How Outsourcing Can Save Your Business Money
by Arina Smith Business Development 08 December 2020
Business owners will always be looking at ways to save money in their companies. Saving money means higher profits, and that means a better chance of finding a good investor, should you want one. It also means more paid out in dividends and a generally more successful business. The more you can make and the less you can spend, the better. So of course, if an opportunity presents itself, a business owner is certain to consider it at least.
Outsourcing might not, at first, appear to be much of an opportunity to save money. If anything, it costs money, since you will need to pay for the work and expertise of a third party. Yet business owners shouldn’t be so quick to dismiss it entirely out of hand without delving a little deeper into the details. It might be that, given the right circumstances and the right planning, outsourcing can be a great way to save your business money. Read on to find out more.
The more your business grows, the less you will be able to do everything by yourself. If you try to, you will become overwhelmed, or you’ll have to limit what you can do, which will, in turn, limit the amount of money you can make.
This means that, eventually, you’ll need to take on staff. This is a huge expense. Not only do you have to pay their salaries, but you need to pay taxes, benefits, provide them with equipment, train them, and the cost of hiring (especially if you go through a recruitment agency) is enormous too.
Although you may still need to hire some staff, outsourcing smaller roles, or those that would be part-time, can be an ideal way to save money. You will only have to pay if you use the service, unlike if you hire someone and you have to pay their salary even if they don’t have much work to do. Plus, with so much available to be outsourced, including your accounts, marketing, even virtual services such as call answering, you may even be able to run your entire business in this way. Make sure you do the math first and if it’s going to save you money, go ahead.
When you choose to outsource some of your needs when running a business, you’ll be hiring people who are absolute experts in their field. Whatever it is you need them to do will be the one thing they do all day, every day. You can be sure that the work you’re outsourcing will be done to a very high standard by people who have a lot of experience, training, and qualifications. This can even enhance your business, with customers and clients knowing they’ll get high-quality goods and services from you.
What it also means is that you don’t have to invest any time or money into training your own staff. Even if you hire someone who knows a lot about the particular area you need them to work in, you’ll still need to teach them exactly how your business works and how you want them to use your system. If you do this yourself, it will cost you time that you could be using to better the business in other ways. You might even lose money because of it. Plus, there will be ongoing training needs to be met to ensure your employees are fully up to date.
Outsourcing means you can leave the work to someone who is already an expert and not lose out on any business because there is no training involved.
As a business owner, you cannot allow yourself to get distracted; you must stay as focused as possible on building your business and making it the best it can be. If you have multiple different tasks to carry out, your focus is going to be split, or even lost altogether. It could even be that, if you are multi-tasking, you are being much less productive than you need to be, causing you to fall behind on orders or give poor customer service (both of which will lose you money at the very least, and your good reputation at worst).
You should make a list of all the things you do in your business that you don’t enjoy, that take up too much time, or that you aren’t so good at. These are the things that, if you were to outsource them, would allow you to focus much more on the important elements of a business that make a difference and will grow the business into a much more successful one. Although you’ll be spending money on outsourcing, you’ll be making money because you can get so much more done, and to a much higher standard.