Have you ever considered outsourcing business functions to save your company money? From Bookkeeping, IT, Marketing and HR to Accounting and Payroll, there are many different options to consider. Many small businesses outsource different items they may not have a good handle on, or to stay competitive in within their market. And by doing so, they can actually reduce costs! But is it a good idea for your business?
Benefits of Outsourcing
1. Control Costs
Outsourcing will allow you to control costs by only paying for services you need as you use them. This helps you to avoid making a major investment in infrastructure, software, equipment and personnel, while increasing your efficiency.
When you outsource business tasks, this means having fewer employees to keep in an office. As a result, your office space can be smaller, and your electricity and other utility costs will also be lower.
2. Keep Labor Costs Low
Employees are expensive! Outsourcing allows you to keep labor costs low since you don’t have to hire, train, and provide benefits for a department that you could easily outsource. You won’t be paying full-time salaries and benefits either. For example, by outsourcing different marketing functions, you can get help with marketing, content creation and more right out of the gate!
Another benefit? Many businesses report that by outsourcing different job functions, it actually helped to grow their business quicker, they had less turnover of the staff they did have onboard, and they were 50% less likely to go out of business than those who didn’t outsource.
Outsourcing allows you to hire experts that may not even be in the same city or state as you. This is extremely advantageous for businesses who are located in smaller towns where talent may not be as accessible.
3. Better Time Management
It can also allow for better time management for everyone. The employees you do have are better able to focus on their own roles and core business functions, which can help to grow your company in ways you are looking for.
By outsourcing smaller tasks, things like social media management, content creation, email marketing, admin and filing, and invoicing, you are taking these tasks off your desk. It now frees you up to focus on growing and improving your business. Plus, as every task you outsource is now in the hands of a specialist, you’ll also save time on project management.
This means no need for prolonged planning and review meetings. Simply brief your outsourcing team and they’ll take care of the rest. The process is simple, fast, and cost-effective.
4. Specialized Partners
Some areas like IT, Accounting, Payroll and HR can be complex, challenging, and have a lot of moving parts. Without specialized software and staff that can track many variables, things can get missed and it can cost you MORE time and money. By outsourcing to the correct resources who have everything built-in and ready, it will save a lot of headaches to know if you’re doing these specialized functions correctly.
When you outsource work, you are handing it over to an expert who can give it 100% focus. You might be a great business owner, but that doesn’t mean you’re a great writer or designer or IT pro. If you embrace outsourcing, you don’t need to be. Simply hand specialty tasks over.
A side benefit is that your outsourced team will also be more likely to be on the cutting edge of whatever new technology may benefit your business within these different business functions.
5. Increases Productivity
If you have tried to keep many of these different roles onboard, your team may have been overwhelmed with tons of responsibilities and a higher workload than they can handle. This can be handled with outsourcing, which now eliminates the need for constant training and recruiting. Now your employees will be able to focus on things within their scope and do what they do best.
6. Quickly Scale Up Or Down When Needed
A great way to save money for your business is the ability to change the hours month to month for your staff, but this isn’t something that is easy to do when everyone is on-board within the business. However, when outsourcing, it’s easy to add in more support in your busy months, while you adjust downward when things are slower.
Or perhaps your cash flow has gone down in a hard time, and you need to reduce hours for a couple of months to get things back in check. This is a great benefit of outsourcing since you can choose how many hours your business needs help.
No matter what you outsource, you’re likely to save money over having that department in your own business. What a great way to focus on your core competency, which will only work to give your business a leg up on the competition. And if you want to leave the bookkeeping numbers to us, so you can grow your business, please reach out here. If you were Outsourcing Business Functions To Save Your Company Money, what would be your first priority?