Nowadays, just about any operational or internal business function can be outsourced to another organization. In most instances, their services can even be acquired at a lower cost and with better quality than if you were to do things on your own. So it does make a lot of business sense to outsource, especially if youre just starting out with a limited budget. This way, you can focus on making important decisions that will impact your bottom line, instead of being bogged down by tasks that don’t add value.
Here are five functions that you can leave to another company’s capable hands.
Why put up your own manufacturing plant when you can outsource instead? If your business involves the production of a tangible object like furniture, building a manufacturing plant can be a significant endeavor, not to mention budget-draining. You will have to buy the facilities, equipment, and hire your own workers, all of which are large up-front costs. Take advantage of the myriad outsourcers currently available on the global manufacturing front. Your product can already be on store shelves, both virtual and brick-and-mortar, within a short span of time, thanks to outsourcing.
While many bootstrapped start-ups typically use simple accounting packages, there will be instances where hiring a licensed accountant becomes a necessity. Many small businesses do not always require a full-time accountant or CFO from the get-go. Your accounting and finance functions can be outsourced, where you can hire a highly qualified expert to give you financial advice on an as-needed basis. This way, you save on costs, time, and resources without sacrificing quality. You also get to focus on growing your business instead of wasting time slaving over your accounting books.
Almost everything that can be stored is already in the cloud. Cloud computing, which involves the use of computing resources to deliver a service over a network, can help you reduce costs while keeping your on top of your business needs. You can use cloud-based applications using your smartphone or desktop and achieve greater scale with fewer employee headcount. You can also use social media to launch inbound marketing campaigns and other social marketing programs to spread the word about your business. The possibilities are virtually endless when it comes to today’s technology, so use it to your advantage.
4. Back Office
Fixed costs such as office rent, administrative functions, utilities, and equipment will put a huge dent on your business capital. Consider moving to a shared location or make use of a shared administrative service concept. Other companies also contract the services of an outsourcer to take care of end-to-end administrative tasks such as data encoding, billing and the like.
5. Human Resources
Managing employees can take up a significant amount of your time, energy, and resources. Human resource functions include many responsibilities such as hiring, training, providing and keeping track of benefits, compliance, payroll, and people management. Instead of taking on these responsibilities yourself, consider hiring a Professional Employee Organization to manage those tasks. You can get huge discounts on the cost of benefits, and you also have a team of professionals to take care of other HR responsibilities.
Successful companies focus on what they do best. As an entrepreneur, you need to put most if not all of your energy in making strategic decisions. Focus on what you do best, and outsource the rest. Read more…