Although outsourcing has traditionally been practiced mainly by large businesses, many smaller companies are also taking advantage of the diverse pool of talent offered by independent contractors. Hiring outside assistance for specific tasks helps entrepreneurs save money on office space, payroll taxes, health insurance, and other expenses.
Here are some tips on how to use outsourcing to cut costs and grow your business.
The Right Time to Outsource
Some entrepreneurs starting from the ground up prefer to maintain control and do everything themselves in the beginning. These business owners turn to outsourced labor when their growing companies become too much for them to handle. Others prefer to rely on outsourcing from the beginning of their endeavors and add more talented contractors as the need arises. Either approach is valid, and your choice depends on personal preference and the demands of your workload.
What Work Can Be Outsourced
Competent contractors are available to perform almost any task with which you need help. For instance, you may want to outsource monotonous, repetitive work such as shipping inventory or data entry. You can hire bookkeepers, writers, graphic designers, web designers, and other contractors with specialized knowledge. You may even want someone with CFO-level expertise to come in periodically and analyze your finances.
If you depend upon outsourcing to perform crucial tasks, it is imperative that you find the right contractors with which to work. One option is to ask local businesspeople you’re in touch with for recommendations, and another is to check social media sites such as LinkedIn. Numerous websites connect business owners and contractors. You can also approach chambers of commerce and professional trade organizations. Be aware of exactly what talents you are looking for, and consider the recommendations and ratings of former clients.
Once you have located a qualified provider, create a contract that precisely delineates the type and quality of work to be performed. Give specific instructions so there is no doubt about your expectations. When everything is clear, step back and allow your new employees to do their jobs.
For more advice on outsourcing, look to Value Capital Funding.