If you’re currently outsourcing areas of your business and things are going well, you might be under the impression of ‘if it’s not broke, don’t fix it.’ However, if you sat and added up all of the fees, costs and often the added time associated with outsourcing departments of your business, it might spur you on to make a change. When you keep processes in-house, you have more control over your company as you’re not at the mercy of anyone else. And most importantly, in many cases it can save you money in the long run. Business is of course, all about profits, and so anything you can do to maximise these figures is always worth looking into. Creating your own new in-house departments is a massive task, and there are some things you’ll need to bear in mind if you’re considering taking the plunge.
The upfront costs
One of the biggest concerns when it comes to opening new departments in your business is the upfront cost. If you’re mainly office based, new departments will mean a larger premises which of course means more rent. It means more computers, printers, phones and desks. If you’re planning on opening your own factory, manufacturing plant or construction site, you have the cost of machines, vehicles, premises and security to bear in mind- click here to find out more about the latter. If you want to stop outsourcing your delivery, you’ll need to invest in vehicles such as courier vans or even a fleet of ships. Along with these things you then have additional software to cover, maintenance fees and lots of other more ‘hidden’ costs. Depending on what you do or what you sell, the costs of opening your own departments can be significant, and might be what puts you off from setting up on your own. However, it’s important to bear in mind that once these are covered and you’re up and running, you’ll save so much money compared with outsourcing. This makes it a better option over the longer term, when business is going well and you know you’re going to be in it for the long haul. If business is doing well and you’re in a position where you can start adding your own in-house departments then you could improve the financial standing of your company.
Hiring staff
When you’re opening new departments, you’ll need the right staff to fill the roles. In terms of costs, you’ll need to consider advertising, recruiting, interviewing and training costs. You’ll need to factor in the time and money of running background checks, asking previous employers about their history and generally finding the right people. It’s another significant time and expense, as it’s important to find the right candidates for each role. Again, this is a massive undertaking when it comes to setting up your own departments, and can be enough to put some company owners off. But as with upfront costs, once things have settled down and you’ve found the right candidates then it’s plain sailing from there. While you will always get some people leaving, most will stay especially if you take your time with the interview process and be sure that you’re hiring the best people for each role. Don’t be afraid to conduct second and even third interviews if needed, and be sure that you’re portraying the role accurately. This prevents people from accepting, getting hired and then leaving soon after where the job wasn’t up to their expectations.
Health and safety concerns
One of the biggest issues when it comes to setting up your own departments is that you’re then responsible for your own health and safety. When it comes to things like construction, manufacturing and shipping these can all come with significant issues. Working with machinery, power tools, at heights, with heat and chemicals can all add more risk than you’d get at the average workplace. When you outsource to another company, they’re responsible for their own health and safety and so it’s not anything you need to worry about. Even within your office department people can experience slips, trips and falls. When you’re running everything yourself, there’s a lot of responsibility and one major task is keeping everyone safe. Make sure health and safety is being followed to the letter, and provide training to all of your staff so each role is being done to the best standard. Invest in good liability insurance, so you’re covered just in case the worst does happen. That way you won’t end up out of pocket if a claim is made against you. Even something as simple as someone slipping over on a wet floor and injuring themselves could spell disaster for your company, so be prepared and protect yourself. Do your research when it comes to insurance, won’t accept the first or cheapest policy. You’ll want to know exactly what you’re being covered against.
There’s nothing wrong with outsourcing, in some cases it can be the sensible option. Sending the work elsewhere means a weight off your shoulders, and one less thing to oversee as the boss, but it can be costly. It’s often best to outsource at first while you’re getting started, and then when your company is more established you can start to create your own new departments.
Are you currently outsourcing areas of your business and becoming increasingly aware of what this is costing you? Would opening your own departments be a possibility, or something you’d consider?
Leave a Reply