Many small business owners have heard so much about outsourcing but still want to get more specific and authentic responses to some questions on outsourcing. As a result, these small business outsourcing FAQs have been compiled with such small business owners in mind.
Q: What Exactly is Outsourcing?
A: Outsourcing is simply the act of hiring employees to handle specific tasks, but not in your business premises. In essence, you find the employers (freelancers), negotiate with them in terms of remuneration, and provide job descriptions plus outcome expectations for the task you want them to perform elsewhere.
Q: Is Outsourcing for Small Businesses?
A: Sure. In fact, small businesses tend to benefit more from outsourcing than big companies and big businesses. Many small businesses choose to use outsourcing from the onset to scale operations, increase production speed as well as entry time to market.
Expertise and experts (e.g. IT analysts, accountants, and administrators) that a small business won’t be able to afford in-house will become accessible and affordable through outsourcing strategy. And of course, outsourcing provides a great way to only pay for the services you need and are using currently. So, outsourcing provides a great way for a small business to cut back business operation cost significantly in order to maximize profits for business growth and expansion.
Q: What Exactly Should a Small Business Can Outsource?
A: The truth is, small business outsourcing works for various business tasks. However, back office tasks such as data entry, accounting, desk help and other administrative tasks that are demanding and time-consuming should be considered for outsourcing.
But, as the case is always, it is better to do a cost-benefit analysis first. It simply means you should carefully weigh and compare the cost-benefit of hiring the experts in-house and opting for an outsourced service. However, result has always shown that outsourcing option will always emerge as the winner.
Q: When Should Small Businesses Outsource?
A: When to outsource is something every small business owner should determine. As said earlier, you can choose to embark on small business outsourcing from the inception of your business. But generally, there are factors that are pointers to when you should outsource your small business operations.
Some of these factors would include the following;
- If you want to cut back cost significantly and start maximizing profit from the inception of your small business.
- If you cannot afford to hire the required manpower for your small business on full time basis.
- If you need to access certain skill sets affordably
- If you are being choked with tasks and can no longer cope
Q: How Do I find an Outsourcing Company?
A: The internet provides the easiest and fastest way to find an outsourcing provider. A simple search such as “outsourcing company” will bring up tons of links to outsourcing websites. You may also ask for referral from businesses similar to yours, particularly those that have been leveraging outsourcing services.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! inspires entrepreneurs build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.