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Outsourcing is something that many startups don’t consider for themselves. They wrongly believe that it’s something that comes much later down the line, that it’s something that only much larger companies and corporations can benefit from. But this really isn’t the case, and in fact, outsourcing could be the key to your success
What is outsourcing?
Outsourcing is where you hire a third party to tackle a designated area of your business. It could be a one- off job such as designing your website or app, or it could be ongoing such as hiring a marketing agency to deal with all of your advertising needs. Many entrepreneurs can be wary about surrendering an area of their company to strangers, or even ashamed of not having the capability to deal with tasks themselves. But nothing could be further from the truth, as business owners we need to utilise the tools and help that’s out there to our advantage. And there are lots of ways that outsourcing can play to our advantage, read on to find out more.
Why it benefits smaller companies?
Outsourcing is something that any company can utilise, but even more so when you’re first starting out and don’t have heaps of cash. Think about it, instead of spending money on larger premises, more equipment, hiring and training staff and more, you can pay a company to tackle that area. They will already have the staff, equipment and expertise in place. In time, you can always open your own departments and hire staff in house if you want (in the long run it may save you money) but in the beginning especially it can save you on tons of overhead costs. It allows you to get tasks done or run whole areas of your business without having to personally manage staff making it extremely convenient.
What areas can you outsource?
You can outsource just about any area of business these days. Accounting and payroll are examples; things like overtime, pensions and tax obligations all require different formulas to be followed and percentages to be knocked off meaning business accounting can be a bit of a minefield. So it might pay to outsource this function to a specialist team who knows exactly what they’re doing. ff each week, ensure that it gets deposited at the right time and to the right place or account. Your internet, website and maintenance are other areas to consider- with so much of what we do in business now being done online, downtime can massively affect any business. If your WiFi is patchy all day, upload speeds are shockingly slow, and your network of computers don’t perform the way that they should, you could consider some managed IT services, so help is always on hand when you need it. Social media management and marketing are also areas that are commonly outsourced, this is because they’re more complex than you might realise. Even if your startup began as a one man band, as things grow and more customers and clients start purchasing from you, there’s no way you can keep up with everything alone. And some areas of business simply shouldn’t be guessed at- so you have two options. You’re able to hire your own staff, or outsource with a third party company,
Why is it beneficial?
Not only does outsourcing save you money, but it can save you hassle and give you peace of mind. When you hire a professional company, you know that they have years of experience dealing with that area of business, everything they need is already in place and you can trust them to do a good job. This can take a lot of pressure off your shoulders as a business owner, especially early on when you have lots of different plates to keep spinning.
As with anything, there are pros and cons so make sure this is something you consider and research before taking the plunge. But in many cases, outsourcing can be incredibly valuable to startup companies.