When you’re running a small business, the most important thing you can strive for is growth.
The more your organization develops, the easier it will be to attract new customers, revenue and opportunities your way. However, achieving sustainable growth isn’t always easy. After all, a successful company requires time and resources.
Because small businesses are limited in the resources they can access, they need to find a way of growing without spending excessive amounts of money. One of the best ways to keep costs low and ensure that you still get the expertise and support you need is with outsourcing.
Outsourcing simultaneously frees up time for your small company’s leadership team, while reducing overhead, so that your organization can evolve at a more manageable rate. Whether you’re outsourcing your marketing, accounting, your customer support solutions, there are plenty of benefits involved with getting some outside help.
What Kind of Tasks Do Small Businesses Need to Outsource?
Small business owners need to focus as much of their time as possible on developing their business. Unfortunately, countless managers spend so much time managing operational logistics, payroll, expenses, and other concerns, that they never have a moment to devote to company growth. Outsourcing certain tasks can take a lot of the weight off a business owner’s shoulders. Here are just some of the things that a smaller company can outsource:
1. Employee Management
Professional Employer Organizations or “PEO” services allow companies to outsource employee management and HR tasks like payroll and recruiting. With the right HR advisors on board, you can spend less time making sure that your team is running smoothly, and more time empowering that team with the right goals and strategies.
2. IT Development
As the digital world continues to evolve, many businesses are implementing more technology into their networks. There’s a lot more to business technology than just making sure you have a good internet connection. Unfortunately, unless you have an in-depth knowledge of things like CRM systems and analytics, you may need extra help to boost your IT approach. Outsourcing your IT needs reduces the time, money and effort you have to dedicate to digital transformation.
3. Finance and Accounting
Accounting is by far one of the most important things a small business can outsource. Most organizations, large and small simply don’t have the right expertise to accurately manage their accounts each month. Companies who outsource their accounting services, on the other hand, can reduce their risk of mistakes, cut costs, and increase compliance.
Hiring freelancers can be a great way to give your small business a competitive edge when you need it most. One-third of modern Americans prefer to consult or freelance instead of having a traditional 9-to-5 career. This means that there’s no shortage of skilled people out there willing to join your team – even if it’s just for a temporary position. Outsourcing your labor needs can make it easier to manage expenses, without having to overspend on office overheads. 3 out of 4 small businesses in the US say that hiring freelancers help to make them more competitive.
As people and online trends continue to change, outsourcing your online marketing can be the best way to make sure that you maintain a strong relationship with your target audience. Outsourced marketing experts can deliver the state-of-the-art advertising you need, for a price that’s much lower than anything you would pay for an in-house team.
The Benefits of Outsourcing for Small Companies
Now you know the tasks and jobs that small businesses prefer to outsource, it’s time to figure out why outsourcing is the right path for you.
There are many benefits to outsourcing, particularly for small, resource-restricted companies. For instance:
1. Access More Capital for Growth
Small businesses need to save money wherever they can in order to be competitive in the over-saturated business space. The more money you save through outsourcing, the easier it will be to find budgets that you can invest into your business elsewhere. Avoiding large expenses for in-house teams and experts gives you a lot more cash to play with when your business begins to grow.
With outsourcing, you can convert sizeable fixed costs, into smaller variable fees. When you don’t need your outsourced services, you can simply stop using them, and the costs stop too.
2. Better Focus
Most small business owners despise doing their accounts. As a creative and innovative entrepreneur, you want to focus on growing your company and discovering new opportunities – not numbers and calculations.
By outsourcing your accounting needs, you can avoid the things you hate, and focus more of your time on what you do best. Outsourcing gives you the opportunity to concentrate on using your skills to their full advantage, while other teams and individuals lend you their time and expertise for the tasks you’d rather not do.
3. Access to Instant Expertise
As a small business owner, there’s a good chance that you’ll need to wear a lot of hats. During the early stages of growing your business, you’ll need to manage everything from your team to your marketing yourself. However, the sooner you start outsourcing, the quicker you can begin to get rid of some of the extra weight on your shoulders.
Outsourcing gives you instant access to the expertise you need to take your business to the next level. Not only is it a cheaper way to get the skills you need for your business, but it’s also a powerful option for those who need to find more balance in their work life. Whether you’re a startup or small business, there will always be tasks that you need part-time help with. From building your website to dealing with your accounts, an accountant gives you the knowledge you need at a discount price.
4. Better Flexibility
Finally, by outsourcing, you don’t need to simply guess at the team you’re going to need and hope for the best. Ultimately, your business will grow at its own pace, following its unique avenues. Where other companies in your space might need a huge IT team, you may need nothing more than a single person to help with IT, and far more support for your customer service group.
Since every business is different, outsourcing gives you the flexibility that you need to create the team that works best for you. That means that you pay only for the expertise you need- rather than the skills you think you need.
As your business continues to change and grow, your outsourcing strategy ensures that you can continue to add new talent to your roster or remove it based on your new requirements. There are no long-term contracts to worry about.
Ready to Start Outsourcing?
The digital world has opened the door to a new kind of workforce – one that isn’t defined by geographical boundaries. In today’s highly-connected world, accessing the skills you need on a temporary or part-time basis is easy, thanks to the growth of outsourcing.
By outsourcing the tasks that you loathe, or simply can’t do to a professional in your space, you can keep costs low, without compromising on business performance. It’s the perfect way to get the best of both worlds.