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Grow Your Small Business by Outsourcing Business Processes

Posted: 02 Sep 2019 12:00 PM PDT

Small businesses have many compelling reasons to outsource – to save money, improve performance, avoid recruiting headaches and more. Despite the obvious benefits, many businesses are unsure how to get started with outsourcing and, as a result, are hesitant to proceed.

The process begins by considering which workflows to outsource and which ones you should keep in-house. Generally, the most successful tasks to outsource are low-impact and repeatable but which consume a lot of time and resources. Some examples are accounts payable, accounts receivable, administrative work, transaction support and data entry.

Because outsourcing began as a business strategy, all of these low-impact tasks have added up to quite a large industry. Research shows that business process outsourcing generated more than $23 billion in revenue in 2018 and that the overall market is projected to be worth $262.2 billion by 2022.

There is a demand for these services, and it's largely driven by the desire of business leaders to make their organizations operate more efficiently. With the right partner, outsourcing is a way to realize that goal. 

Working less to achieve more

Most back-office processes are non-value-adding, i.e., tasks that must be performed to maintain operations but that don't help a company grow. Although organizations can't neglect accounts receivable, transactions or reporting, these activities don't actively bring in new clients and revenue, which is where a back-office outsourcer comes into play.

Back-office work is ripe for outsourcing because it requires a lot of institutional resources that could be utilized for other business functions, particularly for creating growth. Imagine that a business wants to open another location, add a product line, recruit a top executive or revamp its online presence. These initiatives take significant investments of time and energy, but if decision-makers also have to worry about routine tasks, they will only be distracted from opportunities to grow their businesses.

By sending those workloads off-site, decision-makers have more resources available to focus on growth. Essentially, they replace tasks that don't add value with tasks that do. One survey of 1,700 companies showed that outsourcing accounting tasks leads to greater profits, better financial insights and more referrals. The reason is quite obvious: Outsourcing allows companies to focus on clients instead of on themselves.

It should be noted, though, that outsourcing back-office functions works well if the process is structured and your goals are specific. Without the proper preparation on your end or a surefire vetting process, you could end up with a failed partnership. Read more below about the steps you can take to ensure a successful partnership. 

Relying on talent for routine tasks

Outsourcing leads directly to greater efficiency because it allows companies to rely on top talent and best practices to handle routine workloads. As a strategy, outsourcing allows a business to get the best talent for each function and focus its hiring efforts on talent that will bring value to the organization, and build up the business. Meanwhile, a third-party outsourcing partner can build teams of individuals whose work is not essential to the business's value or revenue generation.

High-quality outsourcing partners who use offshore talent can deliver talent (degreed, certified individuals) for a much lower cost. A CPA who works in Manila, Philippines, can perform with the same competency as a CPA in the U.S. at a much lower cost. What's more, outsourcing means not having to worry about hiring, training or retention, because the outsourcing partner handles those functions.

Customer care is another example of a function that could be outsourced. Many companies need customer support but would find building out an in-house call center to be a waste of resources. It makes sense, then, for those businesses to outsource call-based customer support to a company that has the infrastructure, training, hiring protocols and management process already in place. Be careful, though, when it comes to your contract with your outsourcing partner. Make sure there's enough flexibility in the contract to ensure quality customer service.

Other back-office activities can be outsourced in similar ways. A business needs accounting for operations, but accounting is not a differentiator for customers. It could easily receive financial reports without having to do all the busywork, including data entry, analysis and invoicing.

By outsourcing nonessential tasks, companies are in better positions to attract higher-level talent who are more likely to stay with the company over time. Outsourcing frees up resources to be used toward more effectively recruiting talent in key revenue-generating roles. Of all the reasons to consider outsourcing, the most compelling is that it can clear away obstacles to growth. 

5 keys to effective outsourcing

Every company outsources differently. Use these five tips to customize your strategy.

