Did you know that wearing too many hats can essentially hinder your companyâ€™s growth?
In the beginning stages of your business, taking on various responsibilities is ideally the only way to get ahead. Youâ€™re the accountant, human resources department, IT professional, and owner all in one. While this might look like the best method for saving money, in time this method of operating a business will fail.
Why? Well for one, no one person has the expertise to complete everything within their business. Sure you may have the basic understanding of each aspect of owning a business, but essentially your company will only ever be as good as your own skills and abilities.
Risks Involved in Doing EVERYTHING Yourself
â€œIâ€™ve been doing fine thus far. Whatâ€™s the issue now?â€ This is a common reaction to make. If itâ€™s not broken, why try and fix it. However, truth be told, your business processes are broken. Everything is done by you leaving your company vulnerable to many risks. Not to mention a great deal of time and money wasted. Still not convinced? Consider these risks below:
- Limited Knowledge and Experience Whether you have a degree in business management or youâ€™re a self taught entrepreneur, your personal knowledge and experience can only take you so far. There are constant changes on the regular basis in the world of business. Without the proper team to bring those ideas and trends to life, your business stands to remain in the same place.
- Lots of Time Wasted For every task that must be completed, that is more time taken away from areas in your business that you are well versed in. Learning new processes takes a considerable amount of time and attention to detail. This then slows down productivity causing you to spend a great deal of time on tasks that could be best handled by an experienced professional.
- Increased Potential for Errors We feed off of each otherâ€™s knowledge and experience. However, if youâ€™re the one doing everything, what is there to feed off of? Errors go unnoticed, which essentially puts your company at risk for anything from lawsuits to fines and tax issues. Itâ€™s also important to mention that errors cost money. For every error made on your dime, thatâ€™s more time wasted on correcting the problem and more money spent on any liabilities as a result of those errors.
- Decreased Quality of Work If youâ€™re expertise is spread across a number of business responsibilities the level of quality in your work will begin to decrease. There is no way that you can focus all of your attention on one aspect of the business. This means you have to equally divide your time to all responsibilities. When youâ€™re wearing too many hats or stretched too thin, your efforts in completing work are not as efficient as they could be if you had assistance in areas you donâ€™t understand.
Outsourcing is an Effective Solution
Itâ€™s okay to admit that you need help. No successful business owner has reached the top without the assistance of others. In many cases, it is impossible. Outsourcing can be a cost effective solution that allows you to save money and time. By contracting various business responsibilities to experienced professionals or organizations, youâ€™re investing in the continued growth and development of your company. This doesnâ€™t mean that you have to outsource everything, but here are a few categories in which outsourcing makes the most sense.
- Bookkeeping/Payroll/Taxes Thereâ€™s nothing worse than getting in trouble with Uncle Sam. Many business owners try to manage their own finances without realizing the risks that are involved. In fact, ADP.com stresses the importance of consulting with an accountant or payroll management firm to avoid the common risks and penalties involved in payroll and tax errors. One mistake could cost your company hundreds or even thousands of dollars.
- Information Technology Services In this modern age of business, neglecting technology within your company can leave you a few light-years behind the competition. Unless youâ€™re well versed in computer programming and other technological trends, outsourcing your IT needs are vital.
- Marketing Marketing is an ongoing process for businesses. As the internet has changed the face of marketing today, it is imperative for business owners to consult with outside professionals. Neglecting certain aspects of marketing diminishes your brand and limits your customer base which of course sets businesses back.
- Safety Compliance Keeping your employees safe while on the job is extremely important. If you have too much work on your plate, however, safety compliance can take a back seat to other aspects of the business, leading to mistakes in that regard. Services like National PEO can assist you with your workplace safety compliance management by providing an inspection and audit of your facilities, in addition to implementing a safety program and training your employees on industry-specific safety standards. Overall, this service can reduce your payroll costs and the number of workersâ€™
So while you may have had the idea to save a few bucks by completing everything on your own, consider what a â€œone man showâ€ is doing to the overall success of your business. While you may be very good at what you do and have a diverse educational background, getting help from others is truly the only way to achieve overall success. Investing in outsourcing gives you the time and opportunity to focus on other areas of business which in turn helps your company to succeed.
photo courtesy of pasukaru76