When And How To Decide On Whether To Employ In House Or Outsource


Every Entrepreneur setting up a Home Based Business dreams and yearns for explosive growth and fantastic profit within the shortest time possible.

Of-course this should be expected if the Entrepreneur has taken the time to prepare very well before the launch of the Home Based Business. By adequate preparation, I expect the Entrepreneur to have gone for Business Management Training in order to acquire the necessary skills and tools to improve the success potential of the Home Based Business.

Another important step I expect the Entrepreneur to undertake is to prepare a Bankable Business Plan that will encourage Investors to see the prospects and potential of the proposed business and bring in the necessary capital.

Even your Bank Manager will be well disposed to listen to you when and if you approach the Bank for financial assistance.

All said, I congratulate you on the successful Launch of your Home Based Business. Everything so far is going on fine. Customers are showing interest in your products/services and you’re seeing the results in the daily returns.

When To Decide On Whether To Employ Or Outsource

Of-course the right time to decide on whether to employ or outsource is when the business is showing signs of healthy growth with greater demand being made on your person. This is when you realize that you have to decide on whether to employ or outsource if only to maintain your sanity and avoid a breakdown.

Now, you have to be careful because uncontrolled growth and lack of funds have been identified as some of the reasons for Home Based Business failure. Therefore you have to allocate your resources optimally and ensure your business continues on the path of healthy growth.

The Home Business Owner is literally expected to be a Jack of All Trades but we all know that this is not practically possible.

As your business is growing, you must decide on the best way to enable you run the business optimally and reduce the burden on you so you can use your time more efficiently.

How To Decide On Whether To Employ Or Outsource

When you conclude as the owner of the Home Based Business that it’s now time to decide on whether to employ or outsource, it’s instructive to take some factors into consideration before taking that decision.

You need to consider the type of business you’re running. Is it the type of business that requires space for inventory? Or maybe you’re a contractor and your workers have to assemble on your front lawn every morning before setting off for the day’s assignment?

Are you involved in a wholly Web Based Internet Business and all you may require is a Laptop with good internet connection? You may be an On Line Course provider and all you may require is to outsource your Administration and Sales to Freelancers.?

I mentioned all these situations in order to Stress the point that the nature of your type of business will to a great extent determine how economical it will be for you to either employ or outsource

Business Processes That Are Easily Outsourced

Some business processes are more easily outsourced than others. Activities like Book keeping and Accounting, Sales and Marketing, Human Relations, Inventory Management and Office Cleaning are easily primed for outsourcing.

Do You Employ Or Outsource?

If you decide to employ, you must take cognizance of the cost implication of keeping an employee. After all, it all comes down to how it affects the bottom line. You’ll need to provide appropriate sitting space and maybe do some training for the new employee.

If the employee falls ill, you’ll still pay him and take care of his health needs unlike outsourcing where you don’t bother about such commitments.

If the employee goes on vacation, you’ll have to pay him/her and also look for someone to do the job during this period of absence. But if you outsource this job, you won’t have to bother about such costs.

So What Do You Do?

In the final analysis, the decision whether to employ or outsource rests squarely on your shoulders. It’s an important decision you’ll have to make. As the owner of the Home Based Business, you’ll decide on what suits your circumstance after taking into consideration the need to allocate available Scarce Resources optimally. This is where undergoing a well-structured Business Management Training Program becomes very helpful.

This Is What I Did In My Own Home Based Business

When my Home Based Business started growing, I looked at my options – whether to Employ or Outsource

1st Action – I decided first to utilize the services of family members living in the house and as a form of encouragement, I gave them stipends. When family members got involved, it became a sort of Happy Time around the house.

2nd Action – As the business continued to grow, I then decided to outsource some of the administrative and marketing processes

Wrapping Up

I believe that for a Home Based Business that is enjoying growth, it’s better to outsource first and later begin to employ in-house.

When you outsource, you enjoy the skills and varied experience of the Freelancer or Contractor at no increased cost to your bottom line.


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