The retail platform has evolved in the last few decades, starting from standalone stores to malls, and now at e-commerce in the current digital landscape. Regardless of retail’s state, however, the tasks remain the same: sell your products consistently and constantly to the intended target market. As your retail business grows, it’s crucial for you to release new products and/or expand your reach to a new market. At the same time, your business is considering how to cut on costs and find new ways to execute important marketing strategies.
Overhead costs and spending on the right talents are priorities for start-up retail companies. If you’ve just opened your own start-up retail company, then you’re not just worried about selling your products but also finding new means to break your intended market. Start-up companies tend to do all this work in-house—from marketing, advertising, information technology, to accounting and finance. But relying on your small team could end up costing more than a smart investment in outsourcing. Yes, you can outsource all the listed business necessities to a reliable company instead of just learning to do all these yourself. Apart from cutting on costs, here are some of the advantages to outsourcing certain tasks in your retail company.
Save Instead of Spend
As indicated earlier, outsourcing your company’s accounting and finance can save you more money. Despite this obvious advantage, many small businesses tend to this task in-house. But offloading payroll and accounting activities will actually decrease your company’s costs to 18 percent. It will also save you the trouble of worrying about compliance with matters such as tax. If you have only one individual taking care of payroll and finance matters, there’s a likelihood he or she could file business-related tax and make other necessary payments late. This ends up costing the company more—approximately $845 annually, according to the IRS. Other matters such as sales tax compliance cost $22,000 to compute. Start-up companies likely don’t have the manpower to do all these but outsourcing offers them an affordable and practical solution. At the same time, your retail business has more time to focus on product development and operations.
Entrusting IT to Expert Hands
While e-commerce is an integral part of any retail business, managing its system along with other IT-related matters requires a specific expertise. Although start-ups could take on the work themselves using an easy-to-use system, experts could handle other important matters such as a major systems-related failure, necessary updates, and scaling. Retail Dive indicates how more retail companies see the need to outsource IT since the digital age is bringing on countless emerging technologies. Keeping up with these updates, along with other business tasks, could be too much for an in-house team. You’ll also end up spending more on hardware and software, as well as updating these to keep up with a growing demand. By outsourcing IT tasks, however, you pay a packaged or flat amount to include the tools and the services needed for the upkeep. You also have the experts’ current and growing knowledge to help improve the business.
A Profitable Partnership
Start-up retail businesses usually take care of packaging and shipping their orders. This may save you some money at the beginning but once you have to fill a larger number of orders, it’s better to outsource packaging and shipment. Handling such a larger volume on a daily basis likely won’t be your expertise versus a packaging or shipment company that has mastered the process. Outsourcing this aspect also saves the company money while also increasing profit with all the properly fulfilled orders. Your in-house team can also maintain its focus on the core of the business rather than waste time on handling all those orders.
Work on Multiple Projects
A startup business likely has plans that go beyond its core product or service. You probably have other side projects in mind that could help promote the business, such as a small event in your community or a brand campaign. It’s more practical and efficient to outsource the labor for other projects rather than have your small team do it alongside their assigned work. Apart from costs, you’ll end up spending more time recruiting, hiring, and training the team. Then you’ll have to spend on the support for the project. Doing the side project in-house will cost the company more time and money. Plus it will keep your team off track from the core goals of your business. Consider outsourcing any external projects that will help your company but doesn’t necessarily need to be done by your team.
Expand Your Staff
You don’t need to spend extra on overhead like salary to expand your team. Instead of hiring more individuals, outsource some of the talents you’ll need on a regular basis. Your business can easily hire one of the many individuals working as freelance artist, writers, virtual assistants, customer support, and marketers, just to name a few. By outsourcing some of your staff, you can control overhead costs and have a team devoted to specific tasks throughout your business’ expansion.
Create Better Content
Your startup retail company probably only has a regular staff that takes care of business development and is knowledgeable in your company’s product or service. You have yet to hire someone full time for content marketing. But what if you outsourced the marketing and content for your business? As discussed earlier, there are many freelancers or outsourcing companies that are experts in content marketing such as writing, photography, and social media. You could outsource the staff for this and have them work for a limited time period. If you’re okay with their work, then renewing their contract will still cost less than paying them on a regular basis. You also have a team of experts to take care of everything from content to creation, online publishing, up until the analytics.
Outsourcing may seem costly and unnecessary at first, but finding the right company like Infinit-O makes sure you’re right on track. See what outsourcing partners can do for your business today.