Running a bakery means wearing a lot of hats, but that doesn’t mean you have to do everything yourself. Outsourcing for small business can help you hand off tasks that fall outside your expertise, free up valuable time and focus more of your energy on the areas of your business that need you most.
Before we talk about the benefits of outsourcing, let’s talk definition. In business, outsourcing is “the delegation of certain non-core operations to other separate entities that specialize in those operations.” In other words, outsourcing means giving away certain tasks to another person or company that can better handle the tasks. These individuals or companies will likely be specialists in that area. They might be more efficient at executing the task, or you might work with them so that you can have the opportunity to focus on other areas of business that better fit your expertise.
Why should small businesses consider outsourcing?
Two main reasons to outsource certain tasks are to lower costs and increase efficiencies. Finding ways to operate more efficiently becomes especially important when rising costs are already putting pressure on your bottom line. Since outsourced tasks are executed by a third party or an independent contractor, as a business owner, you don’t have to provide the same benefits that you would a regular employee such as insurance. In addition, if you hire a contractor from another country, it’s likely that the labor cost per hour will be less expensive.
Outsourcing allows businesses to focus on core competencies, and it relieves you from struggling to manage tasks that are outside of your wheelhouse. If you’re not knowledgeable in running the marketing side of your business or taking care of financial matters, it’s better to outsource those roles to others with those skill sets while you focus on doing what you do best in your business. It allows you to concentrate on providing better quality products and allows your company the opportunity to become more profitable.
The best part about outsourcing is the ability to employ skilled professionals to manage your areas of weakness. Instead of wasting valuable time trying to figure out how to beat the latest social media algorithm or organize your taxes, it will be more cost-effective and productive to delegate those tasks to a separate company that already knows what it’s doing. Paying a professional or company allows you to have the peace of mind that the tasks will be handled appropriately while you manage other areas of your business.
How do you learn to let go?
For those of us who are used to controlling every aspect of our business, outsourcing can be a very scary concept; however, the freedom in outsourcing is that you can let go of as much or as little control as you want. When you outsource a task or role, you can completely transfer management control and decision-making power to a third party. This will require a lot more interaction and information exchange up front. This will also require a degree of trust between you and the third party.
You can also take on the position of slowly offloading tasks to a third party over time as you gain trust within the working relationship. This strategy helps you maintain a bit more control in the beginning, but you gradually loosen the reins as you become more comfortable with the third party’s abilities. Examples of items that can be easily outsourced within our baking industry are social media management, email marketing, client correspondence, bookkeeping, and other administrative tasks.
Where can you find the right outsourcing partner?
First, I recommend you create a list of tasks that you feel would be a great fit for outsourcing. These will be tasks that you find challenging to execute or are outside of your skill set. Second, ask around to other entrepreneurs to see if they have any recommendations when it comes to those areas. Others in your circle likely use a bookkeeping service or other services to help support their business. Finally, do an online search for contractors who focus on those particular areas of expertise or create a posting for an independent contractor on a job search website.
As you go through the hiring process, make sure you ask questions related to their experience or request to see their portfolio when appropriate. Make it clear to them that this is an independent contractor position and clearly define the role and responsibilities. Place them on a trial period so that you have an opportunity to make sure that they are the right fit.
Remember you are the Sweet Boss, and this role is what you make it. If the person or company turns out not to be a good fit or you have issues with communication, change things up and keep searching until you find the right partner.
This article originally appeared in the September/October 2002 issue of American Cake Decorating magazine.
Cydni Mitchell Hodges
Cydni Mitchell Hodges (aka Cyd) is the Director of Digital Strategy & Revenue for American Cake Decorating, where she combines her expertise in finance, digital media, and the baking industry to help shape the future of the publication. By trade, Cyd is an accountant and financial analyst with a Masters from the Kenan-Flagler Business School at the University of North Carolina at Chapel Hill. Since 2014, Cyd has served as a food business consultant through her brand Sweet Fest®, an online company that supports the business needs of the food industry in the areas of professional development, accounting, marketing, and branding.
