can outsourcing work for small businesses?

Can Outsourcing Work for Small Businesses?

For many entrepreneurs, the question “can outsourcing work for small businesses?” has always been a major bone of contention, especially when it comes to business growth.

You’ll get your answer as you progress through this article.

The term “small businesses” refers to any corporation that is privately owned and has fewer number of employees compared to other organizations. Freelancers, entrepreneurs, and start-ups all fall in this category. 

Most of the time, you feel the need to handle every aspect of your business by yourself or within your team. The basis of your argument is that – since you’re not a huge enterprise, you shouldn’t need the help of an outsider. It’s your business, so you should handle everything on your own, the way you want, right?


A business starts with a big idea, your big idea. The execution of that idea takes a lot of contribution from different angles before it slowly comes to life. At first, of course, you can handle idea expansion, advertising, marketing, deliveries, customer service, etc., all on your own. Then as your business grows, you will need help. As a small business owner, hiring people for different departments is mostly always a no-go area because of the expenses.

This is where and when outsourcing becomes a viable option.

What is Outsourcing?

Outsourcing is a process of delegating specific aspects of your business to external firms with reputable expertise in required fields. It is a strategic option that allows you to reduce cost and make better use of your resources.

As a business grows, one of the ways to achieve efficiency for lesser investment is to resort to outsourcing some operations.

For in-depth knowledge of services to outsource, click here.

Many business owners don’t fully understand the benefits of outsourcing. It is true that it saves money, but that is not the only (or even most important) reason why you should invest in it.

Small Businesses and Outsourcing

Running a small business may seem simple, but it still requires being a part of a highly competitive market and trying to reach as many customers as possible. It also requires staying at the top when you get there, and not burning out from too many responsibilities.

Here are some of the many ways that outsourcing can help your small business reach a higher potential.

Increase efficiency

Businesses that do everything themselves spend a lot on research, development, marketing, and distribution. Spending in this context refers to all resources including time and brainpower.

When you perform all these tasks yourself, you’re prone to one mistake or the other, and mistakes can be very costly.

Outsourcing helps you focus your human resources where you need them the most. That is, you do the part of the business that only You are capable of doing, and you let the professionals handle other aspects.

Focus on the core business idea

Every business or organization has limited resources, and every manager has limited time and attention.

Outsourcing can help your business reposition its focus from supplementary activities to consumer-serving activities, and help business owners (you) set their priorities straight.

For example, there’s a need to create blog posts, manage social media accounts, create a website, handle accounting, marketing, distribution, etc.

Outsourcing all or most of the above tasks will help you focus more on providing value to your target market.

Reduce unnecessary risks

Every business has a significant amount of risk to its operations. Market, government regulations, competition, technologies and financial conditions are prone to change; sometimes manageable and other times, out of your expertise.

Outsourcing providers help you manage these risks when they arise. They are experts in their individual fields, so it’s a lot easier to navigate any issue and find a way forward for you.

This is a good thing for your business growth, as well as your state of mind. You don’t know what you don’t know, and trying to figure things out in the midst of every other activity you will be involved in, can be very frustrating.

Level the playing field

Small businesses are the perfect candidates to invest in outsourcing. This is because large companies will almost always have a department for every sector that could affect their business growth.

Outsourcing gives small businesses a leveled playing field. That is, you may not be able to hire professionals in every necessary field on a long-term basis, but you will still have access to professionals that will give you the same or better quality of work as an in-house employee.

Opportunity for gradual and necessary expansion

Outsourcing a select number of activities of your business gives you more time to focus on your core business idea as stated earlier.

It also gives you time and flexibility to come up with better and more innovative ideas for your products/services, without having to worry so much about other activities.

Outsourcing means you get more quality work done in a lesser time frame. It means one activity does not hinder the performance of another. It also means there are no setbacks when it comes to progressing with your business plans to achieve set goals.

Cost control

Finally, the most popular benefit of outsourcing. Outsourcing helps you convert fixed cost to variable costs. You know, instead of paying salaries plus benefits every month, you only pay per task or project assigned to the outsourcing firm.

It helps you avoid large expenses in the early stages of your business, and even frees up capital to invest in another aspect of your business.

Outsourcing is a tough decision for small business owners. There’s always uncertainties surrounding the idea: can you trust an outsider to do a great job? Is it even possible for them to care about the success of your business the same way you do? What if it all blows up in your face?

Truth is, outsourcing agencies will not care for your business the way you do, but they care about their own business. This means once a contract is made, they make it their mission to ensure that your business grows with their services, because their reputation and success depends on your satisfaction.

At Side Hustle, businesses are offered exclusive access to the right set of creative and resourceful talents who will effective ensure that you achieve your business goals and bring your ideas to life.

What are you waiting for? Grow your business today.

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