Even Small Business Might Need to Outsource
One of the clichés of small business owners is that they try to do everything themselves. It’s natural to think that since you’re the boss, you can handle just about any task.
However, most of the time there are tasks—both big and small—that would be best left to other professionals. Think about tasks that are so time consuming, they sap your energy to deal with business activities that you’re actually good at.
Thanks to technology advances, it’s easier than ever to outsource certain tasks. A number of online marketplaces let you find contractors across the country—or around the world—with the expertise you need.
Outsourcing can have several benefits.
You can focus on your core business.
Outsourcing can help you concentrate on revenue-generating activities instead of those that take you away from them.
You can start projects immediately.
Launching a new initiative in-house might take weeks or months of planning, training and support. If the project involves some sort of production or distribution, it might be months before you can get a facility up and running on your own. An outsourcing firm can have those resources ready to go immediately, cutting your project times considerably.
You can work more efficiently.
By doing everything in-house, you incur higher research, development, marketing and distribution expenses. Your prices will naturally be higher since you’ll need to pass on those costs to customers. But by outsourcing, you can reduce your costs by tapping into an outside company’s economy of scale and stay competitive.
What to Outsource
Here are four areas you may want to consider outsourcing.
Accounting needs to be done right or else you and your business can have difficulty forecasting revenues and costs or, worse, run into problems with tax authorities. A good bookkeeper can give you a quick handle on how well your business is performing each month. An accountant can help you look for tax saving opportunities.
Media tends to be fragmented and it’s hard for one person—especially someone who is not a media expert—to determine the best channel to market your products and services. Outsourcing the marketing function can allow you to tap experts in each area, stay abreast of the latest trends and access technologies you might not otherwise know about.
There are online graphic design tools aplenty for business cards, presentations or even websites. But working with a talented graphic designer gives your materials a polished look that a computer can’t replicate.
Payroll and human resources
A payroll company can make sure you stay in compliance of payroll and personal income taxes and relieve the burden of reporting. Meanwhile, outsourcing your human resources management helps you access experts in recruitment and labor compliance. Your HR manager can also help you navigate the complexities of the Affordable Care Act, a law with a big impact for employers.
Of course, as a small business owner, you must stay involved in your company’s affairs. However, it can make a big difference if you can focus on your passion and vision while leaving administrative and other day-to-day tasks to others who have expertise in those areas. After all, you started your business to pursue your dreams, not get bogged down in distractions.
This blog does not provide legal, financial, accounting, or tax advice. This blog provides practical information on the subject matter. The content on this blog is “as is” and carries no warranties. ADP does not warrant or guarantee the accuracy, reliability, and completeness of the content on this blog.
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