Unlocking growth: how small businesses can leverage outsourcing
Small business owners might assume that outsourcing is something reserved for corporations and bigger businesses with resources to boot – but they’d be wrong. It’s not only a beneficial thing to do for ventures of all sizes, but a feasible one too, with outsourcing increasing in popularity by the year.
With the wonders of modern technology, small businesses can now outsource work and processes in a variety of ways. Read on to find out how your enterprise could benefit.
What is outsourcing?
Outsourcing is the process of using the services of a third party to complete tasks that are usually done by the business itself. It’s commonly seen with practices such as payroll services and tax compliance procedures in larger companies, but smaller businesses can outsource just about anything.
Companies outsource work to a variety of third parties, including agencies and freelancers who may or may not work with a number of businesses at the same time. They’re usually able to offer a tailored and specialist approach to the specific challenges your venture may be facing.
What are the benefits of outsourcing?
Outsourcing comes into its own when your small business lacks the resources and/or expertise to complete a particular task or process on its own. By outsourcing time-intensive aspects such as accounting, HR, and customer services, you can free up time to focus on delivering more value, whether that be through product development or strategic planning.
Trusting specialists with complex processes can also help to ensure your business adheres to legalities. Getting your tax reporting right is tricky, particularly for small business owners who may have never done this before, so utilising dedicated accounting software or specialists from an accounting firm can help put your mind at ease and ensure the job is done to the highest of standards- reducing anxiety, and time spent fixing errors you may make if you were to undergo the task on your own.
Cost-saving is another significant factor in favour of outsourcing. You can avoid hiring in-house specialists by hiring an external party to complete tasks or processes for you without the cost of an annual salary. Outsourcing also helps to save valuable time, whether it be from not having to train up in-house experts, recheck the work done by them or fixing any errors as this will all be done by the hired specialists.
What can I outsource from my business?
If you’re wondering which areas you could outsource to free up your businesses time and money, it’s important to consider which aspects of your business cost the most or consume large chunks of your time.
Analyse any time sheets your employees submit to see which tasks take the longest or work out least profitable as these are good candidates for outsourced work. It’s also worthwhile asking for, and taking onboard, employee feedback as they may notice areas for improvement within their daily tasks that you may otherwise miss.
Outsourcing these will ensure that you make the most of your investment to help you focus more on other areas of the business.
Some of the most common aspects that small business owners outsource include:
Marketing - learning the ins and outs of SEO can be difficult whilst balancing the other responsibilities of a business owner, so hiring experts can help boost your rankings and get your online presence where it needs to be
Accounting - from payroll processing to tax and debt management, having a dedicated accounting team can keep your business finances running smoothly
Logistics and delivery - once you start to grow it can be hard to keep up with packaging and posting products yourself, which is where logistics services can help streamline your operations
If any of these stand out to you, browse around for some companies or freelancers that could provide the services you’re looking for. Look at the reviews they’ve received from past clients to ensure they’ll be trustworthy partners before signing up for anything.
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Megan is an avid small business fan who loves to see businesses thrive and succeed. Their writing aims to help owners optimise their businesses to get the results they’ve always wanted.
