Why Outsourcing is a good thing for your business
Show us a recruitment agency owner who isn’t aspiring to be more successful, and we will show you a purple squirrel. A recruitment business won’t become successful without focusing fully on business generation and winning deals, yet it so often happens that day to day administration almost completely monopolises the time of agency owners to the detriment of business growth. What first seemed like a simple and straightforward process of invoicing clients, chasing payments, managing cash flow and handling liabilities, can actually become all-consuming. Sound familiar?
The truth is that unless you are a very large organisation, there is little justification for maintaining such a substantial, non-profit making activity such as accounting and finance. It is also true that the more your business grows and the more successful your agency becomes, the more cash you will need and the more of your valuable time becomes lost. Late payments can lead to cashflow issues which can, in turn, lead to delayed payments to contractors and possibly even your staff and HMRC liabilities – scenarios which can often result in the beginning of the end for even the most successful recruitment agency.
If we haven’t made you stop and think about ‘outsaucing’ as a possibility for your business at this point, let’s take a closer look at why you should consider buying in an accounting and finance process – aside from the benefits of managing and improving day-to-day cashflow:
1. Allows you to focus on growing your business: Your time an be 100% devoted to managing and nurturing your team, generating new clients, growing your talent network, and improving your ‘fill rate.’
2. Cost reduction: We don’t just mean administrative cost savings here. As we have already suggested, the cost of management time-saving is incalculable. Consider too the cost of a missed opportunity to bid for a contract as you can’t afford to hire the staff to facilitate it because of cash-flow issues. Or the cost of a missed-opportunity to take advantage of special cash-saving deals for essential equipment and office purchases.
3. Access to experts: You are recruitment experts first and foremost, not accounting and finance experts. ‘Outsaucing’ allows you to leave your financial affairs in the hands of experts who are driven to deliver a quality of service that you would struggle to replicate in-house.
4. Access to advanced technology: Not many recruitment businesses can afford to stay ahead of technology in back-office services – their focus is of course on the technology that allows them to most effectively manage and generate sales. Likewise, the focus of an accounting and inance organisation is to offer the most efficient and cost-effective technology to their clients.
5. Additional security and guidance from sector specialists: With a sector specific ‘Outsaucer’, you will be able to tap into a team of experts that can help support and steer your business, to keep you moving in the right direction, whilst avoiding over exposure to the business.
So hopefully at this point, we have established that ‘outsaucing’ can be an effective and resource saving process. In addition, there are benefits to be gained from choosing the right partner and that process should be as rigorous as any good recruitment process – your ‘outsaucing’ partner can make or break your company, so it is important to carefully evaluate its competence. Your prospective partner should be able to demonstrate sound financial stability, be a great cultural fit with your own business and be able to demonstrate a strong and proven track record. It is also important to know and understand their own short and long-term business goals to understand if they are the right partner for you.
To many people, ‘outsaucing’ is a daunting proposition. Yet it is a proven business model offering multiple benefits. It enables an organisation to achieve its business objectives, add value, tap into a specialist resource base and alleviate certain risks. After all – If you are an ambitious company then you don’t you deserve to be financially and strategically supported in order to achieve your business goals?