Small Business Benefits of Outsourcing their C-Level positions
Owning and running a small business makes for packed days. Many small business owners start their day checking messages before getting involved in operations, checking financial reports, and maybe even posting on social media. Wearing this many hats might seem cost-effective, but it is often not the most efficient way to run a business.
The fact is, most owners are rarely experts in every single aspect of the business. By “muddling through” and trying to fill all C-level positions yourself you may be doing your company a disservice. Granted, the business may not yet be big enough to hire a full C-suite, but have you considered outsourcing some of those positions?
Marketing and sales lend themselves to bringing in external expertise, and areas like human resources, finance, and operations are not far behind in this respect. Outsourcing gives you access to outstanding expertise and lets you focus on the core business. It is also more affordable than you might think.
Benefits of Outsourcing C-level Positions
Access to expertise, a high degree of flexibility, and increased efficiency are three of the main benefits small businesses reap from outsourcing their C-level positions.
When you are starting a small business, money is often tight. Hiring highly qualified, senior staff is impossible. That is why many owners end up filling all those positions and guess their way through the more complex tasks.
Outsourcing is a better way because it allows you to access highly qualified experts as and when you need them. In many cases, a few hours every week is more than enough.
Outsourcing provides your business with a great deal of flexibility. If you are a certified accountant who is starting a bookkeeping business, you will not need to outsource the CFO position. But you may need expert marketing services and advice, which would make outsourcing the CMO a great choice.
Different outsourcing services offer different contracts and rates. But most allow you to tailor their services to your exact needs. You can tap into their expertise when it matters most. At the same time, you avoid the high overhead costs of having a full-time team member.
Moreover, if the relationship with your outsourcing provider is not working, it is easy to switch to another.
3. Increased efficiency
Outsourcing C-level positions allow you to focus on your strengths and leaves you free to drive your business forward.
Going back to our example of an accountant opening a bookkeeping business, consider this scenario: the accountant wants to contact other small businesses on LinkedIn. Of course, they could learn the inner workings of social media marketing on different platforms. They could also spend their time fielding advertising messages from other vendors, but vendor management is not the best use of their time.
Rather than servicing existing clients and generating referrals from happy clients, they could easily waste an entire day on something that would take a marketing expert a few minutes.
4. Fewer Mistakes
When you are learning new skills, it is only natural to make mistakes. Mistakes may not be the end of the world, but they are time-consuming and sometimes costly. After all, you could be spending time with your family rather than correcting things that went wrong with your LinkedIn posts.
By having a specialist handle the day-to-day tasks within certain areas of your business, you avoid common mistakes and ensure that all tasks are completed correctly the first time. Your productivity increases, along with customer satisfaction.
Outsourcing C-Level positions give you the peace of mind that important aspects of the business are handled by qualified professionals. You know that your company is running as smoothly as possible and that a huge chunk of responsibility has been taken off your shoulders.
Outsourcing your Chief Marketing Officer (CMO)
Why should you as a small business owner consider outsourcing your most senior marketing role?
Looking after your brand and marketing it consistently, strategically, and cost-effectively requires specific knowledge and expertise. Marketing strategies are driven by your overall business objectives, and every single activity needs to relate to those objectives.
Developing and implementing these strategies requires experience and specific knowledge about each tactic and activity. Without a relevant background in the field, you could end up wasting time and creating an ineffective strategy.
Three of the most powerful marketing tools include search engine optimization (SEO), paid-for search engine marketing (SEM), and social media marketing. It would be easy to think that you can cover those yourself because your business is small. Most likely though you would end up wasting time and money without achieving the results of a qualified professional.
The same is true when it comes to creating a website and delivering content marketing for your business. Any small business can benefit from a website representing their services and allowing prospective customers to research them before they inquire. Content marketing is more than simply filling blank pages. It is about strategically driving customers to your business.
None of those areas may seem particularly difficult, but they can be time-consuming if you are not an expert. What is more, all the tactics above rely on changing algorithms. When you are busy running your business, it is hard to keep up with those changes. By doing it all yourself, you could end up using outdated tactics that may even be detrimental to your business. Outsourcing your CMO means you have access to a highly qualified professional who can build a marketing strategy that is perfectly aligned with your business goals and delivers growth.