1. Set clear efficiency goals.

As goals, "growing" or "increasing efficiency" are too broad. Be more specific about your intentions: Are you trying to cut certain costs, build a particular team or free up resources for a specific initiative?

Think about how outsourcing workloads in one area can free up resources and energy to focus on another area. How will that help your company better deliver value to customers? Whatever the goal, it should guide where, when, why and how you choose to outsource. 

2. Plan for change.

Outsourcing will fundamentally change the makeup of your company. That's an exciting opportunity but one that requires planning. Begin preparing your staff, workflows and company structure to facilitate your dream. You will need to outline processes around the tasks that will remain in-house and determine how your team's workflow will change.

It's essential to gain buy-in from key members of your organization, from department heads up to board members. Before you present outsourcing as a strategy, ensure you know the answers to hard questions that these decision-makers are bound to ask. Think through your answers to the following questions: Who will spearhead the strategy? How will this affect our current team? Where will we use the cost savings? How long will the process take from start to finish? 

3. Pick the right partner.

Outsourced services are only as good as the partner that provides them. You want a partner who is flexible and willing to integrate wholly into your team. To know whether a provider will be a fit, read testimonials and ask for references.

Any provider worth its salt will engage in several one-on-one conversations and provide a detailed proposal. In addition, the provider should ask you to visit its facility. Don't move forward until you're completely confident you've found the right outsourcing partner. 

4. Define success yourself.

Great outsourcing partners commit to certain performance standards, but it's up to you to define what those are. Decide which metrics and benchmarks matter. Depending on which service you outsource, your key performance indicators (KPIs) will vary. If you're outsourcing creative, for example, you might use a predetermined quality score. With invoicing, turnaround time could be the key metric.

Before you decide anything, ask the provider to come up with its KPIs as well. Crucially, come to an agreement about how often the partner will update you with results. Hold your provider accountable each week, month or quarter, depending on your needs. 

5. Test the waters.

Instead of outsourcing an entire department, start with a pilot project, which requires less upfront investment. This approach also lets you observe how effective the outsourcing partner is before committing completely. Great partners will be flexible with your terms and will want to prove their worth.

If your goal is to evolve and expand, imagine how helpful it would be to function as lean as possible. By engaging with an outsourcing provider, you'll work with high-caliber professionals for reduced costs. Whether to outsource is a big decision, but many companies find that the results are 100% worth it.

Starting a Business: My Expectations vs. The Reality

Posted: 02 Sep 2019 07:00 AM PDT

To no one's surprise, starting a business can be tricky. A person can have an amazingly revolutionary, insightful business idea, but that doesn't necessarily mean that person is cut out to be an entrepreneur. After starting three businesses, and reflecting on my personal and professional journey, I've come to realize that while no two business owners' paths are identical, there are some universal experiences that can help to shed some light on the entrepreneurial adventure. Here's some of what I've learned along the way regarding my expectations vs. reality.

You can't be scared of change

In the romanticized version of my career path, I would've known early on that I wanted to open my own business. I would've gleefully launched my first lemonade stand as a child, relentlessly won student council leadership elections throughout my teen years, and studied economics and business in college with an insatiable fervor. But in real-life, I didn't grow up with entrepreneurial aspirations. I studied politics and journalism in college, majoring in political science. 

After leaving school, I came to the realization that I wasn't on the career path I was looking for, so with the intent of finding a single role that could sustain me professionally and financially, I went into law. As my law career progressed, I started realizing that I really liked working with companies and solving for business issues. There was something about being present at the deal table, working with other executives, and making a difference in a company's trajectory, that I found a passion for. Being privy to these insightful business conversations and product development was incredibly exciting, and it ignited my own professional interests even further. 

Experiencing business law first hand is what led me to start both of my businesses, Nimbus Legal and Auxana, as well as a venture, Contract Moxie (coming soon) after noticing specific gaps within the legal industry where my business ideas could make a difference. Looking back, there was no solid career trajectory, and plenty of forks in the road where I could have made different decisions. Interests change and passions evolve, and I would recommend to any entrepreneur to never say never. 

