Many people who start businesses have grand ideas of managing everything on their own, but this rarely lasts long. Running a startup is hectic, and the solution is to outsource! Making money is your core business goal, and anything that holds you back needs to eliminated. There are several signs that indicate you may need to outsource some of the duties of your business.
1. You do not have the expertise needed
Find partners who have experience in the areas where you lack the relevant knowledge. Look for collaborators who are professionals in what they do, and sell them on your vision. There will be many agencies vying for your business, so be discerning and weed out the undesirables. Scrutinize track records before hiring anyone, and go for the company most in line with your vision.
A survey by Quartz noted that 18% of startups fail due to lack of expertise. If you accept you do not have the necessary skills, outsource to someone who does, and you will be able to concentrate on what you can do. This is what will grow your business.
2. The business needs to grow as fast as possible
Hiring, vetting, and training staff is time-consuming, but your startup needs to grow as fast as it can. You want to be concentrating on the core purpose of your business, not taking time off to conduct interviews. This is one area where you can let someone else shoulder the burden.
It takes about a year for new hires to make a real impact. You also need to consider the time and resources used to hire them. Outsourcing allows you to be sure the process is in secure hands, and gives you flexibility because you can outsource on a need-only basis. When business is booming you can outsource tasks, and then downsize when demands are lower. Keeping your business flexible is the key to minimising costs, and ensuring growth.
3. You have no time
A study by Staples Advantage estimates that 40% of workers quit their jobs due to burnout. Burnout occurs as a result of having too many responsibilities piled on one, or a small group of people. Many startups will have only one person to do all the grunt work.
To prevent this from happening, it is a good idea to have a back-up system in place. This back-up will be the driving force behind creativity and production growth. If you couple your team with professionals who have experience behind them, they will be motivated to do their very best.
Having a team behind you that understands your vision, your short and long term goals, and supports you fully, can only be reassuring as you grow your company. If you have no time to solve issues that do not necessarily need your attention, it will be good to know they are in safe hands.
4. The startup cannot afford a full-time team
When you are running a startup, money tends to be scarce. According to Quartz, the failure rate of most startups is due to their running out of liquid cash. When looking for an outsourcing partner, find one whose rate is fixed. Thy should also have a clear policy on what they can deliver, and within what timeframe.
To lessen the risk of non-delivery, arrange to pay after the work has been completed. Recruiting and HR issues are handled faster and with less hassle if an outside team does them. There is also the advantage of transferring the work to a different team if your first choice does not work out well.
A startup requires constant attention and nurturing. You will have set goals, to be completed within a specific timeline. The more you deviate from this timeline by taking time away to do other things, the less realistic these goals become. You need more time to nurture the business, and give customers your personalized attention, so while you see to these needs your outsource team can deal with matters on the ground.
5. You will need to expand into new markets
You need to have time for expansion when the opportunity arises, or your startup may be growing at a rate you cannot keep up with. Outsourcing will keep pace with your expansion, and an outside team will have representatives who can concentrate on marketing, and acquiring new customers.
Outsourcing is not pegged to one particular task. The most commonly outsourced area is Information Technology (IT).With a growing business, you will need to put systems in place, and this can be difficult if you are not an IT expert. An outsource team will come in with their specialists, and set up a system that will work efficiently and save you time.
There are many advantages of outsourcing, including cost and efficiency savings. As your company grows, you will want to reduce overhead and operation costs to leave you more capital to reinvest. Operating a back office can be expensive, especially with expansion, but outsourcing takes care of that headache so that you may expand into new territory, knowing the issue is taken care of.
As your startup begins to take shape, it will become easier to decide whether or not to take on a small number of full-time staff. This will take time, so you may find you are better off having someone else deal with this task. Startups require you to be vigilant, otherwise you may find yourself spending more than you are earning. Outsourcing takes care of this issue, and lets you concentrate on dealing with other tasks without having to handle the mundane.
How do you use freelancers to bring a change to your company? Let us know in the comments below.