Strategic Outsourcing with an Agency: The Fastest Way to Optimize and Grow Your Mid-Market Business

Alright, let's talk about something every mid-market business owner eventually faces: the decision to outsource your design and marketing. Now, we're not just talking about traditional outsourcing where you hire a bunch of different agencies for SEO, social media, email marketing, and so on. We're diving into the idea of strategic outsourcing, which, trust me, can be a game-changer.

"Strategic outsourcing is the practice of hiring an external organization to perform some business functions in a manner that helps the business achieve its goals." - Deloitte

So, What Exactly is Strategic Outsourcing?

In simple terms, it's about being intentional with your outsourcing choices. It's not about having a mishmash of agencies handling different aspects of your marketing without any coordination. Think about what happens when you've got all these different sub contractors; an ad agency, a digital marketing firm, a web designer and a copywriter, all working independently. They don't coordinate with each other, and they aren’t usually on the same page with your brand vision. As a result, your messaging gets all jumbled up. No consistency, no alignment, just chaos. That's traditional outsourcing, and it's not what we're aiming for.

Strategic outsourcing, on the other hand, is about having one point person who oversees everything. Underneath this person, there's a team of experts in various fields—SEO, advertising, messaging—all working together towards a unified goal that’s been established and coordinated with an assigned director overseeing it. It's like having a well-oiled machine where every part knows exactly what the other parts are doing. The result? Consistent messaging, streamlined operations, and a lot less stress for you.

According to a survey by Deloitte, 78% of businesses that outsource feel positive about their outsourcing relationship, and 31% see it as a way to drive innovation within their organizations.

The Benefits for Mid-Market Businesses

Now, why should any mid-level business owner care about this? Well, for starters, it simplifies your life. Instead of managing multiple agencies, you're dealing with one. This not only cuts down on the administrative hassle but also saves you money. With everyone on the same page, you're not wasting resources on overlapping services. Plus, having a unified team means they're all working towards the same objectives, making your marketing efforts more efficient and effective.

A report by PwC found that companies that strategically outsource can achieve up to a 20% reduction in costs and a 15% increase in productivity. 

When's the Right Time to Outsource?

That’s a good question. The first thing is to figure out what you can afford by assessing your cost of customer acquisition, and if it’s a healthy number, take 15% of that and set it aside for a marketing investment. Other indicators might be when your in-house CMO isn't cutting it, or perhaps you're looking to scale faster than your internal team can handle. If you're not seeing the needle move despite having a marketing department, it might be time to think about outsourcing. Another big factor is cost. Keeping everything in-house means more salaries, benefits, and overheads. Outsourcing can cut down on these costs while giving you access to top-tier talent.

Choosing the Right Agency

Choosing the right agency is crucial. My advice? Interview multiple firms. Don't just Google "best marketing agencies" and pick the first one that pops up. Look for agencies with experience in your industry and a good track record. It's also a good idea to work with a local agency if possible. That way, you can have face-to-face meetings, which are invaluable for building a strong relationship. Ask the firm if there is a minimum strategy to execute on a test phase. And don't forget to ask for referrals and case studies. You want to know who they've worked with and what kind of results they've delivered. Watch out for growing firms that tend to have increased failed project management. Also, if a marketing firm isn’t doing their own marketing, that’s another red flag. 

A study by KPMG found that 45% of companies outsource to reduce operating costs, and 26% do so to improve focus on core business functions.

The Pain of Doing It All Yourself

Let's be real for a second. Handling all the marketing in-house can be overwhelming. You're juggling multiple roles, and there's only so much you can do before things start slipping through the cracks. By trying to do everything yourself, you're not just spreading yourself thin; you're also potentially missing out on better strategies and tactics that an experienced agency could provide. Outsourcing would tighten up your business operations, because you're streamlining the approach, which means quicker sales. Quicker sales means scaling at a faster rate while reducing costs because you’ve hired the people who do this all day long, and in multiple industries.

Building Trust and Transparency

Finally, let's talk about building trust with your agency. This is huge. You want an agency that's transparent, open, and always keeps you in the loop. At our firm, we meet with clients every two weeks and provide detailed reports at the end of each month. We tell you what's working and what's not so you can pivot if needed. This open communication builds trust and ensures that we're all working towards the same goals.

So, there you have it. Strategic outsourcing isn't just about cutting costs or offloading work. It's about bringing in the right expertise, streamlining your operations, and ultimately, optimizing and growing your business. It's about making smart, intentional choices that set you up for success. And remember, it's not just about the numbers. It's about building a brand that your customers can trust and believe in. 

If you're on the fence about outsourcing, maybe it's time to take the plunge. It could be the best decision you make for your business.