The Good, the Bad and the Ugly of outsourcing

Stacey Pledge of B My Office in Barnstaple untangles the spaghetti of this alternative to employment

As the government's announcements of cutbacks keep coming thick and fast in a bid to manage the country's financial deficit, people running businesses are preparing for leaner times ahead. Many are looking to find ways of improving efficiency to help them weather the impending storm.

If someone in business is disorganised and not getting good value from their staff or suppliers, it can feel like an uphill struggle. Outsourcing tasks to a virtual business coordinator can offer many small businesses a suitable alternative to employing staff.

But what is a virtual business coordinator? What can they do for you? And what can't they do that an employee can?

What is a VBC?

A VBC is an experienced and qualified business owner who does the same work as a secretary, personal assistant, office administrator and project coordinator combined. VBCs utilise technology, their skills and their network of professional contacts to meet the needs of their clients.

Most VBCs offer a variety of services including:

> general administration
> database and web site development
> graphic design
> presentation preparation
> telephone answering
> credit control
> bookkeeping
> transcriptions
> and more

The Good
> No need to spend time and money on training new staff.
> No need to purchase extra office equipment (computers, software, office space).
> Business only pays for the work a VBC actually does.
> No need to worry about paying a member of staff sitting idle on a quiet day.
> No need to worry about sickness, payroll, holiday, lost days and related paperwork/red tape.
> VBCs keep themselves up to date with the latest technologies and cost-saving services so they can pass on any savings to the businesses with which they work.

The Bad and the Ugly
> VBCs often charge a higher hourly rate compared with the cost of an employee.
> They may not know the business as well as a trained employee. An employee is dedicated solely to the business and can work in-house.
> Some VBCs may not work the same hours your business operates.
> Many VBCs work from their own office and cannot provide a daily face-to-face presence.
> Possible personality clashes between current employees and VBCs.
> The virtual business coordinator may be unable to undertake all the tasks required if they don't have the skills relevant to your business needs.

The Showdown
What is most important above everything else is that a business is actively reviewing its business processes and plans, and looking to reduce costs and increase productivity.

The benefits of focusing on these areas and making positive decisions strengthen a business and make it more likely to succeed than one that remains static.

"When I start out to find somebody . . . I find him. That's why they pay me."

A line from the film The Good, the Bad and the Ugly, a statement that represents a good virtual business coordinator.

However, I would alter it to:

"When we start out to support a growing business . . . we get things done. That's why they pay us."

BUSINESS ACTION
> List what you want to outsource and clear reasons for doing it.
> Research potential virtual business coordinators, get referrals, talk to their clients, request work samples.
> Ask for a free consultation – most will offer this option.
> Consider both options of employing staff and hiring a virtual business coordinator, choosing what is right for you.

Stacey Pledge
t: 01271 344545
e: stacey@bmyoffice.com
w: bmyoffice.com

 

A county and regional voice for North Devon

The government's spending review, reorganisation of business and community support and abolition of many public bodies are creating much change for businesses in North Devon.

On the face of it, it is natural to be concerned that, suddenly, some organisations perceived to exist to support business and the community are disappearing.

Yet a closer look at many South West and Devon organisations, both government and voluntary run, leads to asking what actual support they give to businesses in North Devon?

Out of a sample of 28 of the many organisations, agencies and bodies purporting to serve the South West or Devon, 16 have main offices in Exeter, 8 in Bristol, 4 in Plymouth, 2 in South Devon, 1 in Truro, 1 in Somerset and 1 in Wiltshire (multiple offices are included in these figures).

What connection with and relevance to North Devon do these organisations have? Does it matter?

It does to businesses based in North Devon.

South West means more than Bristol and Exeter
Sometimes there is a perception that business in the North of the county means farming, retail or tourism. Yet we have a broad mix of businesses with 22% of the workforce in manufacturing and a growing business services sector.

We have world class manufacturers exporting to every continent, hi-tech internet businesses and quality food manufacturers. Many businesses are online and network with other businesses in the area, across Devon, the region, the country and the world. They are reaching out and developing new relationships and exploiting the sophisticated networks now possible through social media. They provide products and services that were not possible five or 10 years ago and are embracing the opportunities offered by an increasing focus on sustainability.

No need for must, must, must
Yet all too often communications from these support organisations and quangos aimed at the area begin by saying “North Devon businesses must . . .”

Why must we?

How do they know what is happening in North Devon?

Perhaps they could learn something themselves from North Devon businesses. Perhaps if these organisations came out of their cities and got to know the rest of the South West outside Bristol, Exeter and Plymouth, they would have a better understanding of the county and region, and be able to provide more effective support to remote areas such as North Devon.

What do North Devon businesses want?
Our requirements are clear:

> better representation at county and regional level
> to be treated with respect

We want organisations to improve the way they communicate with the North Devon business community. That means getting to know us, our needs and especially our strengths. It means giving us the opportunity to voice our opinions and listening to them. It also means communicating with us as equals and not in a top-down, patronising tone.

