Did you know that a staggering 90% of all start-ups fail, usually during the first five years of business?
High-growth start-ups aim to be scalable, or in other words, to maintain considerable long-term growth under an ever-increasing (and usually overwhelming) amount of workload.
This kind of tempo is hard to keep up with for a long time without it leading to inevitable burnout. Why? Well, because start-ups tend to want to do everything by themselves.
Here’s the thing, though: you don’t have to do everything on your own.
Outsourcing an expert third-party company to take care of your non-core business processes can drastically reduce your operating costs and allow you to focus on processes that are your main revenue source, among other things.
So, what makes outsourcing a perfect solution for your start-up? Let’s take a look at a few reasons:
It’s cost-effective
If you’re running a start-up, you likely don’t have enough finances to hire separate people to take care of your accounting, HR, customer support, legal and other matters. It’s understandable that you want to redirect all of your resources into your main, more-pressing processes.
By outsourcing these sectors, you can save money on employee training, tech support, employee benefits and office space.
It reduces employee turnover
Start-up ecosystems are known to be stressful. Most often, the reason for this is the lack of an established hierarchy system and employees being assigned tasks they don’t really enjoy.
Unsatisfactory working conditions lead to a higher employee turnover, which can get quite costly for a start-up.
Did you know that replacing even hourly employees can cost your business thousands of dollars?
As it is getting increasingly hard to find and retain a good employee, you might want to consider recruiting through outsourcing.
You don’t have to pay for the technology and infrastructure
Another thing that can make running a start-up really pricey, really fast, is having to invest in technology, equipment, software, information security and factors alike.
Instead of having to pay to set up the entire infrastructure necessary for running a business, you can hire one of the top BPO companies and get instant access to their resources.
Another great aspect of hiring BPO companies is that their experts are ready to take over those non-core processes that your team would rather not be involved in. This, in turn, can result in higher satisfaction levels for your employees.
You get all the expert knowledge
So much goes into running a business, especially into building one from scratch. We’re not saying gathering all the knowledge and skills necessary is impossible for a single person, but building an empire usually takes a whole village.
Instead of having to go through sleepless nights, stress over every single detail and lose a considerable amount of time learning about everything that goes into running a start-up, you can hire a team of people who already have the right expertise for your needs.
By outsourcing, you can reduce the risks of human error due to exhaustion or lack of understanding of certain core processes.
Not only that, but you also get to step back and relinquish some of the control, which may allow you to better evaluate the performance of your Start-up from an objective perspective.
You eliminate the chances of experiencing burnout
Start-ups usually have trouble pacing themselves.
Your ideas are likely big, and you probably know how important it is for you to be consistent and stick to your plans over a long period. To make this possible, it’s also important to give yourself time to rest and think.
Your employees are also prone to burnout, so you want to make sure that you’re not overburdening them with work and expectations.
Instead of having a few in-house people doing too much, you can outsource people to take over some of the tasks. This will result in both your employees and your outsourced experts producing work of higher quality and they’ll likely be far more efficient, too.
You’ll be able to provide better services for your customers
Resolving customer issues, answering their calls and responding to their emails can take up a lot of time – that you likely don’t even have. You can improve these areas by outsourcing to companies offering customer service call centers, service desks and help desks.
Another great benefit is that if you outsource to a company from a different country, with a different time zone, you could enable your start-up to do round-the-clock work and deliver faster results.
In conclusion, if you want to be strategic about your spending and lower your costs, outsourcing might be a good fit for your start-up.
Apart from that, outsourcing allows you to focus on the expansion and core functions of your business, which is exactly what high-growth start-ups should be focusing on.