The Outsourcing Guide for Startups and Small Businesses
Published: September 4, 2020
There are a lot of aspiring businesses out there but only a few of them survive. Oftentimes, startups fail because they tend to offer a product or service that people don’t want to buy or the company objectives don’t align with what they intend to sell. However, the most common reason why most of them fail is the lack of expertise in certain areas that contribute to running a successful business.
What happens in a startup setting is that the founders usually try to do everything even though they have zero experience in some aspects of the business. This is a critical problem that can lead to business failure. Fortunately, outsourcing is here to help startups and small business owners improve their business processes and provide a competitive edge in the market.
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The Benefits of Outsourcing for Startups and Small Businesses
A lot of companies already reap the benefits of outsourcing. According to this global survey, businesses of all sizes are outsourcing their business functions and seeing great results. So as a startup or a small business, outsourcing can be the key to your growth.
1. Maximum Efficiency at a Minimal Cost
Cost efficiency is one of the main reasons why startups consider outsourcing. Outsourcing can lessen unmanageable workload and minimize errors at a lower cost. Not to mention, the overhead cost saved up through outsourcing can be used to fund the core income-generating aspect of the business. This can result in reaching your bottom-line goals faster.
2. Allows You to Focus on Your Core Expertise
Your time is valuable and you’re better off focusing on things that can add value to your business. Outsourcing can allow you to do just that. By outsourcing less important business functions, you can focus on your core expertise. It can also free up your company’s resources to build more efforts towards growing your business.
3. A Pool of Knowledgeable Workforce
The outsourcing industry has a pool of talented professionals that provide service at a reasonable cost. You can have access to high levels of expertise that larger companies also get. These professionals are experienced and skilled in their own fields and can help boost the performance of your business.
4. Reduce Investment Risks
Every investment is a risk. Factors such as regulation, market conditions, and technology are all risks that you can avoid by choosing to outsource. Your outsourcing provider will handle these risks for you. They’ll be the ones responsible for investing in the latest technology, being updated with regulatory compliances, and constantly check for any changes in the market. In short, outsourcing can lessen the risks and at the same time, provide plenty of opportunities for you.
Areas You Can Easily Outsource
For startups and small businesses, there are many business aspects you can choose to outsource. Whether you need to outsource your back-office or front-office operation, outsourcing provides a solution that will meet your bottom-line goals.
– Data Processing
– Customer Support
– Virtual Assistance
– Back Office Operations (Human Resources, Accounting, IT)
– Digital Marketing
– Creatives (Graphic Design, Web Design)
Find Your Ideal Outsourcing Provider
It’s very critical for startups and small businesses to choose their outsourcing provider as this decision can make or break their business.
Here are some tips that will help you find the right outsourcing partner:
1. Identify Which Tasks to Outsource
Before looking at any outsourcing prospect, you must identify first what your business needs. Are your customers experiencing bad customer service? Do you lack expertise in building and maintaining a network infrastructure? Once you’ve identified the pain points, create an outsourcing plan. The outsourcing plan should include the scope of work to be outsourced, the budget, and its duration. After making the defined plan, you can now start the process of prospecting.
2. Conduct Thorough Market Research
Start the process of prospecting by conducting thorough market research. Once you’ve gathered your list of prospects, eliminate those that don’t resound to you. Then, when you feel like you’ve chosen the right one, conduct background research. Find out about the people who represent the company, their internal processes, and what more they can offer. Also, check if their values and objectives are aligned with your company. Oftentimes, this connection is the start of building your relationship with them.
3. Check for a Track Record
The customer is always right, so don’t forget to check your prospect’s track record. Look for online reviews or even interview some of their former and existing clients for feedback. From these insights, you can gauge your prospect’s capability to deliver results.
4. Evaluate Scalability and Flexibility
Take the time to get to know your prospect a bit more. An ideal prospect should be interested to know about your business, its processes, and its needs. Also, evaluate their capacity to be flexible and scalable. Being flexible with any conflict or roadblocks should contribute to their character as a company. At the same time, being scalable means they can custom-fit the level of service they can provide you.
Bringing to a Close
Outsourcing paves the way for startups and small businesses to compete with large corporations when it comes to further access to resources and tools. It can also aid in common financial problems that startups and small businesses usually face.
Finding the right outsourcing partner will allow you to focus on your core expertise and can eventually lead you to achieve your company’s revenue goals and grow your business in the long run.