How Outsourcing Can Help Grow Your Business in 2022
Outsourcing has never been so popular among businesses large and small. Deciding to outsource one or more of your business processes can pay dividends and allow you to grow.
Explosive growth allows you to knock out the competition and carve out a place for yourself in your industry. More and more companies understand the inherent potential of outsourcing. For instance, 54% of all businesses connect with their customers through third-party teams.
Let’s see how you can use the power of outsourcing to grow your business.
Strengthen your capital
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 increase in sales, you can save money by reducing your expenses.
Saving money frees up capital for you to invest elsewhere. Small businesses gain a lot of value by avoiding larger expenses through outsourcing.
Some of the reasons why outsourcing increases capital include:
- Benefit from a ready-to-use team
- Spend less on employee salaries
- Avoid paying benefits
With six out of ten small businesses struggling with cash, converting your fixed expenses into smaller variable costs can alleviate some of the growing pains your business is experiencing.
Save 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 saves you money, it wastes time. As the old saying goes, “time is money”.
Outsourcing allows you to avoid the hassle of hiring an entire team or carrying the burden yourself. For example, if you hate doing accounts, you can decide to invest in virtual accounting solutions In place.
Think of it like this.
If you devote three hours a week to bookkeeping, you could save that time and use it to focus on other aspects of your business.
Generate instant experts for your business
The biggest obstacle 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 don’t surround yourself with the right people, you’re doomed.
Smart business owners understand what they know and what they don’t know. Of course, you can learn and develop your skills, but it takes time. Instead of investing that time, isn’t it more efficient and profitable to focus on what you are already good at?
You can outsource virtually any part of your business to freelancers and dedicated third-party organizations on short-term contracts. If you need a social media marketing specialist, outsource it. If you need a graphic designer, outsource it.
Deciding to outsource gives you instant access to experts around the world at a fraction of the price it would cost to hire them as an in-house member of your team.
Increase opportunities through productivity
Countless small businesses decide to handle these mundane back-end tasks in-house. The more you engage, the less productive you will be.
Mundane tasks are necessary to keep the cogs of your business running, but they rarely contribute to advancement. Spending time designing a new product or creating a frontline landing page are tasks that increase sales and improve your brand footprint. HR tasks, for example, do not.
Outsourcing increases the number of opportunities available to you by improving your productivity.
If your internal team is fully focused 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, global outsourcing activity was valued at $85.6 billion, with government and defense industries in the lead. One of the main reasons to outsource is to keep abreast of the latest technological developments.
Not all businesses are as dependent on new technologies, but if you can find more efficient ways to do things, you are already in the best position to accelerate your growth. Every business can benefit from technological advances.
Unfortunately, integrating new technologies into your business is a challenge. Cumbersome installation costs, training and migration from legacy systems are tedious. With old systems becoming obsolete every few years, small businesses 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 can migrate its data storage needs to a third-party cloud provider, such as Amazon or Google.
Staying connected to the ever-changing world of technology allows your business to gain advanced capabilities without significant investment.
Improve your flexibility
No two companies are the same, so no two outsourcing strategies should be the same. Every entrepreneur is at a different stage in their journey.
The beauty of outsourcing is that you can buy a service and remove it at any time. Unlike hiring an employee on a binding contract, you can drop an outsourced service whenever you want. This improved flexibility allows you to pivot to meet any challenge.
An example is if your business suddenly experiences a spike in activity. In this scenario, expanding your team could take weeks or even months. Outsourcing allows you to improve your capacity in days, allowing you to maximize your opportunities.
Of course, outsourcing is not necessarily suitable for all companies. There are benefits to keeping certain operations in-house to retain exclusivity on top talent, but if you need flexibility, outsourcing is the way to go.
Outsourcing has been a growing trend across industries in recent years. The COVID-19 pandemic has only increased the demand for outsourced services. As the world becomes increasingly interconnected, even the smallest operations have a global talent base they can leverage.
Think about your business setup and how you and your team spend your time during a typical work week. Look for outsourcing opportunities and save time and money.
What parts of your business are you planning to outsource to a third-party provider?