Saving money by outsourcing elements of your business

If you've made the move from solo contractor to small business owner, or it's something you're considering, a major difficulty can be keeping every aspect of your business ticking over. Finding the time and resources to do this can be difficult, especially on a limited budget.

But modern technology makes it possible to look elsewhere for various elements. So, let’s take a look at the ways in which outsourcing can help you streamline your business.

Freelancers

Do you need a hand with upcoming projects but you're not sure if it needs a full time employee? A freelancer may do the job. 

With services such as Upwork, you can quickly find a talented freelancer who can take care of a wide variety of jobs for you.

As a money saver, this is an exceptional choice as it saves you on recruiting costs. No talent hunting, interviews, and employment contracts to draw up. Just an up-front flat fee once they complete the job to your satisfaction.

Human resources

The reality is very few small businesses can afford a human resources department. It’s an expensive and complicated task, plus it’s also very time-consuming.

Outsourcing HR functions covers many of the cost saving, and risk reducing, elements of outsourcing as a whole.

But when you outsource HR, you’ll benefit from better business efficiency. Having a productive workforce is crucial for any business and HR plays an enormous role in streamlining your business functions and workforce.

An example includes if you’re on a tight budget, outsourcing your HR department to save on wages will keep monthly salaries down. 

But HR also ensures employee development. You can more easily manage your employees’ performances, reducing the workload of managers whilst helping to look for ways to make your business more efficient.

Control your cash flow

Outsourcing ensures you have more variable costs. In other words, you pay what you need to, when you need it.

We briefly touched on this in the freelancers section, but it’s particularly useful for cutting down on the costs of new hires.

But by doing this, you’re freeing up your money to put this into other projects. You can, in other words, invest in whatever you see fit to drive your business forwards.

Manage risk factors

Simply put, outsourcing manages the amount of risk your business makes. Instead of making new hires, taking on random new technology, or struggling along uncertain about the correct employment law procedures, you can turn to established experts.

If you’re outsourcing various important factors of your business, then you’re ensuring consistency.

If you suddenly lose an essential team member, for instance, you have to struggle on and hope for the best until you can hire someone else.

Or you can outsource. And whilst you have to pay for outsourcing, of course, in the long-term you gain significant ROI from all the issues it can prevent.

Outsource away from your core competencies

So, what should your business outsource to save money? To take full advantage of the cost-effective nature of outsourcing, you could begin with a full business audit (here’s a guide from HuffPost about how to do just that).

Once you have a good idea where your weak spots are, you can take a look at the appropriate outsourcing problems.

You may find some areas where you’re lacking (for example, monitoring your websites SEO, or producing regular blog content) require years of training or hiring a full-time staff member to solve.

Bookkeeping is another common example. Managing your finances is difficult going if you don’t know anything about finance.

It rarely is a core competency for managers and you can frustrate yourself if you’re attempting to take care of areas of the business you don’t have training in.

So, again, it’s about seeing where your weak spots are. Do these weak spots take up too much of your time? Are they stressing you out? Do they add extra burdens to your existing staff? Outsourcing can be the cure.

Leverage skills on your complete supply chain

Finally, outsourcing is a way to gain a better competitive advantage. You can compete with rivals more effectively if you’re functioning across all areas as a business.

So making the step to outsource will, initially, cost you money. But in the long-term, you have a much better chance of ROI and saving more money.