Running a modern business is far from easy. Competition is at an all-time high (even during a pandemic, online companies are still thriving), and there are so many elements that business owners must factor in if they’re to achieve any meaningful success. Too many for even the most adept entrepreneurs to handle everything themselves — far too many.
The classic method of resolving this bottleneck is hiring in-house staff. If you need copy written, you can hire a copywriter. If you need some graphics designed, you can hire a graphic designer. But that isn’t the only option available to you if you’re eager to build your business but don’t have the time or skills to do everything yourself. You can also turn to outsourcing.
In fact, I suggest that you do — and in this post we’re going to see why. Allow me to set out the core reasons why outsourcing is the key to modern business success:
It can massively drive down your costs
Expanding your team through conventional means can be a great long-term investment, but it can also cause more problems than it solves. Do you have a long-term need for certain skills, or are they only useful to you intermittently? If it’s the former then it’s probably worth hiring people to add them to your baseline. If it’s the latter, though, then full-time hires would be wasteful. You would end up paying them consistently but only occasionally having work for them to do.
Outsourcing such tasks allows you to save a lot of money on payroll. You can hire a freelancer or agency when you need them, and stop paying them when you don’t. But that’s not all. In certain cases, you might indeed need the full-time provision of skills or services without wanting to spend what it would take to bring them in-house.
A great example is the fulfilment side of retail: even if you run an online store, you might prefer to avoid the massive infrastructure investment required to stock, package and ship products. Using an outsourced fulfilment method such as dropshipping or FBA, you can add take care of it on an ongoing basis without needing to change your internal operation.
It gives you incredible operational flexibility
In addition to saving you money, outsourcing can greatly improve the flexibility of your operation. Suppose that you suddenly decide you want to invest heavily in content marketing as a fixed-term test: you’re not convinced that it’s something you should be doing all the time, but you’re eager to see what kind of ROI it can drive for you.
In that scenario, should you hire a full-time content marketing team complete with writers, designers, PR professionals, and other relevant industry experts? Since you’re just trying to gauge the usefulness of the tactic, that seems like a terrible idea. Instead, you can simply outsource the process: you can find freelancers to handle set projects or pass the entire thing to an agency that provides a content marketing service.
If it works well, you can keep the ball rolling, and potentially start drawing up plans for one day making it an in-house facility. If it doesn’t work well, you can discontinue the effort and move on without having to deal with various employees who are suddenly surplus to requirements.
It minimises the need to invest in training
It can be extremely costly to fund a regular employment offer to a skilled and experienced professional, sapping your budget. The typical alternative is to hire for talent and potential instead of skill and experience — and this can work out extremely well, except it requires you to take charge of handling the development of that new hire (shaping them into an expert).
This training process can take a long time and be extremely laborious. When you have work that urgently needs to be done, though, waiting might not be an option. Outsourcing allows you to hire someone with the key skills without needing to pay a full salary. They can get to work right away, and they’ll be well-versed in dealing with new clients (ensuring smooth progress).
Now, this isn’t to say that it’s a good idea to avoid investment in training, because it isn’t. To whatever extent you can, you should continue to assist any and all of your employees with their professional development — your business will benefit from the improvements, after all. In fact, you can hire for talent, invest in training, and lean on outsourcing while those employees learn the ropes. That can be a very effective way to proceed.
There you have it: three huge reasons why outsourcing is the key to modern business success. If you’re not making good use of it at appropriate times, you’re leaving a fantastic tactic on the table. Take a look around to see what freelancers and agencies are available to you, then think carefully about how you might take advantage.