7 ways a freelancer can increase your business profitability
Whether you are a small or medium business, a large corporate or an entrepreneur, using the services of a freelancer provides genuine benefits to the business that improves the bottom line.
This approach, also known as outsourcing, is the practice of using external service providers and freelance consultants to complete work normally performed within the business. While outsourcing is common among large businesses it is actually more helpful to small businesses who have a small budget but large needs.
Find out how outsourcing can benefit your business by reading the 7 ways a freelancer can help increase your business profitability.
1. Focus on your core business
Every business has limited resources, and every manager has limited time and attention.
What is the benefit to me?
Don’t spend time doing projects which take you away from growing your business, jobs that you dislike or perhaps aren’t even that good at. By outsourcing to a freelance consultant you get to focus on your core business while they complete the project that you have been dreading for months. Time is money!
2. Reduce staff costs
Hiring and training staff for short-term or peripheral projects can be very expensive, and temporary employees don't always live up to your expectations. You have to deal with tax laws, superannuation, performance management and vacation time as well as sick days and recruitment agency fees.
What is the benefit to me?
When you outsource you do not have to deal with any of these issues since your outsourced employees work as freelancers. There are no large agency fees when you engage directly with the consultant and you manage your staff head count by retaining people when you need them and reducing staff costs in quieter times. You also have the benefit of hiring someone for a short term project that otherwise might be too expensive on a full time basis.
3. Increase flexibility
Customer, supplier, employee and business need’s change regularly, being able to adapt quickly to these changes and scale as required is critical to your business success.
What is the benefit to me?
Have the flexibility to decide how long you need a freelance consultant for, what hours they work, even whether they are working in the office or from home. Larger businesses can attract whole teams for specialist projects by employing freelance consultants for the duration of the exercise, simply by posting an appropriate job.
4. Control capital costs
Cost-cutting may not be the only reason to outsource, but it's certainly a major factor.
What is the benefit to me?
Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business. Outsourcing projects within your business can also make your firm more attractive to investors, since you're able to pump more capital directly into revenue-producing activities.
5. Start new projects quickly
Handling the same project in-house might involve taking weeks or months to hire the right people, train them, and provide the support they need. And if a project requires capital investments the start up process can be even more difficult.
What is the benefit to me?
By reducing the time it takes to employ a new staff member, or even going through a recruitment agency for a temp, outsourcing to a freelance consultant could be making a positive contribution to your business within days while also utilising their assets and resources to get the project done.
6. Level the playing field
Most small firms simply can't afford to match the in-house support services that larger companies maintain.
What is the benefit to me?
Outsourcing can help small firms act "big" by giving them access to the same economies of scale, efficiency, and expertise that large companies enjoy on an as needed basis.
7. Increase efficiency
Businesses that do everything themselves have much higher research, development, marketing, and distribution expenses, all of which must be passed on to customers.
What is the benefit to me?
By utilising the existing infrastructure and structure of an external provider you gain the economies of scale which can increase your efficiencies and give your business an important competitive advantage. You also gain the knowledge and skill set of a professional with a fresh perspective on the project at hand..
If you would like to know more about engaging the services of a freelance consultant within your business please contact us, or alternatively register your business and start realising these benefits by posting your projects today.
All freelance consultants and service providers are invited to register and start promoting your services to the Australian marketplace today.
Patrina Kerr is a Director and Co-Founder at Consulting WorX Pty Ltd.
Consulting WorX is a privately owned Australian company focused on creating and delivering a premier online services marketplace.
Consulting WorX is the marketplace for Australian talent on demand. Businesses can find the talent they need on demand by posting their project requirements at www.consultingworx.com.au and freelance consultants and service providers can find and apply for projects, and start building profitable business relationships with clients around the country by setting up their profile.