How a Fractional CMO Can Help Build Your Business
What is a fractional CMO? The answer is simple: A fractional CMO is a part-time strategic marketing expert who supports you when you need them.
The term “fractional” applies to two aspects of their role. They only spend a fraction of their time with your business, supporting others during the rest of the day. In addition, they only cost a fraction of the price you would need to pay to hire a full-time CMO. Most businesses can save up to 50% compared to the cost of a full-time employee.
Remember, as your small business is growing, you need expertise but often only for a limited amount of time. Outsourcing CMO positions and using experts on a fractional basis is the perfect solution. Your business gets instant access to an expert who hits the ground running and brings their extensive expertise to your company.
Other C-level Positions to Consider Outsourcing
Large companies and corporations have an entire C-suite. Technology, finance, operations, marketing, information – which positions are part of that group depends on the nature of the business. So, which positions should you outsource, and which tasks can you complete yourself?
One simple way to approach this problem is by starting with your strengths. Those will often be closely related to the purpose of your business. In our example above, the accountant starting a bookkeeping business is unlikely to outsource the chief financial officer (CFO) role. But they might consider operations or technology.
Here are a few examples of C-level roles and how your business can benefit from outsourcing those.
Chief Technology Officer (CTO)
A CTO is more than just your company’s “IT guy.” This person develops your company’s technology strategy and implements plans to meet those objectives.
This is a critical role in any business relying on technology for sales or service delivery. The CTO’s role is to manage the technology infrastructure and ensure that it meets the needs of the business. Many small businesses need this type of expertise at some stage, but not necessarily on an ongoing basis.
By outsourcing this position, businesses can get the benefit of having someone with extensive experience in managing and deploying technology systems.
Chief Financial Officer (CFO)
CFOs develop financial models and forecast future income and expenses. They also advise senior management on strategic financial decisions and help to ensure that the company's financial resources are best used to support the business goals.
This type of knowledge and advice is crucial when it comes to raising capital through funding rounds or assessing the financial health of a company. Of course, you can look at your company bank statements and see whether money is coming in. But this overview does not give you the full picture including upcoming expenses, invoices becoming due, and more.
CFOs will ensure your business is compliant with any relevant laws and regulations, too.
Chief Operations Officer (COO)
As your business grows, it often becomes harder to stay in control of all its aspects. That is when a qualified and experienced COO is invaluable. COOs are responsible for a myriad of tasks, including overseeing production and day-to-day operations. Put simply, they ensure things are running smoothly by putting the right processes and people in place.
COO outsourcing can help businesses improve their return on investment (ROI) by reducing costs associated with hiring a full-time employee in a similar role. A fractional COO gives your business the benefit of an experienced operations executive who can help improve efficiency and bottom line.
How Outsourcing Works in Practice: External and Internal Team Management
Successful outsourcing relies on finding the right partner for your business and establishing strong communications.
At Interact One, we create a clear and concise brief that is the foundation of managing our external teams. The brief is based on our in-depth understanding of your business. We analyze your market position, customers, competitors, processes, and more.
Once optimizations begin we keep a close eye on results. This helps us make changes to the campaign that deliver even stronger results.
Interact One also takes care of your vendor relationships. In practice, this means you no longer have to field marketing calls or wonder whether you are getting the best possible deal. We work with your vendors to ensure everyone benefits, and your business is in the best position to grow.
Naturally, you can keep an open line of communication with your contacts, but you simply will not need to spend a large part of your day managing marketing activities. At the same time, it is easy for you to see what your outsourced marketing professional has achieved with regular reports and clear key performance indicators (KPIs).
You can choose how much support you need. Most of our clients work with us on a project basis, initially covering 90 days. After that, you can transfer to a rolling monthly optimization contract.
In addition, we also offer options for program-based, annual contracts and are happy to provide short-term, 30-day support with different aspects of marketing. These could include SEO or social media strategy, but we can also help you define your target audience better.
Outsourcing C-level positions are an excellent way for small businesses to gain access to the expertise and experience they need to grow and succeed. Few early-stage businesses are in a position to hire an entire C-suite right in the beginning.
Outsourcing saves small companies time and money, allowing them to focus on their true business priorities. Marketing is one of the areas where small businesses can benefit the most from senior-level expertise. This knowledge and experience can make the difference between a business struggling or thriving.
To find out more about how we can help your company thrive, visit our website, or get in touch today.