4 Reasons Why Outsourcing Is a Good Strategy for Start-Ups

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No matter how hard you try, you cannot be equally good at everything. Efficient division of labor has been the hallmark of all successful businesses. Regardless of how talented you are, there is a limit to how much you can do. Outsourcing, when made use of properly, can do wonders to your business. So, how to tell whether your start-up needs outsourcing?

Here are four concerns that you should take into account:

  1. You are in a hurry

Regardless of how talented your new hires are, they usually need at least half a year to settle down and get integrated in your organization. Most experienced organizations know that new employees need several months before they start adding any real value. As a start-up, time will be of value to you. Before long, someone else will imitate your idea and compete with you directly in your segment. Can you afford to rely on some recruitment agency and wait till they shortlist, interview, hire and complete the on-boarding of the new staff? How much opportunity cost would that entail? Why not hire the services of a partner firm instead, that can start immediately and know exactly how and where to begin?

  1. Do you possess the required expertise?

According to a survey carried out by Quartz, eighteen percent of start-up founders identified lack of experience and/or knowledge as a potent reason behind start-up failures. The moral that we could learn from this survey is that we ought to appreciate the importance of training and knowledge of experts. If you do not have the required skill set to carry out a particular task, there is no harm in hiring the services of an agency. Identify partners with a proven track record and establish a working relationship with them.

  1. Because multi-tasking is overrated

In 2016, Staple Advantages carried out a study that revealed that almost 40 percent of the jobholders interviewed by it would give up their jobs due to burnout. True, you are highly motivated and pumped up to make your start-up succeed but there are just twenty four hours in a day. Trying to do too many things at once would sooner or later take a toll on your productivity and reduce your efficiency. There is nothing like a dedicated agency pursuing your agenda with single-minded devotion. No multi-tasking genius can match this sort of drive.

  1. You are cash-strapped

According to a Quartz study, 46 per cent of startups fail because they run out of funding. Whether you are a bootstrapped firm or have an investor backing you, maintaining a steady cash flow should be one of your top priorities. Few startups can afford to hire an in-house team for their allied processes. Why not find an agency that has experience in outsourcing? They often offer attractive packages and stress-free, one window solution to your processes at a price that would be way lower than what you might have to spend on hiring an in-house team.

Do not try to do everything yourself or develop everything in-house. Your core team’s time is valuable. Do not waste their energy and drive on allied processes that may easily be outsourced.