Thanks to the Internet, most of us outsource tasks regularly without even realizing it.
For example, you may be using QuickBooks Online to handle your accounting functions, Hootsuite to manage social media posts, and Google AdWords to create and measure campaigns. Most small businesses lack the resources to build their own billing or payroll functions, so they rely on outsourced software to get the job done.
While these are only a few examples, outsourcing is a common way for organizations to leverage resources without investing in a from-scratch or in-house solution. It’s not just software that we outsource, either. Companies today outsource everything from their labor pool (freelancers or contract/staffing workers) to their IT security.
When companies can’t afford to add these resources permanently into their infrastructure, outsourcing is a great solution. One of the big benefits of outsourcing is the financial savings. This article will show you four ways outsourcing business functions can save you money.
Lack Small Business Funding? Outsourcing Can Cut Costs
Outsourcing uses an outside vendor or another external resource to provide a service or function to your business. It’s a popular alternative to hiring a full-time worker. The data proves that outsourcing saves money. If your company lacks the small business funding necessary to handle a particular function, the chances are high that outsourcing to a product or service provider will help you stay competitive. Here are three outsourcing examples that can save you money:
- Labor: If you can’t afford a full-time employee to do a particular job or provide a service, it’s less expensive to hire a contract, freelance, or temporary worker. Many staffing companies handle the cost and hassle of payroll costs. Or could a freelancer do the job? You can save healthcare and payroll costs with a 1099-worker.
- Software: We mentioned QuickBooks Online earlier as a software-as-a-service (SaaS) solution to manage your accounting and payroll functions. Software is a common outsourced tool for business processes, allowing small businesses the same tools as enterprise organizations.
- Business Tasks: If you don’t have the time or resources to handle marketing your products and services, there are dozens of solo and consulting firms available to provide this service. There are content writers, social media experts, and even firms that provide workers to staff events. Using these outsourced resources allows companies to continue focusing on their core business while trusting external resources with the expertise to get the job done.
Outsourcing can cut costs for small business by:
- Increasing the efficiency and effectiveness of business processes. Instead of taking the time to learn a new skill, just call on an external expert who already knows what they need to do.
- Lessening upfront costs associated with purchasing software, equipment, or hiring a new employee.
- Cutting costs on recruitment, orientation, and training.
- Allowing you to staff up at peak times without adding permanent overhead that you’ll regret when times get lean.
Benetrends is an outsourcing partner for the business seeking small business funding and 401(k) funding. We have the expertise to partner with your business to keep cash flow running smoothly. Talk with our team today about how we can help your business.
If you’re interested in Benetrends’ funding solutions, download The Definitive Guide To 401(k)/ROBS Business Funding today.