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Business Growth

Building a Scalable Business Through Outsourcing

A scalable business is something that all entrepreneurs aspire to achieve—but what does this exactly mean?

Simply put, scalability means the ability of a business to respond to increasing demand or workload, and its potential to multiply revenue with just a minimal incremental increase in its costs. One of the most effective tools to scale your business is outsourcing, wherein a company hires a third party to accomplish a specific function or activity.

When the need arises, outsourcing allows businesses to expand their capacity easily without requiring them to formally hire new staff, invest in more office equipment, and lease a wider space—in short, without increasing the fixed overhead costs.

So how can companies leverage outsourcing to establish a scalable business?

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Here’s the Simplest Way to Scale Your Business Without Hiring

Are you ready to scale your business?

Many entrepreneurs struggle to grow their business because they focus on the wrong things. Instead of working ON their business, they work IN it.

Sure, there are tasks that need to get done inside your business, and you want to ensure that everything’s done right down to the tiniest detail. But here’s the rub, if you tend to focus your energy on these non-core time-consuming tasks rather than performing the crucial activities which can propel your business to the next level, your business is doomed to stagnate. FOREVER.

Grasp the importance of this idea, and determine the key areas where you need to maintain your laser focus. Once you’ve done this, the next logical move is to get someone who can accomplish the other tasks that you’ve decided to remove from your plate.

However, if you are not yet ready to hire a full-time employee or are simply uninterested in doing so because of the “headaches” that come with it (e.g., recruitment process, payroll, providing benefits, training, workplace and equipment, and supervision/ quality control), there is another way to scale your business—it’s through outsourcing.

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Surviving and thriving as a new startup

You may have probably heard about horror stories of business failures among startups. According to Cambridge Associates, the percentage of startups that fail has topped out at a whopping 79% during the dotcom bust. But before you start to get dissuaded and feel doomed to fail, there are some things that you can do to survive and thrive as a new startup.

 

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