Outsourcing for small businesses is not just a trend; it’s a necessity. It’s a practice that has become a norm in many companies, from large enterprises to smaller setups. In fact, it’s a strategy adopted by a significant 40% of small businesses, a stark contrast to the mere 12% of larger businesses, to streamline their operations and boost efficiency.
Embarking on the journey of discovering the benefits of outsourcing for your small business is like a voyage of self-discovery. It’s about understanding how it can transform your operations, freeing up your time and resources, and identifying the specific functions that could be outsourced. This process can open up a world of resources and opportunities for you to evaluate and improve your business, tailored to your unique needs and goals.
But what exactly should you outsource? This can vary from business to business, depending on your work and your in-house capabilities. However, the following business areas are often the most common ones to outsource, and they can bring you many benefits, too.
Bookkeeping
When small businesses fail, it’s typically due to poor cash flow and finances. Even if you feel you are pretty decent at keeping the books up to date and your finances in order, having an expert bookkeeper on hand to help you balance the books can be hugely beneficial. Not only can they ensure everything is running as it needs to be and all transactions are recorded and accounted for, but they can also free up your time and resources to focus on bringing in more money and coding what you do best rather than be stuck looking at figures. This level of expertise and efficiency can give you the confidence that your financials are in good hands.
IT
The IT sector is one of the largest outsourcing services worldwide, which is completely because more companies choose to outsource their IT requirements than any other industry. Investing in and maintaining your IT can be a pretty full-time job, and bringing someone on board to oversee your systems or ensure smooth integration or upgrades can be costly, both financially and time-wise. By finding it support providers you can ensure that you’re working with the right systems, paying for the services you need, and ensuring that your company evolves as technology does and is up-to-date and compliant at all times.
Marketing
Are you worried about how you are going to market your business? You’re not alone; around a third of small businesses outsource their marketing campaigns to help them get the best exposure possible. Marketing can be all-consuming, from social media marketing, digital and print marketing, SEO, content creation, and more; having a third party handle all of your marketing needs and identify the right campaigns and avenues for you can be instrumental in supporting your access and bringing in leads and sales on your behalf.
R&D
R&D or research and development is instrumental in any business, and further developing products or services and bringing them to fruition can help you provide longevity to your company and meet demands and changes in the market. If you aren’t investing in R&D, then it’s likely you’re not going to be moving forward as you need to. However, employing a team to handle this in-house can be costly, but working with outsourcing partners who are already set up for this endeavor in your industry can afford you the option to invest in the equipment and staff to carry this out and rely on their skills and expertise to help you move forward with expansion plans. This strategic advantage can make you feel more forward-thinking and competitive in your industry.
Logistics
Logistics are an essential part of many businesses. Whether you’re supplying products and need support shipping and packing for a warehouse or you need to rearrange deliveries from your office, etc., working with expert logistics providers can allow you to bypass the complexities this can bring and use their skills and expertise to streamline your logistics.
Outsourcing logistics has many benefits for small businesses, including reduced employee costs, as you do not hire people for this part of your business, lower costs, improved risk management, increased customer service, and access to innovations.
While this list isn’t exhaustive by any means, it contains some of the most popular areas businesses choose to outsource and the reasons why. Weighing up the pros and cons for your business to ensure you get what you need from any outsourcing partnership can allow you to determine if this will work for you and give you the results you need.