That will involve educating communications and PR offices and external agencies, who, as professionals in their sector, ought to know better.

Whose fault is it?

While we are critical of some organisations, we recognise that the North Devon business community also has a responsibility to represent itself. The area has not been effective in making itself heard in the past and needs to make a bigger effort.

Our challenge is to identify the opportunities to engage with the rest of the county and the South West, and to forge new, effective relationships for the benefit of all.

That is one of the reasons why we established the North Devon Business Alliance: to fill the communications vacuum.

Need for rationalistion
As well as more effective two-way communication, rationalisation of responsibilities and activities is needed. For any issue, there is a bewildering array of initiatives from multiple organisations.

This creates confusion over which organisation to approach and which scheme is applicable. Businesses do not have the time for this, but require more coordinated support and a clear map of who provides what activity.

The area of sustainability and the low carbon economy is a good example with initiatives from Regen SW, SWRDA, Business Link and CITB-Construction Skills South West among others. Sometimes, organisations seem to compete in promoting their own schemes with the effect of creating confusion in the marketplace. This not only prevents businesses from benefitting from what could be useful advice and support, but also damages all support organisations in the eyes of the business community.

There is an urgent need for effective coordinated support at a county and regional level.

Let's work together
We welcome the opportunity to communicate, to explain our needs and cascade information to North Devon businesses. We would like more events to be held here too.

We also welcome guests to our monthly NDBA lunches to meet and get to know businesses here. And why not meet other North Devon organisations - FSB branches, chambers and networking groups?

Let's engage and explore how we can all exploit opportunities for the benefit of businesses in North Devon, the county and the region.

WHO REPRESENTS NORTH DEVON?
The confusing list of organisations serving us.

Do you know who they all are and what they do?

BBC Devon
Beacon South West
Black South West Network
Business Link
CIBSW
Community Council of Devon
DCBC
Devon County Council
DEBI
Devon Consortium
Devon Education Business Partnership
Devon Rural Network Equality
South West Food and Drink  
GOSW
Heart FM
ITV West Country
Regen SW
RISE
South West Acre Network of Rural Community Councils
South West Forum
South West Screen
South West Tourism
SWAIN
SWRDA
Taste of the West
Visit Devon
UKTI SW

Remember to be yourself

Kevin Woodward advises against trying too hard to impress online

The North Devon Business Alliance promotes the use of internet based networking as a way of maintaining contact with our members in between monthly face-to-face lunches.

It is important to maintain contact, because that is how we get to know one another, and why we start to recommend each other's services.

Networking online
I have been using the internet to make contact with new people, to maintain contact with both old and new friends and network with business colleagues.

I have been using twitter for two years now, changing my allegiance from another business networking web site. Yes, I have it linked to facebook and to LinkedIn among others, and enjoy the interaction and banter that those web sites provide, but spend most of my online networking time on twitter.

Interacting with the outside world from a home business
Like many businesses in North Devon, I work from home and often alone, and need the interaction with the outside world as a break from the intensity of what I do. I find that break is similar to the meeting at the coffee machine or photocopier that used to happen when I worked in the big corporate world on the Slough Trading Estate, nearly eight years ago now.

I have gradually built up a following of well over 2,500 and follow some 1,700 back. Not everyone who follows me is followed back, and I have my reasons as to why not, but they're welcome to follow my tweets.

This brings me to Stephen Fry - a well-known 'British Actor, Writer, Lord of Dance, Prince of Swimwear and Blogger' - he's followed by over 1.8 million and follows back just over 50,000 people, and I'm honoured to say that I am one of those that he follows back, but doubt very much whether he sees any of my tweets.

However, a local blogger and writer wrote a very interesting blog back in August entitled The Day I Dumped @StephenFry and Kept @LlamaKevin.

Yes, @llamakevin is my twitter name and I find myself the subject of a blog along with the said Stephen Fry. It's well worth a read, but it made me think why I had made that headline and not anyone else. I believe it's because I remember to be myself.

A sociable business
I am on twitter to engage socially, to spread the word about myself and my business, what I do and to increase my business income. Yes, I have done that. I have had several QuickBooks training sessions booked, I have let out my holiday cottage at least three times through the use of twitter, I have had people come look at my llamas and goats, but in the main I am myself. I talk business, I talk politics (nothing contentious), I talk sport, I talk gardening, I talk North Devon, I talk about the weather and, obviously, I talk llamas, but throughout I remember to be me.

There are many people around who try to be something they are not. Some try to be the product that they try to sell, some are full of wonderful quotes, others are constantly telling you where their web site is, but the people who get it the most are those who are just being themselves.

Just be yourself

So, if you are about to embark on twitter, facebook, LinkedIn or any of the other 100s of networking sites, remember to be yourself, because in the end that is important.

BUSINESS ACTION
> Be sociable.
> Don’t try to be something you are not.
> Don’t try to sell too hard.
> Just be yourself.

Kevin Woodward
t: 01237 451848
e: kevin@kvassociates.co.uk
w: kvassociates.co.uk
twitter: @llamakevin