How to Scale Your Business by Outsourcing

Scaling up a business requires resources which can be costly and risky to acquire, yet they often do not relate to the core operations of the business. More customers and more money means more administrative tasks like bookkeeping, customer support, and more. 

However, the risk of acquiring the people or things you need can be negated by outsourcing these non-core activities to other firms who will manage them for you. This allows you to focus your time and effort on your core business. This short guide will introduce you to the basics of outsourcing, including the kinds of tasks that can be outsourced and the pros and cons. 

What tasks can be outsourced? 

It is actually possible to outsource just about every aspect of business nowadays, but when you’re scaling up the most useful ones to do it with are the things which you are obligated to do but which are not essential to the core of your business. Here are some examples. 

Marketing 

Outsourcing is not a new concept. Practically all businesses end up using the services of another firm to help them at one time or another. New York’s Madison Avenue became synonymous with advertising because so many companies outsourced their marketing to businesses there.

Today, many businesses continue to outsource marketing, which allows them to focus on designing great products or delivering excellent service. It can also help you scale while keeping costs down. Since you only pay for the services you need rather than taking on a salaried employee or team, this can give you cost-effective access to highly experienced marketing experts as well as the latest marketing technology and approaches. 

Accounting and bookkeeping

Few small business owners actually have any training in bookkeeping, yet the majority of them still try to do it themselves. They often end up incurring penalties and fees related to tax compliance. This might be tolerable if the business stays small, but the situation becomes untenable when it scales up.  

If you are trying to grow your business within your domestic market, there will be little difference between employing a bookkeeper or management accountant and outsourcing. However, if you are trying to expand overseas, working with local accounting and outsourcing services can be much more helpful, since they will have a much better understanding of your legal and tax obligations, and they can handle these on your behalf. 

Customer support

Today’s consumers are fickle. The internet makes it so easy for them to seek out alternatives when they are unhappy with a business. They demand instant answers to their queries and resolutions to their problems, 24 hours a day. This is clearly not a situation you can handle on your own. 

Fortunately, there are many options for outsourcing customer support to a third party. You still get a say in how they communicate with customers and how quality assurance is managed. This is important because in a marketplace like the one described above, good customer support can be a real strength. Research shows customers are more willing to spend money with companies they trust to provide good support, and almost 100% of people share their good customer service experiences with others. 

What are the benefits of outsourcing?

There are two main reasons why companies outsource. Both help when it comes to scaling your business. 

Reduced costs

Outsourcing gets proven talent working for your business, but only on the most essential tasks that they need to do. Once they are done, you don’t have to pay them anymore like you would an employee. 

You can also outsource to other countries which have the same quality talent but significantly lower labour costs.

Access to experts and technology

Specialists working at outsourcing firms are able to gain much more experience and knowledge in their field by working for many different clients on many projects. An employee working only for you would undoubtedly end up with a more shallow knowledge of the field.

Similarly, computer software and other technology you might need to use is often very expensive if you buy it yourself. An outsourcing service can buy it instead and spread the cost between many clients. 

Summary

Administration, marketing, and much more can be outsourced, which can help your business handle more customers while staying lean and profitable. By providing flexible, low-cost access to industry experts, it is easy to see why outsourcing has been one of the biggest business trends of recent decades.