12 May Why do firms outsource project work for their small businesses?
Outsourcing for startups has gradually become the tool most startups need to have steady and reliable growth. Startups don’t require extravagant expenses and outsourcing is the best option to get services done by professionals without having to break the bank. These are the benefits why firms outsource project work.
1. Risk reduction
When firms outsource project work to a freelancer, it is a lot easier to call it quits when you don’t like the services rendered to you or when you can no longer meet up payment because of your budget. Well, this is not the case when you hire an employee. Do well to ask any HR specialist and they will tell you your business is always at a risk when you are about to layoff an employee who probably doesn’t add much value to your business anymore.
2. Keep more money in the bank
The cost of paying insurance, vacations, workers compensation, sick days or pension for your employees has the ability to drain a startup especially if you have lots of employees. But when you outsource to a freelancer, you save a lot of money. Try punching in the cost of hiring an employee and see how much you will save. Although this helps you save money, check up on IRS rules to be sure you’re on the right side of the law.
3. Firms outsource project work to avoid long-term commitments
As a startup, you don’t have to make long-term commitments. You can outsource services based on a budget you can immediately do away with. You don’t have to sign a contract with the mindset of paying with future income. By so doing, you avoid the problem of running into debt.
4. Increase efficiency
It is advisable to put in all your energy to your startup as an entrepreneur but you can agree with me that you can’t get everything done. Stop trying to do everything yourself! It increases the inefficiency of your services and promotes low quality too. Make it a habit of outsourcing to freelancers who are experts in the critical tasks you need. Ed Reeves once said that “Creating new products, increasing your service, improving your scalability… are efforts definitely worth your time. Taking care of the paperwork, sorting out payroll problems, making sure your website is SEO optimized or designing an advertisement are not.”
5. Focus on growth
When you don’t have your income tied up in long-term agreements, you can decide to invest what you have to enable you to skyrocket your income for other substantial needs of your business. With this, your business is growing and not being stagnant. An Entrepreneur article shows an example of The Small Office Assistant. When its president started outsourcing, revenue actually doubled.
What Can You Outsource?
In the business world today, different services arise and because you can get everything done yourself, it is advisable to outsource. The next question is what then do you outsource? According to one Forbes contributor, here are some tasks you should consider outsourcing.
• Jobs that do not require much human attention
• Should be carried out by someone else
Areas to consider outsourcing include:
• Graphic & design such as logos, business cards or banner ads
• As virtual assistant, communication with vendors, service providers, customers and other clients
• Whiteboard & explainer videos
• Web programming and IT management
• SEO and social media marketing
• Public relations
The time spent booking trips and filling online forms can be done by a virtual assistant. This gives you an opportunity to relax your mind so you don’t have to worry about decisions like that and in turn gives you more time to focus on your business and methods you can implement to grow it. Since we are in the age of most things running up the cloud, you can dump these headaches on someone’s else’s tray. For jobs like these, outsourcing makes sense. There are two essential things you need to have at the back of your mind. The first thing is that make sure you outsource something you don’t enjoy doing. Secondly, don’t outsource anything that exposes your company’s database.