How Startups Can Reduce Costs with Outsourcing
How can startups reduce costs with outsourcing? Startups are wired differently than a large multinational company in that they are still largely dependent on seed money and investments from venture capitalists. They are in the early stages of their business lives and have a little less flexibility when it comes to finances.
In light of this, therefore, it is more crucial for startups to focus on their core business. With that said, the earlier startups can outsource relatively non- mission critical tasks, the better. Shopping around for reputable outsourcing providers can to help reduce their operating costs. Here are some of the ways that outsourcing can reduce startup costs:
1. Office Space and Equipment
The average size of a startup company is around five employees, and “smallness” can have huge advantages, such as increased agility, better team chemistry, and less bureaucracy. Another advantage of startups is that the need for a smaller office space in which to function at the beginning. As the startup grows, the company can either cram additional employees in the small office or rent more office space.
A third and better option would be to outsource, saving thousands of dollars monthly or yearly on rent. The outsourcing company you choose take care of the office space for their employees, as well as the required tools they will need to serve your startup: computers, software, desks, printers, among others.
According to a study, businesses spend around a thousand dollars for every employee on training costs. If your startup is planning to expand and hire more employees, this cost can quickly add up.
Outsourcing can help you save on training costs. When you hire more team members for your startup through a reputable outsourcing firm, you don’t have to spend the time, money, and resources to train them. A reputable outsourcing services company will provide you with well-trained, experienced, and skilled professionals.
3. Tech Support
Majority of startups are tech companies that need complex computer networks to do their everyday work and store and analyze important data. When problems with the computers and/or networks arise, you will need to have IT staff to help troubleshoot and fix problems. Outsourcing companies offer tech support to help can help you save on tech support costs. A technology savvy outsourcing services company offers partial or full managed IT support so you need not worry.
4. Employee Benefits
Aside from the salary that paid to an in-house employee, one of the biggest overhead costs for a company is the benefits. This includes health insurance and sometimes disability insurance, as required by law. It is rare for an employee to accept a job that does not offer these and other benefits. When you decide to go the outsourcing route, the outsourcing firm will provide these benefits to their employees.
Are you a startup looking to outsource some of your company’s non-mission critical functions? Yempo is a values-driven company that offers an excellent employee benefits package, culture and workplace. Partner with us to work with engaged, skilled and professional workers. Email us today to start your outsourcing journey.