scope to a disconnect between internal practices and external resources, outsourcing is not a one-size-fits-all solution. In fact, if you’re considering outsourcing any non-core competency, this checklist will help you decide if it is the right path for you.
Your Business Already Outsources One or More Functions
If this is the case, you can probably stop reading and go on with your day. If you have successfully outsourced any other non-core competencies, then you likely understand the nuances in communication and externally developed processes. However, keep in mind that there are distinctions between hiring an agency to manage a marketing endeavor (such as PPC or SEO) that you would never have managed in house and outsourcing functions that you have historically completed internally (such as accounting services).
Your Business Leverages Technology Across Departments
Whether your business is on the frontier of every new technological innovation or simply open to exploring how technology can improve efficiency, accepting the benefit and use of technology will support your outsourcing efforts. Online bookkeeping services, fractional marketing or external HR departments leverage technology for communication, collaboration and record keeping (to name a few). You will likely need to accept this way of working in order to have a successful experience outsourcing.
Your Business Is Growing Out Of Early Stages
If your business is growing out of its first stages, it is likely feeling the squeeze on its current resources. Hiring internally can be a lengthy and expensive process during the growth stage as managing and developing employees is a tremendous investment. For this reason, small businesses with between $1 million and approximately $25-30 million in annual revenue often find themselves better served by outsourcing certain functions. This way they can immediately benefit from the expertise of enterprise-level resources without the risky outlay of time and personnel infrastructure growth.
Your Business Requires More Focused Expertise In Key Functions
So maybe your business has been getting by with its balance sheet data. It is clean data and generally accurate—but it is clear that your business really needs cash flow forecasting and departmental tracking to get a clearer picture and make big decisions. Developing current personnel and resources takes time and opens your business up to risk. However, outsourcing specific needs is an excellent way to leverage the benefits of outside expertise.
Your Business Processes and Systems Are Antiquated—And You Want To Fix It
Considering new systems, software or business processes? It can be extremely difficult to manage this internally. Vetting and comparing software platforms is becoming more difficult every day as third party integrations and complexities make sifting through spec sheets and viewing demos a stressful experience. Additionally, redesigning the systems your business relies upon can cause internal resistance and make efforts futile. Plus, no one in your organization is particularly skilled or experience in this process. However, outsourced services are comfortable and experienced with overhauling systems, making software recommendations and stewarding the implementation of new processes. Instead of trying to “go it alone”, an outsourced company may be just what you need.
Hate Technology, Have No Interest In Changing Your Processes and Prefer To Manage Everything Yourself?
Outsourcing is probably not for you. And that is OK too.
