4 Signs That Your Startup Needs to Start Outsourcing

January 4, 2017

If you’re an entrepreneur, time is working against you. There’s never enough time to get everything done, and every moment that passes is a moment the competition develops further and the market becomes less vulnerable to your advances. This is the reason most startups get into outsourcing. Freelancers and contract employees allow for a burst of productivity without having to commit to a worker who you may only need once.

The problem you face is timing. Here are a few signs that say it’s time to outsource some work.

  1. The Office Lacks Skills

A startling number of startups fail because they just don’t have enough skilled workers. It’s understandable, as not a lot of employees will look at a startup and think “safe employment.” This leads to a fatal knowledge gap.

However, freelancers and outsourced workers don’t have the same problem. They get paid according to the project or milestones, so the stability of the company doesn’t matter much when they’re looking for jobs. Get role players into your team and fill that gap.

  1. You Don’t Have the Capital for a Complete Team

Money’s tight when you’re an entrepreneur. You’re running with a new idea, and you may not have the experience or history to tempt investors into trying something new. Hiring people can be an accounting nightmare. Instead of falling prey to overspending, go for an outsourced worker.

Freelancers do come with risks of their own; some may forge their credentials and submit subpar work, or simply leave the job after receiving their first paycheck. Mitigate risk by offering milestone-based payments. As a bonus, you’ll save money and time because you won’t have to offer the same salaries or benefits as you would with a full-time hire.

  1. Deadlines are Pounding at Your Door

Experienced entrepreneurs will tell you that it can take up to a year for hires to help the organization in a meaningful way. It’s not just the adjustment period, but also the time it takes to find someone who fits the startup. This can be a problem when deadlines are mounting and you just don’t have the manpower to get the product out the door.

Outsourced employees don’t have that problem. You hire them, you give them the details, and then you pay them. There’s little downtime and you can pay them extra to get things done faster than normal.

  1. You Don’t Have Time to Get Things Done

The more you get done, the better off you’ll be. That’s a mantra you’ll learn as an entrepreneur. High productivity levels means more things get done, but you can only get so much done with five people. Deadlines may not be nipping at your heels, but Bob in accounting hasn’t slept in weeks and you still need to complete tasks in a timely fashion. It’s time to outsource. Calling in the cavalry to get your to-do lists cleaned up will give your employees more room to breathe, thereby staving off burnout and a high turnover rate.

Looking for outsourced help doesn’t make you weak or less of an entrepreneur. In fact, outsourcing is a common practice. All companies, large and small, will at least consider outsourcing at one point. Don’t hesitate. Outsourcing can be a great friend, but only if you get to it on time.

Email us at hello@extracc.com.my if you’d like to know more on how to keep your books or accounts in order while keeping your eyes on the daily business operations.