The world of business is changing. Keeping up the complex decisions and ways a business owner can structure things means focusing on what is going to be most advantageous to growth now and in the future. Outsourcing has become a way for small businesses to make good use of resources. The current philosophy in business is to save money by getting the right people to do the best work while creating a streamlined process for everyone that works well and helps grow the business. There are five reasons why small businesses should investigate outsourcing as a pathway to create advantages over their competitors and as a good business model of practice.

Define and Use Expertise

Small business owners can easily fall into the trap, like any business owner, of thinking they know all there is to know about their own business. To some extent, there is truth within that. The reality is far different, however, when looking at the grand scheme of things. The most likely scenario is that, while a small business owner may know lots about their own business, they may not know how to grow or scale up. Knowledge about the inner workings of a product is only one piece of the puzzle. Learning search engine optimization (SEO), social media marketing, or any number of things that are not in anyone’s wheelhouse, might take more time than it is worth. Consider doing one of two things:

  • Outsource
  • Train other employees

Small business owners need to maximize productivity and keep costs down, as a baseline. Training a marketing team to take on digital content can bring more challenges and take more time than it is worth. It helps to ask whether it is worth hiring outside people to help, how the current staff can handle extra work while holding a high standard of quality and whether it saves the company money. Outsourcing is typically cheaper than training existing staff outside their area of expertise or hiring new people and training them. Don’t sacrifice quality and time if outsourcing can do the job more efficiently at less cost.

Streamline Everything

Outsourcing can help get rid of existing inefficiencies in a small business. Maximizing resources and staff will help the business grow more than keeping people on staff who are not helping things grow. Business can develop ways of doing things that don’t make sense without realizing. The approval processes in place may be redundant, or too many people are involved in making simple decisions, and even departments are not functioning at optimal capacity. Payroll companies, for instance, can make sure everything gets done in a timely manner and optimize time and resources for small businesses.

Cost Efficiency

Being strapped for cash as a small business can really weigh down productivity and growth. The focus of a small business should be on reducing costs and minimizing risk. Outsourcing supports firms and businesses with their dedication to one area of expertise and often offer better prices than doing it in house.  Making the best use of resources (time, money, and personnel) is key to growing a small business.


opt in, opt out

Trusting others is the key to growing and scaling any business. Putting trust in employees is the only way a business owner can get everything done that has to get done in a timely manner. Getting stuck on the hamster wheel will just make it harder to get off without causing more issues. People can feel micromanaged when they are not able to do their job efficiently. This can lead to high turnover and distract from doing what a business owner is best at in their business. Outsourcing can help maximize efficiencies and put the company in a great position for growth in the future with the right people in place.

Productivity Matters

Outsourcing is not always cheaper. The best way to double check is to run a cost-benefit analysis. Money is everything in business, and small businesses need to be more concerned than most, just to be sure they stay on track. Some things to consider:

  • If it costs the same or less, do not outsource
  • If it costs the same or more, consider outsourcing
  • Some exceptions exist for when cost is higher, depending if it saves time (time is money)

Overall, it depends on the company and employees, but it helps to look at who is doing the work and how long it will take versus what it will cost to outsource. It can help to hire out for a project versus an entire operation and see if it makes financial sense, but only after doing a cost-benefit analysis. Otherwise this can waste needed time and money, also.

Get Growing

The benefits of outsourcing are that it helps the company grow and can save money down the road. Aside from that, it really depends on the business and their needs. Start by identifying the functions that take up time and money and see what it would take to reduce cost and maximize time. The benefits may seem short term now, but they can grow a company into a stronger business with the right processes in place, with or without outsourcing.


Read more relevant blog post: How to Launch a Startup and Keep the Cash Flowing in 5 Easy Steps