Small businesses make up a large part of the US economy.
In fact, 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.
The benefits of outsourcing for the small business
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:Â
Achieve specialized support and access to expert talent
Aside from being a cost saver, outsourcing gives you the opportunity to hire people from beyond your neighborhood. You can hire experts all the way from the other side of the world with specialization in the particular job you need filled.Â
Lessen staff turnover
Staff turnover is a concern no matter what business you’re in, what 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. Using outsourcing can be one way to mitigate these problems. You no longer have to worry about employee turnover, as your outsourcing agency will make sure that your team is staffed with talent at all times. 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.Â
Lower wage costs
When outsourcing, you pay only a contractual fee with your outsourcing agency. The expense can vary depending on the head count you employ, but it can mostly lessen the cost than you would in-house by up to 70%.Â
Reduce the need for infrastructureÂ
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.Â
Reduce overhead costs
With the lessened need for infrastructure costs, the cost for 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 spend for these things overall.Â
Round the clock support
For growing business, 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.Â
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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.Â
FGC+ can be your partner in outsourcing. Learn more about what we do at our website: www.fgcplus.com. Â
