How to Grow a Small Business with Outsourcing
The main goal of most, if not all, businesses is growth. The question is: Should businesses outsource their operations or perform them in-house in order to grow?
The Balance defines outsourcing as “the strategic use of external resources to perform activities traditionally carried out by internal staff.” Opinions on outsourcing differ.
Is outsourcing a good idea?
There are many reasons to outsource, including reducing costs, improving company focus, and reallocating internal resources to core business functions. Successful outsourcing also requires certain requirements.
Fundamentally, you must ensure that internal activities add value to the business and that activities to be outsourced cannot be performed by your existing employees. In order to successfully outsource, you need these things:
- A clear vision for the company
- Having a clear business plan
- Selecting the right people to outsource to
- Maintaining contact with contractors
- Clearly written contact information
Is outsourcing a practical choice?
Entrepreneurs approach this question pragmatically. Outsourcing simply means more efficiency. The phrase “jack of all trades, master of none” may sound familiar to you.
According to the American Psychological Association, managing multiple tasks simultaneously can reduce productivity by 40 percent when certain business functions are not outsourced.
Outsourcing results in higher efficiency and productivity, not a loss of control. Many business people recommend outsourcing functions such as content marketing, bookkeeping, payroll, and admin to increase awareness of your business. Outsourcing based on your company’s strengths will also lead to a more vibrant and successful company, and can even save you money.
Companies of all sizes can benefit from outsourcing. Your business can focus on its core operations by outsourcing non-core functions. Moreover, outsourcing will theoretically allow you to search for the best and brightest employees without geographic limitations.
Cost-cutting is one of the primary reasons for outsourcing. Another advantage of outsourcing is that it allows your company to be flexible and innovative, allowing you access to cutting-edge ideas. Lastly, outsourcing enables you to establish partnerships with companies who are at the forefront of technological innovation, so your company will remain competitive.
10 Ways to Grow Your Small Business
It can be challenging to scale your small business effectively and efficiently. It requires a smart approach and effort from different parts of your company, especially sales, marketing, finance, and legal. Due to the fact that you’re still a startup, you may find yourself wearing many hats until you’re able to hire expert employees. (If you don’t decide to outsource these tasks!)
There are ten strategies you can use to help accelerate the growth of your small business, even though it will take time and effort.
1. Take the time to research
To grow your small business, you need to conduct market research. By doing so, you are not only able to better understand your existing customers, but also your potential customers as well. You must gain insight into your target market and understand their needs. By doing so, you will be able to see how your business can grow and change in order to meet those needs.
Don’t forget to research your competitors as well. The strengths and weaknesses of your small business can help you determine how to scale it appropriately. Lastly, make sure you research industry experts and potential partners you can outsource to.
2. Create a sales funnel
You can take your business to the next level with a sales funnel. Consider a sales funnel as a customer’s journey. They are at the top of the funnel when they enter your business or visit your website. They have successfully gone through the funnel when they purchase something or sign up for a service. To make a sale, you should think of ways to move people through the funnel. You can do this by offering them a discount or by obtaining their contact information and sending them updates on your business.
3. Retain more customers
Getting new customers isn’t enough for your business. Keeping your existing customers happy is also important. Building customer loyalty can increase sales when you increase customer retention.
Focusing on retaining customers means you won’t be spending money on something that won’t be a guaranteed investment since getting a new customer costs five times more than keeping one.
You can increase your customer retention by:
- Prioritize Customer Service
If you don’t treat your customers right, they won’t support your business. Your dedication to addressing their concerns and giving them the best possible experience shows that you value them as a customer.
- Customer Service Outsourcing
This involves hiring an offshore team or team-member to handle mostly contact center-related tasks. Customer-handling tasks can be outsourced by businesses, especially SMEs, which results in increased staff retention and customer satisfaction.
- Customer Loyaltly Programs
Customers who support your business will be rewarded through loyalty programs. As well as attracting new customers, they can help you get back lost customers.
4. Take part in networking events
By increasing your brand visibility, you can attract new customers and grow your business. Networking events are a good way to do this. Get your business noticed by joining local professional organizations and attending events.
Participating in these events can be as simple as attending and meeting other business owners, setting up a booth to promote your business, or speaking as an industry expert.
5. Engage in corporate social responsibility
Customers want to do business with a company that shares their values. Taking corporate social responsibility (CSR) means recognizing the impact your business has on all aspects of the community. Publicizing what your business is doing to make a positive impact can help your bottom line. Your business can practice CSR by going green, giving back to the community, and producing sustainable products.
6. Establish strategic partnerships
Strategic partnerships can help you reach a broader audience or align growth with business goals. An example of a successful strategic partnership is between Starbucks and Barnes & Noble or Target. With the partnership, the coffee chain expands its reach and revenue across the country.
It is even possible to form a strategic partnership with a vendor to help expand your business. It is important to manage business relationships and maintain effective vendor relationships, regardless of what kind of partnership you form.
Finding the right outsourcing partner, is one of the best strategic partnerships you could have. This allows you to harness the power of experts in their respective fields, while freeing up your time for core business tasks.
7. Small businesses should consider franchising
Franchising is a common growth strategy for small businesses. Your business’ rights are sold to an independent owner. They then open and operate their own franchise of your business. Franchises are available from many well-known companies, such as McDonald’s, Starbucks, and Marriott hotels. Franchises increase the number of locations of your business, which boosts revenue.
Is your business franchisable before you sell the rights to it? Fast food restaurants and gyms are examples of industries where franchising is more appropriate.
8. Offer a variety of products and services
You have had success selling your main product or service to customers. It’s what inspired you to grow your small business in the first place. You can now attract new customers by offering different products or services. Find out if there are any opportunities for new products or services by conducting market research. Consider offering subscriptions or bundles with your existing products.
9. Expand into new markets
There’s no doubt that franchising allows you to grow your customer base. If your business is not franchiseable, you can expand through exportation as an alternative to franchising.
Exporting allows you to ship your products and services worldwide. Exporting can provide you with opportunities to sell your products and services online, open new business locations, and reach new markets.
Increase your company’s market share by taking your business global.
You can use a variety of strategies to grow your small business, but outsourcing remains to be one of the best strategies for growth. The benefits of small business outsourcing include controlling costs, enhancing efficiency, and focusing on areas of your business that you enjoy and excel at. This results in happier customers and employees, and greater growth.
How do you select the perfect outsourcing partner? If you need help in finding the right outsourcing partner, book a FREE APPOINTMENT with Outsource Asia experts today.