In 2005, while working as a consultant to nonprofits, I learned of the 10 % rule that a lot of nonprofits were striving to achieve. The ten-percent guideline was a theoretical limit on how much funds a nonprofit should spend on Administrative costs. The reality is one of two things, either larger nonprofits didn’t even make an effort to hit this mark with most hovering around a thirty-percent administrative rate.

Or they were able to label costs and positions in a way that made them appear more program centered that they were. The 10 % rule without a practical plan still holds an ideological truth to all businesses. How will you, a business leader, reduce the cost of the administrative work to be able to spend more resources on the core mission of your business?

There is vital work for each company; accounting, individual source management, marketing, administrative support. All these are not wishful thinking items just, but instead, they are critical to the survival of your company. But way too many leaders think the cost is a deterrent and finish up suffering the painful truth that insufficient this work is the cause of most businesses failing. One way of avoiding this painful truth while also getting the most out of your limited resources is to outsource some of the task. An effective and cost-effective consultant should be able to fit into one of four categories.

4. Management: Find a company with qualified specialists that can do your day to day administrative work leaving you with the time and resources to invest on your primary mission. Utilizing one or all of these categories will strengthen your ability to concentrate on your core mission, increase you as well as your company’s effectiveness, and get you closer to the ten-percent guideline.

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