Whether you’re just starting out or growing your team, it always feels like there’s more work to be done than people to do it. When neither hiring more people nor putting important projects on the back burner are options, it’s time to consider outsourcing. Learn about the benefits of outsourcing for small businesses and how they can help scale the growth of your company.
Whether you’re just starting out or you’re a few years in and actively working to grow your business, there might be some projects on your wish list that your team doesn’t have the bandwidth for. Most small businesses have just a few people working for them and the hustle is real. Fortunately, you have the option to work with skilled professionals and utilize top-of-the-line services to meet your business needs without hiring a huge team. Here’s how you can efficiently grow your business by leveraging the benefits of outsourcing for small business.
Why Do Businesses Outsource?
First, let’s clarify exactly what outsourcing is. Often when people hear this phrase, they think of large overseas call centers and manufacturing plants. While those do exist, it’s not the whole picture. Outsourcing work can mean working with agencies, independent contractors, or utilizing managed services to obtain a business solution.
For example, if you want a new logo, you can outsource this work to a creative agency or graphic designer. The hourly rate typically isn’t cheap, but it’s a much more feasible option that hiring a creative team or having someone in-house complete the task who isn’t well-trained in design.
The Benefits of Outsourcing
The most essential benefit of outsourcing services as a small business is the ability to effectively scale your business. By selectively working with managed services companies, you can enjoy the same benefits and advantages of much larger organizations. Working with skilled professionals and purchasing quality software allows you to focus on running your business and utilizing your strengths as an entrepreneur rather than spending time on things you don’t get energy from.
Which Services Should a Small Business Outsource?
While there are a number of options when it comes to outsourcing, understanding which ones get you the most return on investment, which help you best mitigate risk, and which companies to work with is the key to understanding how to best build a scalable business model. Consider these outsourcing options as your grow your business and take on projects that might need additional, expert support.
401(k) Administration
Retirement plans are a great perk a small business can offer employees, and if you’ve funded your business with a ROBS arrangement, you’ll need to have a plan to access your financing. These plans can be tricky and time-consuming to manage, but a dedicated 401(k) administration team lets you focus on your running your business instead of filling out paperwork. A quality plan management team should provide you with unlimited access to their plan experts, comprehensive reporting, and 100 percent audit protection.
Payroll
New small business owners are always surprised to learn that payroll is one of the first services they need to consider when starting out. It can be counter-intuitive, especially if you’re your only employee or you’re only planning to hire a couple people. However, not surprisingly, paying yourself and paying your employees is an extremely crucial element of operating your business effectively. Paying people incorrectly, paying people late, or paying employment taxes can cost a lot more than the price of paying a payroll provider.
Another misconception about payroll is that the well-known providers such as ADP and Paychex are only for large companies. On the contrary, you can utilize the same payroll services as large global organizations at a package and price that makes sense for you. The advantages of working with industry leaders such as ADP and Paychex consistently make your life as a small business owner easier and more secure. A great notable example is that both companies offer a guarantee to cover the penalties if there is ever an error on your employment taxes.
Bookkeeping and Taxes
If you’re in any line of business outside of accounting, there’s a strong possibility that you did not become an entrepreneur to meticulously keep track of our financial records. However, if this responsibility doesn’t fall to you to keep track of your books, some else needs to do it and well.
You’ll likely need to work with a CPA or accountant to complete your business taxes. You can make this process even easier by choosing a financial software that your CPA or account can access. Intuit QuickBooks is one of the most utilized accounting software. QuickBooks is built specifically for small business owners so it’s easy to use, seamlessly integrates with your business account, and now that it runs online, it’s more affordable than ever.
Legal
If you’re not a licensed attorney (and potentially even if you are) you will likely need to seek legal assistance at some point during your business journey. And depending on the nature of the business, some companies get quite large in terms of employee size before hiring in-house counsel. Find a trusted attorney who’s familiar with your audience and can work with you to review contracts, make purchasing decisions, and proactively mitigate risk in your business.
You can seek assistance from specialized attorneys based on your immediate need or you can contract regular counsel services from one outside firm. Sites like Avvo help you find attorneys, or if you’re a Guidant client, one of your benefits is provided annual time with outside legal counsel.
Creative Services
Even if you have an experienced marketing manager on your team, you may eventually be in need of specialized creative services such as video creation or graphic design. Depending on your needs, you can opt to work with a marketing agency, source independent artists on LinkedIn, or use a site like UpWork or Fiverr to find freelancers.
Corporate Maintenance
Small businesses tend not to have the huge amount of paperwork and red tape of large corporations. However, when it comes to the initial setup of a business and the required annual filings, the amount of paperwork and detail required can get stifling. Fortunately, this is also a service you can largely outsource. While you’ll still need to ink a few signatures, corporate filings companies and law firms will typically gladly take this task off of your hands.
Remember, when it comes to outsourcing for business, vet the professionals and the companies you’re going to work with as you would a permanent employee. Just because a price is very affordable (or very expensive) it doesn’t mean it’s going to support your business in a way that’s helpful — ask questions and partner with companies and individuals that will support you in scaling your growing business. Guidant Financial clients gain the benefits of our business services and our service partners, hand-selected companies that offer special deals and discounts.
