Outsourcing has become increasingly popular and more often than not, startups outsource many of their business functions. This allows them to be efficient and more productive with developing their core business tasks. Here are the top business functions every startup business should outsource to allow them to thrive.
One of the functions that every startup business should most definitely outsource is manufacturing. The reason behind this is quite simple. Primarily it has to do with efficiency and cost. You should outsource manufacturing functions as building a manufacturing plant and the process is an incredibly serious endeavor. Especially for a startup business. It includes buying a plant facility, hiring workers, and manufacturing equipment. For most startups, the trend already is to outsource and offshore manufacturing and assembly work. Most commonly to companies overseas such as China and other parts of Asia.
Another reason why this is the trend is because of the economic sense of it. It makes sense to just pay for transportation services. Especially comparing costs to the aforementioned aspects that manufacturing onsite would include. Furthermore, you should carefully evaluate outsourcing these functions because of the recent economic recession which is reducing labor rates in your current state but is increasing them in Asia.
Another one of the top business functions that every startup business should outsource, and that many startups already are outsourcing is the IT services. IT in itself is one of the largest outsourcing services there are. In fact, it’s so large that the global market for outsourced IT services is worth over $80 billion in recent years. Furthermore, as the best managed IT service provider in Houston notes, startups outsource this business function because they are looking for reliable, efficient, and cost-effective IT operations. Managed IT services include IT tasks offered by managed service providers which monitor, manage and repair the company’s technology infrastructure.
This business function is oftentimes outsourced because of the many benefits it carries such as access to experienced IT professionals. Additionally, it allows general easy access to modern technology that will keep your startup up to date with the modern technical aspects of the business.
Marketing encompasses a wide range of technical skills such as branding, social media, and content marketing. Most start-ups and small businesses in general focus on building their brand. Whereas, bigger companies focus on maintaining it. Whichever the case, outsourcing marketing functions may be the best thing for you if you want to stay up to date on SEO. Or, if your social media fans aren’t in light with your target audience, and your existing search advertising isn’t giving good results. If you’re wondering what marketing functions to outsource, the best answers are digital marketing and content marketing.
With the emergence of digital marketing, there was a surge of digital marketing agencies which started offering everything from technical SEO, social media to creative services. Outsourcing into this network can help save your startup time and resources while also making it able to focus on its core business. If you can’t remember the last time you’ve updated your website, or posted on social media, you should consider outsourcing marketing functions as soon as possible.
If your startup doesn’t make decisive steps to prepare for growth, it will probably fail within its first years. Outsourcing human resources function might be the best option for many reasons we are about to review. The most important one revolves around the fact that by outsourcing this function, you are ensuring your startup can access a steady stream of talent. All the while improving your startup businesses’ compensation and benefits packages which encourage employees to engage more.
Some particular aspects of human resources you should outsource are recruitment and HR administration. Outsourcing recruitment is important to give your startup more clients. This allows you to screen, and interview potential recruits in a much less time-consuming manner. Furthermore, HR administration is also a typical target for outsourcing for the same reasons as mentioned for recruitment. It takes resources and money to train employees to perform this function too. Outsourcing HR functions also enables you to scale up all of your operations, which is, as you very well know, a vital feat for any startup business.
As you can see by now, outsourcing the business functions of your startups is more common than you think. These were some of the best business functions to outsource because they allow for the most efficiency. And, let’s be honest, they are very cost-effective too. Make sure to consider outsourcing these business functions to allow your startup to grow.