Don't get hung up on prior expectations

When I launched my first business, I felt pretty confident that I was bringing an idea to market that was critically needed within my industry. My drive stemmed from feeling the pain of working for a law firm, and experiencing issues around misaligned incentives such as the billable hour, and subpar service to our clients. I didn't need to "guess" at what was needed in the industry, because I felt the pains firsthand. Because my company addressed specific, known issues within my industry, my business grew organically and steadily, much to every entrepreneur's dream.

That being said, my business grew fast. Faster than I expected, and faster than I was prepared for. It was both surprising and humbling to see peoples' reactions to my idea, and the level of "busy" that took over my life was even more than I'd prepared myself for. If you'd asked me 3 years ago if I would be where I am now, I wouldn't have believed it. I'm the type of entrepreneur who has a perfectionist chip on their shoulder, and I'm typically moving at 100 mph. While that's natural and fun for me, I've also come to the realization that oftentimes, I need to course-correct or even let go of an idea entirely in order to be successful. 

Being too much of a perfectionist can cause you to get "stuck," in that, you're not pulling the trigger and moving forward because the idea you have in your head is different than the reality. I've learned that putting something out there that's not "100% perfect" is actually better than getting hung up on the itty-bitty details and, as a result, putting out nothing. 

Learn when to move forward, and when to say when

Naturally working at a rapid pace has made it difficult for me to turn off, but it's also a crucial lesson for any entrepreneur to learn. When the ideas are flowing and innovation feels like second nature, it's easier said than done. For example, I pushed myself to work and launch my 2nd business through my third trimester of pregnancy. By working at that pace, I hoped we could gain enough momentum to launch. Looking back, I made a decision, I evaluated all of the possibilities, and the pros outweighed the cons.

My situation is similar to many startup founders, who are currently executives in existing companies. They have the idea, but there's that pesky employment issue. Determining how much time can you can give to this new venture when you're already full-time somewhere else – It can feel overwhelming and isolating. There are so many expectations to manage, including your own. Making the decision to go "all in" is scary and stressful. Having my second baby this year has been truly wonderful, and a reminder that it is more than ok to take care of myself and be present with my family; rather that it is the most important thing and inherently leads to more success in all facets. Everything is an experiment, and it's ok to fail. In fact, I encourage it! Fail often, and fail sooner rather than later. It's ok to make mistakes along the way as long as you're learning from them. 

What I'm saying is, if you've got the drive and the tendency towards innovation, then you're already on the entrepreneurial career path. Whether you stay on that path is up to you, but don't let fear of the unknown or perfectionist inclinations stop you from moving forward. Like they say, it's the hard that makes it great. If it was easy, everyone would do it.

Business Owner's Guide to Internet Accessibility

Posted: 02 Sep 2019 06:00 AM PDT

  • 7 million Americans live with disabilities. In a recent survey, 54% of disabled adults use the internet.
  • Having an accessible website makes it easier for disabled consumers to shop at your online business, which is advantageous because this demographic spends more than $200 billion in discretionary spending every year.
  • To find out if your website meets accessibility requirements, you can use automated software or work with companies that test your site using both human testers and software.

User-driven lawsuits around website accessibility are on the rise, and business owners need to take note. 

Not only is providing an accessible website and mobile experience the right thing to do, but in not doing so, business owners open themselves up to potential legal repercussions and alienate a large portion of the population who could be potential customers.

Princeton Survey Research Associates International conducted a study about the online habits of adults with disabilities, and found that almost 54% of the people polled visit websites online. 

According to the U.S. Census Bureau's latest figures, 56.7 million Americans live with disabilities, and nearly 38.3 million citizens have a severe impairment. 

Companies can't afford to ignore this growing demographic of online consumers and should design websites that follow accessibility standards.

Editor's note: Looking for the right website design for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs. 

