Your attention can be pulled in several different directions when you are a small business owner, leaving you little time to focus on your craft. Outsourcing certain aspects of your business can help with alleviating some of the tasks so that you can spend time handling your daily operations and focusing on growing your business.
What is Outsourcing?
Outsourcing is when a business subcontracts out portions of their companies activities to a third party. The types of jobs outsourced can vary widely across industries. Typical tasks that are outsourced can include human resource management, facilities management, accounting, supply chain management, customer support and service, computer-aided design, marketing, content writing, and much more.
There are companies called professional employer organizations (PEOs) that small or medium-sized businesses that you can outsource some of your daily operations too.
What is a PEO?
PEO companies can be an added benefit to your business. Professional employer organizations partner with small or medium-sized companies with between 20 to 75 employees. A PEO service works through a co-employment agreement, where the professional employer organization subcontracts your employees. The PEO company and your business share the responsibilities of employees, and your company can access the benefits and services that the PEO company provides. Services that you can outsource to a PEO company include human resource support, payroll administration, and tax filing.
With the co-employment agreement, your employees become employees of the PEO company on record, meaning the PEO company will take care of the HR tasks, including payroll administration, tax filings, benefits, and other HR support. You will be responsible for daily tasks assignments and running the businesses day to day operations. Together the PEO company and yourself share liability for the employees. With the co-employment agreement, your business can leverage the help and resources the PEO company can provide.
Outsourcing Minimizes Costs
Businesses want to minimize costs, but especially small or medium-sized companies who are trying to grow, and cannot afford in-house employees for specific departments. There are many costs that employers incur besides the salaries of their employees, such as payroll and unemployment taxes, health insurance, and worker’s compensation. A cost-efficient way of getting the services you need without hiring employees is outsourcing. A service like a PEO company is a useful solution to minimizing costs.
Four areas of your business you can outsource to focus on your craft include:
If you have a brick and mortar store or retail outlet, outsourcing sales functions is unlikely. Still, if you have a business two business offering, or are selling services, you can determine a robust sales strategy by outsourcing sales resources. Some organizations will generate a lead for your business, qualify the leads, ensure leads meet your defined criteria, and pass them over to you when its time to close the deal.
Having an in-house accounting team can be expensive for a small or even medium-sized business. Outsourcing your accounting administration can help save time, money, and reduces risks of mistakes. Using an accountant with experience can save you from headaches. An accountant firm will have accounting technology that your business can access to help reduce risks.
3. Human Resources
There is a lot of time that can be spent on human resources, from employee complaints to recruiting and hiring top candidates. Human resources alone can take up a lot of a small or medium-sized business owner’s time. Having an in-house HR team can be expensive. Outsourcing your human resources can take these tedious tasks from your growing list of tasks and free up time to focus on growing your organization.
Marketing is a large part of growing your business. Lead generation, developing a brand, and strategies for social media are necessary for building a business. If you are a small or medium-sized business, you do not have a marketing team in-house on the payroll. If you a small business, consider outsourcing your marketing functions to a marketing firm with experience.
Through a professional employer organization, small or medium-sized businesses can outsource many services and receive additional benefits, including employee benefits, payroll, HR administration, recruiting candidates, and training and development. Visit the chamber of commerce for the best PEO services. Outsourcing to a PEO is beneficial for a business that is trying to grow. A professional employer organization has valuable resources that can be very beneficial to small or medium-sized companies that need to free up valuable time and focus on growing their business. A professional employer organization can help your business with its payroll, recruiting, and human resource administration needs and a lot more.
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