How Much of My Business Should I Outsource?
How Much of My Business Should I Outsource?
Many businesses had no choice during the COVID-19 pandemic other than to outsource some of their needs. With many employees sheltered in place, companies had to find other options to complete tasks. Outsourcing filled the need for many businesses.
What Is Outsourcing?
Outsourcing is the use of outside resources to perform tasks and activities that employees and internal staff members would generally perform.
For example, a company would traditionally have a bookkeeper and payroll person who would handle the books and records for the company. However, today, many small businesses outsource payroll and human resources instead of hiring full-time employees to handle these tasks.
What Are the Benefits of Outsourcing for My Company?
There are many benefits of outsourcing. Some of the benefits to consider include:
- Specialized Knowledge – You can hire someone to provide a specialized service for a much lower price than hiring a full-time employee to provide the same services.
- Payroll Taxes and Benefits – You do not need to pay employer payroll taxes or offer benefits to independent contractors.
- Reduce Overhead – Many independent contractors work from their offices. Therefore, you do not need to provide a workspace or supplies.
- Overflow Work – If you need help completing a specific project, outsourcing some of the tasks may be less expensive than hiring employees on a short-term basis.
Of course, each business owner needs to decide whether outsourcing is right for them. Some small businesses outsource almost all of their specialized tasks to independent contractors or other companies. They only hire full-time employees for in-house work that cannot be outsourced.
Other companies may outsource only a few tasks because they want total control over the other tasks. The decision to outsource must be made based on the company’s needs and resources.
Five Things That Small Business Should Outsource
If you are starting a small business or you are struggling to keep up with everything that must be completed to keep your company operating, consider outsourcing these five tasks:
- Customer Support
Small businesses may want to outsource their customer support to avoid hiring full-time employees to handle time-consuming calls. Customer support agents may be able to answer many questions and resolve issues so that you can focus on providing quality services and products while you grow your business.
- IT Support
You do not need to hire a full-time IT person for a small business, but you do need help with networking, security, and other issues related to technology needs. An independent contractor can usually provide these services quickly at a much lower cost than hiring an employee to handle IT matters.
- Payroll and Human Resources
Many small business owners are not familiar with payroll and human resource requirements. Outsourcing these services to a payroll and HR company means you do not need to learn about these matters or keep up with the changes. A company can handle all of your employee matters, including hiring and terminating employees if you desire.
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- Legal Services
Every business needs an attorney. However, most companies cannot hire in-house counsel to handle their legal services. Hiring a business lawyer to assist you with choosing a business entity, drafting contracts, and getting your company off the ground means that you can avoid making a critical mistake that can cost you a lot of money or even shut your business down.
Contact Our Coral Springs Business Law Attorney for More Information
Attorney Matthew Fornaro represents business owners and companies throughout Florida. Our legal team can help you with your startup, answer questions about employee matters, or assist you with business litigation. If you have a question about business law matters, we are here to help.
Call 954-324-3651 or contact us online to schedule an appointment or for more information about our business law services.