One of the best things you can do for your business, whether it is just starting up or you are in a growth spurt, is to outsource a number of jobs. It lets your business scale up without costing you too much money. The problem is managing your outsourcing efforts.
1. The Recruitment Process
Outsourcing tasks don’t just happen at the start of your company’s life. Large and well-established companies often opt to outsource, simply because subcontracted employees are less costly than full-time ones. You’ll likely subcontract many highly specialized tasks, from content makers and specialists to designers and web developers. Your recruitment process should be organized and streamlined from the start to make sure the company doesn’t waste time figuring out whom or where to hire.
Recommendations are fine, but it’s best to reach out to a recruitment agency. They’ll do most of the legwork, vetting people and making sure that anyone you hire is legitimate and has the skills to fill your needs. Find a recruiter that works for you. Alternatively, you could do the research yourself. Websites are a good place to start. Look for writers who know what they’re talking about and shoot them an offer. The important thing is you have a process in place to hire freelancers.
2. Invoicing and Payment Processing
Receiving and paying out different invoices can take up a lot of time and energy if you don’t have a process in place to deal with it. Many companies turn to invoice factoring, allowing you to receive immediate cash flow for your unpaid invoices and relieving you from the collection process.
Another solution is to use an online invoicing system. PayPal, for example, allows freelancers to send you an invoice while removing most of the legalese, although it does come with a few extra fees. Find a service that automates the process for you so it leaves you and your accountant free to deal with other important tasks.
Whether your business is thriving and you can’t keep up, or you are waiting on clients to pay their invoices, Universal Funding can help your growing company. Call us at 800.405.6035 or complete our rate form today to learn more about invoice factoring and how it can improve your company’s cash flow.
3. Documentation
Your team members and clients will likely be spread out among many locations throughout the U.S. and possibly the world, but you still need to make sure they all sign their contracts. Those contracts will detail the terms of their agreement or employment, as well as any arrangements, terms, and other legal minutiae such as NDAs. That means having legal contracts written created by your legal counsel and having each client and outsourced team member sign them. An electronic document management program will facilitate this process and ensure that nothing “gets lost in the mail.”
4. Collaboration Apps
With the exception of a few outlying hires, the vast majority of your freelancers will still need to collaborate with the rest of the team. Actually being able to do so can be a nightmare when you take into account work habits, deadlines, and time zones. Half the team might be asleep right before a deadline if you’re unlucky. Having a streamlined collaboration process will ensure there are as few issues as possible, as would having important files and notes available on a cloud service.
Make sure everyone who doesn’t work in-office sends constant updates at the end of their workday. Slack is one of the more popular tools that allows for consistent communication and collaboration across the globe.
5. Communication
No matter what businesses you are in or what stage you are in, communication is crucial to your success. You need to communicate the value of your product to consumers, the value of your start-up to investors, and what you need from your employees. That means having the lines of communication open. Emails and instant messaging will do for quick updates, but you’ll need more than that for meetings.
GoTo Meeting, Zoom, UberConference, and Skype are a few of the many options you have when it comes to teleconferencing. Look for a service that fits both your budget and the number of people you need on a conference.
The Bottom Line
Making the decision to outsource may be difficult for many business owners. Although it can be more cost-effective than full-time employees, you may work with people you may never meet in person. It’s natural to feel a little nervous, but those worries can be neutralized with due diligence and good recruiting practices . If you protect yourself and hire the right people, you’ll save a lot of money and make your company run more smoothly at the same time.
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.
