4 Reasons Why Outsourcing is so Good for Small Businesses.

Article by Rebecca Mason 16.02.15

We all hear how outsourcing is a great way to help your business grow when you run a small business, but, what exactly are the benefits?


What is Outsourcing?

It is the practice of delegating part of your company’s business process(es) to another company or external agency who specialises in that field, e.g. bookkeeping, payroll processing, event management, website development.

4 Advantages of Outsourcing.

1. Cost savings. Outsourcing can allow you to convert a fixed cost into to a variable cost which releases capital for investment elsewhere in your business. Alternatively, it reduces your costs as you don’t have to buy specialised equipment, or, software.


2. Allows you to focus on your core business competencies. By outsourcing certain aspects of your business, you can focus on what your business was set up to do e.g. bake cakes, provide workshops, carry out massages, teach pilates, or, run a café etc. As a business owner you only have a limited amount of time to run your business, so delegating the peripheral, mundane or time consuming activities to another company/agency gives you more time to do what you are good at!

3. Gain access to resources not available internally. By outsourcing specialised tasks e.g. payroll processing, or, bookkeeping you can build a team of skilled professionals external to your business, so you don’t have to employ someone to do this on a more fixed basis.

4. Reduced labour costs. If you have a short term, or, peripheral project, hiring and training staff can be expensive, plus, temporary staff are not always as good as expected. Outsourcing to a reliable company means you hire the staff you want, for the time period you need, at the expected standard, without training. Whilst, also, saving money as you do not have to pay employer’s National Insurance. As a small business you simply can’t always afford to match the in-house support services of larger companies. Outsourcing can help you act “big” by being able to access the same economies of scale, efficiency, and expertise that large companies enjoy.


What is The Key to Outsourcing?

When you outsource, you can focus your time, attention and resources on your company’s core competencies. This allows you to spend time setting new goals and finding ways to achieve them…allowing your business to grow!
The whole process allows you to build a team of skilled professionals without adding the expense of full-time employees, and avoids you getting bogged down with tasks that can be completed without your attention.

Written by Rebecca Mason, Owner of RM Troubleshooter.

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