Running a business is a lot of work – even if the business is just a startup or a small business that caters to a niche audience in small volumes. You’re going to find that you need to accept help at some point or another. Sure, many business owners are protective over their work, their products and their business, as they want to maintain control over it. But one person can only do so much. You can’t specialise in every single area and have in depth knowledge of every single expertise. Now, you have two options to choose from when it comes to accepting help with your business. These are hiring full time staff who will be employed by you and work solely for your company or outsourcing. Now, the first is a good option if you have the stability and money available to pay a consistent wage and employee benefits to these individuals. This can include annual leave, sick pay, pension contributions, the list goes on… If you’re a start up, however, outsourcing can tend to be a better option. You might not have the money available to consistently pay wages or other costs that come hand in hand with employees. For now, let’s focus on outsourcing. Here are a few suggestions that can give you further information and make the decision as to whether this is the best option for you and your business.
What Is Outsourcing?
Let’s start out by defining what outsourcing actually is. When it comes down to it, outsourcing is a business practice that the vast majority of businesses engage with. When you outsource work, you hand it out to be completed by a third party, rather than doing it yourself or hiring someone to do it in-house. Generally speaking, this third tends to be a freelancer or an agency (who will hand the work out to their own staff or freelancers who regularly work for them). You can outsource SEO work to https://tessa.tech/northern-virginia-seo/seo-services-northern-virginia/, product photography to a photographer, web work to a web developer or web designer. The list goes on.
Reasons to Outsource
There are countless reasons that different businesses outsource. Here are a few reasons that may or may not apply to you and your business.
- Low commitment – outsourcing tends to be a low commitment venture. When you hire an employee to work for you, you are committed to paying they a monthly salary, as well as other benefits, such as pension contributions, annual leave, parental leave, compassionate leave, sick pay and more. When you use outsourced services, you agree to providing them with set projects and nothing more.
- Low cost – as you can imagine, outsourcing can prove to be lower cost than hiring a team member. You don’t have to pay the benefits above and you can also find low cost services out there too.
- Machinery and equipment – freelancers, agencies and other companies tend to have the equipment or machinery they need to complete a job. When you use their services, you don’t have to buy that equipment or machinery yourself. This can greatly reduce costs on your part. For example, if you need goods manufactured, outsourcing means you don’t have to rent out a factory space, hire factory staff or buy the manufacturing equipment or machinery, which tends to be extremely costly.
- You can save even more cash if you outsource to professionals outside America, especially if the task is product development. This reality is because it is more affordable to produce in countries with cheaper labor, and these nations typically have the best-specialized machines for mass production. As such, these countries produce in large quantities, resulting in low production costs and competitively priced products that outshine their alternatives on the market. However, it is worth mentioning that outsourcing and getting an excellent product development partner abroad is not always a walk in the park. As such, it is best to rely on a trusted sourcing agent to help you find top-notch manufacturers in their home countries to handle your production needs.
Hopefully, some of the information above should help you to determine whether outsourcing will work for your business!