If you have just started a new business then it is quite natural for you to face many obstacles and hurdles. It is indeed a challenge to keep your startup functioning smoothly. You are to do a balancing act to be within your budget and to get the work done. This is irrespective of you are a solo entrepreneur or partnership, with or without employees. Perhaps, you have heard about outsourcing for startups and want to know how it can help your business. According to experts, this is one strategy that is sure to benefit your business. It involves hiring vendors or freelancers to perform a particular task, thus saving you precious time and energy.
Related Post: 3 Components of the Outsourcing Process
5 Benefits of Outsourcing
1. Set realistic budgets to meet expenses
If you short on budget, then the first few months of your startup are likely to be in the doldrums. While managing the different departments of your business without any help, planning can be difficult and cost much flexible. You may also know where your money is going and how it is being used. Giving a particular amount to the vendor will enable you to know how much budget to set every month. It allows you to have a proper and realistic operating budget. If there are inventory and employee salary involved, then monthly expenses will fluctuate. Hence, determine the amount the budget will be inflexible to manage better these changing costs.
2. Focus on your strengths
Any business is likely to involve several facets like IT, accounting, sales, marketing, customer service, etc. It is not possible for any individual to manage everything competently alone. Moreover, hiring staffs may not be possible for any cash-starved small business. But outsourcing for startups like hiring dedicated marketing or IT professional will allow better functioning of the business.
3. Better scaling
When exactly to scale up the business is a question that many startups face. Scaling can become more intimidating if there are required heavy investments in operating expenses or to hire more employees. However, the most expensive of all human resource costs is ‘Onboarding’. But it will be easy to manage a freelancer. This way, it is possible to scale up, if your investment is not working as expected. It is a wise decision to take rather than hire new employees. The Benefits of Outsourcing for scaling also provides more opportunities to explore all available options. This is possible without having to make risky long-term investments. You also do not have to waste time and energy training your new employees or spend a lot on them.
4. Reduced operation costs
Outsourcing for start-ups will help reduce overall operating expenses. You can outsource your work to agencies or freelancers on a monthly budget or ad hoc basis. Freelancers generally get paid per project and hence, raise smaller invoices. You need to determine the amount to pay for blog maintenance, social media campaign and site design. Hiring employees for the same work will mean having to pay them monthly salaries and other perks. But with freelancers, you do not have to worry about all these obligations.
5. Increased efficiency
Most outsourcing agencies and freelancers understand the balance of time and payment. Instead of billable hours, many prefer to bill per project as they can gain from it. Hence, they are found to be more efficient and responsible when undertaking tasks, be it small or big. They can also be expected to deliver superior quality results on time. They work smart and quickly to ensure that they can deliver the present work on time and derive the best one. This in turn will help your startup to enjoy increased efficiency.
Therefore keeping in mind the Benefits of Outsourcing, you need to consider the same for your startup venture.