Every entrepreneur has an inner debate when the time has come to grow their solo venture into a full-size business. What should you do yourself and what should you rather leave to others?
It can be challenging to let go of some of your activities during the early days; however, it’s essential to make room for your team!
Along your entrepreneurship journey, the debate continues to grow, addressing a variety of matters and processes until you can finally hit the big question: Should you keep your resources in-house or can you trust outside services? The debate is divided. While there is no right or wrong answer, it takes years for business owners to gain the necessary experience of their field and structure to make the best decisions for their company. This article doesn’t pretend to train you in a matter of minutes. However, it can help you to understand what successful entrepreneurs decide to keep in-house and what can be outsourced safely.
Investing in your own equipment is a smart move
There are several reasons why you should want to buy your own equipment, even during the early days of your business. But it’s a decision that is easy to make if you are going to need this specific piece of equipment regularly. Indeed, you can tailor and tune your machinery to your needs and even your brand – if it’s going to have a public presence, such as a van for instance. Additionally, equipment that is part of a manufacturing process can enhance your creative strategy if you have full control over its settings and performance. It’s also worth noting that you’re more likely to find financing options for kits that are essential to your business offering and existence, which can also present a tax benefit n the long term – as you can play with equipment deductions.
But in-house resources have limitations too
However, small businesses need to draw the line. You can’t keep everything in-house because you’re likely to run out of budget, space, and expertise. A typical example of in-house processes that fail due to business limitations is the data breach. Small businesses are a favorite target for hackers because their data is easy to access. Indeed, poor security systems and lack of malware and use monitoring become the playground of professional hackers. This is precisely why security experts recommend small businesses approach a data center nearby their locations to arrange for their data storage and protection. With over one-third of cyber attacks having been made against companies with less than 250 employees, you can afford to maintain resources you can’t manage in-house.
Finding the right balance
Admittedly, the desire to move resources in-house or to outsource is also motivated by the potential return on investment. Indeed, entrepreneurs need to compare the cost of purchase vs. the cost of outsourcing to highlight the most budget-effective strategy. The ROI calculations should also include the risk assessment, aka the cost of damage – whether in-house or from a provider –, the insurance fees, and the liabilities at hand. The right solution matches both your budget and your strategic needs.
In conclusion, while it’s never easy to decide what you should manage as part of your processes and what can be entrusted to your suppliers, hopefully, this articles can put you in the right direction.
