Outsourcing Versus Hiring Freelancers

Some small business owners have the wrong notion that they have to do everything. While it’s true that you may have started your business that way, it cannot sustain you in the long run. As your business and customer base grow, your team should also grow so that you can keep up with the increasing demand for your products and services.

Hiring people can help you grow your business and take it in new directions. Having the right team working with you can make all the right difference. You should look at character and culture-fit on top of their credentials to find the people you will enjoy working with to bring your small business to greater heights.

Of course, depending on the size of your business, hiring full-time or part-time employees may not be practical, especially if you are just starting. One option is to outsource the services that you need or hire freelancers. However, which is the better option?

Outsourcing: Why is it good for your startup business?

Businesses of all sizes outsource services and expertise. Outsourcing can help you save money and time. When you outsource specific functions, you do not need to undergo the hiring of new staff. You do not need to spend on training and employee development. You can outsource specific functions, such as reliable accountancy services, HR, and customer support, among many others.

Outsourcing has many benefits. For one, you save money on your staff. You do not have to pay for employee benefits such as insurance. Secondly, you are entrusting the tasks to specialists and professionals who can do the job efficiently. Because of this, you also end up saving precious time when you outsource services. You free your hand of tasks so you can focus on your core business and offerings.

What you need to remember is that you may be a good entrepreneur, but you do not need to be a good accountant or an IT expert. You can outsource these tasks to experts and specialists who have been doing it for years.

Hiring Freelancers: What makes it different from outsourcing?

A freelancer is a self-employed individual whom you pay for the services that he or she does for you. Freelancers usually do short-term work. Like with outsourcing, you can hire freelancers for tasks that require specific expertise, such as graphic design, web design and development, web content writing, SEO, social media management, bookkeeping, and even headhunting.

Hiring a freelancer offers many benefits such as lower overhead costs, flexibility, and getting an expert to do the job for you. Most freelancers are paid for every task that they do, so you don’t need to pay for a full month’s salary. When hiring a freelancer, you are hiring an expert, so the job will be done quicker than when you do it by yourself.

One benefit of hiring a freelancer is that they are basically not employees. When you are not satisfied with the results that you are getting, you can terminate your contract with them and look for another freelancer.

When you hire a freelancer, you are hiring an expert. When you outsource services, you are talking to an outsourced contractor who may be employing freelancers or its own full-time employees.

If you are delegating an entire non-core business process, such as customer service, accounting, and payroll, hiring an outsourcing contractor may be the better option. They can provide you their professional and expert services for the long-term.

For short-term requirements and temporary services, you can opt to hire a freelancer instead.

Why You Should Delegate Non-Core Functions

freelance worker

Non-core tasks and functions refer to activities that are required for the business to run. However, these tasks are not required to produce the services and products that a business sells and offers. Examples of non-core functions include data processing, logistics, human resources, payroll, customer support, and bookkeeping. Here are the reasons why you should outsource these functions to a third party.

  • Financial Benefits. Cost savings is probably one of the main benefits of outsourcing your non-core activities. Labor costs and operational costs are significantly lower than doing things on your own.
  • Access To The Latest Technology. When you outsource certain functions, you do not just get access to experts, but you also get access to the latest technologies at a much lower cost.
  • Efficiency. Since you are hiring experts who are fully equipped with the tools that they need, they will be more efficient in doing the job.
  • Focus on Core Functions. Outsourcing other functions allows you and your employees to focus on the core functions of your business. It also allows your people to focus on improving their core competencies.
  • Simplicity. When you outsource non-core functions, you simplify your business process. It reduces the people that you need to oversee and look after.

Take a step back and assess your business needs and requirements. You can simplify how you do business by outsourcing long-term yet non-core activities and by hiring freelancers for quick and short-term jobs.