 

Making a strong case for website accessibility

The World Wide Web Consortium (W3C) is an international organization that develops the standards for internet sites. The organization conducts educational and outreach initiatives about web-related technologies. Stakeholders from the government, consumer groups, and private industry help them to develop web standards.

Recently, the W3C released an advocacy document called "The Business Case for Digital Accessibility." The article examined the rationale for companies and nonprofits to integrate accessibility standards. The consortium says organizations must provide accessible websites for people with disabilities because these products help everyone.

Additionally, an Iowa College of Law study found accessibility provides tangible and intangible benefits for businesses. Their researchers studied Fortune 100 companies that designed accessible technology. They found that companies who prioritized accessibility provided consumers with better user experience. These businesses also developed a loyal customer base and created innovative products that increased their profits. 

In short, providing accessible websites is a win-win for both consumers and businesses.

Four bottom-line benefits of accessible websites

Accessibility standards offer several advantages to the organizations that implement them. Here are a few worth mentioning.

1. Accessible websites spur innovation. These websites are designed to be simple, flexible and usable. They are also efficient and render well across a variety of platforms. The products used to achieve accessibility include voice assistants, electronic devices, assistive technologies and operating systems. Additionally, accessible sites are useful for all people, whether or not they have a disability.

In 2016, Fast Company released a study about Google's investment in accessibility. The internet giant improved contrast features to help people with low vision read screen content better. Google developed additional features like auto-complete, auto-captioning and voice control. The company's engineers initially designed these features for people with disabilities, but they are now widely used by millions.

2. Accessibility improves corporate branding. Businesses show they care about their Corporate Social Responsibility (CSR) when they offer accessible, inclusive websites. These responsive platforms demonstrate that organizations care about the diverse needs of their customers and stakeholders, which enhances the companies' branding, imaging and reputation, and can also increase customer loyalty and sales.

3. Accessible sites increase your market reach. Companies cannot afford to ignore people with disabilities since they make up almost 15% of the world's population. This demographic can spend an estimated $6.9 trillion in annual disposable income. In the U.S., these consumers spend more than $200 billion in discretionary spending every year.

4. Accessible websites decrease legal liability. Today, many organizations develop an online presence to increase awareness about their branding. Unfortunately, this move can expose companies to legal risks, as individuals or governments can impose legal ramifications on businesses that don't provide accessibility features; thus, accessible websites reduce organizations' legal liability and the chances of being sued. 

Many countries have passed laws requiring digital accessibility on technological platforms. The Convention on the Rights of People with Disabilities (CRPD) published a human rights document that says everyone should have equal access to communications technology. The United Nations' General Assembly ratified it in 2018.

In the United States, government officials have cited businesses who haven't complied with the Americans with Disabilities Act (ADA).

Free digital accessibility resources like the ones provided by the Bureau of Internet Accessibility are a good jumping-off point for businesses to start the journey of becoming accessible. 

What are the web content accessibility guidelines?

How can a company create accessible websites for their visitors? They must follow the Web Content Accessibility Guidelines (WCAG). The W3C's Web Accessibility Initiative (WAI) explain how to make online content accessible to people with disabilities, regardless of the severity of their impairment. 

WCAG's four principles of accessibility

According to the WCAG 2.1 guidelines, accessible websites must meet four standards. All online platforms must be perceivable, operable, understandable and robust. The W3C designed these success criteria to be technology-neutral and objective. If companies don't satisfy all four principles, people with disabilities may not be able to successfully access their site.

1. Create perceivable sites. Organizations must present content and user interface components in ways that allow all people to perceive them. Sites must meet the following success criteria.

  • Text alternatives for non-text content: Webmasters should provide text alternatives for all multimedia content, so people with disabilities can change them into usable forms such as large print, speech, braille, symbols and simplified language.
  • Adaptable content: Providers should offer publishable web content in a variety of formats. For example, you could provide simplified layouts that present content without losing information or structure.
  • Distinguishable content: Web providers should make the content easier for users to see and hear, including separating foreground items from backgrounds.

