The life of a startup founder is usually difficult, at least in the very beginning of his entrepreneurial journey. When you just launched own business it seems there are some many things you have to keep an eye on – from product development to accounting. Taking this into account, it should come as no surprise that founders often feel overwhelmed and can’t focus on things that really matter in business such as getting sales.
And in case you’re wondering if it’s common for startups to outsource, let us mention just a few of the world-known startups which outsourced some areas of their businesses. Skype, Basecamp, Slack, Whatsapp, Github – do any of these names sound familiar? That’s right, all of these famous companies turned to outsourcing at some point. These examples show that outsourcing is undoubtedly a must for every startup. Therefore, let’s look in detail at the key areas every startup must outsource:
- Software development
- Customer Support
- Public Relations
All of these areas are often neglected or not taken sufficient care of unless they are outsourced. Let us review each of them in detail.
Software Development Outsourcing
Outsourcing software development is undoubtedly a good idea for any startup, especially the tech ones. If a company is based in the US, Canada, the UK, or some other country where in-house development is quite expensive, it only makes sense to outsource development overseas to places like Eastern Europe, for example. This will allow to significantly cut costs and focus on other more important areas.
Similarly to the previous example, we all know how expensive manufacturing in developed countries is. If a business wants to stay competitive it has no choice but to do its best to decrease manufacturing expenses. The smartest way to decrease these costs is to move manufacturing to places like India or China. Some of the largest corporations in the world do so, take Apple for example which manufactures iPhones in China.
Outsourcing accounting for startups is an absolute no-brainer. When you have limited funds and resources, in general, hiring a full-time accountant can prove quite expensive. It is much smarter to simply find a decent accounting firm and outsource all bookkeeping and financial management to it.
This area, although being of much importance to any business, can be successfully outsourced. It is important to note, however, that it must be done very carefully and diligently. Poor customer support is a grave mistake you can’t afford. Certain companies experienced serious problems when customer support quality rapidly decreased after outsourcing.
Doing PR yourself is most likely a bad idea unless you’re a real expert in this field. Hiring a full-time PR manager may be quite expensive as well. Therefore, similarly to our example with accounting, using the services of a reputable PR firm may be a great idea.
By all means, all startups should consider outsourcing. Some of the best areas to outsource are public relations, software development, accounting, customer support, and manufacturing. What specific areas your startup should outsource depends on your team’s expertise, available resources, and the nature of your business. But one thing is clear – it’s always a good idea to outsource when possible.