Many successful businesses outsource a variety of functions to professional service providers in their industry. There are multiple reasons why successful business owners find outsourcing helpful, including the ability to obtain better quality work, having more time for the owner to focus on other aspects of running their company and expanding services or products, and the fact there are fewer overhead costs from hiring employees or equipment for the tasks.
Although there are many things a small business could outsource, here are five main things a successful small business should consider outsourcing first. All of them are time-intensive.
HR and Payroll
There are about 28 million small businesses in the United States, and most of them have employees to some capacity. Having employees requires the ability to comply with employment law and care. A human resources department usually handles this, but a small business owner may not have thought about the hours and work that goes into this when they got started.
The benefits of outsourcing this function include having experts who may be available 24/7, freeing up time for the owner, reducing onsite staffing requirements due to new employee ramp-ups, and being able to expand the company size without needing to create a physical office space.
Accounting
Accounting is the process of identifying financial information, measuring it, and communicating the relevant financial results pertaining to a business. It includes everything from preparing balance sheets to handling payrolls tasks. Outsourcing this function can help save the business owner time managing the finances by getting outside expertise that eats, sleeps, and breathes all the various aspects of accounting. Not only that, but by handing this function to an expert, the owner no longer needs to stress out at tax time over whether or not the tax filings were done correctly.
Digital and Traditional Marketing
If an owner doesn’t market their business, they won’t do very well. Some businesses do better with traditional word-of-mouth advertising and others with digital ads.
Since marketing is such an important function for any business, it makes sense that some startups outsource this aspect as well. Some businesses might have an in-house employee do it, but 89.4% of businesses in the United States have less than 20 employees total. That means there may not be the help to do effective marketing on an ongoing basis.
It’s no longer just direct response advertising and hanging up necessary flyers. Today, there are articles to write for exposure, whitepapers that need to be written touting certain products, branding strategy to handle, web content, email marketing, and social media messaging to manage. It’s imperative that this function is delegated quickly.
Manufacturing
Unless a business proclaims that its products are handmade by a handful of local artisans producing one-of-a-kind pieces, manufacturing a product should be outsourced. The finishing touches on a product are very labor-intensive. Production efficiency needs to be a top priority for any business that produces physical products or tools.
Cleaning Services
Everyone needs a break. And no one’s more deserving than the person who works tirelessly to keep the business thriving. Outsourcing cleaning services relieve some of the burdens of keeping the physical office clean and sanitary, ensuring the office is spotless between clients – without any employees taking time out from their day for upkeep or worrying about supplies like cleaners or vacuum bags!
Some business owners may feel guilty about outsourcing this part, but they shouldn’t. One report shows that, in 2019, around 24.15% of facility managers and business owners outsourced their cleaning needs to a professional service provider.
Outsourcing any of these business needs will remove a load of stress. A small business owner shouldn’t hesitate to outsource these or other tasks. Considering outsourcing these things also helps combat burnout. This way, business owners can keep running their businesses successfully.