“If you deprive yourself of outsourcing and your competitors do not, you’re putting yourself out of business.”Lee Kuan Yew, Singapore’s former Prime Minister
Australia’s market economy is one of the most highly developed in the world. It is the 14th largest economy with a nominal GDP of $1.42 trillion. It also ranks 4th in the 2020 index of economic freedom in the Asia-Pacific region. Given this remarkable economic status, it is no secret that small and medium-sized enterprises play a significant role in it.
In this entrepreneurial nation, Small and Medium-sized Enterprises (SMEs) are the backbone of the economy. They are prevalent in all of Australia’s regions and business sectors. As a matter of fact, 99.8% of all Australian businesses belong to the category of small and medium enterprises. It has created around 7 million jobs and contributed to 57% of Australia’s GDP over the years.
But enough with the numbers.
Despite all the wealth and continuous growth of the Australian economy, the country’s SMEs are not free from growth challenges. They also have growing pains that make it more difficult to keep the ball rolling.
In this article, we describe the common problems usually faced by small and medium-sized enterprises.
Fortunately, all of these problems can be solved with outsourcing.
Growth Challenge #1: Lack of Strong IT strategies
The world is rapidly changing and so is technological advancement. Businesses must keep up with this to ensure that they are using the right tools to enhance productivity and systematic processes. However, keeping up with technological advances can be expensive, especially for smaller companies. Tasks such as developing and implementing IT systems can cost a lot. In addition to that, they have to hire IT experts which also raise the total expenses. Limited resources and budget really make it more difficult for SMEs to maximize technology. Thus, they struggle to have a competitive advantage in a crowded marketplace.
Solution: Outsource IT Services
Outsourcing IT services can be a solution that offers SMEs compelling benefits. Entrusting their IT needs to a service provider can be the best option for their business. Here’s a list of how SMEs can benefit from subcontracting their IT tasks.
- Outsourcing can lessen the cost allotted for IT tasks. This can free up your capital to use in other areas.
- Outsourcing will give you 24/7 back up support from an expert. It will allow you to keep up with today’s technical demand.
- Outsourcing will provide you with a full package of IT services. They will be responsible for securing and implementing operating systems, installing software, and creating backup files as well.
Growth Challenge #2: Poor Financial Management
Financial Management is of paramount importance in every organization. Once mishandled and the cash flow stops, it can lead to a defunct business. In fact, poor cash flow is cited as a factor in 40% of business failures. So then, it only proves that a good financial management system is a must.
For small and medium-sized businesses, they need someone to keep track of their every cent. They need an expert who will manage their finances to ensure positive cash-flow. However, maintaining an in-house accounting team is often costly and time-consuming. As a result, many SMEs lack proper advice and support from an expert. And for that reason, they are more likely to make mistakes in managing finances. Listed below are some of the common cash-flow mistakes of small businesses.
- Not understanding break-even pricing
- Poor accounting systems
- Insufficient contingency funding
- Not invoicing in a timely manner
- Not tracking your cash flow
If those mistakes remain unaddressed, it can do more harm than good for any business.
Solution: Outsource Finance Services
The good news is that outsourcing can help manage the finances of your business.
Outsourcing a team for Financial Management needs is the most cost-effective option you can have on your list. It will provide you with flexible solutions that meet your budget and requirements. Moreover, your outsourced team will be responsible for managing your finances, which are vital to the success of a venture. On top of that, they will help you stay fiscally responsible while keeping your finances stable.
On to a successful venture!
Growth Challenge #3: Bad Hire
Hiring is often one of the biggest challenges for small businesses. The members you have in your team can make all the difference in your success. That’s why choosing the right people to help you grow your business must be done in a careful manner. However, hiring and training can cost a lot of money, time, and effort. As a result, it makes SMEs prone to making bad hires. They are more likely to have someone who is not yet fully vetted, and turns out to be a wrong choice. If that continues to happen, bad hires can be the greatest weakness of a business.
