There’s a certain romanticism to the word start-up’. The images of young entrepreneurs come into mind, aspiring superstars who’ve decided to bet on an idea that nobody previously has. They are investing in their own money and working for their own hours and, maybe you just might find that they’ll be laughing the whole route to the bank once their plan of success is realized.
Although it may seem cool to have an entrepreneur-in-residence, the truth is that every person who owns a business is hoping that the venture reaches the next stage of development and is able to become an expansion. Like the Entrepreneurship Support Network Endeavor provide clear guidelines on what constitutes a “scale-up” (e.g. an enterprise that has grown by 20% annually in the last three years) However, a more general definition of a start-up is a company that has entered a specific period of expansion. As a business has discovered the possibility of scaling its business model and has had some success and is now ready to advance to the next stage.
A reputable business publication Forbes claims that the median duration of the initial phase is three years, but it’s all about the speed at which a company grows. Certain start-ups retain their label five years after their debut, while some are so rapid that they reach scaling-up status in just a year. The crucial thing to consider is when this distinct growth period begins and the key to any future success is to have the right amount of support once it happens.
The nature of startups makes it so that many entrepreneurs are forced to accomplish a lot by themselves. The process of turning an idea into a venture usually with limited funds can be a difficult task and it’s not uncommon for entrepreneurs who start out to become comfortable with what they’ve always done and not consider alternatives in the search for or facing the growth. As a person who has always had control over all business functions, Many are unwilling to let go of control over their products or their teams when growth results in resources being exhausted.
If this sounds familiar to your business, it’s worth recollecting some of the most famous phrases from the business theorist Peter Drucker, a man who had a clue or two about modern-day administration “Do only what is best for you and then outsource everything else.”
How do you define outsourcing?
Outsourcing refers to the procedure using hiring an offshore team or team member to perform tasks that could have been handled in-house. Instead of trying to handle all things, many start-ups have realized that they would be better off putting their money and resources on their main business, and outsourcing tasks like sales, customer service, and human resource management to experts from third parties. This is a great method for startups who are entering a growth stage because it lets them better distribute three of their biggest resources at an early stage of their development: time, money, and talent.
Why do start-ups need to outsource?
The idea that outsourcing is only a tool for large, established companies has been proven an untruth. Studies have shown that businesses of all kinds and sizes benefit from these partnerships and one study revealed that 37 percent of small companies have outsourced some crucial business function, and over half of them were planning to do so in the coming year. For start-ups with a vision to expand and grow outsourcing could be the only way to succeed for a variety of reasons.
- Costs less: Money is a major factor and is never more so than when it comes to pursuing growth strategies in the world of start-ups. The expansion of a startup requires financial capital, and outsourcing can dramatically reduce operating costs and cannot be overestimated. Offshore outsourcing providers in hotspots for outsourcing like the Philippines are able to provide 70% savings in operating and labor costs, with such savings being able to be put into areas that directly affect growth. Business leaders from senior positions frequently cite cost savings as a key reason for outsourcing and even start-up entrepreneurs should not be fooled by these benefits.
- Infrastructure in place: accessing human talent is only one aspect of an outsourcing piece. When partnering with a reputable offshore service provider, startups can are able to avoid the expense and hassle of physically supplying teams with the tools as well as the tools and systems required to fulfill their duties. This is especially important in times of growth when every dollar counts, and there could be doubt about how long the infrastructure for support will be required.
- Staff turnover is lower: one of the most common misconceptions about outsourcing is the impact it has on the consistency of staff. It is true that in the Philippines alone the contemporary offshore setting is driven by an enthusiastic and ambitious workforce who love having the opportunity to work for Western businesses, particularly those that are similar startups. Although some entrepreneurs are tired of getting resignation letters from staff members who are tired of the rapid-paced startup world, more savvy companies have been enjoying the stability which comes from hiring foreign recruits who are committed to the long haul.
- Grow partners Start-up entrepreneurs are known for doing things in their own way, but the growing phase is where it’s not just necessary but also beneficial to get a new perspective. Established outsourcing companies and their teams possess an experience and expertise in their respective business areas that help entrepreneurs recognize obstacles and opportunities they might have missed. Also, experienced offshore companies can be an excellent source for startups who require guidance on how much the work they have in-house teams capable of handling in an environment of rapid growth.
- Support 24/7: Support for customers should always be the top priority for a new business, however, what happens when customers require assistance? Start-ups who are looking for rapid growth without taking into consideration the impact on their contact centers and customer support platforms are at chance of alienating both clients who are existing and new and possibly thwarting their ambitions to expand. With 24/7 customer support being a must in today’s world outsourcing providers can offer faster hold times, immediate online chat, and 24/7 management of social media as well as DM inquiries by allowing startups to connect to different time zones as well as more efficient staffing structures.
What are the tasks that start-ups outsource?
The outsourcing business has reached an era of its own evolution, which suggests a better query could be “what should start-ups avoid outsourcing’. It could be providing support to the company’s special offering or being the sole responsible for tasks that aren’t core There are numerous tasks that can be handled by an offshore company. Here are a few examples of how an offshore provider will help startups achieve the level of growth they desire.
- Payroll and HR: the more a company expands and expands, the more it will need to fund the tools needed to handle its expanding workforce. Things like recruiting, onboarding and training, and payroll can make an enormous dent in the budget of a business as entrepreneurs are often shocked by the HR equipment needed as their small businesses grow into larger enterprises. It’s good news that the outsourcing of HR for startups can allow them to access solutions and teams that are cost-effective and efficient.
- accounting: If there’s one thing that a start-up has to address during the growth phase, it’s finance and accounting. The more money you have, the more problems, and this are particularly so for startups that have historically devoted a small number of resources to this area. Outsourcing finance and accounting to off-shore firms is an effective method for getting highly skilled employees as well as having been in the Philippines is the sole home of thousands of students operating in a financial and fiscal system that is similar to Western countries.
- Selling: at the end of the day, startup expansion requires one essential element – more sales – and, while the task typically falls to internal employees, never overlook the importance of an offshore team that can help the sales team. From creating reports to organizing correspondence to managing CRMs and databases, sales support specialists are essential in completing time-consuming and repetitive tasks, permitting business sales and development experts to focus on what they excel at sell. The top offshore providers are additionally supported by CRMs like Hubspot and Salesforce which ensure that in-house teams have access to all the details they require to help deliver increased sales and ultimately grow.
- Marketing via digital channels: an ad-hoc approach to marketing will only get an aspiring company so far. Although word-of-mouth and the occasional social media post could initially draw in only a handful of customers, companies who are looking to expand require a more strategic approach. Digital marketing is a cutting-edge technique that needs laser attention to ensure SEO rankings as well as the broad reach needed to distinguish oneself from the competition. It also requires expertise, time, and resources. That’s the reason why many new businesses prefer outsourcing firms that are experts in digital marketing at very affordable prices.
Move your business to the next stage
Many articles are written about the many startups that fail in the initial years. The business world isn’t for weak-hearted, and many entrepreneurs’ hopes do not succeed. There are many visionaries who have completed the tough work and are close to leaving behind the rigors of an early-stage company and welcoming life as a scaling-up. The transition to growth is a thrilling time for any business and outsourcing specific jobs and procedures is an effective method to make the transition as smooth as it can be.
Since nearly 60 percent of Americans are likely to change businesses due to bad customer care, it’s no wonder that start-ups with a high success rate have invested in the creation of sustainable consumer services. Find out why this decision is causing many to collaborate with outsourcing firms and the best way to create your own customer service offshore team by starting from the ground up.
