The Advantages of Outsourcing for Your Small Business


As small as your business may currently be, it most likely has the potential to grow to a great extent over time. For that growth to happen organically and for you to retain your ability to scale your business operations properly, you need to make the right investments from the beginning. What that means is that your company heavily depends on the people that work under your wing. Still, not too many small businesses have the financial capacity to hire full-time workers that can cover all of your business needs.

This is where outsourcing has become pivotal for small businesses to use their growth opportunities without hurting their inner operations. By allowing an external agency, a freelancer, or a team of people to handle certain aspects of your company, you get the chance to focus on those key factors of business growth such as client relationships and branding. Here to help you maneuver the waters of outsourcing are the four advantages of this process and how you can implement it in different departments of your company.

Cutting costs where it matters

As a small business, you cannot afford to have drains on your budget that affect your cash flow stability or that make it impossible for your employees to do their jobs efficiently. Then again, no sound business leader would risk cutting certain expenses out of their budget without considering the implications, hence the need to be very strategic when looking for ways to re-allocate funds within your business. Outsourcing is particularly helpful in this respect, as companies have the opportunity to relieve their budget of various overhead costs they’d normally handle with full-time employees.

outsourcing partnerships

For starters, the equipment they use is entirely their own, and you aren’t obligated to provide them with a new laptop or an entire office for that matter. While we’re on the subject, you don’t need to pay for a larger office space when you expand your team by outsourcing. Working with outside experts also means that they cover their own training and certification expenses, as well as benefits such as healthcare. For seasonal, project-based work, this means you pay for the service they provide, as you’re not obligated to pay a full-time salary of an employee that might be a necessity for your business.

Access to expert support

Qualified, trained, and very experienced individuals out there may not like the idea of working for a single company as full-time employees. They may prefer the idea of working as freelancers or within agencies that allocate a dedicated worker to your business depending on your needs. This system is beneficial for all parties involved, especially in fast-developing markets such as Australia or New Zealand. If you are trying to set up a business in these markets, it can be difficult to find, retain, and pay for skilled employees in house, particularly in fields such as accounting and bookkeeping.

Instead, working with chartered accountants in NZ and similarly competitive regions has become a norm over employing full-time workers. This relationship allows smooth, seamless communication with expert finance gurus, so to speak, and ensures that the quality of work provided is tailored to your needs. Not to mention that you have a much wider choice when you work with external advisors than when you focus on hiring workers internally.

Focus on core tasks

As mentioned earlier, the fact that you have outsourced tasks such as bookkeeping, customer service, or social media management for example works in your favor to truly grow your business. Sustainable growth is a matter most business leaders need to deal with well before it actually begins unraveling, because having ample control over the process is pivotal for its success. Being a business manager often means juggling several different roles and wearing many different hats. You’re the one making hiring decisions, so you’re the HR representative. You handle client calls, so you’re a sales manager, too. You likely make all key marketing decisions, so you’re a brand specialist, as well.

All of these and many other roles a business leader assumes are time-consuming and very challenging. If you wish to perform them productively, you need to delegate. Outsourcing is a great way to delegate work to skilled professionals. Whether you choose to work with a freelancer or you decide to hire an entire agency for more complex tasks such as your marketing strategy, you’ll also gain a competitive advantage due to the quality of service you’ll be able to provide. When you outsource, you can afford to devote your time and your expertise to a short list of essential tasks that can transform your business.

Increased productivity

Finally, can you imagine yourself or anyone on your team handling an endless list of menial tasks every day without any consequences? Too often, leaders as well as their employees suffer from burnout at the office precisely because they bite off more than they can (or should) chew. You cannot expect yourself to perform perfectly in a multitude of roles, forever.

Instead, when you finally delegate and outsource to experts in the field, you can actually pour all of your creative energy and effort into the tasks that you’re meant to perform. This in turn enhances your productivity as well as the productivity of every member on your team.

Outsourcing has become a norm for today’s companies to manage their growth rate successfully. Make sure to allow your brand to grow with the help of this simple approach, and you’ll be able to expand your business with greater ease and fewer setbacks.

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Raul Harman

My name is Raul, editor in chief at Technivorz blog. I have a lot to say about innovations in all aspects of digital technology and online marketing. You can find me on Twitter and Facebook.