Starting a new business requires working capital, and you need to use it wisely. Therefore doing every job yourself at the outset of your startup, especially while revenue is non-existent or very low is doable; however, it’s not sustainable if you want your business to grow.
One way your business can scale and grow while keeping the commitment to resources to a minimum is to use outsourcing suppliers. Most companies will outsource their office cleaning, so they have some experience using external service providers. Another area is website hosting. However, if you’re unfamiliar with outsourcing, start the process with areas of your business that provide the most value and less risk.
A good outsourcing plan offers the following value:
- Frees up more time
- Gives continuity
- Offers operational expense control
- Supports Risk management
- Time management that gives you a better work-life balance
So what are the most common areas of a business typically outsourced?
A clean workplace is a given in today’s environment. Not to mention it better for your health and that of your workers. Filthy offices are said to make us sick. Plus a clean and de-cluttered workplace can reduce stress and improve productivity.
Outsourcing office cleaning to a reliable company who are now famous around Sydney, Australia if you’re based here makes sense. Outsourcing cleaning was the first area of a business to get the ‘tick’ of approval for using a third party.
Outsourcing payroll management is also a popular area and recommended for a business irrespective of its size, including startups.
Using experts in the field who understand complicated business and tax laws is clearly beneficial to any business keen to avoid errors.
A simple mistake made in the salary, for example, could trigger unwanted tax audits that may cost your business dearly with a fine. Companies like Wagepoint and Intuit are successful in the field of payrolling.
However there are alternative options now including online payroll software systems. You retain full control and use of a system that provides ease of use and management.
It is essential to have a record of every financial transaction in your business. Bookkeeping and keeping your accounts in order is often ignored by inefficient businesses. There are many advantages to using a third party to manage the business’ accounting and financial reporting.
Do your research in this area as hiring a dedicated accountant to do the lot could be more expensive than outsourcing some of the tasks to a booking keeping administrator.
Once again, you can use an online system to input data and manage and view progress while using external staff, i.e. freelancers or an accounting firm to create the reporting.
Repetitive tasks like scheduling work or setting an appointment could seem small. In most cases, these small tasks take more time than expected.
Consider hiring an online virtual assistant or a company that offers admin service. When you hire someone, you pay hourly rates, making it relatively cheaper than having an employee. Give importance to your core processes and outsource simple tasks that anyone can handle.
Marketing, in general, is an area that is being increasingly outsourced mainly due to its complexity and diversification into offline and online disciplines.
Building a strong profile with website via your blog and social media websites needs expert knowledge otherwise you’ll find your business spending more on trial and error strategies. A marketer with expertise in digital marketing strategies like content marketing and SEO will use your marketing budget more efficiently i.e get more bang for your buck.
For example, the content creation strategy requires knowledge of SEO and how it works to drive visits to your website and increase conversions i.e. sales.
Outsourcing is a strategy that essentially means your business is not hiring employees rather it is using other businesses to fulfil tasks for your business. There are many ways to capitalize on the value of outsourcing and we have many articles on the practice – see this search for more information.