Launching a business is an enormous phase for any entrepreneur. There are a lot of factors to consider, more than if your service or product will do its the best in the market. In the early stages, it is crucial to make decisions that will promote the most efficiency and growth for your startup. Outsourcing is a highly efficient method that can help bolster growth and reduce some costs.
Nowadays, more and more startup companies are opting to outsource. The rationale of founders who outsource is simple: it is cost efficient and less hassle. The services vary from human resources, manpower, accounting, and down to system that will be used. The founder must know what’s essential for the business and do proper due diligence on the outsourcing company.
Outsourcing is highly cost-efficient for several reasons. Typically, you only hire a few people for a service and have a temporary contract. Thus, this means that you do not need to pay benefits including medical insurance, vacation days, paid leaves, etc. Additionally, outsourcing a few employees temporarily will not require having to rent a large office space. Especially in the early stages, it is cost inefficient to build an accounting or IT department.
When your startup is small, you can outsource to fit the size and needs of your company–getting the same growth value without adding another department. The money you can save from this aspect can be put on other important matter like marketing research or promoting the company.
Outsourcing creates less hassle for everyone. Results can still be expected without spending time and money on training, because the hired team is already skilled. The project can be completed in a timely manner without any procrastination when hiring someone with expertise and experience.
As what most mentors would say to new founders: “Focus on what you’re good at and hand things you’re not good at over to the experts in this field.”