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They need more, better-qualified staff in order to take their business to the next level, but because they can't take that crucial step, their turnover means they can't afford to hire great people! Whether you're running a home based business, or have a small brick and mortar company, chances are you've encountered that particular problem at some point.
The good news is that today, more than ever, outsourcing can help you to solve your problem, and make that important step in your business, without blowing your budget! The idea behind outsourcing is the same as it's always been.
Small and medium business owners who need a particular skill, talent or expertise use external service providers on a contract basis, rather than hiring staff to do the job for them on a full time basis.
The benefit to the business owner is that they can hire top-notch professionals to do the work for them, and they pay only for the work done.
Either it becomes a once off, per project expense, or they save by paying a professional for just a few hours per month, instead of a fixed (and usually large) salary every month.
Either way, it's a cost saving, and puts professional services within the budget of the small business owner.
Traditionally, there were several functions that small business owners chose to outsource.
They might have used a freelance bookkeeper to keep their accounts in order, or they might have outsourced the manufacture of a particular product or component to a specialist.
These days, however, thanks to the internet, it's possible to outsource virtually anything you can think of.
There are VA's, or Virtual Assistants, who perform all of the functions a traditional personal assistant or secretary, would, but who you pay for only the time that you require her services.
Then there are architects, engineers, photographers, sales professionals, copywriters, designers, and just about any other profession you can think of, all of whom are offering their skills and expertise on a freelance basis.
There are even professionals whose sole function is to market and advertise your website on the internet.
Aside from the fact that when you outsource, you pay only for the time that you use the services a particular professional offers, there are other benefits to outsourcing key tasks in your business too.
First, there's the benefit of the exchange rate.
The internet makes it possible for a business owner in a particular country to do business with a professional service provider on the other side of the world.
If that service provider happens to be in a country where the currency is significantly weaker than their home country, the business owner can usually get top quality professional services at a fraction of the price it would cost them in their own country.
Next, there's the issue of human resources.
If you've been in business for any length of time, you know that managing people is one of the biggest headaches you'll have in business! Finding the right staff, and hiring them, is one thing, but if you find they're not performing, dismissing them is even harder! When you outsource, you're essentially entering into a contract based business arrangement.
If the person you've hired to perform a task or function doesn't deliver, it's easy to end your contract, and look for someone better suited to complete the project.
You also don't have to worry about your staff members' personal problems, sick days, maternity leave, or dental plan! The internet has made finding qualified professionals much easier.
Whether you look on free classified advertising platforms, or use a professional third party platform like oDesk or Elance to search for service providers, there are literally millions of qualified candidates, right at your fingertips.
From lawyers to engineers, and everything in between, outsourcing puts you in contact with the very best professionals, at a price you can afford.
Of course, working with a team that spans the globe can be a tricky proposition, and there are a few pitfalls you should be aware of.
Firstly, you need to make sure that the person or team you're hiring really has the skill to complete your project to the standard you require.
When you use a third party platform, that's usually easy, as there are project histories you can check, but if you're looking outside of a recognised outsourcing platform, you will need to get, and check, references.
Then there's the time difference and communication issue.
Luckily, however, these days, there are a variety of online communication options, and working with someone on the other side of the world is very similar to working with one in the next town these days.
Finally, you should remember that while outsourcing your project, whether it's graphic design or designing your prototype, you get what you pay for.
Yes, there are cost benefits to outsourcing globally, but if you aren't willing to pay at least a reasonable rate for the services of professionals, you're probably not going to get a very professional result! Outsourcing is definitely a great solution to small businesses that are operating on a tight budget, but it's not entirely without its problems.
However, the benefits by far outweigh the problems, and if you're serious about building your business, you should certainly look into expanding your team using freelance professionals!
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