Every company endeavors to save money. It’s merely a function of remaining viable in an ever increasing competitive marketplace. For small businesses looking to improve their overall cost structure, there’s always a question of how reducing costs might negatively impact service. However, by outsourcing some company functions to professionals, companies can not only reduce costs, but drastically improve their service capabilities, all the while improving their potential for growth. So, what are some of the services a company might consider outsourcing?
Can a Company Outsource Accounting?
For those companies that are simply too small to afford an accounting department, but big enough that they should, there are plenty of outsourced accounting firms that can manage the company’s cash flow, in addition to the receivables and payables. In fact, it’s often the best way small businesses can keep track of both their incoming and outgoing payments. Nobody likes to get involved with something unless they have the time to do it properly. Outsourced accounting firms are best able to help, while allowing businesses to use resources elsewhere.
What Are The Benefits of Outsourced Marketing?
It’s a guarantee that small businesses don’t have the marketing budget of their larger competition. In fact, for some businesses, marketing itself is often seen as black magic. Being front and center in the eyes of customers, is what makes or breaks companies, and every business must use whatever marketing resources they can to improve their market presence. Outsourced marketing firms have the ability, expertise and know-how to provide timely sales leads, improve customer retention and grow business, all at a fraction of the cost of a full time department.
Should Companies Use Third Party Warehousing to Reduce Costs?
For companies that want to lower their warehousing costs, this can be accomplished through the use of third party warehouses. These warehouses allow companies to both receive and ship product at a fraction of the cost, while ensuring those shipments are properly managed. Typically, there are cut off times where shipments no longer take place. Regardless, using a third party warehouse is a huge savings over renting or buying warehouse space, and paying employees to receive and ship out product.
Can a Company Outsource its Sales?
While many are aware of the benefits of outsourcing marketing, few are aware of the benefits of outsourcing their sales efforts. True, marketing and sales are one and the same, but in the case of marketing, companies are looking for sales leads. In the case of outsourced sales firms, they close on those leads. Some firms do both, but some don’t. This is different from a distribution model where a company sells direct to a distributor who then marks up the produce and resells it. In the case of outsourcing sales, a company would pay the sales firm a commission on each sale.
Aside from the ones mentioned, there are other business costs that can be reduced. For instance, many companies use temporary labor, and turn a fixed cost, into a variable one. Outside firms not only reduce costs, but also free up valuable time, allowing the company to concentrate on more useful endeavors. Provided companies keep a pulse on how their business is being managed, they shouldn’t have any issues using outside help.