Starting a business is exciting, but it can also get overwhelming. As a startup founder, you are responsible for every aspect of your business, from product development to marketing to accounting. While it’s important to have a deep understanding of every facet of your business, trying to do everything yourself can be a recipe for burnout and ultimately, failure.
The question then arises: What should startups outsource? This is a crucial decision that can make or break your business. By outsourcing, you can focus on core business activities and increase productivity, while professionals handle other areas.
According to Bill Gates, “Outsourcing is not a dirty word. It’s a legitimate way to do business, and for many companies, it’s an essential part of their growth strategy.”
From bookkeeping to marketing and customer service, there are a variety of areas that startups can outsource. This not only saves time but also ensures that tasks are handled by experts in their field. Additionally, outsourcing can be cost-effective, as it eliminates the need to hire full-time employees for certain tasks.
In this article, we’ll explore fifteen areas that startups should consider outsourcing, based on their unique needs and goals. By making the right outsourcing decisions, startups can achieve growth, success, and profitability.
15 Things Startups Should Outsource
Outsourcing certain tasks and functions can be a strategic move for startups. By leveraging external expertise and resources, startups can streamline operations, reduce costs, and focus on their core competencies. Here are eight things startups should consider outsourcing.
| Area | Examples of Tasks to Outsource |
|---|---|
| IT Infrastructure | Server maintenance, network setup and maintenance |
| Web and App Development | Website and mobile app design and development |
| Digital Marketing | SEO, PPC, social media management, content creation |
| Customer Support | Call center support, virtual assistant, chat support |
| Accounting and Bookkeeping | Bookkeeping, payroll, tax preparation |
| HR and Recruitment | Recruitment, employee onboarding, payroll administration |
| Graphic Design and Branding | Logo design, marketing materials, brand identity |
| Legal and Intellectual Property | Contract drafting, intellectual property protection |
| Content Marketing | Blog writing, email marketing, video production |
| Conversion Optimization | A/B testing, website optimization |
| Data entry and management | Data entry, data processing, data management |
| Market research | Customer behavior analysis, competitor analysis |
| Public relations | Media relations, influencer outreach |
| Cybersecurity | Network security, data protection |
| Administrative tasks | Scheduling, data entry, travel arrangements |
IT Infrastructure
To be competitive, startups must have a dependable and secure IT infrastructure. Managing and maintaining an in-house staff, on the other hand, can be expensive and time-consuming, which is why many companies are turning to outsourcing. Outsourcing IT infrastructure management, which includes servers, networks, and cybersecurity, delivers advanced technology and experience to startups without the need for costly in-house IT professionals.
Startups may focus on their main business responsibilities by outsourcing IT management while leaving IT duties to specialists who have the expertise and experience to keep their systems functioning efficiently. Not only does this save time and money, but it also makes sure that startups have a safe and stable IT environment, lessening the chance of cyber-threats and other IT-related concerns.
Web and App Development
Web and app development are critical components of a startup’s growth and success. Outsourcing these services to experienced professionals can offer several benefits, including accelerated development, high-quality deliverables, and faster product launches.
Startups that outsource app development and web development can leverage the expertise of experienced developers who possess the technical skills necessary to bring their ideas to life. These professionals can help startups navigate the complexities of web and app development, ensuring that the final product is reliable, efficient, and user-friendly.
Outsourcing web and app development can also accelerate the development process, allowing startups to launch their products faster and stay ahead of the competition. With quicker turnaround times, startups can test their products in the market and make necessary adjustments before their competitors catch up.
Digital Marketing
Establishing a robust online presence and effectively reaching their target audience can be a make-or-break factor. That’s where the strategic decision to outsource digital marketing becomes a catalyst for unlocking their true potential.
By entrusting digital marketing activities to seasoned professionals, startups gain access to a treasure trove of knowledge and expertise in areas like search engine optimization (SEO), social media management, and captivating content creation. These skilled practitioners possess an in-depth understanding of the digital realm and wield the tools to craft tailored strategies that propel startups toward their goals.
Customer Support
Outsourcing customer support services can provide startups with a cost-effective solution that allows them to offer 24/7 support to their customers, maintain a positive brand image, and enhance customer satisfaction. By working with experienced professionals who are skilled in handling customer inquiries and resolving issues, startups can ensure that their customers receive prompt and personalized support, leading to increased retention and loyalty.
Accounting and Bookkeeping:
It’s easy to get caught up in the excitement of developing products, services, and marketing tactics while establishing a firm. But keeping accurate financial records and adhering to tax laws and regulations is equally important for your startup’s long-term success. Outsourcing financial chores like bookkeeping, payroll, and tax preparation allows entrepreneurs to focus on their core business while maintaining financial stability and compliance. Startups may make educated decisions, prepare for the future, and prevent costly mistakes by collaborating with seasoned experts who have a thorough grasp of finance. Outsource your accounting and bookkeeping to secure the financial viability of your business.
HR and Recruitment
Outsourcing HR functions can bring a host of benefits to startups beyond just accessing HR expertise. By outsourcing recruitment, employee onboarding, and payroll administration, startups can streamline their hiring processes and free up their internal resources to focus on core business operations. This can be particularly beneficial for startups that are short on time, staff, or financial resources.
Furthermore, outsourcing HR functions can provide startups with access to the latest HR technologies, software, and tools, which can significantly improve HR performance and efficiency. This can help startups to stay competitive and attract top talent in their industry.
