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Pros and Cons of Outsourcing for Small Business

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If you’ve ever worked for yourself you’ll know how challenging it can be. One minute you’re wearing your finance hat, the next it’s sales, then you need to work on PR…too many things to do and not enough hands – this is where outsourcing can be of great help.

Working with a third party to help in some parts of your business has delivered great results to entrepreneurs for years. Considered by many small business owners as a lifeline in streamlining their activities, it promises to deliver valuable results in cost-efficient ways.

What’s In It for You?

Businesses nowadays are becoming more localised. With fierce competition right at the heart of your market, leveraging other people’s talents has a number of advantages that you might want to take into consideration.

Cost Reduction: Freelancers are responsible for their own Tax/National Insurance and there’s no holiday/sick pay etc either. Many freelancers will quote a fixed price or you can work with then on a flexible basis which allows you to focus start-up finances on your new business.
Focus on Core Competencies: No matter how good you think you are you simply cannot be good at everything.  Some things are best left to the experts. Entrepreneurs who have outsourced jobs for services like web development, Social Media, data entry, accounting, etc can dedicate their own time to the development of their business safe in the knowledge that key support activities are being undertaken by someone else. Which means: more time to concentrate, rationalise, reorganise, or restructure your business to grow in the industry and market where you belong.

What are the Pitfalls to Expect from Outsourcing?

Although renowned for its efficiency, as evidenced by the current surge in outsourced jobs, there are also certain pitfalls to be aware of.

Service and Quality: As with any professional you expect a certain level of service and quality. If you make the wrong choice when selecting your candidate or allow the individual too much control too soon then quality may be sacrificed, and this could mean a LOT to a small business. You might end up with dissatisfied clients and other issues that could spell disaster for your sales and profitability.

 

Personally, I’m a little nervous outsourcing out-with the UK. My concerns mainly surround intellectual property, data protection and privacy issues. But that’s not to say there are certain tasks that could easily be sent abroad, and if cost is a major factor and you need to save a few pennies then why not give it a go. But please make sure you have a very detailed brief so that the freelancer has something to work with and you both know what’s expected of each other.

There will always be drawbacks to outsourcing. But if you look closely, these are outweighed by the vast advantages and benefits it brings to your small business. Through outsourcing some tasks your business could eventually enjoy top-rated results at little cost.

Personal recommendation is the best way to avoid making a mistaker – it’s proven to be the best route to finding a suitable contractor.

We have several options available to business owners who wish to try our services so if you too want to join our every growing list of happy clients then please get in touch and we can talk through some options.