When you start a new business and you are on your own, or perhaps working with a partner, you have to put all your efforts into getting your business up and running, and that means – first and foremost – gaining customers. Without customers you don’t have a business, so that is crucial.
Gaining new customers is always going to be a core part of your business even if it has been running for 50 years or more. However, the more customers you have, the more things that you have to do, and so you take on employees and grow the business that way.
But this brings more issues with it. Just to begin with, when you have employees, you have to run a payroll, and that is something that you may have never really thought about. It can become very complicated within a very short time if your business is expanding in the way that you want it to. This is why so many businesses today are using payroll services for small business in the UK such as those we provide at PayCheck.
However, that is just one thing that you can outsource. Once you see the possibilities for expansion there are all sorts of things that you can outsource to a specialist company.
For example, Rolls Royce make engines. But surprise, surprise, they don’t make all the bits and pieces which go into them. They outsource the manufacture of certain parts to specialist companies who make them for them.
Outsourcing can save you a lot of money and also a lot of time. For instance, you have designed a piece of equipment that you know will sell well, but you don’t have the machinery to make certain parts. Now you could go and buy a machine to do that if it is available, but it might cost you £250,000 when the need for the actual parts is minimal. You might only need 20 of them a month.
Now if you can find another engineering firm that has one of those machines, you can get them to make the 20 parts you need every month. Sure, they may cost a bit more than if you could do it yourself, but you just saved yourself a quarter of a million. Furthermore, to the company that you outsource your needs, 20 parts a month may be a drop in the ocean because they make hundreds or thousands a month for their other customers.
It’s A Win-Win
It’s a win-win situation. You get what you need, and the supplier gets another customer. Indeed, businesses of all sizes can use outsourcing to keep their costs as low as possible while at the same time helping their own business to grow.
For instance, you might need to obtain more leads for your sales team. One way to do that would be to employ some people to telephone prospects and set up appointments for you. However, that would mean that you would need more office space which could mean that you would have to move your business. You would also have all the expense of paying wages, pension contributions, and other benefits, and you would have to add them to your payroll. In addition, you would have the costs of the telephone equipment and the phone calls, together with the increased costs of using a bigger office.
On top of that you would have the costs of advertising and hiring the telephone staff, and issues when they are away on holiday or off sick. You can get rid of all that extra expense by handing all the lead generation over to a specialist telemarketing company and just pay for the leads supplied. You are still expanding your business but at far less cost and without all the associated aggro of employing more staff.
So, when you start to think about it, there are many things that you would be better off outsourcing as well as your payroll. There are always some members of your team who undertake work that you either cannot or do not want to outsource, and of course they have to be paid. This is why so many more companies today are using the payroll services for small companies in the UK that we provide at PayCheck. It is just one more complicated issue that you can get off your hands rather than trying to do it all in-house.