Why is Outsourcing Becoming More Popular in Small and Medium-Sized Businesses?

As we have discussed in previous blogs, knowing how to delegate tasks is a crucial skill for business owners and business leaders alike. Delegating tasks frees up time to focus on higher-level responsibilities and ultimately helps you grow your business. More and more businesses are choosing to delegate by outsourcing certain services to outside providers. Read on to learn about the many benefits of outsourcing for small and medium-sized businesses.

Reducing Costs and Freeing Up Funds for Other Projects

For many businesses, the key benefit associated with outsourcing is saving money. When you outsource marketing, accounting, IT, legal support, or other services, you change fixed costs into variable costs. You also free up funds that you can invest elsewhere in the business. This is especially important for businesses that are still in their infancy.

Unfortunately, the time, money, and energy it takes to hire and train new employees do not always turn out to be money well spent – particularly when the worker is needed for short-term projects or tasks outside of the business’s primary function. Outsourcing reduces labor costs and eliminates the commitment that employers make when hiring in-house workers.

Narrowing Your Focus Where it is Needed Most

Business owners are often pulled in dozens of directions at once. You probably wear many different hats when running your business. However, being spread too thin can lead to major oversights and mistakes that hamper your growth and cut into your bottom line. A key character trait of any successful business owner or leader is humility. It is important to recognize your limitations. After all, you cannot be expected to be an expert in every field. Narrow your focus to the tasks that matter the most and take charge of those responsibilities that you have the skills and experience to handle effectively. Outsource the rest to an individual or company who you trust.

Learn More About How Outsourcing Can Strengthen Your Business

Outsourcing certain functions saves money and helps you focus your attention on the issues that really matter to you and your business. It is no wonder then that over a third of small businesses outsource one or more of their operations to an outside entity.

At the Gierach Law Firm, our outsourced general counsel program, YourOGC, allows business owners to gain the legal support and peace of mind that comes with hiring in-house legal counsel without the cost or commitment. Our Naperville business law attorneys can assist with business entity formations, mergers and acquisitions, tax planning, succession planning, contract review and drafting, and much more. We stop fires before they happen. We help you focus on your vision and follow it toward your goals as we become a trusted ally who goes beyond legal preparedness. Call 630-228-9413 today for a confidential consultation to learn more.

Sources:

Small Business Administration

The Balance Small Business