Outsource to improve profitability
Outsourcing can be a good way to increase your business’s profitability when you hand off discrete business processes to specialists in those processes. It frees you and your staff to concentrate on the profit centers in your business — the areas where you are the specialists — and can help keep your overhead low, because you do not have to maintain staff, equipment and space for other processes.
You probably already outsource some business activities, such as delivering transcripts and preparing your tax returns. It’s a good idea to periodically examine your business and compare the costs of doing things in-house or by outsourcing.
Also, when you prepare to offer new services, you should “crunch the numbers” to see which processes it makes sense to outsource. For example, if you decide to offer online case repositories for large cases, you will be dealing with boxes and boxes of files to scan. This could be a prime example of a discrete business process to outsource.
Another time-consuming process that businesses often outsource is collections. However, traditional approaches to collections (such as sitting on an overdue invoice for months, then handing it over to a third party to deal with), are not as profitable as a combination of a consistent internal process, accurate account information and smart outsourcing. Use RB8 to help you improve your accounts receivable.