At Money-Smart Millennials, we focus and encourage self-employment and freelancing. It is no longer a trend in today’s economy, it is a need. However, I hope your goal is not to stay a ‘side hustle’. Businesses should grow and yours should too. Entrepreneurs who are starting out take a lot if not all the tasks required to run their business. Whether it is administrative work, marketing or financial management, they figure it all out. Eventually, the business expands and the needs for outside help is inevitable.
If you are an entrepreneur and looking to grow your company, outsourcing some of the roles you’ve assumed over the years has probably crossed your mind. For example, some companies will outsource their marketing and sales rather than bring on an inhouse team. Others will hire outside IT agencies to manage their web design and development, relying on the expertise of others to ensure that their IT use is smooth and uninterrupted.
As technology has evolved and the costs of commercial space have risen, business owners have seen the need to reduce their workforce and starting outsourcing. Outsourcing opens up the entire world to a business owner, with the possibility of hiring the best talent from anywhere around the globe being an option. It can help a business to not only cut costs, but to expand out, growing in ways that may not have been anticipated. One of the biggest departments that companies tend to outsource is finances and payroll. While some organize prefer going through the process of identifying the right finance professionals and accountants, others let third parties manage their money and worry about the list of professional tax software, treasury management systems or payroll systems they should use.
Are you a millennial who launched their business recently and is bound to expand? If your business growing so fast that it is hard to keep up? Are you anticipating changes in the marketplace that open doors for you? Here are 8 reasons to outsource some of the business roles and tasks.
Established businesses can afford to maintain large payroll teams, but small businesses aren’t always able to sustain that luxury. It’s a total cash burner for a small business who wants to focus better on what they are good at. Think about it; the man hours spent on creating tax documents, preparing payroll, running marketing campaigns can be used to focus on your expertise, save time which in fact saves you money. It can be cost efficient to pay someone else to do that work. For instance, while running a marketing campaign, you may pay a service provider for the work done instead of paying an employee a fixed salary even after that campaign is done. This cost which initially would be fixed with an employee, becomes a variable expense and the surplus of money can be invested elsewhere.
It’s a big expense to train new staff in your business to get them up to speed. Smaller companies may not even need a full-time payroll employee, so using a freelancer or an outside company for this service just makes more sense than having someone else on your pay list. Payroll staff that are working for an agency that specializes in company payroll will also be able to keep up to date in the latest legislation – something absolutely necessary!
When you choose to outsource services such as accounting, you’re asking the experts to step up and do the job that you need doing quickly and efficiently.
Outsourcing to another service can often be more reliable than relying on your own knowledge. A person working for your business can be reliable of course outsourcing open the doors to several reputable, credible experts with tons of experience.
When it comes to accepting payments for example, outsourcing your payment processing platform reduces your risks of exposure to information breaches. While technology has served us all very well, it can also be a devil. In fact, once payments are not processed on your network, your liability decreases, and your service provider is able to spot fraud and catch any abnormal activity.