Visit the W3C's "Perceivable" section to learn all requirements.

2. Design operable interfaces and pages. User interface components and website navigation must be operable. This principle means that users can operate interfaces, and it doesn't require interactions that they can't perform. Organizations should satisfy three success criteria in this area.

  • Keyboard access: The W3C recommends that businesses make all functionality available from a keyboard interface without requiring specific timings for individual keystrokes, except where the underlying process require the end user's input or movement.
  • Time controls: Providers must give users sufficient time to read and use the content. They must also provide ways to help people navigate, find content and figure out where they are on the site.
  • Photosensitivity awareness: Webmasters should take care to avoid design content that could provoke seizures or physical reactions.

Read section the W3C's "Operable" section for more details on these requirements.

3. Content and interfaces must be understandable. The third WCAG principle means users must be able to understand how to navigate the interface. The design should be straightforward and materials should be easy to read. Companies must meet the following three success criteria.

  • Readable: Text content must be clear, concise and comprehensible.
  • Predictable: Web pages should operate predictably.
  • Input assistance: Companies should provide a tool that helps users avoid and correct mistakes. For example, the tool should offer suggestions to help users fix input mistakes, except in cases where it would jeopardize the content's security or purpose.

For more information, read the W3C's "Understandable" section.

4. Robust. Content should be robust enough to be reliably translated by a majority of user agents and assistive technologies. Additionally, companies must ensure content stays accessible to users as technologies and user agents change.

  • Compatible: Companies should maximize compatibility with current and future user agents, including assistive technologies.

Visit the W3C's "Robust" section for more information about the fourth principle.

Meeting conformance requirements

Some companies use automated software evaluation programs to see if their site conforms to the WCAG 2.1 standards, but oftentimes, automated software is lacking in real-world application and can miss bottlenecks that a disabled person might encounter when visiting a website. 

Other organizations such as the Bureau of Internet Accessibility use human testers, combined with automated software to administer more robust website testing. 

Whichever route you decide to take, it's time to get on board with internet accessibility. For business owners, non-profit organizations and other website owners, having a non-compliant website could be a costly mistake.

How to Boost Your Social Media Marketing Efforts With Gen Z

Posted: 02 Sep 2019 06:00 AM PDT

  • Gen Z has $44 billion in purchasing power.
  • Since they spend nearly 75% of their free time online, it is critical to have a social media strategy to target them.
  • Your strategy should focus on making mobile a priority, utilizing influencers and practicing social responsibility.

As millennials grow older, a younger generation is now emerging into the workforce. Generation Z, or Gen Z, is anyone born from the mid-90s to the early 2000s, and they're the next age group to affect purchasing processes.

They make up approximately 25.9% of the U.S. population and boast $44 billion in purchasing power. If you don't have a social media marketing strategy that caters to their needs, you're missing out on maximizing revenue and growing your customer base.

It's essential to understand Gen Z as a whole to gauge what type of buyers they are. They grew up with technology, and as such, it's a powerful tool they use in all areas of their lives, especially shopping. On average, 74% spend their free time online, with social media influencing 80% of their purchases. This continues to affect the way they interact with and buy from brands. 

Gen Z doesn't respond to outbound marketing practices that used to be so effective. Instead, they want brands to come to them. It builds an organic relationship between brand and consumer, and with 89% of marketers increasing their inbound marketing budgets, it's essential to use this strategy to market to Gen Z.

To further your social media reach with Gen Z, there are a few things you should do:

  • Make mobile a top priority

  • Utilize influencers

  • Practice social responsibility

Here's more on these three tips so you can effectively communicate with Gen Z.

1. Use a mobile-first strategy 

Unfortunately, 45% of marketers are unsure about their mobile marketing strategy. Since smartphones are Gen Z's device of choice, you must optimize all areas of your social media for mobile. More and more social platforms are including ways to make in-app purchases and focus on creating content that looks stellar on a mobile screen.

