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To Outsource or In-house: When Outsourcing Works Best for Startups

By Peter Daisyme, Last Modified
Jan 12, 2016
> Human Resources

The early stages of a startup are incredible—your vision is finally coming into the light, and you are ready to tackle every problem and wear every hat to build your brand. 

Certain tasks, as you have undoubtedly come to understand, take a lot more time and are better off left in the hands of a professional to ensure that you do not create unnecessary headaches.

With the growth of virtual offices and teams, outsourcing continues to grow in popularity. For startups, it’s also a great way to save money by avoiding the costs of hiring employees that may require a work space and benefits.  

Related Article: 5 of Your Biggest Startup Problems Solved

You now have the ability to hire freelancers that do not require an office or benefits. Simply know how to instruct your new freelancers with your great directives, and then get them their payment for the work done.

Human Resources 

Implementing a successful human resource department involves wearing many hats. Recruiting is the relatively easy part. You will need compensation and benefits, payroll, policies, and training. Personnel issues can take a lot of time, and involves many procedures that are highly detailed and often legal, thereby being better off left to the trained professionals. 

Outsourcing HR will help to ensure that the right procedures are being implemented. Outsourcing HR needs can be a costly endeavor on it’s own, and is something that you should consider when you are ready to hire multiple employees. I use Trinet for my HR needs and that of my company.


Around tax time is when a lot of new business owners begin to understand the importance of outsourcing their day-to-day bookkeeping. Allowing an expert to help you keep track of your expenses, and keep your finances organized will help prepare you for tax time. Oh, the joys of the tax code - a complicated issue and process you do not want to mess with. Taxes for the unknowing or disorganized business owner can financially bury the business.

If you can’t afford to outsource your accounting services full time, you may wish to choose a tax professional who will work on a project by project basis. Some tax professionals will work for you for only part of the year, and this may be a better alternative for you. I use this online invoicing company; this helps me outsource my work. Ever since I met the owner years back, I've been a big fan.

Web Design

Having a great business website is a necessity these days, with the website being the first introduction that potential clients will have to your brand. Unless you have been trained as a web designer, you will most likely need to outsource this task.  Platforms like Odesk and Freelancer offer a lot of affordable options for businesses in search of great designers to tackle their websites. If you can find a great host, like Hostt, Ipage or GoDaddy, you will most likely pay a one-time fee. This process can save a lot of time and money and is pretty much hassle free for a startup.

Blog Management 

Business blogging is now an essential part of driving traffic to your business website. Managing a business blog can be very time-consuming, and requires strong writing skills, an understanding of the ins and outs of the web platform you will be using, SEO, and many more actions that as a business owner, you may not have enough experience to carry out with any success. 

Related Article: Made in the U.S.A: Is Outsourcing Dead?

Outsourcing business blogging work to a professional, or an experienced team is a great way of investing in your brand. I use Wordpress for all my blogs. This is one of the best platforms out there.

Great blog management can help to increase your reach to your potential customer significantly, and help you to build a stronger relationship with your current clients. Having an outsourcing team allows you to answer blogging questions, and to offer your expertise - as an expert in your niche.

Peter Daisyme
Peter Daisyme
See Peter Daisyme's Profile
Peter Daisyme is the co-founder of Palo Alto, California-based Hostt, specializing in helping businesses with hosting their website for free, for life. Previously he was the co-founder of Pixloo, a company that helped people sell their homes online, that was acquired in 2012.
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