Hire Internally Or Outsource To Grow?

19 November 2015

Hire Internally Or Outsource To Grow?

The age old question when you’re looking to grow your business – should you hire staff internally to do the work, or outsource to a partner that can manage it for you?

It’s a common problem for the rapidly growing business, and each solution comes with their pro’s and con’s. It’s also not a one size fits all approach, but in this article we aim to give you some of the tools to make the right decision for your business.

If the time has come and this is relevant to you, congratulations. You’re obviously in a decent place and on the way to building your empire. When you’re growing, it’s important to make the right decisions first time, as the wrong decision can cost you months and tens, or hundreds of thousands of dollars.

There are several things that need to be weighed up before investing that first dollar, and below is a list of 4 fundamental questions you need to ask yourself before you take the next step.

1. Do you have the leadership qualities you need?

This one can cut both ways. Do you have the skills you need to train a staff member internally? Can you give them the love and attention they need to shine? On the other hand, can you communicate effectively enough to have your brand new outsourced team kicking goals from a remote location on day one?

If you’re just getting to the point where you are making your first hire (or outsource) you need to weigh up if you have what it takes. It could be costly in both time and money if you can’t communicate what you need. If you send it to someone else, they probably already do it for others, so you could learn a lot and that could be an added bonus. If you bring it internal, they can be there in your office and you can make the adjustments as you go.

2. Can you afford the time to train someone new?

Training a new member of staff, either from scratch or just in your systems and processes, can take a long time. Do you need results yesterday or can you wait a few months till they find their groove? Do you even have the systems and processes in place to ensure a fast start, or is that a whole other task to undertake?

As I outlined above, by going the outsource route you can mirror the systems and processes from your new outsourcing option, or forget I even mentioned systems and processes related to the task at hand, as they should take that on for themselves and is not your concern.

3. What are the costs associated with both options?

Let’s look at the costs related to having a full time employee sitting in your office; wages, super, tax, insurances, holiday and sick pay, computer, phone, desk, physical space, travel, etc. Generally if you’re outsourcing, it’s one fixed cost, perhaps with a few additions from time to time, but you know what you’re up against.

Neither is here nor there, but based on the position or role that you’re looking to hand off, you need to do your sums.

4. How will this fit with the rest of your business team?

We now live in a global marketplace and many of the outsource teams that could complete the role required, may not be in your country. Let’s say you’re an Australian based company, and you’ve found an outsourced option in the UK. Is it going to work? Can they work while you’re sleeping and you work while they’re sleeping and achieve your outcome seamlessly? Or seamlessly enough to make sure that you’re operating at maximum efficiencies?

If you have a team member inside your business, this is a non-issue.

Make sure you’re clear on this as you don’t want to find you’re like ships in the night and nothing ever get’s done. Outcome is what’s most important and even if you were going offshore for a cost saving in your business, it could be a lot more costly in both time and money if you can’t align calendars.

As you can see, there’s plenty of questions that need to be asked and going through the thought process first is the way to make sure when that first dollar leaves you bank, you’re clear on what’s going to come back for you.

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Click Here if you’d like to kick massive goals this year. It’s the starting point of lasting and sustainable principles that will change the game for you in your health and fitness business, and feel free to leave any comments below.



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