80% of small businesses plan to outsource some of their business tasks in 2021 to grow the business, improve efficiency, and have the opportunity to let experts handle what they’re best at. Most small business owners tend to do everything themselves. As you grow your business though, there is only so much you can do. Delegating is a skill start-up entrepreneurs need to master and outsourcing some business tasks is a practical and cost-efficient way to delegate while running a growing company. Here is a quick look at how outsourcing can facilitate business growth.
A Common Scenario
Your business is getting attention and orders are increasing. You and your current staff can’t juggle all the responsibilities that go with running a business. As a new entrepreneur, you don’t have enough finances yet to employ a full in-house team. If you don’t take advantage of the momentum, you may lose sales instead of gaining them. This is where outsourcing steps in.
Functions You Can Outsource
These are the roles that you can outsource: legal work, administrative tasks, bookkeeping and accounting, marketing, and technology and IT. Bear in mind that you shouldn’t outsource the primary core of your business and that which your team can excellently execute. If you are running a marketing company, the in-house team may not have the time and expertise to draft legal documents needed for the business. Instead of hiring a full-time attorney, outsourcing this area will bring significant savings for the company. In other words, outsource those tasks that are needed to be done for the business but don’t directly bring in additional revenue. Outsourcing will ensure that business growth is sustained while the staff focuses on the main competencies of the business.
More Capital And More Flexibility
The savings you make from outsourcing means you have more capital that you can invest in other areas of the business that can bring in profits. This also makes your company look attractive to investors if you’re looking for funding. They will see that your business has the cash to put into revenue-generating activities. If you plan to sell the business in the future, potential buyers will also see this as a plus.
Business can change or evolve over time and your needs may differ from one time to another. Outsourcing is a sensible option that gives you flexibility. Your company has the option to employ freelancers or a team only during the busiest times of the year. You have the ability to scale up or down depending on what the business needs at different times. You won’t have the financial commitment of hiring new employees and worrying if the business can still afford them after the peak season.
Outsourcing is not only beneficial for small businesses. Some of the largest companies in the world outsource some of their business tasks to remain dedicated to what they’re good at. As you grow your business, you’ll find the perfect balance of in-house employees and outsourced personnel.