Auckland Small Business Help

Help for Small Business Auckland

Typically a small business is under resourced and does not have all the skills or experience required for running an efficient business.
Usually this is because someone with particular skills or a product or service idea has decided to try to make a business from it, so they mortgage their house to raise money to start the business.
However, typically the technical skills that should be used in developing and supporting the product or service  get consumed in looking after the day to day management of the business as there is seemingly no money to employ staff to do these tasks.
Often this ends up being false economy.

So what is a small Business to do?

Have a Business Plan

Without a plan of what it is you intend to do, how you intend to do it and what you intend to do with the results, including the Exit plan, how can the business consistently work towards the end goals, and know if it is progressing or not.

Once there is a plan, which doesn’t need to be anything elaborate, and all the stakeholders know what their part in the plan is, then everyone can begin working towards the goal.

There are many Business plan tools available. The trial version of this one may be useful to you for checking on the financial viability of your sales and business overall, plus prompt you to consider particular pars of the business you may have neglected.

One of the first things that needs to be sorted is the Exit strategy. What is the end goal and what happens when that goal is achieved.
Is it intended to build the business up for sale, or to provide ongoing income for the Principles, or run for a certain period and then close down etc. The Exit Strategy plays a big part in day to day Strategic planning.

Once there is a plan then the practicalities of who does what task can be sorted. This is where analysis of the economics of doing it yourself against outsourcing to experienced service providers comes into play.
If you can earn more by performing a skilled task that only you or a limited number of your staff can do, than it costs you to employ or outsource a lesser task, then it makes no sense for you to be doing the lesser task.  Make every task you do be working towards the end goal and if possible working towards making money.

Outsource Small Business Administration

Outsourcing parts of the business is generally the most efficient use of resources, both time and resources, including skills and money.

The difficulty is always convincing the owner or financier that it is more economically effective to pay for someone else to take care of standard parts of the business, while the unique skills within the business are used to best effect in the areas most suited.

The opportunity loss and sometimes the direct transaction loss of using a highly skilled person to do a job they may be less skilled at are hidden costs in the business, but are real just the same.
While the chargeout rate of a contractor or business service provider such as an accounts service may appear high, and are directly visible as financial transactions, the effective cost of not using the skilled staff member to carry out skilled work can be a lot higher.

What can be outsourced ?

These days, technology allows business to outsource just about every aspect of the operation and administration.

• Secretarial
• Book Keeping
• Creditor and Debtor control
• Accounting
• Skilled work by outworkers
• Skilled work by Contractors
• Operations management
• Sub contract manufacture
• Day to day management
• Executive management
• Strategic decision making
• etc

ie it is now possible to outsource the whole operation, a model that has been adopted in the on line internet marketing business.
This means that skills can be used where they are most effective at increasing the bottom line and progresssing the strategic purpose of the company.

Outsourcing Small Business Admininstration, both Management and Operations, is a viable option for most small businesses.

.

.

.

.
Auckland Small Business Help