Better Businesses: Outsourcing to Become Stronger and More Efficient

better businesses

There are a lot of tips you need to try to make the most of your efforts when it comes to improving your business and trying to make your company better. Successfully implementing these tips is so important to make better businesses that can grow. A number of interrelated elements play a role in helping you achieve success as a business, and one of the most effective these days is to embrace outsourcing. This is becoming more and more commonplace in modern businesses, and it’s not difficult to understand why.

better businesses
Image courtesy of Corporate Finance Institute

What is outsourcing

You have a lot to think about when it comes to improving your brand and trying to make your company better. Outsourcing can play a huge role in making your job easier while improving your service to customers. Let’s start by looking at what outsourcing is before we offer suggestions on why you should consider outsourcing.

Outsourcing takes many forms from occasional outsourcing small elements of your business to outsourcing major components making up your brand. All types of outsourcing share the common thread that they involve using outside vendors to manage some aspect of your business rather than hiring employees to perform the functions or expanding your operations to include those functions.

Outsourcing is nothing new and brands do it all the time. For instance, it’s common for SMEs (small and mid-sized enterprises) to hire outside accountants, offload payroll, or hire an advertising agency to a specialized vendor due to the complexity of handling these efforts in-house. Plus, while these functions are important, they don’t really show up for customers. Until your firm grows enough to justify hiring full-time employees to handle these functions, it’s cheaper to pay someone with the appropriate training and skills to handle them for you. In other cases, you may outsource functions more critical for your success, such as manufacturing or logistics, to third-party providers with the appropriate skills and facilities. In contrast to supply chain relationships between independent companies, outsourcing these functions allow more control without the high cost of bringing the functions in-house.

Making the decision to outsource is based on economies of scale. When you don’t have enough work to justify hiring a full-time employee and investing in the tools necessary for them to perform the function, it makes more sense to outsource if you want to build better businesses. Below, you can see the financial benefit of outsourcing your digital marketing versus hiring an employee to perform those tasks.

in-house versus agency costs
Image courtesy of Alfredo Media

Another consideration in outsourcing is how that decision can result in better businesses by capturing the expertise and facilities owned by others while allowing the businesses to focus on performing those functions they do well. The decision also optimizes your capital since owning is much more expensive than renting, even when it comes to hiring (which isn’t owning buy it’s still a good analogy).

There are plenty of elements to make the most of your outsourcing, so these are some of the key benefits of using outsourcing.

Better businesses need outsourcing

Outsourcing saves money

Outsourcing can save you a lot of money as a business, and this is one of its huge advantages, as mentioned above. By outsourcing projects, you don’t have to hire a new member of staff just to deal with one specific function, which lowers costs until you reach a critical level of usage. This is especially true when you don’t need someone beyond a certain level or period of time. This is where the gig economy shines.

You can hire a developer for a project, like designing an app, that you only do periodically. Or, you can hire a graphic designer to design the packaging for a new product that happens rarely. With some platforms designed to bring gig workers together with businesses, you can even get designs or other work from multiple workers then only pay for the one you think works best for your brand.

But, the big savings comes when you outsource production. Building a plant and the machinery needed to build your physical product is expensive as is hiring workers to staff the facility. Hiring a firm to outsource production means you pay a higher cost per piece for the manufacturing (since the contractor must recover the cost of their facility and make a profit) but that cost is less than the fixed cost needed to build and staff your own facility. At some level of production, that math changes to favor doing your own manufacturing but outsourcing makes sense until you grow.

Better time management

Time is one of the most important commodities you have when you are running a business and outsourcing stretches your available time significantly. Too many business owners out there don’t have the time to deal with all the areas of the company themselves, but they still need to be able to trust that these areas are getting the same level of quality attention that every other part of the business gets. And this is where outsourcing provides invaluable time management solutions to help you make your business more productive and help you achieve success.

You can focus on niche skills

Sometimes you find a situation where there are niche skills that you need to cover an immediate need that doesn’t recur often, and this is where outsourcing plays a key role. For instance, something like remote notarization for business is necessary for rare situations and there’s no substitute for someone with the proper licensing. This is something that outsourcing can help with significantly, and there are a lot of ideas that will help you to make the most of this moving forward right now.


There are a lot of key ideas that you should look for to improve upon when you are trying to make your company better, and outsourcing is one of the best ways of being able to do this. There are a lot of things that you need to make the most of as much as possible, and this is something that has plenty of advantages when it comes to making the right choices as a business.

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Hausman and Associates, the publisher of MKT Maven, is a full-service marketing agency operating at the intersection of marketing and digital media. Check out our full range of services.