Outsourcing is a business term that generates strong reactions in many who hear it. This is unfortunate because, when done properly and with forethought, it has an amazingly long list of benefits to almost any firm. Yes, it has been done to the detriment of some firms, and certain economic conditions have forced companies to opt for outsourcing rather than staffing. However, it provides many long-term advantages that you will want to consider when building a budget and making financial plans for your firm.
When to Hire Outside of a Firm
In one New York Times article, it was made clear that the practice of outsourcing is one in which companies of almost any size use “outside firms to handle work normally performed within a company” and a method commonly used by entrepreneurs. It can include such basic functions as payroll, accounting, and so on. Yet, it can also mean hiring outside a firm to get the best marketing, design or even research. After all, simply attempting to do your own marketing or client acquisition can take the average entrepreneur more than 20 hours of the work week!
Financial Benefits
Clearly, it pays to take a few steps back and hear how you might improve your bottom line by investing in outsourcing. Here are some of the immediate benefits identified in that New York Times article:
- Increased efficiency
- Capital costs controlled
- Lower labor costs
- Quicker startup times for new projects
- Shift in focus back to core business rather than “peripheral” activities
- Reduce risk in areas of expertise
- Compete with the “big” firms
Clearly, it pays to explore your options in outsourcing. If you need help in discovering how to finance such a key business investment, contact BizCap Commerical Finance online or by phone at 833-224-9227. Experts in commercial financing for any industry, they can help you uncover solutions tailored to your current and future needs.
