Outsourcing, also known as “contracting out,” is the act of sending specific tasks and jobs outside your small business to be completed instead of handling them in-house.
Technology and the rise of the gig economy have made outsourcing more accessible to small businesses. What’s more, 34% of the U.S. population is currently freelancing. With such an extensive network of skilled workers available for hire around the country, it could mean great things for your small business.
- Consider hiring a freelancer if your company is growing so fast that your existing team can’t handle it, or if you need help on a short-term project.
- Contractors are great for tasks that require specialized knowledge that you don’t possess or to free up your time by performing highly repetitive jobs.
- There are many benefits to outsourcing, including increasing efficiency and reducing costs.
- Your responsibilities, as an employer, are different vis-a-vis employees and contractors, so be careful that you’re classifying your workers correctly.
When should a business outsource?
Small businesses may need a contractor at different times and for various reasons. You might consider hiring a freelancer if:
- You’re growing so fast that your team can’t handle the additional workload. Contractors are often highly skilled so they can help you deal with expansion without interrupting the flow of your business. Since the worker is already skilled, you won’t have to rush through onboarding a new employee to relieve your struggling team. If you need the person’s expertise for longer, you may decide to hire them as a permanent member of your staff.
- You need someone for only a short period. If you have a short-term project, like designing a new ad campaign or setting up your new point-of-sale system, it might make more sense to hire someone you don’t have to train. And