Tips for Small Business / Self-Employed Individuals

Small businesses and self-employed individuals often find themselves over-stretched for time and in need of outsourcing. Driven by the economy and the need to watch expenses, more businesses will opt for contracting relationships and hold off hiring new employees.

Benefits of Outsourcing:

• Increase efficiency. An outside provider's cost structure and economy of scale can give your firm an important competitive advantage.
• Reduce labor costs. Hiring and training staff can be very expensive.
• Start new projects quickly.
• Focus on your core business. Outsourcing can help your business to shift its focus from peripheral activities toward work that serves the customer.
• Level the playing field. Outsourcing can help small firms act "big" by giving them access to the same economies of scale, efficiency, and expertise that large companies enjoy.
• Reduce risk. Outsourcing providers assume and manage certain risk for you and they generally are much better at deciding how to avoid risk in their areas of expertise.

Potential Areas to Outsource:

• Payroll
• Human Resources
• Data Entry / Bookkeeping
• Accounts Payable – www.bill.com
• Accounts Receivable – www.paysimple.com

So in conclusion:

• Re-examine what you consider activities only you or your employees can do.
• If not the entire activity, can some parts of this at least be outsourced?
• Be prepared to invest some time up front in training your outsourcing partner.