Home Articles Sick of expenses? Outsourcing is the magic pill for you to swallow

Sick of expenses? Outsourcing is the magic pill for you to swallow

1

Let’s get straight into it, what the heck is outsourcing? Outsourcing basically allows businesses to save their investment by cutting off their over-head costs.

The advent of outsourcing certainly shook up the playing field everywhere. Poor countries suddenly had a chance to take a bite into the wealth of the richer ones fall into their unlike previously where the money was flowing in one direction… and, thankfully, I don’t mean the band.

Now, attention is generally focused on the large scale kind of outsourcing that is, gigantic BPOs and call centres all over the place. Only a few actually realise how small businesses can have a piece of this pie… a sweet one at that!

In fact, most businesses are just starting to realise how lucrative this strategy can be, especially if you are low on capital and limited in resources. The truth is, that despite the ever-looming potential setbacks, outsourcing will work wonders for any businesses, regardless of its nature and size, only and only if well managed.

So, what is the small scale outsourcing all about?

Outsourcing on a small scale basically means you procure the services of a skilled individual who you can pay on either per function, per project, per need or on an hourly basis, whatever works for you! These services will often fall in administration, I.T, research, marketing and writing.

Why consider small scale outsourcing?

Savings! Who doesn’t love to save up some extra cash? This strategy allows you to save on labour, operational overheads and taxes, all at the same time! What’s more, if you outsource the less important work to a contractor, your internal staff will have more time on their hands to concentrate on the important stuff and get it done.

However, sometimes it could be the other way round. Your internal staff could be unable to handle certain tasks which you only need handled once in a while. Legal work and bookkeeping are good examples of this.

Outsourcing comes to the rescue yet again because paying on a per-need basis is definitely cheaper than hiring a full-time employee. Just imagine how much it would cost you to employ a full-time lawyer.

Can outsourcing help a start-up business?

Traditionally, when starting a business, you would set aside some your investment to set up a physical office for all your employees. Bear in mind that there is a required security, sanitary and safety regulation in an office fit-out as mandated by local and national government. Observing all these regulations will take a major hit to you start-up capital.

So, you have secured office space; now you have to spend on office furniture, computers, phones… the list goes on and on!

Did I mention that there is a standard employee salary structure, including the mandatory benefits, insurance and government taxes that you have to adhere to or, land in jail? And this is just starting up, maintaining all these expenses will not be cheap either.

Outsourcing could very easily cut your start-up expenses by as much as 75%. Yes, 75%.

Actually, you can even totally eliminate the need for an actual office. Many businesses successfully operate in their basement while managing a virtual office.

With just your laptop and a reliable internet connection, you can practically do business on your couch!

Finally, with the huge number of professionals and contract workers that can perform various tasks online at an unimaginable rate, there is simply no reason not to consider using this strategy.

Image by e-MagineArt.com

Get unlimited access to our FREE business tools…

Need to raise capital? Want to become a more persuasive presenter? Want to master social media? Is it time to overhaul your website? Unlock the library to get free access to free cheat sheets and business tools. Click here for free business tools.