Bootstrapping refers to companies that started using an entrepreneur’s personal savings and initial sales. It has become a rising norm for everyone starting their companies and wanting to retain full ownership.
Unfortunately, not all bootstrapped companies succeed long-term. Around 90% of businesses fail with a lack of resources and funding major factors.
Most known companies nowadays have become successful by bootstrapping, but they didn’t just do it on their own. They recognize their need to maximize their resources and profit to expand more efficiently, a reason they outsource their services.
Outsourcing: The secret to successful bootstrapping
Like most businesses, successful bootstrapped companies once experienced limitations in their resources and growth.
Entrepreneurs usually start with working on their own, juggling business functions with full-time or part-time jobs. Some of them hire a few workers to accomplish tasks such as accounting and data entry.
As their companies grow, their responsibilities also increase. Aside from funding, they even face several challenges in maintaining their business, such as tight competition and talent gaps. This makes handling their functions more difficult, resulting in missed deadlines and burnouts.
This is where outsourcing becomes a viable option for them.
Benefits of outsourcing to bootstrap businesses
Bootstrap businesses benefit from outsourcing in the following ways.
Work with experienced talents
Starting companies also experience difficulties in hiring staff. The latest survey released by the US Chamber of Commerce and MetLife showed that 49% of SMEs find it difficult to hire suitable talents. In comparison, 42% experience tougher competition with large enterprises in their area.
Outsourcing their services fills up their need for workers. By delegating services offshore, they can work with experienced talents suitable for their roles.
Save on costs
A 2019 report by financial firm Kabbage stated that around one-third of bootstrapped companies start with only $5,000 capital. Imagine the limitations it can bring to its growing operations and products to release in the market.
With outsourcing, they get to save on costs needed in running a business. They can already hire the best teams from the best offshore countries at a portion of their initial investment.
Have better flexibility
Multitasking can be counterproductive for entrepreneurs. They could end up getting stuck on a single task all day and missing out on bigger opportunities for their growth.
Delegating their services offshore gives them better operational flexibility. Business owners can free themselves from repetitive functions such as data entry and email checking, giving them more time for more valuable functions.
Time will come when companies should maximize their profitability and expansion. With the towering costs in their country, scaling with their in-house teams won’t always be a viable option.
The best way for bootstrapped companies to scale is through outsourcing. They can keep their operational costs low while increasing their profits and customer base, making it easier to expand.
Services that bootstrapped companies should outsource
Some of the most common services outsourced by bootstrapped companies are the following.
Bootstrapping companies need to closely monitor their finances to avoid negative cash flow. Business owners cannot just focus on their books and input their expenses all the time. Aside from losing focus, accounting errors could happen that could result in penalties.
Outsourcing accounting tasks frees them from the burden of repetitive bookkeeping tasks. With this, they can monitor their finances better with fewer errors.
Companies now focus on providing the best support and experience for their customers. Satisfied customers will keep patronizing a business that takes care of their needs, from sales to support services.
Outsourcing support services is an excellent way to handle volumes of inquiries and issues from customers. Through this, companies can assure that each customer’s concern is taken care of, giving them more satisfaction in return.
Bootstrapped companies don’t just grow by word-of-mouth alone. They have to find and target audiences in different locations that will fit their products and services.
Researching and generating leads take time and expertise to make it right. This is why businesses should outsource marketing functions to an expert team dedicated to targeting and capturing leads that can turn into paying customers.
Top BPOs for bootstrapped companies
Bootstrapping can make businesses successful with the right strategies and service providers. Luckily, global companies now have more options to choose their preferred providers in terms of location and pricing.
While companies can try to outsource on their own, it’s still best to have a reliable consultant when starting. Outsource Accelerator, the world’s leading outsourcing marketplace, has a comprehensive directory of over 2,500 BPOs in top outsourcing destinations.
They also have over 5,000 articles and more than 350 podcast episodes about outsourcing and the industry. With this, bootstrapping companies should not hesitate to learn about the top BPO companies that can help them outsource their services today.