Building a business is a dream for many of us, but only few can turn it into a reality. And while starting a company is an exciting and rewarding venture, the road to success is filled with challenges. In fact, nine out of 10 of startups fail. So how do you keep your business from being a startup casualty?
The costs of building a business generally fall under six categories:
- Professional fees
- Technology costs
- Administrative costs
- Cost of sales
- Wages and benefits
- Sales and marketing
Depending on the type of business and scale of operations, these costs can easily run up to the thousands, hundreds of thousands, or millions.
Even if you had access to seed funding, it would still be more prudent to keep costs to a minimum, and to use your resources wisely. Just about any business function can be entrusted with a service provider – the key is to rely on outsourcing solutions that best translate to cost savings and greater efficiency.
Here are some solutions to consider:
- Manufacturing – Building a manufacturing plant and managing daily operations is a tedious and time-consuming endeavor, especially if you have large-scale operations in mind. Purchasing and maintaining facilities, screening and hiring workers, and buying equipment will take a large chunk out of your resources.
U.S. companies typically outsource assembly work and manufacturing to companies in Asia. This type of arrangement will have your product made and ready in no time, thanks to the capacity of these companies.
- Customer support – In saturated and highly competitive markets, customer service can make all the difference. Companies know this, and so many of them outsource call centre operations. Offshore destinations like the Philippines are home to service providers who are experts at voice services. The country’s talent pool is comprised of skilled employees, many of whom have considerable experience in customer support and sales.
- Finance and accounting – Small businesses do just fine with simple accounting packages and software like Quickbooks, but your biggest expense in this area would be your human capital. Hiring and retaining qualified professionals can be costly.
Luckily, there are many finance and back office accounting firms in the market. Consider outsourcing all of your finance and accounting functions to save time and money.
- Administrative functions – Business owners spend substantial amounts on “fixed costs” such as office space, utilities, security, phone lines, and office equipment. In order to cope with these expenses, companies are moving to executive office suites, where they have a shared location and shared administrative services.
This concept lets you have multiple offices in different locations overnight, and at a fraction of the cost.
Outsourcing not only helps you cut back on costs, it also helps facilitate growth. By transferring functions that don’t foster creativity or innovation, but are nonetheless important to daily operations, you and your in-house staff can focus on what you do best. It also lets you channel more of your time and energy to high-level tasks and critical decision-making. Talk to a service provider today to see what outsourcing can do for your business.