Small business owners put in twice the work of regular employees with up to 39% of owners working more than 60 hours a week.
When you first start a business, you feel like you need to do it all. You’re on a tight budget, so it makes sense to DIY everything for your business.
But all those hours wear on you. You’re not an expert in every part of your business. You’re the expert in your core business activities.
Trying to handle legal, financial, marketing, and other tasks spreads you thin. It takes longer to do the tasks because you first have to learn how to do them.
Small business outsourcing takes work off your plate. When you hire a professional to do the work, you get it done faster. And you know the work is correct.
The money you spend on outsourcing is often a good investment. It frees up your time to focus on your core competencies. Those tasks help you grow your business and your cash flow faster.
What should you outsource? Focus on the areas that are critical to your business. The best options are those where you have no experience or tasks you find draining to do.
These five options are common outsourcing options for small businesses.
1. Human Resources and Payroll
Is your small business large enough to have an employee other than you? Then small business outsourcing for your HR and payroll duties may be a cost-effective option.
Employees count on accurate, timely paychecks. Sure, you make work a fun place to be. But realistically, people work to get paid not because they want to work.
Handling payroll comes with its own set of rules. You have to take out taxes and other deductions, such as insurance premiums and retirement funds. It can get complex and keep you from doing your core business activities.
You can easily outsource your payroll to ensure those deductions happen correctly. You also know your employees will get paid on time, which keeps them happy.
If you’re planning to hire new employees soon, consider outsourcing HR duties. HR companies can handle recruiting, hiring, and training for you. They understand the laws governing the hiring process to make sure you stay in compliance.
They can also handle ongoing HR needs. That includes things like attendance and benefits administration.
2. Bookkeeping and Accounting
Small business bookkeeping can be confusing if you don’t know how to crunch the numbers. Yet having accurate financial records is essential to keeping your business profitable.
Accurate bookkeeping is important for many reasons, including:
- Making financial decisions
- Completing income taxes
- Analyzing your success
- Reporting to investors
- Applying for loans or finding funding
You may also be required to keep separate business financial records depending on your business structure. If you don’t, you can get into legal trouble.
Business bookkeeping isn’t as simple as balancing your personal checking account. Proper records can be very complex, especially if you use the double entry method that’s common for businesses.
One small mistake throws off your books completely. Something as simple as switching two numbers of placing the decimal in the wrong spot can wreak havoc on your records.
If you don’t understand the basics of bookkeeping, you’re more likely to make mistakes, big and small. That gives you inaccurate information, which can have a snowball effect.
Say you enter information incorrectly on your business tax return. Then, the IRS finds the mistake in an audit. You can potentially face financial penalties for those mistakes.
Outsourcing your bookkeeping gives you peace of mind. An experienced bookkeeper or accountant can complete your books quickly and accurately.
Outsourcing the work is usually more cost-effective than hiring a full-time bookkeeper or accountant when your business is small. You only pay for the amount of work that needs to be done. You also avoid paying for benefits and other costs of employment.
3. Web Design
A strong web presence helps you reach more customers. You know an attractive website when you see one. But do you know how to create one yourself?
You can use templates to create a website, but a customized site is often more effective. Hiring a web design company lets you have a website that fits your branding.
Outsourced web design also follows the latest trends and best practices. That gives you a more effective and attractive website that makes people want to visit and learn more.
4. Business Marketing
Your marketing plan helps you grow your business and reach new customers. With so many marketing strategies, how do you know which one will work for your company? Trial and error can cost you time and money and still not get you the results you want.
A marketing company analyzes your business needs. They recommend the best routes, from traditional advertising to digital marketing.
Outsourcing the work means it gets done immediately. If you handle your own marketing, it might get pushed behind other duties. That means you miss out on marketing opportunities.
5. Cleaning Services
A clean office helps employees focus and makes it easier to find the things they need. That can increase productivity, which makes your company run more efficiently.
Cleaning is also important to keep your staff healthy. On average, employees miss nine days of work each year due to illness. Regular cleaning helps get rid of germs, which keeps your staff healthier.
After a long day of making tough business decisions, the last thing you want to do is clean the office from top to bottom. Hiring a full-time janitor comes with extra expenses. On top of the costs of having an employee, you also have to provide your own janitorial supplies, which adds up.
Outsourcing the janitorial duties keeps the office clean without getting dirty yourself. Janitorial services provide their own cleaning supplies and get the job done efficiently. Quality janitorial services use tools and techniques such as janitorial inspections to ensure their quality.
Master Small Business Outsourcing
How do you use small business outsourcing? Shift those difficult or mundane tasks to a pro to save time and money.
Read more blog posts on business for even more help on making your small business thrive.