the less you do, the more you make: a simple guide to outsourcing

THE LESS YOU DO,THE MORE YOU MAKE

A Simple Guide to Outsourcing

MY BACKGROUND

● Got into the IM business ~2007● Felt like I had to do everything● Overwhelmed (with big bills to pay)● Forced me to delegate just to survive● Currently employ 24 full-timers (6+ yrs)● Philippines, Ukraine, Romania● Also: local errands, cooking, cleaning,

maintenance, oil changes, pet care, etc.

Warning: outsourcing can be addictive

OUR JOURNEY

● Why● What● When● How

"A man is rich in proportion to the number of things he can afford to let alone."

~Henry David Thoreau

THE HOT BUTTONS

● What are you looking to outsource?● Specific tasks you want to offload?● Specific problems with current hirees?

WHY

THE USUAL SUSPECTS

● Time leverage● Grow your business● Get more done● Got it done.● Get it done better● Keep it fun● Focus on core competency

OUTSOURCING IS FREEDOM

● Mindset shift ● Freedom to grow (business)● Freedom to decide (lifestyle)

WHAT

DIFFERENT GOALS

● Outsourcing for lifestyle● Outsourcing for business● Which comes first?

BUSINESS OUTSOURCING

● Virtual Assistant● Web Developer● Content Writer● Graphic Designer● Community Manager● Executive Assistant● Project Manager

So you can focus on doingwhat your customers value most

So you can focus on doingwhat you value most

LIFESTYLE OUTSOURCING

● Laundry● Grocery shopping● Yard maintenance● Everyday errands● Household cleaning● Cooking● Driving● dashlane.com/blog/2012/10/03/infographic-how-to-outsource-your-life

WHEN

LOOK AT WHAT'S STOPPING YOU

● Am I procrastinating on this task?● Do I dread starting this task?● Am I awesome at this task?

thedailymuse.com/toolsskills/7-tasks-you-should-outsource-immediately

ITS A NUMBERS GAME

● How much is your time worth?● How much is your lifestyle worth?● How much is your health worth?● How much is your organization worth?● How much is your hobby worth?

EXAMPLE

Scottsdale● Avg per capita income: $46,329● Avg job: 2000 hrs/yr (40 wks for 50 wks)● $46,329 / 2000 hrs = $23.16/hr● Sliding rule (adjust for specific scenarios)

source: city-data.com/city/Scottsdale-Arizona.html

OUTSPEND YOUR COMPETITION

● Can you hire cheaper than your rate?● Find a profitable task● Spend as much as possible on it● Rinse & repeat

HOW

RIGHT TOOL FOR THE JOB

● People● Software

GET YOUR MONEY'S WORTH

● Local (full or part-time) employees?● Offshore (full or part-time) employees?● Project-specific contractors?

● Web-Based Marketplace● Personal Referral● Recruiter / Matchmaker Consultant

FIND GREAT WORKERS

Key is knowing exactly what you're looking for

MANAGE PRODUCTIVITY

● Outline exactly what is expected● Incentivize focus on what's important to you● Don’t leave it open to their assumption● Communicate expectations & steps clearly● Never assume they are on the same page● Relinquish control, let them do their job● It's all about mindset

AVOID GOTCHAS

● Probation period/task● Language gap (written & spoken)● Culture gap● Time zone difference● Assumptions● Lack of management● Micro-management● Under-utilized● Over-utilized● Under-paid

"Intellectuals solve problems, geniuses prevent them."

~Albert Einstein

WHERE TO START

● Virtual Assistant● chrisducker.com/va-infographic

TEMPLATES & RESOURCES

outsourcetothephilippines.com/category/ottp-podcast

● Ebook● Podcast● Good info even you don’t hire in PH

RECAP

● How much your time is worth?● Create list of things you do regularly● Do you like doing each task?● Create job description for those you don’t● Post ads to hire for those tasks● Enjoy your newly found freedom● Grow your business, take a vacation

HIRING LESSONS FROM THE PROS

How The Fortune 500 Does It

BIGGEST MOTIVATION

● Cost, but● Big companies have learned from their

mistakes, 2nd and 3rd generation outsourcers

1ST GENERATION

● Cost is the main driver● Tend to look for the cheapest service costs● Using one provider for multiple processes.

For example, Payroll, Recruitment and HR● Laying the foundation

2ND GENERATION

● Achieved cost-reduction● Looking at other benefits such as greater

business performance and value● Looking at the bigger picture and costing

the whole project looking at other associated costs such as IT integration, communication

3RD GENERATION

● Cost is still important but not the key driver

● More focus on business optimization and improvement at the best cost

● Aligning this to the overall business strategy

LESSONS LEARNED

1. Think about the overall strategy and your goal from the start. Where do you want to end up?

2. Pick your vendor wisely. Think about how your priorities may change in 12 months. Will this provider still work for you?

3. Can you provider help you in initial stages whilst you are learning?

4. Provider management – (Service Level Agreements)

5. Communication – what tools do you already have?

Feedback?Questions?

chris@chrismohritz.com