OUTSOURCING TO A VIRTUAL ASSISTANT – HOW DOES THAT HELP THE ENTREPRENEUR?

By Dee Matheson

In the South African market many entrepreneurs are familiar with the concept of outsourcing.  They routinely outsource their IT processes, accounting, distribution and other important functions, often because they have no choice. It might not be their forte or they just don’t have time to do it. Some large organisations also outsource in order to cut costs. An entire industry has developed around outsourcing and the Virtual Assistant is just one of those functions.

What is rather concerning though, is that not many businesses thoroughly understand the benefits of outsourcing. Yes, it can save money but that is not the only reason to do it.  Organisations need to be vigilant of outsourcing the correct functions as they do not want to repeat what happened in the outsourcing mania of the early 1990s which caused major layoffs and other headaches.

Wise outsourcing, however, can provide a number of long term benefits:

·         Cost cutting may not be the only reason to outsource, but it may be a major factor for the entrepreneur. Outsourcing can converts fixed costs into flexible costs, releasing capital for investment elsewhere in the business and this can avoid large expenditures in non-profit areas of a business.  Outsourcing can also make a business look more attractive to investors because more capital can be injected into revenue-producing activities.

 

·         Companies that do everything themselves have much higher research, development, marketing and distribution expenses, all of which eventually is passed on to the consumer. An outside provider’s cost structure and economy of scale can give your firm an important competitive advantage.

 

·         Hiring and training staff for short-term or peripheral projects can be very expensive and temporary employees do not always live up to expectations. Outsourcing to an experienced person where you only pay by hour will give you the results that you need without the extra burden of pension funds, medical aid and other overheads. This is where a Virtual Assistant is key to an entrepreneur’s business.

 

·         If projects need to be started quickly, outsourcing is the answer. A suitably qualified person may not be available in-house and can take weeks or even months to get them up to speed. By outsourcing the project, a qualified person is available immediately with all the knowledge and skill at the entrepreneur’s disposal.

 

·         Every business has limited resources and every manager has limited time and attention. Outsourcing can help to shift an entrepreneur’s focus from peripheral activities to work that serves the customer and can help managers set their priorities more clearly.

 

·         Large companies have to maintain in-house support services which a small company does not need to do. Outsourcing can help smaller companies act “big” by giving them access to the same economies of scale, efficiency and expertise that large companies enjoy.

 

·         Every business investment carries a certain amount of risk. Markets, competition, government regulations, financial conditions and technology changes on a regular basis. Outsourcing providers assume and manage this risk for you and they generally are much better at deciding how to avoid risk in their area of expertise.

 

Now the question is, what can a company outsource? Here are some steps that may help in this regard:

o   Identify the functions that do not need your direct attention, e.g. administration, making appointment, collating reports, preparing a PowerPoint presentation, etc. Outsource this to your Virtual Assistant. She will have had many years of experience in this field and would very likely be better at it too. Let her become the cog in the wheel that makes your company a success.

 

o   Be fussy about whom you outsource to. Interview the prospects over the telephone or if your Virtual Assistant is close by, have a face to face and start developing that rapport. As you start working together, a mutual trust factor will develop and you will find it easier to let her do more within your company, which will leave you free to focus on more important aspects of your business.

 

o   Once you have found your Virtual Assistant, ask her how to make it cost effective for your business. Get the right level of service to satisfy your needs without overspending. Have a clear understanding of the person you are dealing with and exactly what your expectations are.

 

o   Ensure that when you outsource any business function that the overall level of service delivered is higher as a result, not just cheaper.

 

If you are interested in discussing how a Virtual Assistant can be of benefit to your organisation, please contact Dee on 082 925 7757 or have a look at her website: dfm-virtualassistant.co.za.