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Cleaning is another area where businesses can save by outsourcing.

How to Start a Business Doing Outsourcing Work

Tasks such as office cleaning, carpet cleaning and janitorial duties can be time-consuming and expensive, especially if you have a large commercial property with many floors and rooms. In addition, there is the cost of purchasing and maintaining cleaning materials and making sure materials comply with safety and environmental regulations. Outsourcing this to a professional cleaning firm eliminates many of these expenses, shifting responsibility for human resources and equipment management tasks to your cleaning provider.

Since your provider is splitting these costs between multiple clients, the costs passed on to you can be significantly less. Hotel managers who outsource their cleaning report savings in labor costs of as much as 25 percent. Security is a third area where outsourcing can save companies money.

Strategic Outsourcing Can Lift the ROI of a Small Business

Security guard service fees vary depending on the type of guard employed. Unarmed guards cost less than armed guards, and off-duty police officers are also more expensive. Outsourcing can cut these costs considerably. You can further reduce costs by installing a wireless security camera system and hiring a remote security monitoring service. This enables you to schedule remote monitoring services for when your security alarms are tripped or for specific times, such as when your employees leave at the end of a shift, reducing the number of billable hours your security service charges.

Accounting, cleaning and security are three examples of how outsourcing can save your business money.

These examples illustrate how outsourcing can lower your expenses by reducing your direct labor costs as well as by transferring costs such as human resources expenses to your service provider. This cost-cutting strategy can be applied to other areas of your business as well, including administrative support, payroll and IT.

Motivation and Efficiency

In general, any routine task that falls outside your core business mission can be considered a candidate for potential outsourcing. Outsourcing these peripheral tasks allows your in-house staff to concentrate on what you do best so that you can get more done while paying less.

Author OnDeck Team. Skip to Content Skip to Footer. Fortunately, there are individuals and firms who will contract with your business to help you with this part of your business. Security: While security is becoming a bigger concern for a lot of small businesses, using an outside firm to handle security could save your business some money. Download Now.


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Small business outsourcing as risk management

All you have to do is provide a needed product or service to larger companies that you can offer more cheaply, with higher quality, than they can get from their own staff. Does this sound like a tall order? Maybe not. Consider the success stories of other small business owners. Many entrepreneurs have found a market niche combined with a passion of their own.

Then they took their business operations to new levels to achieve great success. Some of the smaller businesses in your area may not want to pay for the services of a CPA to keep their books or do their taxes. They may seek a more cost-effective method of managing their bookkeeping and accounting and wish to outsource their work to a bookkeeper. There is a perfect opportunity for you to market your services.

If you can find a niche in your area of business where companies typically like to outsource their work, you can start a new business working for yourself and do quite well, or you can add to your existing business. The Balance Small Business uses cookies to provide you with a great user experience. By using The Balance Small Business, you accept our. Business Insurance Starting a Business. By Rosemary Peavler. Here are some tips:.

2. Expertise you don't have.

Skills - The type of small business you would like to start depends on your skills. If you are a financial type, you want to go that route. You get the idea.

8 Ways To Outsource Your Life as a Small Business Owner

Are there small or large businesses in your local geographic area that have tasks they are outsourcing or would like to outsource?