Position Your Company for Steady Growth
If your small business is suddenly doing better, you might think it is time to hire some new staff so that your business can grow. You shouldn’t be so quick to expand, though. While growth may be your ultimate goal, growing too fast can ruin your company just as surely as getting no sales can. Instead, as an intermediate step, you should consider outsourcing. By outsourcing first, you can learn to handle the new volume of business without taking any risks, changing the way your company functions, or putting up too much money.
Should You Hire New Staff?
Expanding your business is often more complicated than just hiring some new employees. Those new employees will need oversight, potentially requiring you to hire or promote new managers. You may also need to expand your payroll and human resources workload as you grow your team. You will have to pay for additional training, computers, office supplies and more. All in all, your operating costs will go up at the same time as your business process is changing. That can be a lot to deal with all at once.
When Should You Outsource?
Outsourcing saves you money and effort. All you have to pay for is the work the freelancers you contract with do. No need to pay for additional managers, training, or anything else. Indeed, if you contract for freelance work, you could even gain access to the kind of expert talent that you could never afford to pay as a regular employee. Outsourcing will also allow your company to focus more on the important things by freeing you and your employees from spending time on tasks that are essential for your business but not related to its core mission. Additionally, outsourcing can actually speed up your company’s growth by expanding its capacity without much increasing its costs.
What Tasks are Suitable for Outsourcing?
Your business will benefit most if you outsource support tasks rather than core tasks. Let the important stuff be done by you and your highly trained staff. The exception to this rule is tasks that require expertise that you do not have on your payroll. In general, you should outsource IT work, as small businesses do not generally have enough to justify hiring an IT expert on permanent staff. You can also outsource invoicing, payroll and bookkeeping tasks. There are a lot of companies dedicated to handling these things for small businesses. You can also outsource any simple, repetitive tasks that don’t require a lot of training.
What’s the Best Way to Find Freelancers?
There are a lot of marketplaces online for freelance contractors in almost every line of business. You generally just have to sign up to gain access to them, a quick and easy process. You can also ask your business associates for recommendations. If you find a freelancer on a virtual marketplace, there will be a boilerplate contract you have to agree to. If you find one independently, draw up a contract yourself that spells out what you are offering and what you require.
The Bottom Line
Outsourcing whatever tasks you can has many benefits. It can be a steadier, easier path to growth than expanding too fast. If your company is suddenly doing well, outsourcing could be the best use of its new revenue.
About Universal Funding
Universal Funding is a private funding source that has funded thousands of businesses and more than $2 billion since 1998. We turn your accounts receivable into the funding you need through invoice factoring and can have capital in your hands in a matter of days.