Understanding your business’s core competencies allows you to play to its strengths to gain a competitive advantage. You can then outsource other business functions to freelancers or independent contractors to maximize your efficiency. To identify your small business’s core competencies, recognize what it does best. Conduct a strengths, weaknesses, opportunities and threats analysis to help determine where your business excels.
Time to Focus on What You Do Best
With only so many hours in the day, you need to use your time efficiently. Outsourcing many aspects of your small business lets you focus on your core competencies. For example, if your business strength is quality, outsourcing your marketing and accounting activities gives you more time to spend on issues that impact the quality of your products and services. Use the time you have saved to strengthen your core competencies to help give your business a competitive edge. For instance, if your business’s core competency is its large supply chain, continue to network with different suppliers to renegotiate favourable deals that benefit your customers.
Finding the Best Talent
You may not have every skill your business requires. Outsourcing allows you to find talented individuals that have the skills you need. If you own an online store and need a programmer to build an auction component for your site, you could use freelancing sites such as Upwork and Freelancer to find a professional with expertise in developing e-commerce auction sites. Outsourcing gives you the flexibility to hire talent irrespective of location, which may be beneficial if you can’t find staff with the skills you need locally. Most freelancers have a portfolio of work that demonstrates their unique skills.
Reduced Employments Costs
When you start a new business, it’s hard to determine what staffing requirements you need. Reduce your employments costs by outsourcing the majority of your business’s operational functions such as human resources, payroll, and legal on an as-needed basis. The money your business saves through outsourcing can be used to strengthen its core competencies. If you own an accounting business with a strength is providing innovative accounting solutions to millennials, the money you save from outsourcing human resources management can be spent developing new products that embrace technology, such as cloud accounting software.
Outsourcing allows your business to be more productive. Hiring independent contractors with the skills in the areas you need can hit the ground running and get work completed immediately without in-house development. Outsourced professionals use their expertise to provide guidance and advice that saves you time. For example, an accounting consultant may advise you of necessary receipts to keep for tax time, expediting the time spent on your accounting responsibilities. If your business is growing, outsourcing allows you to hire more contractors, such as sales professionals to keep up with increased demand. A small business can benefit from outsourcing work to experienced contractors who take care of day-to-day activities. Realized advantages include time to focus on your strengths, utilizing talented professionals, reducing recruitment costs, and increased productivity.