The Top 5 Benefits of Outsourcing for Small Businesses in Raleigh and Durham

There are many benefits to outsourcing for a small business. Here are the top 5 outsourcing advantages in Raleigh and Durham, NC.

Saving money is always a major concern for small business owners and outsourcing can do just that.

• Less office space needed
• Decrease in full time employees
• Less capital needed to complete projects

Reducing risk is very important to the success of a small business. The very obvious advantage is the decrease in insurance. But, a small business can also help maintain a positive reputation by using businesses that may be more qualified to complete a certain task than an employee hired for that purpose.

This takes us to competitive expertise. Let’s face it, most small business owners got into business to do one thing they usually do very well. However, when it comes to all the other services needed to complete a business, most of us are only mediocre at best. Getting assistance from a well qualified professional allows small businesses to compete with their larger counterparts. Also, there may projects a small business owner could not even accept without the expertise of a professional outside the company.

When small businesses turn to outsourcing, they are able to take on more projects and save time. They are able to take on more projects because it takes less time to complete a project and because outsourcing does not limit you to the skill set available only at your business.

This brings us to core concentration and efficiency of the business. I like to call this CC²=E. Outsourcing enables a small business owner to concentrate on his core business activities (usually where the real money is made and where the work is most enjoyed). When a small business owner outsources services, everyone is doing their core business activity. Also, as any business consultant will tell you, it is not sensible to do a job you could pay someone to do for $20 an hour when you make $100 per hour doing your core activity. Outsourcing promotes efficiency. You do of course, need to make sure you are using well qualified professionals when you outsource.

As always let us at sbbsm know if we can help. You can contact David Newton at 919-302-8849 or at sbbsm.com.

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Tags: benefits, business, for, outsourcing, outsoured, services, small

2 members like this

Comment by Fred T. Gruber Jr. on January 30, 2013 at 8:25am: Great info David!

I started out, in this business, as a sub-contractor and began subbing out some jobs for larger accounts that had locations that were out of my service area. We had the benefit of a bigger company with the overhead of a smaller one. We sometimes do the same for smaller jobs that are not close to us.

Comment by David Newton on January 30, 2013 at 11:15am: Just another example of outsourcing makes each party more efficient and contributes to the business machine. Thanks Fred.

Comment by Robin Thomas on January 30, 2013 at 5:03pm: Great information for micro and small businesses, David. As businesses begin to grow, it becomes impossible to be everything and do everything. By outsourcing tasks that take time away from my passion, I am able to be more efficient. Like that!

Comment by Gaynor Fries, 919 Director on January 30, 2013 at 9:37pm: Great share, David. There are many benefits to outsourcing to experts who concentrate on certain areas. Just because you CAN do a certain task, doesn't mean you SHOULD be doing it.

Comment by David Newton on January 31, 2013 at 8:59am: Thanks Robin and Gaynor. I couldn't agree with you more. We want small business owners to become very mathematical about their business and spend their time where they are making money. Surprisingly, this is usually also the task they enjoy the most. Thanks again.

Comment by David DiGirolamo: Visual Comm. on January 31, 2013 at 11:51am: The thing I love about Inside919 is that we all live here. This is key when it comes to outsourcing tasks to third party service providers because we all live in the area and have an opportunity to meet offline. Coupled with this point is the fact that in a global marketplace the opportunity to off shore tasks is significant. It is enticing to small business to not only outsource but also off shore jobs because the cost savings can be so drastic… and this is probably one of my own biggest hurdles.

One time a potential client of mine boasted that he had only paid $50 for his logo mark by going through some online logo website in the Indonesia. My initial thought was, “You’ve place a value that low on the thing that will be an outward expression of you and your business, really?” The poor fella didn’t seem to have a clue that his new logo ripped off the Nike swoosh. And the other thought I had was that this individual had just off shored a job that could have easily been done locally, and most likely with better results. I’m not saying there’s no risk involved with outsourcing locally, you will often run into people who aren’t that good at what they claim to do, so it’s always going to be “byer beware”.

Also, if you are not dealing directly with the service provider to whom you are outsourcing work, you might want to check to see if the outsourcing aggregator you have chosen is using local talent versus off shore talent. To bring this commentary full circle, this one factor can contribute or take away from the economy here, and that’s why I love keeping it local and inside the 919.

Comment by David Newton on January 31, 2013 at 2:56pm: I completely agree. We like to use the phrase "green outsourcing" because all of our service providers are local. We also have an evaluation process outlined on our website. In addition our service providers are available online for inspection and examination. Having said all this, I do understand why small business owners tend to look at the quick reward by turning to an overseas source. However; just as in the case you described, it can actually be more cost effective to choose a qualified, local business. community;economy;time;efficiency;control

Comment by Nancy Williams on February 1, 2013 at 8:59am: I have a great testimonial for "outsourcing". I admittedly don't like to do administrative type tasks. What I love to do and what I do best, is sitting with clients and helping them make appropriate choices. Although I felt like I could not afford it, I decided to go ahead and hire someone to do things I just don't need to spend time doing such as: enter clients in my contact management system and make calls to personally invite people to certain activities.
I gave her a script on what to say, and in her first month of making these calls (calls that would seem very mundane and I would not have had time to do them) she came across two people that although they did not want to attend the event, they wanted me to contact them.

The sales I have made through those two contacts will pay for her services for at least the next two years. I'm still working on the referrals that have been generated from those initial calls.

Comment by David Newton on February 2, 2013 at 7:30am: Another great example. Thanks Nancy.

Comment by Pepper P Oldziey on February 2, 2013 at 4:46pm: I agree with you as well David. It is simply cost effective to determine what you don't need to do, what quality and dollar worth you want to pay for that service to be sure you have high quality work, and then set about finding good people to outsource. A business that brings you good people like that is worth its weight in gold.