Should you hire or outsource? How to decide what is right for you and your business
You have reached a point in your business where you can’t do everything yourself. Now what? Should you hire or outsource?
If you embrace technology and the virtual world we now live in, outsourcing to a VA is definitely a good option for you. If however, you prefer to see the person everyday and work from the same office together, hiring an employee might suit you better.
Whatever your preference, before you dive in and start hiring you need to be very clear about where you need and want help. Write a job description or create a list of tasks. Here are some of the areas business owners usually outsource: marketing, social media management, customer service, sales, design services (this includes websites and any graphics) and general admin.
So what are the advantages of outsourcing?
For solopreneurs, entrepreneurs and small business owners with perhaps smaller budgets, outsourcing is definitely a cheaper and more cost effective solution since you can opt to pay by the hour or for a package of services.
Hiring an employee is costly, not only do you have to pay a salary but you also need to pay tax, insurance, holiday pay, sick pay, as well as other overheads such as a computer, office space, telephone and training etc.. Then you need to factor in paying to have an employment contract drawn up, to protect you and them. When you outsource, you don’t need to worry about any overheads, you have a contract in place but it is much easier to fire a contractor than it is an employee.
In comparison to freelancers or contractors, you have more control over employees. The main reason for this is employees are 100% dedicated to you, freelancers and contractors often have multiple clients and therefore can’t give you their undivided attention all the time. Having said that, that doesn’t mean they are not committed to helping you succeed and build your business.
The risk with hiring an employee is that you might not have enough work to be able to fully utilise them which can be extremely costly. If you don’t have enough hours for someone to work part-time, you could look at taking on someone who is looking for work experience and is happy to work just a few hours a week. Outsourcing gives you the flexibility to use someone with the right knowledge, skills and experience as much or as little as you need.
Whether you choose to hire an employee or outsource to a virtual assistant, spend time interviewing a number of candidates, don’t just hire the first person. Ask your network for recommendations and referrals. The key to success is finding the right person for you and your business, someone who is going to enable you to continue to build and grow.
Did you decide to outsource or hire someone in house? I would love to hear your experiences, please share them in the comments below. Still unsure contact us to find out how Purple Memo can help you.