The definition of outsourcing is precisely why your small business needs it to grow. If you can grow your small business by outsourcing, why not use this business strategy?
But if you do not outsource, you may quickly become overwhelmed running your small business.
Of course, there is the option of hiring full-time staff. But this comes with a lot of responsibility, and you may find that it’s not the best option for you every time.
Instead, there is also the option of outsourcing, which involves handing your work over to third parties who will handle it and complete it on your behalf. You can outsource nearly anything, from copywriting work to SEO management and a capable virtual administrative assistant or two!
Here’s more information on the subject and how it could benefit you.
Table of Contents
What is Outsourcing?
When used correctly, outsourcing can be a wise strategic tool that allows your business to run more smoothly and become more profitable.
One of the great things about it is that it allows you to allocate all available resources to the most profitable areas of your business.
Any task that is not fundamental to your business, wastes time and resources, takes someone off their day-to-day task, is necessary, routine, and highly skilled, should be on your list of tasks to be outsourced.
Outsourcing what is:
a business practice in which a company hires a third party to perform tasks, handle operations, or provide services for the company.
If you are still deciding about outsourcing, there are a few good reasons why the benefits make sense.
Risk Management
When you outsource a business task, you are mitigating any risk associated with that task. First, you will have done your homework when finding a suitable company, so you will know that they are expert professionals.
This ensures that the task will be completed correctly. You also know that the company has its reputation to consider, so this is another incentive to do your task right. Any concerns about the task can be sent to the company for investigation.
Also, outsourcing can provide a level of continuity of business tasks that may not be possible when using an in-house team, especially if you are having turnover issues.
Benefits of Outsourcing
But what are the benefits of outsourcing over hiring your staff? Well, when you hire staff, you (as we briefly touched on above) take on a lot of responsibility. You have to ensure that you provide them with a contract that guarantees certain working hours you will pay them for each month.
Whether you can provide them sufficient work to fill this time or not.
You also have to ensure that you are providing employee benefits, such as annual leave or PTO (paid time off), sick pay, compassionate leave, parental leave, and more.
You will also have to provide some pension contributions. Plus, give them a space to work from and the equipment they need to complete the role. None of this applies when you outsource.
With it – you will have an agreed rate for set work. You can end the use of the outsourced party when you please. You don’t have to provide benefits. They will provide their own space and equipment.
Focus on Core Business Tasks
If you rely on someone from your team to do a specific task, they must step away from their usual business function. This means that instead of working on a core process, they are trying to grasp something else.
By doing this, their main job will pile up. If you take on these extra tasks yourself, you will also be taking time away from running your company.
It is far better if you can focus and not worry about extra tasks that can be done elsewhere without falling behind on the profitable side of your business.
Additionally, using a professional will reduce stress and worry about whether or not a highly skilled task such as accounting or IT security is being conducted correctly. This can be reason enough to outsource alone.
There are countless areas that you can outsource. Companies will find themselves outsourcing any work that isn’t convenient or cost-effective for them to complete in-house.
This can range from engineering to copywriting, product photography, videography, manufacturing, and so much more.
Outsourcing IT Support
In today’s world, IT support is likely the most common form of outsourcing that most businesses, big or small, choose to utilize.
It’s fair to say that many business owners and their teams simply lack the information or knowledge required to fulfill the responsibility of sourcing the most suitable technology, nor can they provide their own IT support.
No Denial
Denying this is certainly a risky path to take, as you risk leaving your business exposed to the many different dangers that lurk on the web—a hacker or virus could destroy your system and even steal your customer data.
So there’s no time like the present to outsource a trusted team of IT experts to take over for you.
There are several dedicated IT and tech support teams that you can hire to help you achieve your goals as a business, and the sheer volume of stress and worry that you can alleviate by putting your trust in an experienced team is unbelievable.
You’ll certainly thank your lucky stars that you chose to indulge in advanced IT support sooner rather than later. This way, you can continue to thrive online without encountering any costly or time-consuming bumps in the road.
Outsource Your Online Payments
Another area of your business you should consider is outsourcing online payments.
Attempting to create your own secure online payment system for your website will be an absolute nightmare, to say the least, as you’ll need to put in hour after hour of coding to create even the most basic payment system.
Likely, you don’t have the time or skills to craft a safe online payment service for your commercial platform, so outsourcing a top-quality payment gateway for your business is the best course of action.
Your small business customers will instantly recognize a trusted payment platform, and as a result, they may have greater faith in your brand, too.
It’s a win-win! And that’s the definition of outsourcing you want to achieve. An easy thing to outsource is your online payments for your online business.
Lower Costs for Company Outsourcing
Believe it or not, an outsourced worker can lower your overheads. You can save on not having to hire a full-time professional.
They may be over the top when the task only needs to be completed once a week.
You can save by not requiring specific tools and materials. Therefore, you will save on not requiring more seats, office space, insurance, etc. There are a lot of savings you can make by simply hiring externally.
Outsourcing Helps with Growth
First of all, using a professional service will speed things up. It will ensure that you finish these tasks correctly. It can save you money, time, and resources, allowing you to focus. Remember what the outsourcing definition is!
All this drives growth and helps you create a better strategy going forward.
However, when you do find someone to outsource your work to, make sure that you have an explicit agreement with a signed contract; this will ensure that both parties understand the terms of the agreement and their responsibilities.
Access to Expert Knowledge
No one knows it all, and you will gain valuable insights by having professionals on board to help.
For example, there are many reasons to hire a managed service provider to maintain your IT Infrastructure.
This needs to be done correctly to ensure that your computer system works effectively and is properly secured, even if you work from home.
You will be able to pick up on some key IT knowledge when they come in. Then, assess your infrastructure and set to work to maintain it.
As your company grows, the knowledge you have gained will help you make it better. Therefore, you will make more informed choices when it comes to hiring your own professional.
An Outsourced Worker Is Efficient
Many businesses are running at an inefficiency marker of 30%. That means that there is a lot of scope for the company to become more efficient and increase its revenue.
Outsourcing is a great way to make a business more efficient. It frees up time and resources and allows you to focus. It ensures that all those annoying niggly tasks are done in an efficient and timely manner appropriate.
Yes, delegating those tasks is what the definition of outsourcing is all about.
An outsourcing company will work to deadlines. They will not need to keep contacting you for advice on how to do this and that.
They will also have the most modern, state-of-the-art tools and technology to do the job. All of this is extremely beneficial to your business and will help it grow.
Conclusion: Advantages Of Outsourcing
If you read the definition again you will see why subcontracting can work wonders for any business. Not only that, but it helps to exceed your client’s expectations when you have more time.
I’d love to hear from you if you use outsourcing in your small business.
