You don’t need a large team to run a successful business. Here’s why

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Bigger is not always better, especially when it comes to manpower.

Main points

• The growth of the gig economy makes it easier for small businesses to hire freelancers to fill gaps in knowledge or skills.
• Automation not only saves time, but can also improve the quality of your deliveries.
• Small teams are often more efficient and better at solving problems than large teams.

Small businesses are feeling the sting of inflation and economic uncertainty over the past few years. As a result, some companies have started banning new employees while others have laid off their employees. Given that labor accounts for the bulk of business operations, it’s no surprise that some owners are looking at ways to scale back labor.

Good news? You don’t need a big team to get things done. There are three reasons why.

1. Contractors are a powerful force

There are pros and cons to using contractors instead of full-time employees. But there are many situations where gig workers can help you get the job done without the commitment and labor costs of salaried workers. Sure, you can pay more by the hour, but you don’t have to pay for benefits like health insurance or paid time off.

Another advantage is that you can reduce your fixed expenses, which makes it easier to quickly reduce your cash flow if the economy starts to go down. That can be a double-edged sword because you’re not building a loyal team that knows your business inside out and may be willing to go the extra mile in times of trouble.

Gig workers aren’t the answer to everything. The trick is to think about what tasks can best be done by a freelancer. For example, you might be able to export a specific task that needs to be done on a certain date. That said, remember that a freelancer will work on their own schedule to meet your deadlines, so you can’t expect them to be available when you need them.

2. You can automate many tasks

At the risk of sounding like an old woman, it’s amazing how far business automation has come. When I started my first small business 20 years ago, some of the tools I had were clunky and difficult to use. Now the challenge is deciding which parts of your operations to automate and which software package to use.

Here are some areas where technology can streamline your work:

• Customer Relationship Management (CRM)CRM software can help you generate and manage leads as well as maintain existing customer relationships. It also helps you spot trends and focus on specific customers who can account for a larger portion of your revenue.
• Website and content managementYou don’t need to know anything about websites to build and maintain a professional site. The right system depends on how much you produce, how complex your website is, and how well it integrates with other tools.
• AccountingGood accounting software can help you track invoices and payments as well as manage your books.
• Ecommerce: If your business does a lot of transactions online, chances are you’ll use some kind of software to make the process, especially payments, run smoothly.

Check out our small business page for more ideas on how automation can save you time and money.

3. Small groups can be more efficient

One of the advantages small businesses have over corporate giants is their efficiency. Fewer people usually means better communication, less red tape and less time spent managing them. In addition, when there is a limited number of employees, each person knows the issues of their work. It can stimulate creative solutions and improve cooperation.

at last

As a small business owner, it often feels like there aren’t enough hours in the day. It’s easy to think that hiring more people takes the pressure off and you can achieve more. The problem is that hiring is expensive and training and managing employees is time-consuming.

There are many situations where hiring people can help, but it’s not always possible – whether it’s due to finances or not being able to find the right candidates. If that’s your situation, find ways to turn this to your advantage.