Outsourcing for Startups
Starting and even experienced entrepreneurs commit many business mistakes in their ventures. Some survived while others eventually folded. One of 5 most common mistakes mentioned by Startup Spark is trying to do everything.
If a task isn’t core to your business try and outsource it. Entrepreneurs are extremely fond of saying they wear many hats (which is true!) but there’s a limit to what’s reasonable in the hat-wearing department. Lots of things can be outsourced, and although you’ll be paying someone else to do the work, you’ll be freeing up precious time of your own. That time will be infinitely more valuable than the money you spend.
There are several benefits you can get from outsourcing some of your non-core business functions:
- More Focus on Your Core Competencies. If marketing is your core expertise, outsourcing sets you free from worrying about the accounting tasks and customer service management. This will give you more time to talk with your customers, tweak your marketing programs, minimize sales mistakes, and develop new products if necessary.
- Improves quality. Outsourcing groups have the expertise you do not possess. That will help improve efficiency and output of your business than doing it in-house.
- Lowers cost and reduces cash outflow. Outsourcing firms have the economies of scale to help bring down your cost. Also, you can stretch your dollar for most outsourcing firms are based in Asia like India and Philippines.
- Less labor problems. No over-complaining or lazy employees to worry about!
A very interesting reference on outsourcing is The Four Hour Work Week by Timothy Ferris.
