4 Small Business Operations to Outsource
by Brian McKay
One out of five startups this year won’t be in operation after two years. Three more years later, only three people startups will remain. After a decade, three of those five startups will have closed. According to data from the Bureau of Labor Statistics, only 25 percent of businesses survive to reach their 15th year.
One of the main reasons startups fail has something to do with finances. When the revenue a small business makes doesn’t meet and exceed the costs of operating the business, such as payroll, utilities, and other overhead expenses, there’s a high chance of failure.
This is precisely why outsourcing is an excellent option for startups. One of its main benefits is lower operating costs while improving a company’s efficiency. If you own a startup and want to consider outsourcing, look for companies that offer these outsourced services:
1. Human Resources
Poor staff management is another cause of business failure. And if you don’t have Human Resources as a part of your operations, not only are you risking poor staff management, but you’re also not preparing your company for growth.
A full HR team for a small business may not be cost-effective, though. So, outsourcing your HR needs, from recruitment to administration, is the best course of action. Outsourced HR staff have vast experience in screening and interviewing potential new employees, as well as setting employee policies and managing benefits, which are essential for smooth business operations.
2. Web Design & Development
A website is crucial for all modern businesses because the internet is where potential customers are at. This is why website design and development are services a startup needs. However, hiring an in-house web developer may not be cost-effective because apart from their salary, you have to pay benefits, equipment, and training for them.
If you outsource your web design and development needs, on the other hand, you gain access to talents with a wide range of expertise and experience, already equipped with the technology they need. All you have to do is pay for their services.
3. Accounting
As an entrepreneur, you might know at least the basics of accounting. However, if you’re developing your business for growth, its accounting and bookkeeping needs will only grow more complicated.
Outsourcing accounting services not only lets you focus on your role as the owner and saves you the resources of hiring an in-house accounting team, but it also gives you access to accountants with expert support. With timely and accurate records and reports of your company’s finances, you’ll be able to make more sound financial decisions.
4. Digital Marketing
Like web design and development, digital marketing is essential to the success of 21st-century businesses. Since your customers are online, you need to reach them there through digital marketing.
However, digital marketing is an intricate long-term process and requires a team of specially-skilled individuals, including experts in content marketing, social media marketing, paid advertising, SEO, and other aspects. Hiring them one by one will take too many resources, especially for a small business. Meanwhile, outsourcing the services of a digital marketing agency will save you all these troubles.
Plenty of other business operations can be more effective if you outsource them. Evaluate your company’s needs and what your team is struggling to do and decide for yourselves which services are better outsourced.
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