Graphic Design and Branding
Startups often struggle with creating a compelling brand identity and visually appealing marketing materials, especially without prior experience in graphic design and branding. Outsourcing graphic design and branding activities provides startups with access to professional expertise and enables them to create high-quality materials that accurately reflect their brand image.
Expert graphic designers can assist startups in developing logos, websites, product packaging, and other marketing materials that are visually appealing and memorable. This can significantly enhance the startup’s brand image and help them stand out in a crowded market.
Outsourcing graphic design and branding activities can also save startups time and resources that they can use in other critical areas of the business. By collaborating with designers, startups can develop a comprehensive branding strategy that aligns with their business goals and values. This strategy can help startups establish a strong brand presence and build long-term customer relationships.
Legal and Intellectual Property
Startups may not have the legal expertise or resources to handle complex legal tasks such as contract drafting, intellectual property protection, and compliance with regulations. Outsourcing legal services can be an effective way to mitigate legal risks and safeguard intellectual property rights.
Working with experienced legal professionals can provide startups with valuable insights into legal issues that they may not have considered. Legal experts can help startups draft contracts, ensure compliance with regulations, and protect their intellectual property rights through trademark registration and patent applications.
Content Marketing
Content marketing is an easy-to-digest method that is designed to educate the audience, without being too pushy. It has a goal of generating leads, and also to nourish the relationships you build with those leads so that you can improve the chances of making a sale. So, rather than spending time producing and distributing content, outsource it by hiring a team to tackle it. Start small by hiring a freelance writer or a writing agency. Both of these options will save you money and help you build better relationships with customers.
Conversion Optimization
Many businesses generate leads through online marketing, and the content we mentioned above works great for converting them into leads. The average conversion rate across industries is over 2 percent, where the top of 25 percent of websites have conversions of 5 percent and higher. There are a ton of things you can do to improve your conversion rates, but this can be a time-consuming process. So, instead of trying to manage, track and test this continuous cycle of changes, you can opt for working with an agency that is specialized in conversion optimization.
Data entry and management
Startups face the challenge of managing large amounts of data efficiently, which can be a time-consuming and resource-intensive task. Outsourcing data entry, data processing, and data management can help startups streamline their operations and focus on high-value activities.
Data entry services can include digitizing paper documents, inputting data into databases, and managing online forms. Data processing services can involve data cleaning, data transformation, and data analysis. Data management services can include data storage, backup, and retrieval.
By outsourcing these tasks to experienced professionals, startups can reduce errors and improve the accuracy and reliability of their data. This can lead to better decision-making and a competitive edge in the market.
Market research
For startups, understanding their target market and competition is key to success. But conducting thorough market research can be daunting, especially when founders are juggling multiple responsibilities. That’s where outsourcing market research comes in – it provides startups with the insights they need to make data-driven decisions.
By collaborating with experienced market researchers, startups gain access to in-depth knowledge on customer behavior, market trends, and competitor strategies. This information can help founders identify new market opportunities and understand their customers’ needs and preferences. With these valuable insights, startups can develop effective marketing and sales strategies that resonate with their target audience and differentiate them from the competition.
Public relations
Public relations (PR) has become more critical than ever for startups. A positive public image can make or break a startup’s success, and outsourcing PR activities can be a strategic way to build and maintain that image.
Experienced PR professionals can help startups navigate the media landscape, build relationships with journalists and influencers, and develop effective communication strategies. This can help startups gain media exposure, increase brand awareness, and establish credibility in their industry.
Outsourcing PR activities can also provide startups with access to a wider network of media contacts and industry experts, which can be challenging to establish independently. By partnering with PR experts, startups can focus on growing their business while leaving the PR activities to professionals who have the skills and experience to promote their brand effectively.
Cybersecurity
Cybersecurity is a top concern for startups. Protecting sensitive data and systems from cyber threats is crucial to safeguarding the business and maintaining the trust of customers and stakeholders. Outsourcing cybersecurity can provide startups with the expertise and resources needed to effectively manage and mitigate these risks.
Cybersecurity experts possess the knowledge and skills required to identify vulnerabilities, implement robust security measures, and monitor for potential threats. By outsourcing cybersecurity, startups can benefit from the latest security technologies and practices without the need for in-house expertise, which can be costly and time-consuming to develop.
Administrative tasks
Administrative responsibilities may be a big pain for companies. They are vital, but they can consume crucial time and resources that could be better spent on core company tasks. Fortunately, outsourcing administrative tasks can be a game changer.Startups may free up their own personnel to focus on more critical duties by outsourcing chores such as scheduling, data entry, and travel preparations to experienced specialists. This not only saves time, but it may also assist cut the overhead expenses involved with employing and training full-time administrative employees.
Last Few Conclusion
There are a lot of things startups can outsource. So, look at your team, the processes and work you are doing on a regular basis. Consider outsourcing those areas where both you and your team struggle. You can also take a look at the difference in costs between outsourcing and a full-time hire, because that difference alone will help you decide.
Finoit Technologies is a renowned mobile application development company providing Web and iphone app development services. We have developed over 450 mobile apps, and have assisted many solopreneurs in their journey of startups by functioning as a tech partner and rolling out their product ideas. For questions/queries, you may write to us at [email protected]
