You can’t do it all. It’s a lesson that many entrepreneurs learn the hard way. Starting a small business requires many talents, and some of them you simply won’t have or won’t have in enough abundance to be effective.
That’s where outsourcing can help your business. Without outsourcing, your business could fail to achieve growth as quickly as you want or worse yet, fail to grow at all.
Here are just some of the benefits of outsourcing for your small business.
Outsourcing Benefits for Entrepreneurs
Outsourcing isn’t just for big companies. Technology has enabled even the smallest company to achieve great things. Outsourcing, which is leveraging outside expertise to conduct business workflows, is all around us. Some of the most common types of outsourcing for small business owners is payroll, accounting, and taxes. However, office cleaning or marketing your business can also be outsourced. Why would small companies spend the money to hire an outside expert over a DIY approach? They know there are clear benefits to outsourcing. For example:
- Outsourcing actually can save you money by converting fixed costs (such as a full time equivalent, or FTE employee) into a variable expense. It gives you control over a financial outlay that is much easier to cut if necessary; hiring and then laying off a full-time worker is an expensive mistake. It also can free up capital you need to seek small business funding to grow your business.
- Outsourcing can improve your efficiency. If you do it all yourself, it will cost you more in time and labor and the return will likely be not as high due to your learning curve on some tasks. It makes sense for any business owner to seek out the right subject matter experts to get the job done. Outsourcing gives you a way to do that without the high costs of hiring someone full-time.
- Speaking of hiring, outsourcing is a way for you to grow your business without adding overhead. Reducing labor costs is one way to increase cash flow. Hiring staff for short-term projects is expensive and difficult to manage.
- Ramping up a project is easier with outsourcing. Handling a project in-house requires organizing, training, and logistics so that it could take a good deal of time to launch. An outsourcing partner already has the tools and expertise in place to hit the ground running.
- Perhaps the biggest benefit of outsourcing is that it frees the small business owner up to concentrate on the core business. Every small business can struggle to find the resources they need to grow. Outsourcing can level the playing field by allowing outside experts to contribute to making your company a success. While they handle the heavy lifting, a small business owner can focus on building the business.
Benetrends is an outsourcing partner for small business funding. We work closely with our partner-clients to help them understand the intricacies of 401(k) funding as well as other types of programs designed to launch and grow their company. Talk with our team today when you need a resource to help your bottom line.
Find out how we can help by downloading The Definitive Guide To 401(k)/ROBS Business Funding.