Running around all the time while being busy with work has left me recently wishing I had a better diet. There’s just not enough time to be busy and eat well it seems. Being the problem-solver that I am, it got me thinking about the issue and a potential outsourced solution, “Who could I hire at minimum wage to plan meals and grocery shop for my family?”
I recognize that this may be taking outsourcing a little too far, but I started thinking about how many things we automatically outsource in a typical household these days, and take them for granted. I think that drawing a parallel between the benefits that our households derive because outsourcing has become common, and the benefits that a company can enjoy by outsourcing their CFO function, will be helpful.
Housekeeping & Cleaning
I know many families that outsource the cleaning and housekeeping to companies or individuals on a weekly or monthly basis. While usually a tightly held secret, once it is known, they rave about how much time it saves them and how their help “just helps them stay on top of things.”
Similarly, for those special laundry assignments, many of us drop off garments to be laundered by professionals. We don’t want to mess up something that is special, or we’re just too lazy to spend all of that time to launder, then starch, then press those difficult shirts. And the cost-benefit for us is off the charts—especially if the laundry service picks it up from our homes!
This category is probably often overlooked. Most households don’t grow their own food anymore. Very few homes have gardens, and those who do, I would venture to guess that the food domestically produced to that home comprises less than 20% of their consumption. So why did this shift occur decades ago? Because food production was better left to the experts. We then take the material they’ve produced and manipulate it for our consumption and use.
Overall, I think we can lay out a few neat benefits that outsourcing home activities brings. First is efficiency and the saved time. Having an expert take care of a task usually means they’re more practiced at performing it quicker. Add to that convenience and the increased time available to the household, and they’re able to specialize in what they do best—which is probably not the laundry, cleaning, or food production. Finally, and most importantly, since these three main outsourced options became commonplace in America, household income has increased dramatically!
Outsourcing the CFO Function
Similar to our illustrative household, a business exists to improve the lives of its participants. And unfortunately for most small businesses, the typical small business is similar to the households of the 1800’s–unspecialized and inefficient. Enabling them to specialize in what they do best, be more efficient at their jobs, and finally take home more income to their families is definitely a goal worth discussing. And one of the surest ways to reach that goal is by outsourcing the CFO function.
By outsourcing a business’s CFO role, the key decision makers of a business are able to focus on building the business and growing it. They have new information and financial reports at their fingertips to make quality strategic decisions, thereby making fewer errors,. Operations are more efficient, and like our households, income has the greatest change of increasing dramatically.
Households and companies are very different, but the principle of outsourcing doesn’t change. When you outsource smartly, you reap benefits.