Instagram Stories recently came out with "shopping tags," letting users tag brands in their photos to promote their apparel. This allows followers to click through and check the brand out themselves. They also have a "Swipe up" feature so that, if users swipe up on a product image, they're taken directly to that specific product page. Since 53% of Gen Z use smartphones to make online purchases, these social features are invaluable. 

This is just one example of how to use a mobile-first strategy to build brand awareness and push online consumers down the sales funnel. Simplifying the purchasing process through social media provides a painless, positive customer experience so they keep coming back. Since 40% of consumers will not recommend a business they had a bad experience with, it's essential to avoid this.

When Gen Z consumers navigate your website to make buying decisions, it should be easy to do on multiple devices. If you want them to invest further in your brand, you must optimize your website for mobile by:

  • Increasing site speed. You can optimize images and run your website through Google's Test My Site, explicitly created to test websites' performance on mobile.

  • Include mobile-friendly contact forms. This makes it easy for users to reach out to you, leave feedback, connect to customer support and more. 

  • Compress images. Not only do they slow down your site, but big files don't fit properly on mobile screens and provide a negative UX.

  • Break up text with heads and subheads. If your content is challenging to consume, your audience won't bother to read it.

  • Design mobile-friendly opt-ins and popups. Collecting emails is an essential part of your business growth, so using opt-ins optimized for mobile is crucial.

2. Incorporate influencer marketing

Gen Z is more cautious about what they buy and who they buy it from. Unlike the generations that came before them, they're less eager to trust brands right away and prefer to do their research before purchasing. They trust celebrity endorsements, but only if they come off authentic. Because social influencers create personal connections with their audience, especially on platforms like YouTube and Twitter, it's easier to market to Gen Z using this strategy.

It's in your best interest to invest in influencer marketing when catering to Gen Z. Influencers are well-known in their social communities and build massive followings based on likeability and trust factors. Nielsen research found that 92% of consumers trust recommendations from people they know. Because Gen Z craves authentic and familiar interactions, they're more likely to purchase based on an influencer's recommendations as opposed to regular advertising.

To add influencer marketing to your strategy, research which influencers work best with your audience. It should be someone they're already familiar with who has their trust and can convince them to check out your products. Their views and attitudes must align with your brand so your marketing message comes from the right person.

Pay attention to which influencers your Gen Z audience is following and engaging with to get an idea of who you want endorsing your content and products. Use search engines and influencer marketing tools like Buzzsumo or Followerwonk to view lists of influencers that match your branding and criteria. Once you have a set strategy, track the results of their post to measure engagement.

3. Be socially responsible

Moving into the future, consumers care more about a brand's ethics and behavior than they did before. Millennials and Gen Z alike are consciously choosing to buy from businesses that are inclusive as well as socially and environmentally conscious. They're three times more likely to believe that a business' purpose is to serve communities and society. Positive values are a reliable indicator that Gen Z is willing to buy from your brand as opposed to another.

It's essential for Gen Z consumers that your brand adopts a socially responsible attitude and gives back to the community. Emphasize this in your social media marketing strategy by highlighting what your brand believes in and how it's making an effort to contribute. Create campaigns to donate proceeds to important causes. Make it your brand's mission to give back to others and Gen Z will follow closely behind.

Use social media to promote positive practices. The popular shoe brand TOMS used Twitter to create the #WithoutShoes hashtag to promote their campaign. For every user who took a picture of themselves without shoes, TOMS gave a pair to a child in need. The campaign donated shoes to 296,243 children across 30 countries and gained further popularity among their audience.

As new generations move into the workforce and make up a higher percentage of overall consumers, it's vital to create new strategies to cater to their needs. This includes optimizing your social media marketing strategy. Gen Z differs from the generations before them because they turn away from outbound practices and welcome inbound strategies instead. It's a must for your brand to put mobile first, leverage Gen Z's favorite online influencers and show social responsibility. 
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