September 28, 2020

When Outsourcing Retail Operations is the Right Move


The entrepreneurial spirit is based on independence; these are individuals who are inclined to start a business and work from themselves. But in many cases, those same talented individuals aren’t always completely aware of what they’re getting themselves into. It’s fairly simple to be a one-person operation for a while, but as the business grows, the entrepreneur will need to begin delegating tasks to others. When a business evolves beyond the talents and expertise of the one entrepreneur, it’s time to look at when outsourcing retail operations is the right move.

Evolving the business

We all know time is money. Founders who fail to delegate are probably spending considerable time (and therefore money) on the wrong kinds of tasks. Instead, tasks can be outsourced to others—whether it’s individuals or companies—with specializations they can focus on and do what they do best.

Delegating to in-house staff is one way to cover all the functions of a business. Outsourcing is another. When you’re trying to do everything in-house, your team is likely not managing their time optimally—trying to maintain control dilutes their focus to the point they might start to lose sight of their mission as a company. So, to evolve and successfully grow, entrepreneurs should build teams of individuals who can handle various functions of the business better and more efficiently than they can.

Outsourcing to experts

Leaders should consider areas of their business where they can outsource to save both time and money. Because nearly every aspect of a business can be outsourced, it’s worth spending the time to determine which areas can become more profitable by hiring outside help. Whether it’s talent management, marketing, technology, merchandising, staffing, or data collection and analysis, nearly every organization has unmet needs and problems that can be improved. Why not hire experts to evaluate those needs and problems—and then solve them?

Choosing which areas of the business to outsource can be a challenging exercise, and a great place to start is to take a deep dive into what’s working along with areas that could use some help. Learn which functional groups use the most resources, and consider outsourcing to decrease costs in that area. Also examine opportunities for growth the business hasn’t yet achieved as a result of limited resources. In those cases, outsourcing talent can not only bring the organization the expertise it needs, it can also save the time and money of sourcing and hiring additional in-house staff.


Outsourcing also has the benefit of adding an outsider’s point of view. A consultant can provide a different perspective of the business and can suggest more efficient strategies for growth to improve the bottom line. Once the entrepreneur is confident in delegating to others, they can go back to doing the thing they do best.

There will always be things that no one else can do—like spending time with your family, for example. But when it comes to earning a living, it doesn’t make financial sense to spend time on activities that you can hire someone else to do better, faster, and cheaper.

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