Many small businesses face obstacles that can impede their progress in the competitive world of business due to limited resources. However, entrepreneurs can triumph over these difficulties by embracing outsourcing. By outsourcing finance tasks such as reporting, profitability increase, and budgeting, small businesses can experience significant benefits. This blog post will explore the advantages of outsourcing and explain how small businesses can save time and money.
To better understand the advantages of outsourcing over hiring employees, we asked six successful founders and CEOs to share their experiences. From limiting distractions and saving money to accessing a broader talent pool, these leaders reveal the key reasons and benefits behind their outsourcing decisions.
- Limiting Distractions and Saving Money
- Access Specialized Skills, Reduce Costs
- Optimize Resources for Efficient Work
- Flexible, Cost-Effective Design Outsourcing
- Avoid a Long-Term Commitment
- Access a Broader Talent Pool
Limiting Distractions and Saving Money
I run a digital marketing company, and digital marketing is what we’re good at. At one point, we had some additional data analytics work that we needed to do. We could have done it in-house, but it was outside of my firm’s (and our staff’s) core competencies.
We made the decision that it was better to outsource this to a true professional and let us keep doing what we’re best at. Doing this ourselves would have just been a distraction. Outsourcing this task allowed us to maintain our focus. The person we outsourced was so much more efficient than we could have been, which ended up saving us money.
Temmo Kinoshita, Co-founder, Lindenwood Marketing
Access Specialized Skills, Reduce Costs
One reason our company opted to outsource a specific task instead of hiring an employee was to tap into specialized expertise and cost-effectiveness. Research shows that 59% of organizations outsource to reduce costs, while 57% outsource to gain access to skills not available in-house.
In our case, we needed to develop a mobile application for our business, but hiring an in-house developer seemed financially burdensome. Instead, we outsourced the project to a reputable software development agency with a successful app development track record.
This decision saved us significant costs in terms of recruitment, onboarding, and training while ensuring we had access to a team of experts dedicated to delivering a high-quality product. The outcome was a successful mobile app launch within the agreed timeline and budget, empowering our organization to enhance customer engagement and drive revenue growth.
Himanshu Sharma, CEO and Founder, Academy of Digital Marketing
Optimize Resources for Efficient Work
One of the key reasons we have outsourced specific tasks, such as web development, is to leverage the expertise of professionals who possess specialized skills that our in-house employees may not have. For these types of jobs, efficiency is crucial, and outsourcing allows us to ensure that the work is done effectively and in a timely manner.
By establishing strong relationships with experienced experts in the field, we can confidently outsource small, non-recurring projects, rather than assigning them to our internal team. This approach allows us to optimize our resources and focus on our strengths while benefiting from the specialized knowledge and efficiency that outsourcing brings to the table.
Loren Howard, Founder, Prime Plus Mortgages: Hard Money Loans
Flexible, Cost-Effective Design Outsourcing
One key reason we outsourced a specific task was for the design aspect of pitch deck creation. While we handle much of the process internally, we recognized the need for specialized designers to enhance the visual impact of our decks.
As former investors and founders, we have deep knowledge of pitch deck content but lacked extensive design skills. Hiring a dedicated designer would require a significant volume of work, which wasn’t feasible because of business volatility and the relatively minor role of design in our overall process.
To overcome this, we turned to freelance platforms like Upwork and Fiverr. Outsourcing to talented designers on these platforms allowed us to maintain high-quality design while remaining flexible and cost-effective.
Rafael Sarim Özdemir, Founder and CEO, Zendog Labs
Avoid a Long-Term Commitment
One key reason we choose to outsource specific tasks instead of hiring employees is to access specialized expertise. For example, if a company requires a specific technical skill set or knowledge for a temporary or one-time project, outsourcing to a specialized service provider or contractor can be more cost-effective and efficient.
By doing so, the organization benefits from immediate access to expertise, without the long-term commitment and overhead costs associated with hiring a full-time employee.
Outsourcing allows flexibility, scalability, and the ability to tap into external resources to meet specific project needs, enabling the organization to focus on its main strengths and achieve desired outcomes effectively.
Vikrant Shaurya, CEO, Authors On Mission
Access a Broader Talent Pool
Our company outsourced a specific task instead of hiring an employee to gain specialized expertise and access to a broader talent pool. In our case, we needed to develop a comprehensive digital marketing strategy to expand our online presence and reach new customers.
While we had a capable in-house marketing team, they needed more specific expertise in digital marketing techniques and tools. Instead of hiring a full-time digital marketing specialist, we outsourced this task to a reputable digital marketing agency.
Overall, outsourcing the specific task of digital marketing has proven to be a strategic decision for our organization. It enabled us to tap into specialized expertise, access a broader talent pool, achieve cost savings, enhance productivity, and adapt to changing business needs.
By leveraging the capabilities of a trusted partner, we have been able to elevate our digital marketing efforts and drive significant business growth.
Sai Blackbyrn, CEO, Coach Foundation
In wrapping up this insightful exploration, it’s evident that outsourcing holds a wealth of advantages for small business owners. The seasoned perspectives shared by these professionals shed light on the diverse benefits – from keeping your focus intact to harnessing specialized skills. These experiences collectively emphasize how outsourcing can be a strategic asset.
As you journey through the world of entrepreneurship, take a cue from these pros and make the most of outsourcing. If you’re on the lookout for a solid partner to handle your finance and reporting, Check out our Finance Outsourcing. Let’s team up to outsource your finance and reporting tasks and pave the way for genuine growth and shared success.
Ready to dive in? Let’s go for it, together!
