Cash Flow is one of the biggest concerns when you are running a raw, new startup. Everybody knows that so it comes as no shock.

Spending money before you are making money can be a daunting thought. There is a time when you do need to spend money on outsourcing or consulting to be able to grow, however.

When is it the right time?

Letโ€™s take a look at some factors that go into when you should outsource.

Money Savings

From very early on, even in the first days of your startup, you should be looking to outsource. Spending money for experts who have the logistics all worked out will save you money in the long run.

Sometimes it makes sense to hire somebody to your staff to handle a certain type of job, but you may pay more money for their services than if you simply paid a company to handle their work.

Beyond Your Scope

There are inevitably going to be some things that go beyond what you are actually capable of. If your startup is based on an idea especially. 

For instance, if you have a physical product you should really think about a manufacturing consultant that will help you handle the whole process of getting a product to market.

Make a Roadmap

There are some things that should be outsourced before you even start your business. You may have a great idea and are working with your strengths towards fulfilling the promise of that idea, but using a consultant very early on may open your eyes to some new ideas.

Buying a franchise vs a startup may actually make more sense. And a consultant may have opened your eyes to this possibility saving you the expense and high possibility of failure early on.

Ready To Expand

If you find yourself on a treadmill and not making much progress, then it is time to outsource to expand and grow.

You may feel like youโ€™ve hit a ceiling and your company canโ€™t grow any further. Usually, this is just a cash flow or expertise problem. Outsourcing at this point can be a very efficient and effective way to spend money to grow.

Grow At Your Own Pace

Rather than hire experts in research or testing or whatever your need is, you can pay as you go by using freelancers or consultants and only pay them for the hours they worked to help you solve your problem.

This way you can grow at a pace that is sustainable without spending too much money or taking on too many risks.


Donโ€™t be afraid to spend money when you are starting up. At the same time, you do need to be smart about when and how you spend it.

Running a lean operation requires making some hard decisions, but outsourcing can be one of the smartest ways to spend your money. In fact, not outsourcing may be the very thing keeping your company from growing.

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