When to outsource, when to hire

There comes a point in every businesses life (hopefully) when you start to get crazy busy and no matter how big or small your team is, it seems there is not enough hours in the day and not enough time to get all the work done and meet the deadlines. The to-do list just gets longer and longer and things start to slip by the wayside as you just try to stay afloat. 

And you suddenly realise that you may need to think about A) hiring more staff, or B) outsourcing something. This process for owners of a growing business can be extremely daunting, and if you are family-run business who has always done everything, it can be somewhat hard to let go of things that you wouldn’t normally entrust to someone else. 

But at this point you need to weigh up your time and energy, and what it will take to get your business to the next level.
 
So, do you hire or do you outsource? Well there is no wrong or right answer and it depends what you are looking to outsource. So, here are some of the pros and cons -
 
Hiring:
Pros

• You will have a designated staff member/members who you can create a role for and who will work for your brand.
• You will have the space to focus on other things and get back to running your business.
• Your new hire will bring a whole suite of new and developed skills and views, and a different perspective to help you grow your business.

 
Cons

• You will need to ensure you have the funds to cover wages and on-costs for this employee for the long term. You will need to cover annual leave and sick leave, as well as worker’s compensation and payroll taxes.
• The hiring process can be hard work and you may not find the right applicant on the first go.
• Training is a constant developmental task for a business. You can’t expect to just on-board a staff member and have everything working like clockwork straight away.

 
Outsourcing:

• Once you find the right fit to outsource to, they will take care of the rest in terms of wages and deliverables.  
• They will bring to the table specific expertise in the area you are outsourcing. We hire experts in all areas of our lives and they can bring wonderful and up-to-date skills to the table.
• No wages costs or staff members to train and your costs will be tax deductible.

 
Cons:

• You may have less control over their work as you would an employee. This is not necessarily a bad thing, but you will need to ensure you manage the relationship and keep communication open always.
• No one will know your business as well as you will. So, you will need to educate them on your business.
• You need to be really clear on expectations and who you are as a brand to get the best results. Communication is key to dealing with contractors.

 
 
Taking the next step and building your business can be scary, but it can also be immensely rewarding and is an exciting time for a growing business. Do your research, and look at both options before making the decision. And, be willing to trial things before you commit to anything.
 
KB