When you’re bootstrapping your startup, it can be tempting to try to do everything yourself in an attempt to save money. After all, when you don’t have VC backing on your side, you have to stretch every dollar!
However, a do-it-all mentality could ultimately backfire in the long run. If you want to make the most of your financial resources and achieve the growth that will take your startup to the next level, you’re going to have to outsource.
No matter what industry you’re working in, each startup will have essential, time-consuming tasks that can easily take your attention away from the big-picture issues that affect your company’s long-term health. Ignoring these “everyday” tasks will limit your growth — but so will spending too much of your own time on them.
The solution, of course, is strategically outsourcing tasks.
1. Accounting and bookkeeping
Knowing how your money is being spent and where your revenue is coming from is vital for any bootstrapped business — but crunching the numbers is far more complicated than you might think. This is one area where even a seemingly tiny error could have big ramifications for your business.
It’s generally recommended that you outsource this work to bookkeepers, who accurately record all financial information associated with your business, as well as accountants, who use this information to prepare tax documents and profit and loss statements. Making use of both will take a lot of responsibilities off your plate, eliminating a major stressor for startup founders.
Yahoo Small Business estimates that outsourcing these tasks can reduce monthly bookkeeping costs by 40 percent. Even more importantly, you don’t run the risk of making an error that gets you into tax trouble or puts your cash flow in jeopardy.