Discover the best growing business strategies that drive growth. Learn when to outsource or hire, along with tips for managing outsourced teams, and how to scale effectively as a small business.
When it comes to growing business strategies, one of the key decisions you will make is whether to outsource services or build an in-house team.
Both options come with their own sets of benefits and challenges, so understanding when to go one way or the other can make or break your scaling efforts. Let’s dig into the best strategies, tips, and potential pitfalls.
What is Growth Strategy in Business?
A growth strategy in business is a plan focused on expanding a company’s market share, customer base, and revenue through methods like product development, market penetration, partnerships, and enhancing existing strengths. Sound too complicated?
Let’s look at these strategies simplified for small business owners.
What Are the Best Growing Business Strategies for Small Business Owners?
When I first started out, I thought business growth meant dumping all my energy into marketing and hoping for the best. Spoiler alert: that is not a strategy but just wishful thinking! Over time (and after a few stumbles ), I picked up on a few practical growth strategies that actually worked.
Consolidate on Expertise
First up, focus on what you’re already good at. I learned this the hard way when I wasted weeks trying to break into a completely new market. I thought a new niche would help.
The truth? If you’re getting solid results from a product or service, dig deeper. Find out what’s working and double down. Refining and enhancing your core strengths can be more powerful than chasing the next shiny thing.
Leverage Technology
Knowing how to leverage technology is important. Here you use tools to automate routine tasks and streamline processes, but it should not be the major strategy! .
Scale Strategically
Invest in acquiring new talent acquisition through hiring for full-time employees or finding skilled freelancers because having the right people on your team is key. These efforts will allow you to scale strategically.
Unfortunately, this is the major roadblock that keep many business owners back! To outsource or to hire? When is the right time? The truth is that this exercise should be planned and aligned with your business goals. Doing this off the cuff is a recipe for frustration.
Build Strong Customer Relationships
A strategy that has helped many business owners big time is building strong customer relationships. While this is true for every business, it can be more amplified in businesses dealing with physical products.
I’m not talking about just having decent customer service, but about actually listening—the kind of listening where you remember Susan’s favorite product or follow up with Bob about that issue he had.
Customers appreciate when they feel seen, and a loyal customer is worth their weight in gold when word-of-mouth kicks in. Happy customers spread the word. In the service delivering business, this cannot be overemphasized. Customer goodwill helps organic growth without draining your marketing budget.
Collaborative Efforts
Lastly, partnerships and collaborations – if done right can be quite beneficial. However, ensure that you establish CLEAR guidelines at the onset to avoid getting entangled in a legal mess further down the road!
Remember, there’s no one-size-fits-all here. Test, tweak, and adapt these strategies to fit your unique business goals. If it feels like an uphill battle, you’re not alone—but with a little patience, growth is absolutely within reach.
Compare When and Why to Outsource or Hire
Determining when to outsource services versus hiring full-time employees can be tricky. The area where many business owners have a hard time breaking free is “deciding to let go” of some of this mounting work thinking that they may lose control! Let’s break down the scenarios:
When to Outsource
- Short-term projects: When you need to tackle a project with a clear end date, outsourcing is a perfect fit. Think about that one-off marketing campaign or redesigning your website.
- Specialized expertise: Need a niche skill set? Hiring consultants or a freelance workforce can provide the specialized knowledge without the need for long-term commitment.
- Cost-saving strategies: Outsourcing can reduce costs, especially if you’re bootstrapped. An outsourcing partner can offer a ready-made solution without the cost of benefits or employee onboarding.
When to Hire:
- Core operations: If a role is essential to your day-to-day operations, hiring full-time employees makes sense. Business scalability often relies on a dedicated team that knows your company inside out.
- Long-term projects: Building an in-house team for long-term or ongoing projects fosters team productivity and a unified vision.
- Employee retention strategies: Full-time employees can help establish company culture and improve retention, which, in the long run, reduces recruitment costs.
Dangers of Not Hiring or Outsourcing
Skipping out on hiring or outsourcing when needed? That’s a shortcut to burnout—and not just for you but for your entire team. Here’s what can go wrong:
Operational inefficiency: Without the right resources, you will struggle to maintain operational efficiency, leading to missed opportunities, increased rejects and rework and missed delivery deadlines.
Overworking your team: Relying too heavily on your existing team can lead to burnout. They will be stretched thin, and guess what? Productivity plummets.
Missed growth opportunities: Without enough manpower, pursuing new projects or expanding services may be out of reach.
Lack of expertise: Going without specialized skills when needed can lead to costly errors. Trying to conserve funds by assigning one of your current employees, and not hiring a professional for your operations improvement project could mean mismanaged efforts and wasted resources.
3 Practical Small Buisness Growth Tips for Making the Decision
Assess your budget: Before committing, know your financials inside and out. If funds are tight, contract workers or freelance vs. full-time considerations may tip the scales.
Evaluate project timelines: Short timelines? – Outsource. If they are long and continuous, consider hiring full-time.
Focus on core vs. peripheral tasks: Keep essential tasks in-house but don’t be afraid to explore outsourcing trends for peripheral tasks like IT support or graphic design.
Conclusion – Growing Business Strategies
The decision to outsource services or hire full-time can be pivotal for business growth. While both have their pros and cons, finding a balance tailored to your needs and budget is essential.
By understanding when to leverage contract workers and when to bring on full-time employees, you can create a scaling strategy that maximizes efficiency and supports sustainable growth.
Need assistance scaling your business? Contact BCINC today to guide you!
Related Articles
- Why is Customer Satisfaction so Important? It Drives Growth
- 6 Reasons Why A RACI Analysis In Your Business Helps Growth
FAQs About Growing Business Strategies
What is the best way to scale a small business?
The best way is to strategically balance between hiring full-time employees for core functions and leveraging outsourcing partners for specialized or short-term tasks.
What are the best growing business strategies for your business?
The best growing business strategies you can adopt as a small business owner are enhancing current areas of expertise, building strong customer relationships, leveraging technology, and exploring beneficial collaborations.
Is outsourcing always more cost-effective than hiring?
Not necessarily. While outsourcing benefits include cost savings and flexibility, long-term projects may end up being more cost-effective when handled by an in-house team.
How do you manage outsourced teams or freelancers effectively?
Focus on clear communication, and set expectations early for both freelancers and outsourced team. In addition, use project management tools to stay on track with your remote team collaboration.
What are the risks of outsourcing?
Outsourcing risks include potential miscommunication, quality control issues, and reliance on third parties that may not align with your vision.
