Table of contents:
- Benefits of outsourcing to productized services
- Using productized services saves you precious time
- Using productized services can save you (a lot of) money
- Using productized services gives you more flexibility
- Using a productized service can help you scale faster
- Using a productized service can help you tap into top-tier talent
Productized service is a relatively new term used for startups or online businesses who offer a specialized service— such as web design or content marketing— as a packaged solution. And it’s becoming the go-to solution for SMBs who want to scale fast and flexibly.
For many SMB’s looking to staff their companies with expert talent, competing with Fortune 500’s and other large businesses can be nearly impossible. Not to mention, the cost and time it takes to find exactly the right candidate can be astronomical (around $4K just to fill a position).
Some small business owners try to avoid the hassle of filling roles they need by taking more work on themselves. But this can be counterproductive as well. Trying to do it all can actually keep business owners from focusing on things only they can do (like growing and scaling their business). Not to mention, doing so usually involves overcoming a learning curve — another investment of time.
Luckily, today’s savvy SMB’s don’t actually need to hire anyone to fill their talent gaps with experts.
Instead, small business owners and entrepreneurs can take advantage of the wide variety of productized services now on the market.
Let’s explore the many reasons why SMBs are reaching out to these productized services.
Benefits of outsourcing to productized services
Using productized services saves you precious time
Time is our most important non-renewable resource. This rings especially true for the small business owner. When you’re wearing 10 different hats, efficiency is everything. Outsourcing your needs to a productized service can promise just that.
For the average UK company, it takes around 28 days to hire a new employee. In the US, that number jumps to 36 days. That’s almost an entire month of posting jobs, searching for candidates, reviewing resumes, and interviewing. Not only are you losing productivity in the role you want to hire for, you’re losing countless hours of your own time trying to find the right person.
Even then, unfortunately, 1 in 4 hires will quit within their first 6 months, leaving you to begin the process all over again.
Now, counter that with using a productized service.
Say you need someone to help with design. Sure, you could endure the month long process of finding and hiring an in-house designer. Or, you could utilize a productized service like Design Buffs who’ll match you with a professional designer in 24-48 hours (and include unlimited revisions and a money-back guarantee). You work with them as long as you choose to.
Not only are you saving time in finding the candidate, but also in the administrative work of hiring your designer, training them, and setting them up on your systems.
Using productized services can save you (a lot of) money
If you had the chance to add 15% to your bottom line every year by doing less, would you do it?
Of course you would! That 15% is the average amount of savings a company sees per year after outsourcing. Why? Because outsourcing tasks to trusted partners allows businesses to pay for only what they need — the service itself.
This is a far more cost-effective avenue than hiring a full-time employee (benefits and all), even if you don’t factor in the cost of recruitment.
Let’s see this in action. Using our designer scenario above, say you decide to hire in-house:
- The average salary for an in-house designer is $55k
- Now, factor in the $4k it takes to recruit them
- Then, you’ll need to pay insurance and benefits on top of that which is normally around $10K in additional cost
- You’ll also need an office space for this individual and equipment, so add another $5k per year
Compare that to using a productized service:
- Pay $350 - $500 per month and get access to unlimited design projects and revisions
- No benefits or insurance needed
- No office space or equipment required
Yearly cost savings: $69,800!
Most productized services have individual plans you can choose from that best fit your needs and requirements. Oftentimes, these services are very niche in scope, cutting down even further on waste and inefficiency.
Using productized services gives you more flexibility
Do you find that some weeks or months your staff feels overwhelmed while others are painfully slow? These ebbs and flows are all too common in small business, and can sometimes lead to frustration and inefficient use of time.
Many plans available from productized services will allow you to scale up and down month-to-month. Or, you can opt for a service that’ll work with you on one-off projects when things get hectic. This flexibility can be a game-changer in times of slow business or extreme growth.
Of course, the key to making this work is having a partner you trust when you need them. It’s not a bad idea to build out a ‘rolodex’ of great service providers in different industries. Ask around for recommendations, check out online reviews (or, use this one we created for you!).
Using a productized service can help you scale faster
As we mentioned above, hiring can be a huge investment in time and money. This can delay growth by stalling new business or taking focus/time away from company strategy. Staying lean is important to any small business, and productized services can assist in faster scaling by:
- Giving the businesses access to resources they would otherwise not be able to attain
- Freeing up time for key staff to focus on growth strategy
- Freeing up time to take on new business or clients
- Keeping cost down and efficiency up
Basically, by ramping up efficiency and resources while keeping costs and commitment down, you’re creating the perfect storm for scaling.
Using a productized service can help you tap into top-tier talent
Say you run a coaching business and you need to hire someone with great experience in UX design. Do you know what a good UX designer’s resume would look like? Do you know the online tools they should be skilled in or the type of work experience they should have?
This is where productized services come in with yet another benefit. Because these services are highly specialized in their niche, they can screen and hire candidates they know will be high performers.
They speak the language of the roles they’re hiring for so you don’t have to.
And because work with productized services is done on a fractional basis, it can often give you access to more experienced talent than you may have been able to work with otherwise.
Highly- skilled workers in almost any industry flock to work for productized services for the promise of work/life balance (many are online or remote companies), opportunity, and the chance to work with an array of interesting clients. This creates a win-win for both the talent and the SMBs who can now access them.
Did we mention the ROI?
The recurring theme in all of the areas mentioned above is apparent: increased ROI. Of course, it’s easy to see the ROI in the more tangible aspects of outsourcing (cost, time savings, etc.). But you might also find it in peace of mind. Or, in the ability to focus on your core service offering while leaving the rest in the hands of your skilled, experienced partners.
If you’re looking to increase the volume of work you can take on, expand your services, or gain access to expert talent on demand, there’s no easier or more cost-efficient way than through outsourcing to productized services.
So, concentrate on what you do best — and outsource the rest!
If you’re looking for an expert to help with content strategy, content creation or social media management, check out Scribly.
