Being a startup, you’re likely faced with limited resources, especially in this current climate With 90% of startups failing due to insufficient funds and lack of cash flow management, being pragmatic about how you invest your budget is crucial to maximize your profit and growth early on.
Outsourcing allows you to prioritize your core business functions while delegating the non-core tasks to third-party experts. In fact, in a recent poll, 24% of small businesses claimed that increased efficiency was their top reason for outsourcing. See the Why do Small Businesses Outsource on this page.
For example, if you're a startup in the e-commerce industry, outsourcing customer service to a specialized provider can ensure round-the-clock support for your customers. This helps build customer trust and satisfaction, while your internal team concentrates on refining your products and expanding your business.
The key is knowing what should be outsourced, and what should be kept in-house. Let’s look at five of the most important outsourcing solutions to invest in as a startup.
Accounting and Financing
According to a recent study, accounting is one of the most common services to outsource, and it’s no surprise why.
Navigating the labyrinth of financial transactions, regulations, and compliance can be a tough challenge for startups. Managing the books, preparing statements, and ensuring compliance with ever-changing laws and regulations is essentially a full-time job and not something you want to be stressed over as a new business.
Professional accountancy firms are well-versed in the intricate landscape of compliance standards and financial regulations. They stay on top of the latest policies, safeguarding your company from the burden of constant updates.
For startups, crunching numbers, preparing statements, and tax compliance often waste precious time. Outsourcing these tasks to professionals ensures accuracy and compliance and helps trim overhead costs.
Their commitment to stringent quality, security, and confidentiality standards means your financial information is in safe hands. This comfort alone might be enough to justify outsourcing financial and accountancy services.
Outreach and Outbound Sales
Every startup needs leads and sales, and they need them yesterday. Finding contacts, crafting compelling sales emails, and waiting for a response can be stressful and, above all else, time-consuming.
You also have to take into account that the businesses you’re contacting may not be interested in what you’re offering. And who is to say you’re even contacting the right businesses?
All of this can become a bit of a drag, and no one wants that when you’re trying to connect with prospective clients.
Investing in a platform such as Outbase, which specializes in lead generation for startups, will help streamline this process and allow you to create advanced email campaigns in five minutes with instant access to millions of B2B contacts. This would make your life substantially easier, right?
Having a reliable flow of sales-ready leads without hiring an extensive marketing or sales team also frees up resources to focus on other areas, which is music to any startup’s ears.
Juggling exceptional customer service amidst brand-building, expansion efforts, and feeding the company fish can be daunting. Outsourcing your customer service operations (even a small part) to a trusted third party comes with two of the most precious commodities as a startup: time and money.
By outsourcing customer services, you are freeing up time for your employees to focus on their work and removing their need to answer and direct customer service inquiries.
Plus, you're conserving resources by bypassing the need for an in-house customer service team. Once earmarked for recruitment, training, and operational costs, funds can be channeled into things like product refinement, innovation, and overall business elevation. In fact, around 27% of small businesses outsource customer service to take advantage of benefits like these. See the chart on What Business Tasks do Companies Plan to Outsource in 2021?
Customer service providers aren't confined by geographical boundaries, either. Most embrace a multitude of communication channels - from phone calls to live chats and social media engagements. And as your startup's reputation grows, it adapts accordingly, accommodating the increase in customer interactions.
Even if you already have a full-time HR manager, it’s unlikely they will have the time or expertise to master every process and regulation under the HR umbrella.
By outsourcing your HR requirements, not only will you save money hiring full-time staff, but they can also add expertise to strengthen areas like recruitment, onboarding, and compliance matters.
Keeping up with changes in compliance law is another benefit not to be ignored. The last thing you want is to be found liable for an HR faux pas that could have otherwise been avoided through outsourcing.
Outsourced HR also has the added benefit of handling the administrative nitty-gritty, freeing you to focus on strategic growth and core functions. Whether you're rapidly expanding or streamlining, outsourced HR easily adjusts to your staffing needs.
HR outsourcing isn't just about saving money; it's about gaining a competitive edge, and ensuring your startup thrives while HR complexities fade into the background.
Marketing and Ads
Startups often grapple with limited resources and expertise in certain areas, which doesn’t exactly make crafting marketing campaigns easy. Outsourcing your marketing requirements allows you to tap into a wealth of experience and insights that every startup should be grabbing with both hands.
A team of marketing experts can help you craft compelling campaigns that resonate with your target audience, optimize your advertising budget for maximum ROI, and stay updated with the ever-changing trends and algorithms of the digital marketing world.
In essence, outsourcing marketing and advertising serves as a catalyst for your startup’s growth journey. It grants access to a world of expertise, amplifies brand visibility, and ultimately positions startups for success in competitive markets.
For outsourcing to be successful, you need to identify partners that understand your business needs and goals so they can provide the best service. Seek out partners that have experience in their respective fields.
Read reviews, and interviews, review case studies, and make sure they’re the right fit for your business.
Outsourcing can become a massive time and money saver early on, and having staff on demand can help you scale faster and allow your business to focus on its core offerings.
If you’re ready to take your startup to the next level, start by identifying three key areas in your business that could benefit from improved efficiency, and areas where specialist expertise would help scale your offering. Researching outsourcing options tailored to your startup’s needs will help to unlock the full potential of your startup business.
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