Which functions should SMEs prioritize when outsourcing?
Managing a business involves completing a myriad of backend functions that are just as important to a business’s overall profitability and viability. Startups and SMEs, particularly those with very limited manpower, may find themselves hard pressed to fulfill all these tasks in-house. Thankfully, these enterprises have an option available to them, and that is outsourcing. Contracting a third-party company to handle certain business functions allows SMEs to focus on tasks that directly contribute to their growth. Some of the functions that are often outsourced are:
- Payroll processing. Often, payroll processing is done in the middle and at the end of the month, but this task can still eat up a lot of resources, particularly if your business employs many people. Some entrepreneurs don’t want to hire and train a new fulltime employee just to manage payroll, so they do their best to handle the task on their own. However, this takes their attention away from their business, especially on the days leading to salary payouts. Payroll processing can be outsourced for a fee that is certainly lower than what you’d have to spend on a fulltime employee. This option will save your company money and allow you to process payroll accurately and in a timely manner.
- Finance and Accounting. Keeping track of your company’s finances is another essential task that can be outsourced to a trustworthy third party company. A finance and accounting company invests in software and people with the right qualifications, so you don’t have to invest your own company’s resources on these. Aside from that, these third party companies also make use of highly secure systems, ensuring that your sensitive financial data is safe from tampering or unauthorized access.
- Distribution. If your company is focused on selling or manufacturing items, it’s a good idea to get a third party logistics company to deliver your goods for you instead of delivering your products yourself. With this strategy, you won’t have to invest in vehicles and manpower just to deliver your items, but you can focus your resources on doubling your production or improving your products and production process. Take care to choose a logistics partner that has a proven track record of honesty, timeliness, and efficiency.
- Research. Running a business is a learning process. While in the middle of things, you may come up with a seemingly brilliant idea that you can use in your business or make one process or another easier for your team. Too bad you don’t really have the luxury of time or extra resources to test out if it will work or not. However, you don’t have to completely set that idea aside; you can actually find a company that will do all the legwork for you and see if the idea is viable and practical or not.
- Human Resources. In order to thrive and grow, a company needs the support of the right people, but every business owner knows that finding the right employees is far from a walk in the park. Recruiting, hiring, training, and managing new people can take up a lot of time and effort, and it can distract you from your daily tasks. Outsource your HR functions to a company that specializes in recruitment and manpower solutions and you not only widen your selection of possible applicants, you can also speed up the hiring process and make it less expensive for your company in the long run.
Compared to large corporations, SMEs work with a more limited set of resources, which should be used wisely. Through outsourcing and with the help of outsourcing experts like Outsource Accelerator, SMEs have more opportunity to focus their resources on processes that are central to growing the business.