Businesses, especially the small and medium-sized ones, shape the groundwork of a high performing financial system. As many of the entrepreneurs are well aware, the expenses of office functions take a huge portion of overall expenditure. As a result, many family-owned offices are outsourcing specific office functions to aid in restructuring their core business processes, according to Forbes. The source also indicated that family-offices typically take up extremely niche industries, and are housing experts in their particular fields. This means that the ways a company distributes its financial resources are fundamental for fiscal capability.

Maximizing competence and efficiency

Conversely, office functions in which a company does not have enough resources and expertise should be outsourced. In 2010, the family-owned venture that concentrates on viral marketing and research, Buzz Marketing Group, expanded rapidly and was having difficulties in hiring new workers at a rate proportionate with the number of new contracts, according to Entrepreneur. The company’s founder, Tina Wells, explained that she had to use up an extreme amount of time on human resources, averaging 8 hours per week on documenting employee handbook policies, vacation hours, and job descriptions.

A more reasonable approach

Furthermore, Wells experienced blow back after hiring several of her siblings, as other workers claimed that preferential treatment affected the way staff was treated. As a result, the marketing firm collaborated with a third-party human resources company to create an easier process to track performance and a more comprehensive employee handbook as well. The HR system is totally available online, and the charge of the service is trifling – only 1% of Buzz’s budget goes to paying the outsourcing company for managing human resources, Wells told Entrepreneur. More importantly, the amount of time Wells spends dealing with HR processing has been reduced by 8%, which means that she now has more time to concentrate on her priorities.

How important is it to maintain control?

The president of Mack International, Linda Mack, told Forbes that family-owned businesses want to take full advantage of the quality of services while maintaining low operating costs. This means that these small companies have to think about how much control they want to keep up over business processes and what they can feasibly allow an outsourcing company to handle without getting behind of their priorities. An article from Business2Community also discussed that keeping revenue generating activities in-house is a much better strategy for companies.

Many small companies don’t have sufficient resources to handle all aspects of internal operations without compromising the quality of their products or services. By collaborating with a BPO company, the family-office can create a more qualitative approach to any office function, such as hiring and payroll, while maintaining a cost-effective operating budget.