A startup in its incipient stages may face a number of problems that include the inadequate amount of budget, managing funds and meeting capital requirements.
It may show a profitable business within a short time frame, however, there are many who meet the harsh side of a startup. Dealing with such problems can be strenuous and one practical solution that is recommended is outsourcing. Business owners can outsource tasks that do not need much attention like payroll management, finance, legal assistance, etc. Outsourcing such tasks can save both money and time that can be invested in other crucial tasks that can ensure expansion and rapid growth.
Taking a look at Startup Rankings from around the globe shows some interesting stats. The USA is leading the chart with 28,862 start-ups whereas India can be seen following it with 4,781 and the UK with 2,989. It is hard to determine the factors that produce blossoming startups because all poor, developed as well as under-developed countries have startups. A striking difference can be seen in financially fragile Indonesia that has 1,726 startups whereas developed European countries like France, Germany, and Spain fall back with 887, 1,290 and 998 respectively. Thus, it can be concluded that the world is looking at the exponential growth of startups.
WHAT TO OUTSOURSE?
A start-up owner deals with most of the tasks and functions that take place in a company. This means more stress and workload on a single shoulder. The question is when you can outsource services and lighten the amount of work then why do not you? You just need to determine the inner workings of the business that require your attention and can be offered by you only. These cannot be outsourced since they require your attention. As for other business matters, you can hire highly competent professionals at inexpensive rates for outsourcing services.
A fallacy that has negatively altered the image of a startup is that it is handled by one person. This, however, is not true because there are people who can do the same job better than you. You can hire these people with high expertise and get the job done. The acknowledgment of this truth has led to the growth of the outsourcing sector.
WHAT ARE THE ADVANTAGES OF OUTSOURCING?
With a 90% rate of closing startup business within a year is staggering and stats have proved that outsourcing can benefit startups from the very beginning. While there are cases that have seen a gradual deterioration, it cannot be overlooked that the 10% that have pulled through is because they outsourced their tasks. Today it is seen as a boon to business as well as the only way to survive in the competitive market.
Every business comes with problems and dealing with them is important. Some of the snags encountered in startups can be overcome through outsourcing. These are given below:
Saving assets– running out money has been one of the major causes for the downfall of startups. 46% of startups have seen such failure and 27%, on the other hand, rely on outsourcing thus saving 60% on fixed expenses.
Distraction leading to failure– neglecting essential issues can lead to failure in a startup. It is an absolute necessity to focus on the issues that are pertinent. If it is a one man show then it can lead to exhaustion as well as a distraction that can affect the startup in the beginning. Expending a few dollars to outsource is a better option than exerting oneself. 18% of start-ups have seen failure because of incompetence and an insufficient set of skills. One can avoid this by outsourcing.
Know your competitors– it is quite impossible to have one’s monopoly in a marketplace. There is a high chance that your competitors are dealing with the same product as you. There is a fine line between success and failure and that is being one step ahead. Being aware of your competitors and their strategies can help you in establishing your strong presence in the market. This is the reason that start-ups can have an edge by outsourcing their marketing plans. This is also supported by facts. 53% of marketing executives are willing to outsource their marketing, 98% are of the view that outsourcing is important for the growth of their business and 78% believe that the aforementioned strategy will keep them ahead of their competitors.
What should be outsourced?
Taking a decision when it comes to outsourcing determines the success of your business. The functions you choose to outsource regulate the success of a startup. Following are some very important areas that can be outsourced:
- Payroll management
- Arrange an appointment
- Digitized tasks
The above-mentioned areas if outsourced can lead to sizeable savings. These savings can be invested in order for diversification and expansion.
THE GROWTH OF OUTSOURCING INDUSTRY OVER THE YEARS
It was foretold by Deloitte Consulting about a decade ago that the future of the outsourcing industry is prosperous and it will be suitable for any business. It was far-seeing and we see today that it has helped startups a lot. It gives people quick hiring periods and excellent services. In the future, it will be an essential tool in business plans and a significant element in the growth of the business.