One thing many CEOs of start-ups overlook is just how many resources are required to run an effective company. Put the idea of your product aside for a moment and focus on your business’ foundation, more specifically your back-office. By back office, I’m talking about the core pillars that keep your company afloat: financials, marketing, Human Resources and in many recent cases, IT.
An efficient and effective admin and back-office structure is crucial to your success, but it’s often overshadowed by other aspects like sales or development. Wouldn’t it be nice, while you’re out growing your business, to have someone saying, “Hey, we’re going to keep things financially stable for you. Go out there and sell.”
So, ask yourself, are you going to take the time to hire the staff, or are you going trust a team to partner with until you have your roots planted? Here are 5 reasons why start-ups consider partnering over hiring right out of the gate:
My costs are currently too high.
Does this sound familiar? Traditionally, companies have needed to employ an internal administrator, external accountant, an HR representative and others to take care of all the tasks encompassed by the term “back office.” Staff costs including salaries for trained and qualified individuals are high, and when additional expenses such as office space, computing equipment, software and other related costs are factored in, you may begin to feel a little faint. Especially if you’re a small team dealing with your first couple of clients.
I already spend too much time in my back office.
In early growth start-ups, many entrepreneurs invest heavily into their sales hires. This is a wise allocation of resources, but unless your team members are world-class experts in time management, there will be a continuous burden of financial duties and HR responsibilities left unattended.
Fact: It can be time consuming for you to hire the right people, who will be hiring the right people for you!
My back-office team is rushed off their feet.
Attracting additional clients and hiring extra hands do not always align perfectly. Timing is everything, and more often than not, you may find yourself with new clients unintentionally overwhelming your current team. Unfortunately, these demands may not financially warrant an additional full-time salary, especially with short-term work. It may be best to look at an outsourced solution here. They are almost always completely scalable with your needs and requirements.
Everything grinds to a halt due to staff sickness
… or any other out of the ordinary circumstance which removes a staff member from the office. Maintaining back office consistency during employee leave times (sickness, holidays, maternity, etc.) is a sign that your business can survive. When your back office is riddled with countless interruptions and setbacks, you are placing additional stress on your employees, which negatively impacts your company’s culture.
I want to offer my clients (and employees) the best products and services available.
Healthy core operations are key to presenting your product or service at its best. Many choose a services partnership for economies of scale, and their offerings project the integrity and sustainability of a larger organization. More time available to focus on selling and the presentation of the product or the service helps improve customer satisfaction.
For those of you entrepreneurs starting a new company, hiring vs. outsourcing is a tough, yet important decision that every start-up must consider. When it’s time to align your back-office processes with your core vision, explore a partnership with Growthwright. Growthwright’s outsourcing services are robust and flexible, allowing you and your team to spend less time chasing invoices and more time doing what you’re best at … selling.