Cloud is SMBs Competitive Edge

Featured Article By Mike Salem, CEO of Vorex

In today’s small business world, the common reasons why businesses fail are out-of-control growth, poor accounting and operational inefficiencies. Small businesses are constantly dealing with inefficient back-end processes that result in increased costs – as well as reduced employee productivity and revenue. Because of this, often times small businesses find it difficult to take on new projects as they do not know their financial standing, availability of resources or their pipeline in real-time.

In recent years, and especially since the emergence of cloud computing, the range of BPO options available to small and medium-sized businesses has increased significantly. Identifying the right processes to outsource can save time and money and make businesses more competitive.

Anything that is not part of core business should be outsourced. Thanks to the rapid advancements in the Internet arena, SMB executives don’t need to worry ‘if a process can be outsourced’, but rather ‘who is the best vendor to outsource it to.’ A design company, for example, should only keep all of their creative-related work in-house. Everything else should be outsourced. Marketing and sales can be outsourced to an online marketing company or PR firm, IT should be in the hands of a Managed Service Provider (MSP), etc. At Vorex, we provide professional services automation solutions so that companies can streamline operations, automate time-consuming tasks, and improve bottom line while focusing on their core business.

SMBs should consider outsourcing for three main reasons:

– First, when looking at the overall cost of outsourcing, you will quickly realize that it is much cheaper to outsource to the experts than trying to do something you’re not good at.

– Second, outsourcing non-core processes yourself could potentially lead to inefficiencies, human errors, and dissatisfied clients.

– Third, every hour you spend on non-core business activity means one less hour of revenue generating activities. It’s as simple as that – you are losing money with every hour you spend on a process you can outsource.

Identifying the order of the candidates to be outsourced is important. Although the order might vary, SMBs should first prioritize any process that they lack knowledge in, as well as any process that is time-consuming and keeps them from doing their core work. For example, IT is an obvious one. I believe all IT should always be outsourced – even for an IT shop.

The one big pitfall in outsourcing is the risk that the third-party vendor might not know exactly how your business operates. Some processes are pretty straightforward, such as payroll and taxes (even those have exceptions), but other processes require deep knowledge of your business in order to be done right. Such processes include marketing, sales, branding, and customer care.

What SMBs should not outsource:

– One, do not outsource core business processes. This is your business, if you don’t trust yourself doing it, you should not be doing it.

– Two, do your homework and know who the best candidate to outsource any process to is. There are dozens – or even hundreds – of companies to outsource your processes to. They will be part of your company, so they can bring you down or help you excel. Interview them, view their work profile, and ask for referrals.

Running an SMB is full of emotions, ones you don’t usually find within large corporations. So it is easy for the owners or partners to hold all their processes so dear to them, as if they were carrying their own child. They should think logically and separate what they are good at from the other miscellaneous work. Somebody out there can do your none-core process better than you can, let them do it.

About Vorex

Headquartered in the Greater Dallas Area, Vorex is a leader in professional services automation (PSA) software that manages core business processes with a comprehensive solution. Vorex PSA is the only cloud-based single comprehensive software for the small- to mid-size business market offering project management, time and expense tracking, billing and invoicing solutions with an integrated CRM and HR solution. Vorex has regional offices in San Francisco, New York and London.

About Mike Salem

Mike Salem is the CEO of Vorex, which was founded in 2007, and is one of the company’s original founders. His career as a visionary business innovator spans more than 20 years. He has extensive experience in cloud computing, professional services automation (PSA), project management, small business IT solutions, and risk management. Mike has directed the company’s growth, while developing and implementing Vorex’s vision and business strategy.

Under Mike’s leadership, Vorex has grown to become a leading provider of cloud-based PSA solutions. The company provides cost-effective, user-friendly software solutions to help small- to mid-size businesses streamline operations, automate time-consuming tasks, and improve the bottom line while focusing on their core business.

Mike is recognized for his expertise in conceptualizing, planning and developing specialized solutions for professional service industries. He provides both strategic and tactical direction at Vorex. His leadership and determination has enabled Vorex to consistently develop and implement solutions that create value for business organizations.

Prior to founding Vorex, Mike was an assistant vice president for Bank of America, managing the development and maintenance of several critical areas such as financial transfer systems, credit bureau and credit card production. He was also responsible for managing a workforce, located across multiple states and countries. He also held positions at Sprint, as well as ExxonMobil Corporation.

About Mike Salem

Mike Salem is the CEO of Vorex, which was founded in 2007, and is one of the company’s original founders. His career as a visionary business innovator spans more than 20 years. He has extensive experience in cloud computing, professional services automation (PSA), project management, small business IT solutions, and risk management. Mike has directed the company’s growth, while developing and implementing Vorex’s vision and business strategy.

Under Mike’s leadership, Vorex has grown to become a leading provider of cloud-based PSA solutions. The company provides cost-effective, user-friendly software solutions to help small- to mid-size businesses streamline operations, automate time-consuming tasks, and improve the bottom line while focusing on their core business.

Mike is recognized for his expertise in conceptualizing, planning and developing specialized solutions for professional service industries. He provides both strategic and tactical direction at Vorex. His leadership and determination has enabled Vorex to consistently develop and implement solutions that create value for business organizations.

Prior to founding Vorex, Mike was an assistant vice president for Bank of America, managing the development and maintenance of several critical areas such as financial transfer systems, credit bureau and credit card production. He was also responsible for managing a workforce, located across multiple states and countries. He also held positions at Sprint, as well as ExxonMobil Corporation.

Mike earned his Bachelor of Business Administration (BBA), with an emphasis in Management Information Systems (MIS), at the University of Oklahoma and attended George Washington University for Continuing Education in Technology Management.