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A beauty of the web is that it’s automated and it can be set up to profit in that vein. However, internet companies have continued to over-capitalise and bring on expenses that have eroded what otherwise would have been an extremely profitable venture.
If you are planning to start an internet company or if you are looking to improve the profitability of an existing internet company; consider these 10 advantages to utilising outsourcing to get initiatives completed.
1) Offices are expensive, and with major improvements in technology, meetings can be conducted online efficiently and effectively. Plus, through outsourcing, your contractors can run the business from their home office thus further scaling down any plans you had for a larger more expensive office.
2) Contractors are often extremely motivated because they are working for themselves even though they are actually working for you. Many contractors are starting their own small consulting shops, and when they work on a project for you, they are in effect growing their own business – so you often can get greater level of motivation and attention to detail then you would from an everyday employee.
3) When you trim down expenses from your office, you can make a greater impact on your user experience. Maybe once the office space is slimmed down significantly, you can afford to speed up your website or remove those annoying pop-under ads from your site.
4) Often really good people will leave a company for a new opportunity. However, with contractors, a few projects can be juggled at once, so you can often continue to work with the valuable workers in some fashion because they are able to work on other projects that they are passionate about which present themselves.
5) When you outsource, you can scale up your payroll when the work demands it. When business is running well, and opportunities present themselves, you can increase contractors’ hours or bring on additional contractors. By the same token, you can scale down the businesses during the slow times. This helps to make the business more cost effective and stable; as you can better match your overhead each quarter to how much revenue your business is bringing in.
6) When economies collapse, often those who can ride out the wave and stick it out will be here to stay.
When you get in early to a new niche, you build users, search engine rankings, an audience, and a brand on the web, so it is important to keep that brand afloat. Even for internet companies that are ahead of their time, if they can stick it out and wait for the user demand to present itself, they will be in a prime position to capitalise after having been a trusted player in the space for some time.
7) When you run your own business, you often miss out on travel opportunities to attend an important conference or event because of the responsibility that comes with running an office. However, while existing connections can take place via online meetings, new connections and networking opportunities need to be a priority. When you are not as concerned with the expense and tasks of keeping an office running, you are more likely to focus on having more networking experiences to win new business.
8) When you run an internet company, the customers never see the store.Amazon.com has sold a record amount of product online, and hardly no one has ever seen their store. 99.99% of Google users, have never been to Google. Chances are, your website or internet company will never opens its physical doors to its customers. There isn’t the need to put up the facade of having a nice office or setup such as a law firm or a restaurant would. This further allows you to make a stronger effort to outsource whereas other industries aren’t afforded this luxury.
9) Employees spend a solid percentage of their time in route from their home to your office. Out here in Southern California, everyday people turn down lucrative and more challenging jobs to work somewhere close to home as a way to avoid the dreadful freeways. A huge bonus to offer outsourcers is the ability for them to not have to travel to your office daily. This plus can help to have a contractor or part-time worker balance out the drawback which comes from a much smaller benefits package that a candidate would be more likely to get with a full-time position.
10) Many niche fields on the web have experts, SEO is a classic example. Often the best people at SEO don’t work for one company, yet they work on a project basis for many companies. This is how experts become experts because they get experience working on so many different types of projects with so many different types of companies that they are able to learn more than they would had they been doing the same thing over and over. To get an expert who can really produce for you, outsourcing is sometimes the only way to go.Evan Britton founded Sency in 2009. The goal of Sency is to bring real time content, links, and tools, to internet users in an organised and simple fashion.
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