Solution: Outsource for Proper Staffing
The meticulous process of hiring and training is indeed costly. You also have to allot a great deal of time and effort on this. But it can be changed if you start to outsource your business.
Your outsourced team will take care of the time-consuming hiring and training process. They will provide you a team that will deliver all functional aspects of your business in an excellent manner. Because of this you can just focus your efforts on core tasks. What’s even better is that you can have great employees while spending less.
Sounds like hitting two birds with one stone, isn’t it?
All in all, outsourcing is a way to optimize the utilization of human resources in your business. More than that, it can be your way of having a pool of skilled individuals on your team as well.
Growth Challenge #4: Ineffective Marketing Strategies
Have you ever wondered how top brands succeed in promoting their products? What are they doing to dominate the market? And what should you do to make your brand known too?
Well, marketing was never an easy task. You need to have a strategic plan if you want it to be effective.
For small businesses, creating a strategic marketing plan is a daunting task. Small business owners handle the marketing efforts on their own because of insufficient resources. However, this is one of the biggest mistakes an entrepreneur can make. It is impossible for them to juggle operational tasks with marketing activities. They will just end up being ineffective in either of the two or worse, in both.
In addition, most SMEs do not have the right team for their marketing activities as well. This hampers them from crafting fresh and creative ideas. This can lead to a lack of leads and poor visibility. More than that, it will also weaken their brand’s market presence, which can stop them from growing.
Solution: Outsource for Effective Marketing
Outsourcing is a smart solution for your marketing needs. It will give you a complete suite of marketing services that will not drain your funds. As a small business, it is the best option to ensure a marketing presence despite a limited budget.
But the wonders of outsourcing doesn’t stop there. It will also help you find the best people who will carry out your marketing activities. You will surely have a complete range of marketing professionals who are equipped with valuable skill sets. In addition, through outsourcing, you will have a team of experts who are on top of the most up-to-date tactics and trends. Hence, it will help scale the marketing efforts of your business.
Growth Challenge #5: Inadequate Customer Service
Whatever the size of your business is, customer support must be one of the top priorities. It is something that should be handled well. Otherwise, it will put your business at a disadvantage. It is true that how you handle customers will either make or break your business.
For SMEs, giving adequate customer support is a painful point. They struggle to address the needs and concerns of their customers in a prompt manner. They also lack the right service tools that are appropriate for the needs of their business. As a result, it can give customers a bad experience with your business.
On top of that, SMEs tend to overlook the training of their agents as well. Due to lack of time, it is difficult for them to give their agents adequate training. Hence, because agents are not equipped with the right knowledge, it can lessen the quality of your customer support.
Solution: Outsource Customer Support Services
Outsourcing your customer support can arm you with the right tools, action plans, and well-trained agents.
Outsourcing Customer Support Services to a service provider can make your business more viable. They will bring in a team that is trained to meet high customer-service expectations. This team will be round-the-clock available to attend to all of your customers’ needs in the fastest way possible. They will also make sure to minimize wait times even during seasons of high demand, which can step-up your game.
Aside from that, outsourcing will also give you the best customer service tools to use. They will see to it that your customers can talk to you with ease.
Outsource now and do not put your business at risk for having inadequate customer support.
Outsourcing is the Future
Limited resources and budgets are the main reasons behind every growth challenge of SMEs. Luckily, you now have outsourcing solutions that can answer all the needs of your business. It is a cost-effective way to fill in the gaps that need to be filled.
But it doesn’t stop there.
Outsourcing will also leverage the resources of your business in reaching its full potential. At a much cheaper cost, you can now strengthen both your company’s bottom and top line. It is an approach you can use if you want to be more efficient and cost-effective.
Outsourcing does wonders for scaling small to medium-sized businesses. It not only paves your way to success but will also give you a brighter future.
Outsource with Us
See ‘Our Services’ page for more details on how your business can achieve greater heights with us.