Friday, December 29, 2006

Growing Your Business with Outsourcing

Many small businesses and sole proprietorships are growing their businesses with Outsourcing more and more today. By outsourcing part of their work load they can free up time, keep costs down and take on more business for more income. When these one man operations or small businesses hire outside professionals to take on part of their work load this is referred to as outsourcing, since these people are not employees of the business that has the work to be done. By outsourcing the small company also appears to be much larger than they really are and they can make the profits of much larger companies this way.

Employees or perspective employees will be one of the biggest time savings as well as cost savings. No time will be spent setting up interviews or doing those interviews. This will allow you to spend more time with your customers, and any customer that deals directly with the owner will become loyal much quicker and will be a repeat customer longer.

Since you will not be hiring any employees there will be no tax forms to fill out, no scheduling to be done for them, and no need for training time. All of these things take your time and cost you money. Your business will also save by not having to buy employee health insurance, unemployment insurance, workers compensation insurance, and security systems to monitor these employees. This is in addition to saving on having no employee payroll, including your share of their income taxes, vacation pay, and holiday pay.

With the time that you save by not taking on employees, you can use that time for concentrating on your marketing and advertising campaigns, and the development of new products. Of course there are going to be costs associated with the outsourcing, however if you negotiate for a fair fee then your savings will outweigh these costs.

By outsourcing your company will grow in revenue but there will be no need for larger office space or work areas. Again your business will incur savings here also.

Without increasing your staff or work space there also will not be a need to buy and learn how to use more office equipment, production equipment, software, and other time consuming tasks related with larger space and new business tools.

Outsourcing will allow you to take on much larger orders that you could not take on by yourself. This will create the opportunity to branch out and expand your market area. Offer to take on the work that your competition can not handle.

The subcontracting companies that you do business with could become a source of new business as well since they will undoubtedly be talking to people about your business which brings them more business as well. In return you could act as a middleman for the subcontractors that you use by promoting their products in your business activities. For doing this for them you would charge them a finders fee which could be an added source of income for you or when you need to have them do work for you the money you receive from them could be used to offset their cost to you for the work they do for you.

Utilizing outsourcing will mean that your product will be turned out quicker therefore it will also be delivered quicker, which will boost customer satisfaction. The increase in customer satisfaction will multiply your profits quickly in the form of repeat business and referrals from those happy customers to their family, friends, and even strangers they may meet in their daily routine.

In conclusion any business can benefit from Outsourcing in these ways provided that they locate and negotiate with an outside business that is prepared to meet the needs and has the knowledge and staff to produce the product sufficiently and economically. This outsourcing allows the small business to compete on a more even level with much larger companies as well as providing revenue growth and profit growth without increasing all the costs associated with growth

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