How Outsourcing Saves Your Startup Money

Starting a new business is not an easy feat, and it can be incredibly challenging when it comes to finances. Most startups face the constant problem of balancing their budget and achieving their business goals.

The most significant concern for many small businesses is completing as much work as possible, at the highest standard, in the shortest time. When growth is your goal, you have no choice but to find a way to get the job done.

Surely when you had your business idea, it didn’t include working 80-hour weeks and facing inevitable burnout. Of course, you could hire a full-time employee, but who’s to say there will be enough work in three months to make it worthwhile?

Don’t stress! There is another affordable and viable option that will suit your business plan.

Outsourcing your jobs with a freelance software engineer, copywriter, designer, or virtual assistant is a few options your startup company could use to reduce costs, save time, and scale faster. The benefits of freelancers are numerous and definitely worth a second thought.

In this article, let’s discover how your startup company or small business will save significant amounts by hiring freelancers.

How does outsourcing reduce costs?

woman counting money with a calculator and coin jar

Aside from being significantly cheaper than full-time hires, freelancers who work for startup companies also have additional cost-saving attributes. When added up, startup founders will find they have the extra cash flow to spend on innovation and growing the business elsewhere

No need to provide benefits or pay taxes for freelancers

One of the most significant expenses for any startup company still in its early stages is the amount they spend on employee benefits and taxes. Full-time employees are entitled to benefits like health insurance, paid time off, and retirement benefits, among others. As an employer, you are also responsible for paying taxes for your employees.

With freelancers, you are not required to provide benefits or pay taxes. Freelancers work independently, and you only pay for the services they provide. This can be a significant cost saving for your startup, allowing you to allocate those funds toward other critical areas of investment in your business.

If you have any compliance concerns, several good companies provide excellent outsourcing management services and sort out any legal issues that may hinder your desire to onboard a freelance worker.

Ability to hire freelancers on a project-by-project basis

Within the startup ecosystem, feast and famine cycles of work tend to befall many businesses in the digital sphere. When the getting’s good, everything is rosy as the projects are rolling in and happy clients are referring new ones to you regularly.

However, in those dreaded slow months, not only is your cash flow more of a drip, but you also have significant outgoings in the form of employee salaries and other related costs.

Times like these can be nerve-wracking but far more manageable if you have freelancers instead of full-time hires on your team. As they work on a project-by-project basis or on short-term contracts, you can let them know that you will only need their services once things start to heat up again. This flexibility allows you to allocate your funds toward other critical areas of your business, ensuring that your budget is optimized for maximum effectiveness.

Sure, it can be frustrating for freelancers to hear this news, but they are used to it. It is all part and parcel of being an independent contractor.

Reduced training costs

Frustrated man looking at data on a laptop

One of the significant advantages of hiring freelancers is that they often come with specialized skills and experience, requiring less time getting them up-to-speed through training programs or seminars. Freelancers are familiar with the startup business strategy meaning less time spent looking over their shoulder to see if they are doing it right.

When you hire a full-time employee, you may have to invest significant time and resources in training them to perform their job effectively. This can be time-consuming and expensive.

With freelancers, you can find someone who already has the skills and experience needed for the project. After they provide evidence and you have met to discuss terms, you can rest assured the job will be done well.

Lower equipment and office space costs

As remote workers, freelancers won’t take up space in your office. They don’t need a computer or any other type of hardware either. There are no lunch expenses, utility usage, and no company phone.

Obviously, this helps save your startup money.

Freelancers pay for all of their own equipment as these are their tools for the job. They also work from anywhere with an internet connection. Don’t be surprised if you find out they have been spending time at the beach!

Reduction in software costs

new technology on a computer with man staring at it

Here is another area where things can get costly.

Need to redesign your website? Do you have InDesign, Adobe Photoshop, or Illustrator?

Are you interested in blogs and website content? Do you have AI writing tools and SEO software?

What about software development? You’re going to need Visual Studio, NetBeans, or Azure.

One of the most significant benefits of a startup hiring freelancers is that they often come with their tools and software. This means that startups can save a substantial amount of money on software costs, as they don’t have to purchase expensive software licenses they might only need for a short while.

Freelancers use the most up-to-date software and tools

This can be especially beneficial for startups that don’t have the resources or time to keep up with the latest trends and technologies. By hiring a freelancer, startups can gain access to the latest and greatest software and tools without investing in them.

Overall, reducing software costs can save your startup money by keeping overhead costs low.

Man descending stairs

It’s great that you are considering taking on freelancers and refining your business processes to create wealth. Outsourced hires are a great choice when you have a business model that requires resource allocation to be optimized for maximum efficiency.

However, not all platforms where you select freelancers are invested in your success. Startup companies must be wary of choosing freelancers who claim they are everything you need but fail to deliver on their promises.

For example, sites like Fiverr, Upwork, and are all hugely popular, and they have many successful freelancers with happy customers willing to recommend them.

Unfortunately, all also have a reputation for creating an environment where freelancers are forced to drive their prices down. This inevitably leads to a race to the bottom in terms of pricing.

This can be problematic for an organization such as yours as you will likely get many responses to your job posting, making it difficult to ascertain whether cheaper is better.

Have a thorough vetting and testing process in place

Having a risk management strategy to identify top-notch freelancers and screen the ones who don’t make the grade will save your startup money. While this can be a lengthy process, getting someone in who will do the job right the first time is wise. If things don’t work out, you may need to make an additional hire which defeats the purpose of saving cash.

Standards are still important

Businessman ticking boxes with a red mar

There are other ways to avoid this race to the bottom and find high-quality freelancers on outsourcing sites. One way is to focus on value over price. While it can be tempting to choose the lowest bidder for a project, it’s essential also to consider the freelancer’s experience, skills, and portfolio.

Clearly define your project requirements and budget upfront. This can attract freelancers who are a good fit for your project and willing to work within your budget. Additionally, setting clear expectations for deliverables and timelines can help ensure the project is completed satisfactorily.

Use an outsourcing company that does the heavy lifting for you

Another way is to partner with an outsourcing marketplace that will find you the best candidates without you lifting a finger. A few great companies have a network of candidates in everything from digital marketing to website development.

Outsourcing companies often have options whereby you can have long-term relationships with freelancers you are compatible with. This can help you save time and money in the long run, as you’ll already have a pool of trusted freelancers to choose from for future projects.

Choose Quickly Hire to save your start up money and scale faster

Person placing blocks next to an arrow pointing upwards

So, if you are looking for ways to maximize cost savings and complete work faster, hiring a gun freelancer is a great option in your back pocket.

It doesn’t matter if you are bootstrapping or utilizing venture capital funds. Ensuring you operate in a lean environment will set you up to achieve bigger in the long run.

Partnering with a trusted outsourcing company like Quickly Hire also takes the frustration of posting a job, vetting candidates, and ensuring you are compliant with local tax and legal requirements. When taking on a freelancer is meant to be painless, doing all these tasks on your own can become tiresome.

Remember, it is essential to avoid the lowest-cost freelancers on popular sites, as you can never be sure that the work will be completed to a high standard. A freelancer should be cheaper than a full-time hire, but not cheaper than a cup of coffee!

So do your sums, and shoot the team at Quickly Hire a message. With dozens of talented, vetted freelancers in our network, we are sure to find you the perfect candidate to help your startup save money and scale faster!


  • Alex McInnes

    Alex is Quickly Hire's content strategist and digital marketer. He's a New Zealand-born, Thailand-residing copywriter extraordinaire. Dad to two beautiful girls, Alex loves playing rugby, reading, and running with his soi dog, Effie.

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