Outsourcing Helps Strengthen Your Start-up

Tuesday, October 30th, 2012 by Seth Weinstein

If you’re just launching a new business, you might think that outsourcing some of the work would be the last thing on your mind. But according to this article by Hugo Greenhalgh on Techcircle.in, outsourcing certain aspects of your work can be the difference between a lean, well-oiled machine of a company and you working 80-hour weeks.

The article describes some companies that found great success when they allowed certain practices to be taken care of outside the office. In a nutshell, here are the reasons why they found these methods so helpful.

Advantage #1: Rapid Growth Minus Overhead

Outsourcing allows your start-up to have all the qualities of a large office with many departments, but at a fraction of the cost. Especially when your business is new, the costs of hiring and training staff can be off-putting  But often, a third-party firm or freelancer is available for pennies on the dollar compared to adding a whole new department to your burgeoning business. Neil Asher of The Advanced Child Academy built his entire business model around Elance, and ended up cutting costs by about 80%. Ziptask could offer comparable results to many new businesses.

Advantage #2: The World of Workers at Your Fingertips

Even if a new business seeks to hire on a large scale, they may run into stumbling blocks if there are no available workers in the area with the proper qualifications. Companies that tap into tools like Ziptask, Elance, and oDesk can find talented workers from anywhere on the planet, eager and ready to go. And keeping these workers in their home towns instead of forcing them to relocate is a whole other set of advantages: office costs are lowered, globalization improves, and everyone’s happy.

Advantage #3: The Power Shift

While it might seem reasonable to think that outsourcing so many departments would lead to an overall loss of control, the individuals who report from the front lines will tell you otherwise. Lief Schneider, managing partner at Schneider Bartosch Communications, was asked about providing good service while outsourcing. He says, “You don’t need to be an expert in everything – in fact no one can be, or should claim to be – but you do need to have access to the best experts and you do need to know how to manage them. We effectively outsource any work that is not senior managerial activity.” The mark of any good manager is the ability to effectively delegate work, whether it’s to the person in the cubicle next door or to a firm halfway around the world.

These people have found success by relinquishing the less hand-on portions of their business to workers outside their offices. Ziptask hopes to help business accomplish these same goals, with the added advantage that with their system, you don’t need to waste time tracking down the perfect worker. If you want your start-up to operate like the big guys, outsource the small stuff to give yourself the time and brainpower for the larger issues, and your bank statements will confirm the wisdom of your choice.

 

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