Outsourcing is an efficient way for businesses to benefit from third-party resources and save money in the long run. Yet many companies are hesitating when it comes to handing over a portion of the workload. In many cases, this is because there are several myths about outsourcing. For example, some businesses might assume they’ll sacrifice quality or that international vendors are less knowledgeable than their stateside counterparts.
A famous management consultant named Peter Drucker once said, “Do what you do best and outsource the rest.” This simple sentiment is important for modern businesses to understand. And with that in mind, here are a few signs that your startup organization should outsource some of its work:
The Necessary Skill Set is Very Niche
Certain tasks you’ll need to be completed will be very niche in nature. For example, if you run your own radiology practice, you might want to outsource your radiology billing service. In the healthcare industry, the vast majority of offices delegate billing tasks to third party organizations. Why? Because healthcare billing is complicated and requires a whole new subset of tasks, and most offices would rather focus on the healthcare aspect of the business, rather than bring on an entire team of in-house medical billing professionals.
This same concept can be applied to many different niches and specialized areas. As another example, many businesses outsource their search engine optimization to SEO agencies. This is primary because building SEO is a lengthy process, and with ever-changing Google algorithms, it requires full-time dedication. For many companies, having an in-house SEO team isn’t feasible from a financial or logistical standpoint. Any time you require the use of services that are very specific, it might be best to outsource.
You’re Pressed for Time
Startup organizations are constantly juggling a handful of tasks at once. Each day, you might find your task list growing larger and larger. Soon enough, you’re tight on time and hard-pressed with deadlines. To add insult to injury, you might be short-staffed. Hiring someone quickly isn’t always the best option; bad hiring mistakes often stem from rushed hiring, and hiring wrong can have a major impact on the company’s bottom line. When you find yourself rushing to meet goals and milestones, it’s time to outsource. You can outsource simple administrative tasks with a budget-friendly virtual assistant, or you can even outsource design tasks on an as-needed basis.
You Need to Save
It’s no secret that the majority of startups are working on lean budgets. This is the nature of the startup world. When you outsource your work, you have the opportunity to benefit from a variety of cost efficiencies. For instance, outsourcing your manufacturing overseas can shave a major portion of your overall spend. When you outsource to an agency or freelancer, for example, you benefit from the expertise of an entire organization and have much less overhead costs than you would with a full-time hire. Bringing a new team member on board before you have the funds to support them can be counter-intuitive. They take up resources, come with a variety of expenses, including healthcare and vacation time, and will need to be trained.
You Need Fresh Ideas
Every startup team reaches a point where the fresh ideas start to run dry. This is a natural part of the ideation process. Your employees might also have a tough time thinking outside the box. Hiring freelancers is a great way to help infuse some new ideas into the business from an outsider’s perspective. Sometimes, when you’re in the same situation for so long, it becomes difficult to look at the bigger picture. This is where other people can step in and look at the dilemma from a different angle, helping you come up with new ways to deliver again and again.
You Need Seasonal Tasks
With the holidays approaching, you might need some seasonal tasks to be completed. For example, perhaps on Christmas you want to spearhead a Christmas marketing campaign, complete with social media advertisements, PPC ads, and email marketing. In this case, you might want to work with an outsourcing agency to get your strategy going. These one-time helpers can be hugely beneficial when you want to put together an event or create a seasonal project that requires a heavier workload than you can handle.