The Less You Do, The More You Make: A Simple Guide to Outsourcing

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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 Dont 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 dont 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 dont 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