• Home
  • |
  • Blog
  • |
  • Why Small Business Can Profit From Outsourcing

September 14, 2018

Why Small Business Can Profit From Outsourcing

Why small businesses can benefit from outsourcing

For many, the idea that small business can profit from outsourcing some tasks might not sit well. But there's definitely a benefit to dropping the conventional mode of hiring a specially trained employee in parts of your business that are more on the operative side than the functional end. Here are just a few reasons why small business can profit from outsourcing.    

As a small business owner, you can't do it all.  

While it might be a somewhat novel notion, you also don't have to hire some to perform every duty involved in running your business. 

In fact, of all businesses, small business stands to gain the most from outsourcing. 

Take a look at how and why small business can profit from outsourcing.

It's cheaper

Among the best reasons why small business can profit from outsourcing is because, in many cases, outsourcing is actually less expensive. 

Think about it for a second. 

Although you might have to pay a sign-up fee or any subsequent service fees, you don't pay for anything beyond the cost of labor. 

In other words, there's no commitment in terms of benefits, paid vacation leave, etc. for another employee. 

So, in the long run, you're more likely to save money. 

But be sure you keep this key point in mind:

While outsourcing can be a cheaper option, it's not ideal if you're in the startup phase or don't have a steady income. 

What should I outsource? 

Of course, when it comes to how small business can profit from outsourcing, some services are better than others. 

As a standard rule of thumb, you should never outsource functions that are key to developing the main product or service you provide. 

However, you might want to consider outsourcing any "behind-the-scenes" operations, including:

  • Payroll, finances & bookkeeping 
  • Shipping
  • Administrative tasks, HR functions
  • Marketing, advertising and promotion

Provides varied talent and expertise

When you outsource a task to another company, you'll gain access to a team of highly trained individuals in one specific field.  

What do I mean? 

Companies provide business to business (or B2B) services typically bring on highly skilled professionals with expertise in a specialized area of service. 

This model allows them to offer exceptional service in a few select areas of expertise. 

So rather than having one or two employees that specialize in accounting, for example, you'll gain access to an overall wider range of expertise and experience in accounting. 

That's really the most effective way small business can profit from outsourcing. More people on hand, who are specifically trained to handle a task or function are less likely to err and more likely to develop a better end result. 

Saves time, resources and staff labor

The last thing you want to be doing as a small business owner is scrambling against a clock, stretching your budget too thin or wearing out your employees. 

For that reason, small business can profit from outsourcing by eliminating "extraneous" tasks in a day. 

And rather than have one employee in charge of a number of highly skilled tasks, they can instead focus on the main duties they were hired to perform in the first place. 

More importantly, when you outsource some functions (let's take shipping and fulfillment for example), you're not obligated to spend the extra time, money or labor to upkeep the facilities needed to manage those tasks. 

Essentially, that means that by outsourcing you can actually save money and be more effective with the work force and resources you currently have. 

Related Posts

7 Measures You Shouldn’t Use to Cut Payroll Costs

7 Measures You Shouldn’t Use to Cut Payroll Costs

Home Tax Deductions: Save Your Money

Home Tax Deductions: Save Your Money

Top Paycheck Protection Program FAQs

Top Paycheck Protection Program FAQs

California Stimulus Package

California Stimulus Package

Felix Mwania

I live in the intersection of technology and entrepreneurship. I am a technology enthusiast but my passion is helping small businesses succeed, including mine.

When I am not working, you will find me goofing with my wife and kids. When not with family and/or friends, you will find me doing some home improvement projects.

Felix Mwania


{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

Never miss a blog post from us.

Sign up to get notified when we post new educative material. We DO NOT spam