Could outsourcing be the potential life-saver that your company needs?
If you’re running a business, one thing that’s definitely on your mind is how much everything costs. Maybe you’ve heard about another company outsourcing their work, saving tremendous costs and successfully turning their company around.
You may be wondering: Is this right for me?
What if I told you outsourcing could literally make or break your business? It could mean the difference between being a heavy, sluggish company or lightweight and adaptable one. But can it really become a potential lifesaver to your company?
Outsourcing is an important strategy that every business must consider – especially if you are a startup or small business.
We’ll explain why.
Here are five compelling reasons how outsourcing can benefit your business today:
1. Industry experts are experts for a reason, they know more than you.
As a cash-strapped startup or small business, it might not be practical to always train your employees from scratch and invest time and major capital in non-core business functions.
Outsourcing your tasks to firms with niche skills will most often yield highly accurate, more dependable results from industry experts.
This brings us to our next point…
2. Having peace of mind is priceless. Reliability is a must-have.
Planning to hire someone to perform your accounting and payroll duties? It’s important to note that payroll isn’t just simply calculating the working hours and computing the monthly salary and bonuses for employees.
Here’s something to think about before your make that decision:
Did you know that in past five years, IRAS filed more than $1.8 billion worth of fines, mostly against small businesses and sole proprietors, for mistakes, omissions and improper filings?
IRAS also mentioned that small businesses, startups and family-run businesses with “substantial cash transactions, weak internal controls, and those with no, or poor, record keeping” tend to end up evading tax.
Hence, one simple mistake can cost thousands of dollars for your business.
And the solution? It’s simple.
Outsourcing functions, like accounting and payroll, to a professional and reliable solution provider can help prevent such costly mistakes from happening. After all, these providers have done it for countless other companies, which means that they will be able to spot things you would never have noticed.
3. Things get done incredibly fast.
Consider this: outsourcing companies have in-depth knowledge of the best practices in the industry as well as great experience in their field of work. As such, they would be able to get your project delivered quickly on the agreed deadline with assured quality.
Here’s the bottom line:
If you’re a small business with limited manpower, you can get things done much faster by outsourcing time-consuming tasks to external vendors.
4. This allows you to focus on tasks that truly matter – like selling.
Outsourcing mentally draining work like admin matters gives you enhanced freedom to focus all your energy to strengthening and improving your business.
If you are a lean startup or small business, there’s a high chance that you are surviving on limited manpower and resources.
Time is money. Every second you spend working on tasks not related to getting more customers or improving your business is cash going down the drain. That’s precious time and dollars you will never get back.
Just think about this:
As a business owner, you won’t want to be wasting your time doing things that do not generate profits for your company. You may think you’re saving money by not getting extra help, but the wasted selling time and distractions can end up costing much more to your bottom line.
With just one extra pair of helping hands, how much more time would you be able to spend focusing on developing your core business?
5. Of course, the greatest benefit would actually be lower costs.
Getting piecemeal tasks is generally cheaper than hiring a permanent full-time staff. You will be able to save money on job ads, interviews – the whole recruitment process – hiring, training, benefits and… you get the point.
For a startup or small business, every single hire is an important decision. Unnecessary or impulsive hires might pose as a huge financial burden to your company in future.
How To Choose A Trustworthy Vendor:
Hence, it is imperative to outsource your tasks to a reliable vendor who will handle your projects professionally and efficiently.
But the entire process doesn’t have to be so scary.
Here are some tips on how you can choose the right outsourcing partner:
-
Meet up with the vendor. Talk to them. Tell them what you want to achieve out of the outsourced relationship. You will uncover a lot by asking them the right questions. Oh and another thing, speaking with your vendor allows you to assess how well the communication between both parties might possibly be.
-
Do your research. Yes, this is necessary and yes, we do need to highlight how important this is. Check for feedback and browse through their work samples.
-
Assess their financial capability. It is important to ensure that your vendor has sufficient working capital and is financially secure.
Outsourcing can be an important decision that can make or break your small business, especially when there are limited resources to tap on. The need for outsourcing might vary due to the different demands faced by each company.
Still unsure where to begin?
Here’s an established company to point you in the direction: Back Office Consulting has the experience, financial capability and an impeccable track record to fit the bill.
Back Office Consulting is a Singapore based company incorporated since 2014. They have a strong team with a simple yet specialised structure that has vast experience in auditing, accounting and bookkeeping, banking and finance, taxation, corporate secretary, human resource management, POS management and etc. Basically a one-stop shop that can cover all your business outsourcing needs.
The experienced Back Office Consulting team has managed to expand its business at a very fast pace to become one of the fastest growing firms in Singapore.
