One great thing about startups is that it can turn into a profitable venture in only a short period, but you’ll surely face a lot of challenges and struggles before attaining this feat.
Working on a shoestring budget, managing the flow of funds, and trying to make capital requirements work – these are just some of the trials everyone faces when starting a startup business.
There’s an all-in-one solution to all these obstacles – business outsourcing because it deals with numerous problems from all directions that don’t require any core decision making on the part of the owner.
Why Do You Need to Turn to Business Outsourcing?
Many people look up to professionals who were able to escape from the rat race by starting their own business, but global statistics report that the percentage of startups that shut down every year is at the 90% mark.
It can be pretty difficult to zero into what causes this mismanagement, but what’s important to note is that 10% of these startups that manage to establish their names rely highly on business outsourcing. Here are three pitfalls that business outsourcing can save you from.
1. Saving on Business Funds.
Money isn’t the only important thing when running a business, but when it comes to company success, one of the primary determinants of success is business capital. As a matter of fact, 40% of what causes businesses to shut down is the lack of financial resources to boost the company’s interest.
Through business outsourcing, you will be able to cut down on 60% of your overhead costs. Most startup founders presume that getting an in-house staff is the best approach because the employee will be under your midst the whole time.
Somehow, at some point, you will need to get an in-house employee for certain business functions, but for the case of startup companies, this can lead the owner to exhaust a significant amount of business capital into a minor aspect of company process instead of investing it into something that can boost profit.
2. Well-Focused Employees
One other alternative when you cannot afford to hire an in-house employee is to let existing workers do the job.
If your staffs have a lightweight workload, this can be somehow doable. However, if you hired them specifically so they can focus on certain tasks, telling them to do something else can lead to a shift in focus.
This means the performance rate or efficacy of these employees might become affected. When this happens, the outcome will show in the overall standing of the company.
During the initial phases of your startup business, it would be best to prevent these types of mistakes as much as possible because this can either postpone or prevent your business from reaching its full potential.
More than that, people who are not experts in particular tasks will most likely fail due to the knowledge gaps. Not only will your employees’ current tasks be comprised, but at the same time, their attempt at the new workload will not be a success either.
3. Competition Study.
Doing a study on how your competitors are doing isn’t as easy as it seems.
It’s difficult for big-time companies. With that, it can be even more challenging for startups who do not know the ins and outs of the industry yet.
On the other hand, business outsourcing can also be a big help. This is because it enables the company to work with people who have already mastered making brands visible despite the number of competitors.
For instance, you could be a company selling bars of soap. All alone, it can be quite a struggle to stand out from the crowd using your knowledge and efforts. However, with business outsourcing, you become exposed to people who have been doing the art of brand awareness for years. This gives you an edge at winning the heart of your customers.