Slash Your Monthly Business Expenses By Choosing Freelancers
A lean operational business model which makes use of outsourcing could be what’s needed to save 15% of UK businesses this year.
New research published by London School of Economics confirms what many Brits have suspected – UK businesses are in trouble. With lockdown restrictions and a lack of trade during the pandemic, almost 15% of businesses are at risk of imminent closure. This equates to 906,000 businesses within the UK. Micro businesses with less than 10 employees are thought to be even more vulnerable.
If your business is fighting to survive, then one of your top priorities will be to look at how to save money from your outgoing budget, especially when your profits may be low to zero during lockdown.
One tried and tested way for businesses to make major cost savings is to consider outsourcing. Here’s how this business strategy works.
Restructuring Your Business Tasks
You can divide up the tasks required by your business model into those that can be handled in-house and those that can be outsourced. Remember that just because the work can be completed internally, doesn’t mean it’s the best or most affordable option for your company. One of the main advantages of outsourcing is that it can free up both time and money, which are both essential commodities for your business.
What Tasks Do Freelancers Perform?
If money is tight and you’d rather not keep on permanent staff to handle dedicated tasks such as marketing, then you can choose to outsource these areas of your business instead. Professional freelancers are readily available to handle a variety of essential jobs for your business. These include IT, virtual admin, marketing, audio transcription, accounts, web design, graphics and copywriting. Although if you need something more niche, there are global freelancers available to take on the most specialised or unique tasks you require.
Save Money On Training
If the cost of training your staff up to perform routine tasks is out of the question at the moment, then using highly skilled freelancers is a cost-efficient alternative. Although you will need to spend some initial time bringing your outsourced professional up to speed, you can develop a long-term working relationship with them so that it’s easy to integrate their skills within your business. It’s often not necessary to pay a retainer, meaning that you can just brief them whenever you need a task to be completed.
The savings you can make by choosing outsourcing for your business can be split into three main categories. Firstly, you’ll only for the work you need to be carried out, which can be as regular or sporadic as you require. Secondly, as your freelanced professional is not a PAYE employee, you’re under no obligation to provide them with a pension, sick leave, holiday pay or any other company benefits.
Finally, if your business is based in an expensive location such as London or the south-east, then the salary of a permanent worker might need to be competitive to retain the best candidates as part of your team. If this is crippling your business, then outsourcing can save you a fortune. Some of the brightest freelance talent is located overseas in regions where the salary demands are a fraction of UK earnings.
If your business is struggling during the pandemic, and can’t be saved through government support packages, then check out outsourcing as an option to help you slash your outgoings and forge a survival plan for 2021.