As the Managing Broker of a small or mid-sized commercial real estate (CRE) firm, you probably think that outsourcing is just too expensive right now. You figure it’s not too difficult to update marketing material, manage closings and collect market data on your own. But as your company grows, so will these responsibilities. They’ll become increasingly more complex and time consuming to manage in-house.
Companies of your size can benefit the most from the services offered by back office service providers. They can reduce your costs, drive efficiencies, and provide myriad other advantages that will help you run your business in a smarter, more streamlined and effective manner.
Is it time for you to outsource your backroom operations? Here are some things that indicate it’s time.
Your Company is Growing
The CRE market is booming and it’s getting easier to expand but with expansion comes operational constraints. You’ll have to on-board more brokers, pay a larger staff, and manage new risks. The bigger your business gets, the more time consuming, complex, and risky it’s going to get for you to manage your back office on your own. If you’re experiencing exponential growth or see it in your near future, it’s time to outsource your backroom operations.
The technology you invested in when you started your business might not be aligned with where your company is now. Your technology might not always scale to growth. As your needs become more complex, off-the-shelf small business accounting software and data systems just won’t provide sufficient returns anymore. In fact, they might hinder your operations instead. If you’ve outgrown your technology, it might be time to outsource your backroom operations instead of investing in expensive new software that you’ll have to spend additional time learning.
You’re Making Costly Mistakes
One of the most significant benefits you get when you outsource your backroom operations is accuracy. Whether you’re making revenue processing & commission mistakes due to miscalculations, missing steps while on-boarding employees, or making errors when updating marketing materials, the consequences can be costly and severe. These mistakes can lead to losses, fines, penalties, a bad reputation, and loss of employee and client trust.
When you outsource, you trust a team of knowledgeable professionals who are experts in the field. Their job is to handle back office responsibilities so you can concentrate on running your company.
You’re Losing Focus
As we’ve mentioned above, handling back office tasks can become incredibly time consuming. While you’re trying to manage them as best you can, you’re likely neglecting your core business activities that drive growth and profits. If you’re losing focus on your core business because you’re spending the majority of your time on HR, payroll, and compliance, it’s time to outsource your backroom operations so you can get back to the work that matters.
You Want to Reduce Overhead
Just about every business in the world is trying to reduce overhead expenses in order to have the cash flow needed to invest in more important business activities and stay competitive. Outsourcing your back office work is an excellent solution. Though you will pay a fee to the back office service provider, the cost of that fee is minimal compared to the costs of hiring a payroll clerk, buying equipment and supplies, investing in software, paying fines and penalties from non-compliance, and having the necessary square footage to perform all of your back-office functions in-house.