February 16, 2024
Businesses of all sizes outsource for the many benefits it gives them. Lower staffing costs, access to expertise, greater flexibility - great advantages that small businesses, especially startups, must consider and use strategically.
If you’re running an early-stage startup where you’re working with limited capital, resources and knowledge gap - you are in a perfect position to outsource side tasks. After all, your core team needs to focus on developing your product and services.
With a wealth of services and platforms that can connect you to people who can get the job done, there’s never been a better time to outsource. Here are the top three jobs your startup should be outsourcing.
According to a 2004 survey by PricewaterhouseCoopers, about 75% of US and European businesses use outsourcing for financial functions. In the same report, about 47% of executives surveyed said that outsourcing financial functions has saved their companies a moderate or greater amount of money.
If finances and managing the books are not your strong suit, then outsourcing your startup’s bookkeeping can be a good decision. You would not want to make mistakes when it comes to the finances of your business. Leveraging the expertise of a professional accountant and bookkeeper will save you a lot of headaches early on.
When you're running a startup with a small team, it’s easy to lose yourself in the details of admin work. Handling email, scheduling and confirming appointments, booking travel arrangements, performing miscellaneous research, invoicing clients, paying bills - all of these are necessary tasks.
However, if you’re pressured for time managing the more crucial aspects of your business, then you’re better off hiring a dedicated virtual assistant. Outsourcing repetitive admin tasks saves you a significant amount of time, time better spent with you focusing more on the big picture.
Due to budget and staff constraints, many startups outsource the design and/or the development of their product/service - be it a website, an app, a platform. This leaves them free to focus on developing the core tech of their product. There are also well-known startups who used outsourcing to build their product.
Should you decide to outsource the development of your startup’s product or service, it helps to consider your business objectives, your time to market, and your funding. In scenarios where you’re still testing for market demand, or when it’s crucial to get to market quickly, or if funding cannot sustain a full-time in-house development team, outsourcing can provide the competitive advantage your startup needs.
Understand early on the importance of what outsourcing can do for your startup. Having a clear grasp of what tasks to outsource and when outsourcing makes sense allow you to make great decisions. A smart allocation of your startup’s resources is one sure way of improving its chances of success.