How outsourcing your marketing could reduce your risk
To most business owners, outsourcing is a familiar concept.
Outsourcing certain activities essential to the day-to-day running of a company, whether through necessity or by choice, is a common practice in any business sector.
Hiring external agencies to manage operations such as accounting, distribution, or payroll, is common amongst small businesses. Many simply cannot afford the extra costs associated with keeping these processes in-house; employment costs and overheads, like the rental fees on larger premises, soon mount up. Many large or global companies also outsource services to strategically reduce overall running costs.
But aside from cost, what are the benefits of outsourcing services, such as marketing, to an external agency? Few businesses, especially those that only do so through necessity, understand the full benefits that outsourcing can provide.
Here are a few good reasons why outsourcing your marketing (and other services) could be beneficial to your business and reduce your overall risk:
The price of labour
You may only require a single marketer, or you may need an entire marketing department to fulfil your company’s needs.
If you need monthly newsletters, email campaigns, a social media presence, website content and a Google Ads campaign, with ad-hoc marketing tasks thrown in every now and again, then you could employ a single member of staff. The average salary for a marketing graduate in the UK is between £20k and £25k per annum. You would need to ensure they have a good knowledge of the different disciplines required of them, as well as good understanding of the software and platforms they will be required to use, which can sometimes be a lot to expect of a single person.
If your marketing requires multiple POS items on a rotational basis, multiple email marketing campaigns running concurrently, a strong social media presence and engagement campaign, full website design and management with at least 1 blog per month, multiple Google Ad campaigns, full SEO, branded sales and internal business collateral, maybe videography and photography and more, then you’d need a full team of marketing specialists. Marketing specialists can earn anything between £30-£45k and upwards depending on their specialism, experience, ability, and reputation.
Let’s say you’d need a team of five – copywriter, graphic designer, website manager, social media executive, and marketing manager – and between them they have the necessary skills to meet your marketing requirements. This will cost in excess of £120k per annum in salaries alone, not to mention the cost for materials, software, ad spend, and more. You must also take into consideration costs for staff training, HR resources, and the potential costs to replace staff that either leave or aren’t quite the right fit.
When you outsource to an external agency, such as Rosie Reynolds Marketing, your labour costs are greatly reduced. You get the same knowledge, experience, quality, and output for around the same price as a single graduate marketing executive.
The risk of hiring an agency, rather than internal staff, is much lower in terms of HR obligations and costs.
Capital cost, controlled
By outsourcing your marketing requirements, you not only reduce your labour costs but also free up capital for potential investment in other areas, especially in the early stages if your business is still young.
Your business will also become more attractive to potential investors for further growth, as you can inject your capital directly into the revenue-producing areas of your business, rather than tying it up in staff costs.
Efficiency is increased
When you do everything in-house, your expenses are much higher in terms of R&D, marketing, development, and distribution. These expenses need to be factored into the pricing of your products or services. If you charge too much, to increase profits, then fewer people will buy from you; if you price too low, your profit margins are depleted. When you outsource your marketing, and/or other requirements, you still get the same output, but for a much lower cost. Your profit margins have the potential to increase as a result.
The economies of scale as a result of outsourcing can provide certain competitive advantages.
Core business comes first
All businesses have finite resources, and managers have a finite amount of attention and time to give those resources. Outsourcing your marketing requirements to an external agency, like Rosie Reynolds Marketing, gives focus back to your business. By allowing someone else to manage your marketing, you can switch your attention to work that better serves your customer, giving your managers the ability to set their priorities in line with your business’ growth.
If you outsource your marketing to an external partner with the right skills and experience, they can begin working on your marketing objectives straight away.
If you were to do it in-house it could take weeks, or even months, to recruit staff with the right skills and experience, train them, and induct them properly, in-line with your company’s policies. You also need to provide them with the support they need to carry out their tasks efficiently and effectively. This process can take even longer for larger projects that require serious capital investment.
Think small, act big
Many large corporations have internal marketing departments, even multiple departments for separate areas of their business. Smaller businesses simply cannot afford to have similar in-house support.
By outsourcing your marketing department, you gain access to similar levels of expertise, efficiency, and even economies of scale that large corporations enjoy – for a fraction of the cost!
Any business decision you make involves risk, and any investment has inherent risk associated with it. The market that you inhabit will fluctuate, financial conditions will change, and technology develops at a rapid pace, making it difficult to keep up.
When you outsource your marketing to an external partner, such as Rosie Reynolds Marketing, that agency shoulders and manages the associated risks on your behalf.
They are also likely to be knowledgeable and experienced in handling the risks associated with their own market.
If you would like to discuss outsourcing your marketing, get in touch with Rosie Reynolds Marketing. We’ll arrange your first complementary meeting to discuss you, your business, and your goals.