Why Outsourcing Is Valuable for Small Business

businessman sitting at desk and looking stressed ** Note: Shallow depth of field

When an entrepreneur starts a business, money is often an obstacle, and one must wear many hats simply to stay afloat. While this is valuable on the books this takes valuable time and effort away from the purpose of the business and exercising one’s best skills.

One solution is outsourcing; everything from payroll to marketing. Entire industries have popped up to handle jobs that small and large businesses don’t want to do in-house. Outsourcing is available for specific routines like data entry, and highly skilled requirements like digital marketing campaigns.

Why Small Businesses Resist Outsourcing

The main reason owners are slow to take advantage of outsourcing is they are unsure where to find companies with skilled workers to handle the job. People who start businesses usually need to be jack-and-jills-of-all-trades. This may cause a person think they can do any job within their company better than anyone else.

Another reason concerns the time involved in locating people to handle chores and setting up the routines. This requires extensive communication and feedback, which sometimes seems to be more trouble than it is worth.

However, after spend the time and effort to find and train extra help, your part is done. From then on third-party companies handle the job; freeing you and your staff for income-generating tasks.

5 Big Benefits with Outsourcing

Outsourcing frees up money, time and staff. Here is a look at specific ways it can help your small business thrive.

Save money. According to an article in the New York Times, outsourcing frees up capital that can be used for investing in your business. It turns fixed costs into variable costs, which can save a business from the need for large expenditures in its early stages. It also saves money on payroll because you don’t have to hire and train employees for every job.

Improve effectiveness. When a company tries to do it all in-house, expenses are often higher and expertise lower. For example, doing the research for a marketing campaign requires a high level of skill and technical know-how, as well as a large investment of time. By using an outside provider, a small business can tap into the professional mastery of experts, as well as their knowledge of how to make the best use of the marketing budget.

Level the playing field. A small business doesn’t have the resources and staff to handle certain jobs. By outsourcing, they can take advantage of economies of scale that are available to big businesses. They also get access to professionals who can bring efficiency and years of experience to the job.

Better results. Third party companies can often produce more effective outcomes. For example, experts at a digital marketing agency have years of experience with advertising, technology, search engines, design and social media. They use all of this to aid small businesses to get brand recognition and increase sales. If a business owner and one or two employees did the job, they would be learning on the go, while trying to do their regular, income-producing jobs at the same time. It is simply not an efficient or effective use of time and resources.

Concentrate on core competencies. An article in Entrepreneur points out that a small business has a greater chance to thrive when it focuses on what it does best and outsources repetitive jobs or those requiring specific skill sets. You and your staff can work on setting new goals and achieving current ones.

Regular use of outsourcing can improve efficiency, save money and allows one to focus on what they  do best. Interested in outsourcing your digital marketing? We’d love to chat.


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