Outsourcing is not just for the big conglomerates, small businesses can also benefit from allowing an outside firm to manage control of some aspects of a growing entrepreneurial business. Outsourcing is a global business that is more than suitable for a small, growing enterprise.
One of the main reasons for businesses outsourcing to an umbrella company is cost. Put simply, outsourcing is an accessible and cost-effective tool that results in businesses reporting rapid growth and productivity whilst still maintaining the all-important bottom line.
How do you know when your business is ready for outsourcing?
There is no definite answer as each company is unique and individual but for small businesses there are some signs to look for. Is your company developing at a rate that requires more manpower but at the same time doesn’t warrant hiring a full time employee? Are your current staff under enormous pressure, undertaking tasks which leave them little time to do the job they were actually employed to do?
What aspects of the business can be outsourced?
There are several aspects to outsourcing, from the mundane day-to-day tasks, such as accounts payable, data entry and stock keeping, to the more specialized knowledge, such as IT support systems. An entrepreneur may also like to consider outsourcing for a specialist advisor to come in a few times per year to offer advice in fiscal planning – you can just pay for what you need.
Payroll outsourcing, for example, allows a business to not waste profits handling a function that doesn’t bring in any revenue and it usually costs more to pay an employee to handle this highly repetitive task than it would cost to outsource. As a growing business you may have cyclical or seasonal demands such as tax returns, high demands like these will have an impact on your time and revenue but with outsourcing the cost could be spread over the financial year.
Outsourcing your small business needs allows you to be flexible and focus on developing your business, which after all is your expertise. Consider administration and the cost to you in terms of time and significance. Yes, you need to keep up with the administration side of your business but can you really afford to employ a full time member of staff? A good umbrella company will reduce and minimize the workload and paperwork involved; in fact it should be completely hassle-free.
Entrepreneurs should seek help from a hassle-free umbrella company to provide solutions to their business needs. Once your needs have been identified, you can begin to work out and compare the costs of outsourcing versus what it would cost in-house. An umbrella company is responsible for the freelancers, consultants or contractor’s pay (and taxation affairs) leaving you with just their expertise and time.
A good umbrella company will provide round the clock support as well as efficient staff, providing great peace of mind for a business owner.
