Small businesses make up a large part of the economy. There are 70,000 registered startups and homegrown businesses registered in the United States. They play an important role in the economy, as they provide jobs and steady income: 46% of working individuals are actually employed by small businesses!

Small businesses can thrive in their respective industries, as long as you manage them well and make the right decisions. When wanting to grow a business, however, growing pains are unavoidable. Small, growing businesses experience rising demand, which can take a toll on those not yet equipped with the resources to meet the demands. Most of these issues manifest in problems like staff shortages, lack of customer support, and cost issues.

If you’re a small business owner who aims to grow your company, those challenges can be solved with adequate staffing and planning. With that in mind, outsourcing provides a worthy solution to the most common problems facing small to medium businesses.

Benefits of Outsourcing for Small Businesses

There are plenty of myths surrounding outsourcing, and the most common one is that only large corporations can make use of this strategy. That’s not the case these days! Even small-town businesses, family-owned ventures, and startups can make use of outsourcing. There are even outsourcing agencies that cater exclusively to small businesses. Here’s how they can actually improve small to medium businesses:

Access to Specialized Support and Expert Talent

Aside from being a cost saver, outsourcing allows you to hire people from beyond your neighborhood. You can hire experts from the other side of the world with specialization in the particular job you need to be filled.

Lessen Staff Turnover

Staff turnover is a concern no matter what business you’re in, with the employee turnover rate in the U.S. being 57% as of 2020. Employees leave for various reasons, and as a small business, you’ll also have your fair share of people coming in and out. Although this is a natural phenomenon, too much turnover can impact your business, as you’d have to train new people and find time to hire for vacated roles. Outsourcing can be one way to mitigate these problems. You no longer have to worry about employee turnover, as your outsourcing agency will ensure that your team is always staffed with talent. Aside from that, training new people and finding replacements can be handled by them as well, so you have time to focus on your core competencies.

Lower Wage Costs

When outsourcing, you pay only a contractual fee with your outsourcing agency. The expense can vary depending on the headcount you employ, but it can mostly lessen the cost than you would in-house by up to 70%.

Reduce the Need for Infrastructure

When you outsource a dedicated team, you no longer need to spend on large infrastructure. No need to construct a large office or rent a building, as your remote team can work at an office provided by your outsourcing provider. At most, you’d only need to spend for a space for your core business and your in-house team.

Reduce Overhead Costs

With the lessened need for infrastructure costs, the cost of overhead can be reduced as well. This includes the cost to maintain the office, technology and equipment, utilities, and transport costs, if applicable to your business. Certain outsourcing companies provide internet and equipment for the employees you outsource, reducing your spending on these things overall.

Round-the-Clock Support

For growing businesses, extending customer support is significant to improve relations with repeat buyers and potential clients. Adding support to cover business hours and even beyond closing time can be practical and quite easy to implement, thanks to a dedicated team.

In Conclusion

Outsourcing can be the catalyst for small businesses to grow and succeed. Use outsourcing to solve staffing problems, hire experts, reduce costs, and achieve round-the-clock support. By targeting these points, you can achieve sustainable growth for your small business.

FGC+ can be your partner in outsourcing. Learn more about what we do at our website: