5 Services South African SMEs can afford to outsource

Running a small business doesn’t mean doing everything yourself. Outsourcing the right tasks can give you specialist expertise, reduce administrative pressure and free up more time to focus on customers and growth.

Small-business owners become very good at wearing different hats.

You might start the morning chasing an unpaid invoice, spend lunchtime approving a social media post and finish the day trying to understand an employment contract.

It comes with the territory.

But being capable of doing something doesn’t always mean you should be doing it yourself.

As your business grows, there comes a point where trying to manage every function can take your attention away from the things only you can do – serving customers, improving your products and making decisions about where the business goes next.

That’s where outsourcing can help.

Outsourcing simply means using an external person or service provider to perform a business function instead of employing someone internally to do all of that work.

For a small business, that could mean using an accountant once a month, appointing an external marketing agency, working with an IT support company or getting specialist HR advice when you need it.

You don’t necessarily need to outsource the entire function.

You can outsource specific tasks while keeping strategic decisions inside the business.

The best functions to outsource are usually tasks that require specialist expertise, take significant time away from core business activities or would be expensive to employ a full-time specialist to manage.

Hiring full-time specialists for every part of your business can become expensive.

You may need expertise in finance, marketing, IT, employment law and compliance – but not necessarily for 40 hours every week.

Outsourcing can give an SME access to specialist skills when they’re needed without immediately building an entire internal department.

It can also provide flexibility as the company grows.

But outsourcing isn’t automatically better than employing someone.

The decision should depend on the function, how frequently you need it, how important it is to the business and how much control you need to retain.

Outsourcing a task also does not necessarily outsource accountability. Business owners should still monitor performance, protect confidential information, understand contractual responsibilities and maintain appropriate business insurance.

Here are five areas worth considering.

Not every outsourced task needs a specialist professional.

Some businesses also outsource routine administration such as appointment scheduling, customer support, data capturing, invoicing or virtual-assistant work.

Technology can help here too.

Cloud software and AI-assisted tools can automate parts of repetitive workflows and reduce the amount of manual administration required.

The important thing is to decide what actually needs a person, what can be automated and what should stay under your direct control.

Outsourcing doesn't mean giving away responsibility for your business.

There are several things owners should remain actively involved in.

Sometimes.

But cost shouldn't be the only consideration.

Compare:

·        salary;

·        employee benefits;

·        recruitment;

·        training;

·        software;

·        equipment;

·        management time;

·        frequency of the work;

·        specialist skill requirements; and

·        the cost of getting something wrong.

If you need a particular skill only a few hours each month, outsourcing may make sense.

If a role becomes central to daily operations and requires constant involvement, bringing that function in-house may eventually be the better decision.

Don't choose a provider simply because they're the cheapest.

Ask:

·        Do they understand businesses like yours?

·        What exactly is included in the fee?

·        Who will work on your account?

·        How quickly do they respond?

·        How is sensitive business information protected?

·        What happens if you want to end the agreement?

·        Who owns the work and data produced?

·        Can the service scale as your business grows?

·        Can they provide appropriate qualifications or references?

The right outsourcing relationship should make your business easier to run – not create another problem to manage.

External specialists can take certain tasks off your desk.

They don't remove your responsibility for protecting the business you've built.

Your accountant can't prevent every fire.

Your marketing agency can't prevent a break-in.

Your IT provider can't guarantee that every cyber incident will be avoided.

That's where wider risk management and business insurance come into the picture.

As your business grows, you may acquire more stock, equipment, vehicles, employees and contractual responsibilities.

Your risks change with them.

Miway's guide to business insurance for growing businesses explains how different areas of cover can help protect the assets and operations a growing company depends on.

You can also read what type of insurance a business may need when reviewing your own risk profile.

Successful outsourcing isn't about getting somebody else to run your business.

It's about recognising which tasks genuinely need your attention and which are better handled by someone with the right expertise.

Your time is limited.

Use it where it creates the most value.

Build the right support network around the rest.

And as the business develops, regularly review whether your systems, suppliers and business insurance still match the way you operate.

You don't need to do everything yourself.

The right specialists can help you manage the areas outside your expertise while you stay focused on customers and growth.

And when it comes to protecting what you're building, explore Miway Business Insurance and find cover suited to the way your business operates.