Across the United States, 33.3 million businesses can be categorized as a small business. These businesses make up the bedrock of the country generating employment and contributing to economic stability. However, in a rapidly evolving economic environment, it can be difficult for small business owners to keep up.
This is where outsourcing can be incorporated into your business growth strategies. Outsourcing plays a pivotal role in small businesses by reducing overhead costs and enhancing their talent pool. Let’s go through the benefits of outsourcing for small businesses looking to achieve growth and stability!
Cost Reduction
Financial management is especially important for young companies and proper allocation of your funding capital can ensure survival and lead to business growth. Labor is the largest cost for most businesses, taking up 70% of spending.
Offshore outsourcing allows you access to the talent pool of countries with lower labor costs. On top of that, you can significantly cut back on overhead costs as wages, office rent, and equipment are handled by your outsourcing provider. They also handle the vetting, hiring, and training of their employees so you can rest assured that you get the best team to match your needs.
Access to Talent and Resources
A company’s growth relies heavily on the skills and dedication of its team. It’s always in a company’s best interest to invest in growing your talent pool. However, this is a time-consuming process that small businesses can’t always afford. Outsourcing provides these businesses with a means to level the playing field for a fraction of the cost of an in-house team.
An outsourcing provider will match you with a team that is well-equipped and specially trained in the services you hired them for. They also establish KPIs to help you identify which aspects of your growth strategies are working effectively. On top of this, outsourcing providers also invest in systems that both protect your data and security which is beneficial for young companies who can’t afford to just yet.
Flexibility and Scalability
A problem that small businesses face when they’re expanding is the inability to keep up with market demand. This highlights the importance of outsourcing as it allows you to scale your operations up or down depending on what your business needs without additional costs. This also allows you to build up your resilience to fluctuating market demands by giving you time to solidify your core competencies.
Focus on Core Competencies
It’s important for a small business to recognize what they can do best and outsource the rest. This loosens the strain on your in-house team and empowers them to take on more leadership roles. An outsource team is specially trained by experienced leaders to handle non-core tasks that aren’t directly contributing to your bottom-line.
This allows business owners to focus on business growth strategies without compromising the quality of their service. With an outsourced team, you can expect faster turnaround times, fewer mistakes, and an overall better experience for your clients, which can all strengthen your competitive advantage.
What to Look for in an Outsourcing Provider
The best time to outsource will vary for each company, but when you do, here are some things to consider:
Proven Track Record. A great outsourcing provider will have evidence-based solutions and a remarkable track record with references that can back it up.
Industry Expertise. Your chosen outsourcing provider should place priority on their quality of service, the skillset of the employees, and how they compare to other vendors.
Cultural Fit and Compatibility. Look for an outsourcing business whose values, work culture, and communication styles align with yours.
Discover how outsourcing can help your small business grow. Consult with FGC+ for expert analysis and end-to-end support at www.fgcplus.com!