Whether you have a small or large business, at some stage of your company’s growth you would likely have thought about outsourcing some of your tasks. And you are not alone – outsourcing is on the rise as companies look for alternative solutions to employing more permanent staff due to a tightening of budgets and the need to cut costs.

The rise of the Internet has also made it much easier to communicate with someone else on the other side of the world, and to work online away from a company office, making outsourcing even more attractive to a frugal business owner.

Value of Time

What value do you place on your time? Do you rate your time at $50 an hour? $100 an hour? Are you getting the most value from your time?

Outsourcing is an excellent strategy because it allows you to best leverage the use of your time. As an example, try keeping a log of which business tasks you spend your time doing for one week. Most people are surprised at the difference between where they actually spent their time versus what they believed they were doing that week. Most of all they are surprised at the amount of time they spend doing tasks that are low priority or that produce little income – time wasted that could have been spent more productively.

And herein lies the value of outsourcing. You should place a high value on your time, and you should spend that time in producing the highest profits that you can, which leads to the conclusion that you should spend time on tasks that provide the greatest return for your business. Your time should be spent on strategic activities to manage your business and drive it in the right direction, not on performing tasks that could be better handled by somebody else.

Where are your skills?

As a owner of a growing business, you will soon come to the point where it is not physically possible to manage all the tasks associated with your company. This is the stage where it would be prudent to consider outsourcing some of the tasks.

One approach is to outsource tasks that you don’t enjoy or do not have the aptitude for. The task of bookkeeping is commonly outsourced by many businesses for this reason. Closely related to this approach is the outsourcing of many important but time consuming low-level tasks which can be taken care of by a good administrative assistant at relatively cheap rates, freeing you to make more productive use of your valuable time. As a business owner, is word processing, photocopying and answering the phone really a productive use of your time?

Another common cause for outsourcing are those areas which require specialist skills. Seeking an expert to handle complex matters such as tax and legal issues is highly recommended, and can save you time and money in the long run.

If your business is on the rise, it may be time to reevaluate how you spend your time and outsource some business tasks, allowing you to leverage your time and focus on important business tasks for maximum benefit, while someone else looks after the small stuff.