Small businesses have got a small budget but large needs. For small business owners one of the biggest challenges is wearing all the hats and the smaller the business, the more aspects of it you need to look after yourself. Startups originally go into business because they have a passion and skills for a certain product or service.
However, the skills may not include the operational, marketing or financial end of the business. Every small businesses have got some essential but non-core activities which take much time and could be better spent servicing existing customers or developing new ones.
In the past startup businesses were limited to two choices:
Wear every hat; fill every role, to the best of our ability, hoping that there will be time to seek new clients or cope with the existing already ones. But as they say grasp all, lose all.
Or hire the employees to fill those roles so that to focus on growing our business. In this case you should bother about searching for the personnel, selecting, hiring, establishing the team and what the most important - to wade through the red tape.
However, the third choice, which is growing popularity is outsourcing. This is when you engage the services of an external provider who is an expert in a particular field.