Outsourcing has never been more popular among businesses, large and small. Deciding to outsource one or more of your business processes can pay dividends and enable you to grow.
Explosive growth allows you to wipe out the competition and carve out a niche within your industry. More and more companies understand the potential inherent in outsourcing. For example, 54% of all companies connect with their customers through third-party teams.
Let’s look at how you can utilize the power of outsourcing to grow your business.
Bolster Your Capital Power
Money is the lifeblood of any business. Growth only happens when you have the capital to invest in the first place. Rather than relying on a sudden spike in sales, you can save money by reducing your expenditure.
Saving money frees up capital for you to invest elsewhere. Smaller businesses gain a lot of value by avoiding more significant expenditures through outsourcing.
Some of the reasons why outsourcing increases capital includes:
- Benefiting from a ready-made team
- Spend less on employee salaries
- Avoid paying employee benefits
With six in ten small businesses struggling with cash flow, converting your fixed outgoings into smaller, variable costs can alleviate some of the growing pains your operation is experiencing.
Gain More Time to Focus on Your Strengths
Entrepreneurs often fall victim to trying to do too much at once. Every business owner has their strengths and weaknesses. While keeping everything in-house will save you money, it robs you of time. As the old saying goes, “Time is money.”
Outsourcing allows you to avoid the hassle of hiring an entire team or shouldering the burden yourself. For example, if you hate doing accounts, you may decide to invest in virtual bookkeeping solutions instead.
Think about it like this.
If you spend three hours per week on bookkeeping, you could gain that time back and use it to concentrate on other aspects of your business.
Generate Instant Experts for Your Company
The biggest barrier to growth is not having the expertise on board to grow. You can have all the time and money in the world, but if you fail to surround yourself with the right people, you’re doomed to fail.
Smart business owners understand what they know and what they don’t. Of course, you can learn and grow your skills, but this takes time. Instead of investing this time, isn’t it more efficient and profitable to focus on what you already excel in?
You can outsource practically any part of your business to individual freelancers and dedicated third-party organizations on short-term contracts. If you need a social media marketer, outsource it. If you need a graphic designer, outsource it.
Deciding to outsource gives you instant access to experts from all over the world at a fraction of the price it would cost to hire them as an in-house part of your team.
Increase Opportunities Through Productivity
Countless small businesses decide to handle those mundane back-end tasks internally. The more you take on yourself, the less productive you will be.
The mundane tasks are required to keep the wheels of your business moving, but they rarely contribute to advancement. Spending time designing a new product or building a frontline landing page are tasks that increase sales and improve your brand’s footprint. HR tasks, for example, don’t.
Outsourcing increases the number of opportunities available to you by enhancing your productivity.
If your in-house team is focused entirely on the critical tasks that contribute to growth, you will unlock more of your organization’s potential.
Integrate New Technologies Into Your Business
In 2018, the global outsourcing business was valued at $85.6 billion, with the government and defense industries leading the way. One of the big reasons to outsource is to stay updated on the latest technological developments.
Not every business relies on new technology to the same magnitude, but if you can figure out more efficient ways of doing things, you’re already best placed to accelerate your growth. Every business can benefit from technological breakthroughs.
Unfortunately, integrating new technologies into your business is a challenge. Tedious setup costs, training, and migrating from legacy systems are cumbersome. With older systems becoming dated every few years, smaller companies often don’t have the resources or manpower to keep up.
Outsourcing gives you access to cutting-edge innovation. For example, rather than maintaining an in-house data server, a business might migrate their data storage needs to a third-party cloud provider instead, such as Amazon or Google.
Keeping connecting to the ever-evolving world of technology allows your business to acquire advanced capabilities without a significant investment.
Improve Your Flexibility
No two businesses are the same, so no two outsourcing strategies should be the same. Every entrepreneur is at a different point in their journey.
The beauty of outsourcing is that you can acquire a service and drop it at any point. Unlike hiring an employee on a binding contract, you can drop an outsourced service whenever you want. This improved flexibility enables you to pivot to meet every challenge.
One example is if your business suddenly experiences a spike in business. In this scenario, expanding your team could take weeks, if not months. Outsourcing enables you to upgrade your capacity in days, thus empowering you to maximize your opportunities.
Of course, outsourcing isn’t necessarily right for every business. There are advantages to keeping some operations in-house to retain exclusivity over top talent, but if you need flexibility, outsourcing is the way forward.
Outsourcing has been a growing trend throughout every industry in recent years. The COVID-19 pandemic only increased the demand for outsourced services. As the world becomes more interconnected, even the smallest operations have a global talent base to take advantage of.
Think about how your business is set up and how you and your team spend their time during a typical working week. Search for opportunities to outsource and save both money and time.
Which parts of your business are you thinking about outsourcing to a third-party provider?