Grow your business with outsourcing

Many small businesses and sole proprietorships are growing their businesses with more and more outsourcing today. By outsourcing some of their workload, they can free up time, keep costs down, and take on more business for more revenue. When these one-man operations or small businesses hire outside professionals to take on part of their workload, this is known as outsourcing, as these people are not employees of the company that has the work to be performed. By outsourcing, the small business also appears to be much larger than it really is and in this way they can reap the profits of much larger companies.

Employees or potential employees will be one of the biggest time and cost savers. No time will be spent scheduling interviews or doing those interviews. This will allow you to spend more time with your customers, and any customers who deal directly with the owner will become loyal much faster and be a repeat customer for longer.

Since you won’t be hiring any employees, there will be no tax forms to fill out, no scheduling for them, and no training time needed. All of these things take time and cost you money. Your business will also save by not having to purchase employee health insurance, unemployment insurance, workers’ compensation insurance, and security systems to monitor these employees. This is in addition to the savings from having no payroll, including your share of your income taxes, vacation pay, and holiday pay.

With the time you save by not hiring employees, you can use that time to focus on your marketing and advertising campaigns and new product development. Of course, there will be costs associated with outsourcing, however if you negotiate for a fair rate your savings will outweigh these costs.

By outsourcing, your business will grow in revenue, but there will be no need for larger office space or work areas. Again, your business will also generate savings here.

Without increasing your staff or workspace, you also won’t need to buy and learn more office equipment, production equipment, software, and other time-consuming tasks related to a larger space and new business tools.

Outsourcing will allow you to take on much larger orders that you could not handle on your own. This will create the opportunity to diversify and expand your market area. Offer to take on the job your competition can’t handle.

The outsourcing companies you do business with could also become a source of new business as they will no doubt talk to people about your business which will also bring them more business. In return, you could act as an intermediary for the subcontractors you use to promote their products in your business activities. By doing this for them you would charge them a finder fee which could be an additional source of income for you or when you need them to work for you the money you receive from them could be used to offset the cost of the work they do for you.

Using outsourcing will mean your product will be delivered faster, therefore it will also be delivered faster, increasing customer satisfaction. Increased customer satisfaction will quickly multiply your profits in the form of repeat business and referrals from those satisfied customers to their family, friends and even strangers they may meet in their daily routine.

In conclusion, any company can benefit from outsourcing in this way as long as they locate and negotiate with an outside company that is prepared to meet the needs and has the knowledge and personnel to sufficiently and cheaply produce the product. This outsourcing allows the small business to compete on a more even level with much larger companies, as well as providing revenue and profit growth without increasing all the costs associated with growth.

Copyright © 2006 Roy J. Keller (All Rights Reserved)