Should your business outsource certain services?

January 29, 2013 by  
Filed under Front Page, Wright Ideas

English: An Indian call center

English: An Indian call center (Photo credit: Wikipedia)

Should your business outsource certain services?

There is a dilemma that many businesses face when planning a business strategy; should we outsource some services or bring in experts to fulfil the role? It is a question that gets different answers and it largely depends on the company. For example, what budget do they have for new staff, what would that person require to fulfil the role properly?

Large, multinational companies often choose to bring in the right person so that all the services are kept in-house but for SME’s it is often more efficient and cost effective for them to outsource the service.

What type of services can we outsource?

The answer is everything! You can find experts in all industries and sectors that can look after a particular service for you. The most common services that people outsource are the cleaning of the offices and surrounding areas, waste management which includes recycling and security which is especially important if you work on a site that has tens of thousands or millions of pounds’ worth of equipment to protect.

The growth of digital marketing has also led to an increase in agencies that are offering a range of services that help grow a company’s online reputation. The main point that needs to be made is that if you are not proficient in these services then you need to consider outsourcing them.

What are the advantages of outsourcing?

By outsourcing you are leaving your services in the hands of the experts, people who specialise in that particular area of business every day. They will have detailed processes already in place as well as knowing the ins and outs of the industry.

The leading companies, such as MITI will even provide you with a dedicated team that will be solely allocated to your business. The only negative of outsourcing for many companies is that they do not get someone whose sole focus is your company but by choosing one of the leading companies this negative is no longer applicable.

Do the costs of outsourcing outweigh the advantages?

You have to consider the costs that you would have to incur if you were going to set up the service in-house. The cost of all necessary equipment, investment in research, the list can be endless. It is not just the experience and knowledge that you can take advantage of, it is the years of fine tuning the process and technology that makes the facilities management companies so proficient in what they do.

Who can we use to outsource?

There are many facilities management companies on the market but there are some that have more experience than others. MITIE has a vast amount of experience in a variety of sectors including retail, education, healthcare, government, IT, leisure and more so a visit to will tell you all you need to know about the company as well as how they can help you outsource some key services.

Make sure that the company you choose has experience in your sector as every sector is different and requires a different strategy. The leading companies will be able to call on years of experience to offer you the most effective deal possible.

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Growing Your Business Without Hiring a Sales Team


Sale (Photo credit: Gerard Stolk (vers la Septuagésime))

Growing Your Business Without Hiring a Sales Team

If you own a small business, there are a few key functions that you just can’t get wrong.

  • You need to have a good product or service.
  • You need to have a reliable method of distribution.
  • You need to be able to collect money and pay your team.

And you need to be able to sell.

A great product and a great company without sales will be done quickly. But lots of entrepreneurs would rather have a root canal than go on a sales call…let alone do cold calling and prospecting.

Hiring a sales team is both expensive and high risk.

So how is a small business supposed to grow?

Consider sales outsourcing. With sales outsourcing, you find independent sales professionals who already selling to your target market. The sales professionals learn your product or service and then offer it to their existing client base, sometimes growing that base around your offering as well.

So let’s say that you are a small business owner, and your company makes custom jewelry. You can hire a sales rep who will offer your jewelry to retailers and through trade shows within his territory. You will pay him a salary for his time and efforts, and you will probably pay him a bonus for meeting or exceeding his sales goals. And of course, you’ll pay payroll and other employee taxes. If his starting salary is $60,000, then his fully loaded cost with taxes, expenses, etc may well be $100,000 or more. He’s going to have to sell a lot of jewelry…and fast. You own 100% of that risk.

If you outsource your sales, you’ll probably contract…not with ONE sales rep, but with several sales pros. They won’t represent you jewelry exclusively; they may carry other partner products and services – like different kinds of jewelry and accessories; maybe belts and scarves and watches. You will pay a commission to these sales reps when they close sales. You pay them from received revenues. There are other costs, like company literature, samples, communications and field support, but generally these costs are fixed, regardless what type of sales team you have. With outsourcing your sales, you accomplish two key elements of successful business ownership:

  • You hold onto your cash, not paying salaries/taxes/expenses where you can hold your money until the sales are completed
  • You pay on performance. Just like you are paid, as an entrepreneur.

If this is such a great strategy, why doesn’t everybody do it? The harsh truth is that it’s hard work to have a successful outsourced team. Independent sales reps are demanding and time consuming and often push you to grow your product in new ways. Great independent sales reps are not great ‘team players’. They are just great ‘doers’.  There are trade-offs with sales outsourcing. But the rewards can be so sweet.

If you want to learn more, we’re here to help. We’re all about independent sales reps and the companies that contract with them.

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