How Start-ups Can Benefit from Outsourcing

How Start-ups Can Benefit from Outsourcing

How Start-ups Can Benefit from Outsourcing


Bill Gates

Every year, five million new business are started – but only a few make it. Start-up failure rate is pegged at 90% and while that statistic can be cold and hard to swallow, it is an inescapable truth that budding business owners (as well as thriving ones) must know and contemplate on.

One of the main reasons that these start-ups and small businesses face a bleak future is unsustainable growth. Rapid growth is an indicator that a business idea is introduced to the right audience at the right time, which is a good thing and something many business owners want – but the other side to this is when growth becomes too fast and too much to handle – can knowledge and resources catch up?

In 2011, I started my own business of providing remote staff – from virtual assistants to 3D drafters. As the business grew, I began to encounter many difficulties – handling customer service, setting up processes, hiring staff. I was definitely passionate about it, and I loved running the business… but the small things and fast-paced scaling was starting to get frustrating and out of hand. I wanted to work on my business, not in it. This is when it dawned on me that if I was struggling, many new entrepreneurs are also probably facing the same snags and hurdles.

In the following years, I completely restructured my business model and cultivated a service offering specifically made for small to medium businesses; helping them scale by providing virtual assistants, back office staff, and management support. I realized how important a streamlined process is and that there was a huge difference with getting a well-rounded support system, which is how the business evolved to having a fully-managed set-up covering a seamless end-to-end process: from recruitment, to training, to day-to-day management, to eventual ramping up. I saw my own need, how it was answered by outsourcing, and I wanted to give other business owners the option of getting the help that I got, as well.

Here are my top reasons why start-ups and SMEs should consider outsourcing:

  1. Save money.

This is important for any company, but especially critical for start-ups. 82% of businesses that fail do so because of cash flow problems. Outsourcing allows companies to get work done at a fraction of the price: outsourced employees, compared to in-house hires, generally charge less and do not require insurance and other mandatory benefits. Additionally, there is no need to invest in extra equipment and office space. Because start-ups mostly work with a tight budget, more savings mean that much-needed funds are allocated for other aspects that can be more business-impacting.

  1. Access top talent.

My staff in the Philippines constantly make me proud with their dedication and quality of work. Many of them have years of experience under their belts and are thought leaders in their respective industries – and I have learned a lot from them. With outsourcing, companies are able to find highly-skilled employees who are experts in their fields at reasonable rates; this levels the playing field, allowing even the smallest startups the same level and technology that larger companies enjoy. CB Insights lists not having the right team as the third most prevalent cause of start-up failure. A diverse team with a diverse skill set is imperative for success.

  1. Improve efficiency.

Outsourcing helps start-ups move to the next level faster because providers already have everything in place – people, process, and equipment. When the smaller, more repetitive parts of the business are outsourced, you can focus on core issues, your customers, and your own competitive advantage. A healthier work-life balance made a huge difference, in my case, as this helped me be my best and doubled my own productivity.

When asked about his secret to success, Bill Gates credits one important lesson that took some time for him to learn: delegation. In my experience, I found that delegating tasks through outsourcing worked so well in taking things off my plate – I had much more control over my time, financials, and energy – which I spent in building better strategies and centering on business development.

FGC+ is an outsourcing services provider with a proven track record of helping start-ups scale. Want to know if outsourcing is right for you? Contact us today.