If you’re running a start-up, you know there’s not a lot of room for error. In the early stages of the game, resources are limited and a failure to maximize what you have could put your new company in dire straights in short order.
The unfortunate reality is 80% of all new businesses fail within the first 18 months.
Why do they fail? VisualCapitalist cites cash flow problems as the number one reason business reach an early demise.
Or simply put, they had more money going out than they had coming in.
Most of the time founders and their teams spend the vast majority of their time and internal resources with their offering, not fully realizing possible cash flow problem until it’s too late.
So the question is, how do you make the most of your internal resources and still work towards sustained growth?
The answer, outsourcing.
Regardless of what you’ve been lead to believe, angel investors and early stage VC’s fund less than 1% of all startups. Fact is, 57% are funded by credit cards and personal loans. Another 38% of startups ask for small loans from family and friends.
If you’re one of these types of business, your objectives are simple
- Launch your product and/or service as soon as possible
- Bring in revenue as quickly as possible.
- Reduce overhead and maximizing profits as much as possible
Grow Revenue and Reduce Overhead by Outsourcing Sales
Growth is the primary objective of every company. Regardless of its revenue growth or sales growth, growth needs to be your main objective from the beginning. But many times cash-strapped companies don’t have the cash they need to build a fully managed sales team. That’s where sales outsourcing can truly be a game-changer.
For start-ups, outsourcing sales simply makes good sense for the following reasons:
- Timing – For startups or established businesses looking to test new products and markets, outsourcing allows for a very quick transition to a fully trained, experienced and cohesive sales team.
- Recruitment – With unemployment at an all time low, it’s becoming more and more expensive to locate and compensate the outstanding talent you need to grow your business. Additionally, with recruitment for good salespeople at an all-time high, companies are constantly in danger of losing qualified talent. Sales Outsourcing Organizations are not only much more cost-effective, they are not as susceptible to recruitment from the competition, which allows you to build a more experienced and stable workforce.
- Costs – It goes without saying that outsourcing reduces spending, it’s the number one reason companies outsource. In fact, a recent study found that companies save an astonishing 60% annually by outsourcing.
- Management – Sales Outsourcing Organizations come to the table with a number of successful sales models. Included in these models are clearly defined quotas and KPI’s which are reported to you on a regular basis giving you a very clear understanding of how they are performing and where improvements need to be made. They manage everything in that process including recruitment, hiring, benefits, workspaces, internet and more.
Outsourcing your sales simply makes good business sense. Outside of reducing overhead and improving cash-flow, it benefits start-up companies by allowing them to scale at will and prospect into new and potentially profitable markets without spending a lot of money.
Ready to accelerate your growth though outsourced sales? Click here for a free quote.
Outsourcing has been customary for most growing companies and a familiar concept to many entrepreneurs. The fact is, outsourcing ( when done correctly ) is a very effective way to grow a business while decreasing overhead.
Here are 3 reasons why you should outsource your eCommerce business.
Whether you are starting out, or managing a company managing 1MM a month in sales, outsourcing gives you the ability to scale and grow without compromise.
Here are 3 ways outsourcing can help your business grow:
One of the most obvious reasons companies look to outsourcing is reduced overhead. As an organization, becoming more cost-effective is the most crucial factor to improve the balance sheet of a company. Of course, companies want this cost-savings without reducing the quality of work. This is the primary challenge with outsourcing. How do I make my outsourced workforce more cost-effective while increasing ( or at least, maintain ) the quality of work?
Want to learn how we help companies increase sales and profitability? Click here
Outsourcing (we like to call it “OnSourcing”) allows you to stay focused on your core competencies, like the strategic growth your business. Think of the tasks that you and/or your team is doing right now. Now grab a piece of paper and draw a line down the middle, on one side put the tasks that are repetitive and can be safely managed through a process and on the other side, list tasks that require strategic thought and forward thinking. Did you notice the repetitive task list is quite long compared to the strategic? The truth is, over 70% of an employee work days spend on tasks that could be outsourced.
Outsourcing allows you and your team to stay focused on your businesses primary objective, increasing revenue.
Access to Experts
Outsourcing gives you immediate access to a variety of expertise, instantly. Once again, I invite you to look at your current team and the tasks they are doing. You may notice you’re asking some employees to stretch themselves into areas they have little or no experience in. This could be simply because your company doesn’t have the financial resources, or you’re trying to hire for these roles but not coming across any qualified candidates.
Whatever the reason, outsourcing gives you access to the cost-effective resources your company needs to grow.
When you outsource, don’t have to worry about training, recruitment, and other HR related expenses. You simply need to focus on creating the processes and procedures that allow the outsourcing company to operate effectively and efficiently.
Outsourcing certain business processes slash overhead, enabling enterprises to optimize revenue. Achieving cost-effective and sustainable growth is an absolute requirement for every company, regardless of its size. Nowadays, companies on a sustainable growth trajectory understand that the best way to achieve this is by accessing a global, on-demand workforce.
eCommerce companies face even more challenges, as building, maintaining and marketing online requires technical expertise not typically required by traditional “brick and mortar” type businesses.
Now more than ever, companies are looking outside their geographic “comfort zone” to grow. Don’t wait, now is the time to build the solid outsourcing foundation your company requires needs to reach its objectives and compete on a global scale.
Is your company ready for rapid growth? Click here
We’d love to hear your thoughts, share your opinions on this one.