The benefits of Outsourcing for Small Business Owners

By Hannah du Plessis

Outsourcing initially emerged as a way for companies to cut costs by having processes such as assembly and manufacturing done in overseas locations where costs were much lower. Operating costs and Lower wages have both contributed to these reduced costs. These lower costs were appealing because they significantly improved the profit margins for the companies.

Outsourcing work has become a very popular alternative to businesses for a number of very good reasons.

1. You have access to industry experts, a bigger workforce and more flexible options. This means you don’t have to worry about learning to use new software or getting tied up in admin work.

2. You save time. For a small business owner, this is even more relevant and he/she usually has to take on the task of CEO, accountant, personal assistant and chief marketing officer. This means that the normal small business owner is too busy running the business to actually run the business.

3. Another way you save time is by not having to do all the paperwork involved in having an extra employee. You also don’t have to spend time on interviews.

4. You don’t have to take time or spend money to train new employees.

5. You don’t have to make space or buy extra equipment for an extra employee.

6. You don’t have any of the costs that come with an employee: ACC payments, sick leave, holiday pay, and taxes. Outsourcing is tax deductable as a business expense. Having an employee isn’t.

7. You don’t have to worry about idle time – time wasted at the coffee machine or water cooler. An outsource agent bills per hour.

8. By delegating your less enjoyable or difficult tasks to other businesses, you can concentrate on doing what you do well and what you enjoy doing.

About the author: Hannah du Plessis is a Virtual Assistant who can help with the tasks you don’t have time for.