Companies of all sizes – even lean startups – can take advantage of outsourcing to lower business expenses. Outsourcing means more than just offloading customer support, however. As you will see, there are a number of outsourcing tips businesses can use to lower business costs while increasing efficiency and revenue retention.
Outsourcing Tips For The Workforce
Instead of the high cost of hiring full-time or even part-time employees, many businesses have been opting to use contractors to get things done. Since not all states in the U.S. embrace the “right to work” model, hiring contract workers sidesteps unemployment taxes, and lowers business expenses such as insurance, paid vacations, and other benefits. Contractors handle their own taxes, and are paid only for the agreed upon work. Manufacturers, IT startups, construction companies, and even retailers are using contract workers to lower business expenses while still meeting consumer demands.
Among the outsourcing tips to increase efficiency, accounting is usually at the top of the list. For startups and smaller businesses, accounting usually falls on the shoulders of the owner. This can make for a number of late nights, and eat into the time which should be spent developing and growing the business. By outsourcing accounting to a CPA, the margin of error is removed and time to actually run the business is reclaimed. Also, by its very nature, outsourcing accounting can give an accurate picture of how to lower business expenses.
Leasing Equipment To Lower Business Expenses
Instead of purchasing specialized equipment, more businesses across all industries are using leasing agreements. This lowers business expenses by removing the prohibitive upfront cost of purchasing. Leasing equipment also has a number of options which can be rolled into the agreement, such as maintenance, support, and the ability to upgrade – all of which lower business expenses by avoiding having to hire in-house specialists.
Waiting on customers to remit payment on open invoices can create an expense-heavy cash flow. As an alternative, business owners are outsourcing their receivables for immediate capital with AR financing. AR financing allows businesses to offset business expenses by submitting invoices as they are generated to receive payment within 24 hours, rather than waiting 30 days or longer for customer payments to trickle in. AR financing can be arranged quickly, and is perhaps one of the most robust outsourcing tips available to entrepreneurs.
The Lavan Financial Group provides equipment financing and AR financing to entrepreneurs to increase productivity and lower business expenses. To learn more, call us at 203-308-4547.