Don’t Ignore the Advantages Outsourcing May Provide Your Business
In today’s competitive #business environment, firms often launch without the full compliment of resources they may need to be successful. Oftentimes a startup venture or even an established company venturing into a new business lacks the full understanding of the skill-sets and manpower needed to take on a new opportunity. Startups as well as mature businesses are frequently grappling with the challenge of taking on a new client or project they hadn’t yet considered a possibility in their business existence.
That’s where outsourcing may offer a considerable advantage. Hiring outside firms to perform functions routinely necessary for the operation of any business gives the company access to a deeper knowledge base, greater efficiencies and a vastly reduced costs and risk exposure. As such, outsourcing helps to meet the kind of unexpected challenges businesses face every day. In particular, smaller companies or startups face the challenge to increase headcount fast enough with the limited resources they have available in their early stages. Outsourcing offers many strategic advantage, which makes it a wise business option for startups as well as small and large corporations.
Reducing Costs: Probably the most obvious advantage companies gain in outsourcing a variety of business functions is the reduction of operating costs. Startup companies in particular can’t possibly anticipate all of the economic challenges they’ll face in the launch of their business. Outsourcing key functions like information technology can turn fixed costs into variable costs, freeing up funds to meet demands that support revenue generation.
Salaried employees require training, benefits administration, employee management, which all come at additional costs. These additional fixed costs cannot be shifted to revenue generating initiatives like sales, marketing and inventory management. Outsourcing shifts the burden of these functions to a provider probably more adept at managing them, leaving the company to focus on key areas like sales and business development.
Managing Seasonal Shifts: One of the most challenging aspects of business management for many industries is staffing up for shifts in demand based on seasonal consumer activity. Increasing headcount to meet increased seasonal demand can be risky when you are relying on temporary personnel who may or may not actually have the skills to keep things moving along smoothly. Outsourcing to quality firms who manage the vetting process can save valuable time to meet the needs of a short seasonal burst and give your business the advantage it needs to vie with larger brands competing for the same seasonal dollars. Outsourcing daily administrative functions to virtual assistants during these peak periods, for instance, can free up time for key personnel to manage the influx of calls, clients and orders and keep sales at their highest when demand peaks.
Increasing Efficiency: Every business invests time and capital into research, marketing and development for their business. Outsourcing offers an opportunity to increase the efficiency of powering up for these processes by relying on a business dedicated to managing efficiencies for its clients. In the early stages of a business venture, this competitive advantage can easily mean the difference between surviving and not.
Decreasing Time: In every business time is money. Whenever businesses take on new projects and challenges, it often takes time to prepare for those challenges. Training and support times increase when these projects are handled in-house. Outsourcing offers the immediacy clients and customers often prize. For the customer, that immediacy may mean the difference in selecting your business or another.
Opportunity to Concentrate on Your Business: When you outsource business functions to a firm dedicated to a specific specialty, you give yourself time and resources to focus on your core business. This offers a distinct competitive advantage for the small and medium sized business looking to compete with the largest and most established brands. Your business will spend less time focusing on the trees and more time tending to the forest comprising your business’ revenue generating operations, and that is what builds a successful brand.
Reducing Risk. Any business exposes itself to a level of risk. Business competition, fluctuating markets, varying trends in Web development, change in technology requirements, as well as financial conditions can all change on a dime. These risks can be shifted so that the outsourcing business assumes the risk that these challenges pose, while the company can focus on core revenue generating functions.
Outsourcing firms offer a competitive advantage in that they tend to be ready and able to recognize and address these myriad challenges for themselves and their clients every day. Article was originally published on my Linkedin page in March 2015