Business Outsourcing: You Do the Math

I encounter many businesses and sole proprietors that ponder what they should outsource.  While there are many considerations, there is also a quick financial one to include.

If you want to earn $100,000, then any internal task where the investment is $50 an hour or less should be outsourced.  (2,000 annual hours multiplied by $50 per hour)

For most small business owners, their focus is to increase sales. Time away from this activity negatively impacts the bottom line. So, outsourcing data entry, human resources, direct mail, and even social media at rates between $5.00 per item to $30 per hour is truly a No Brainer. For each business, outsourcing will be different, but the bottom line is the same – more profits and more sales!

Of course, you will want to identify what your core service or product is and what you can uniquely do better than others.  Anything that isn’t part of your magic should be considered ripe for outsourcing.


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