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

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

Post on 21-Oct-2014



Self Improvement

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THE LESS YOU DO,THE MORE YOU MAKEA Simple Guide to OutsourcingMY 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 addictiveOUR JOURNEY Why What When How"A man is rich in proportion to the number of things he can afford to let alone."~Henry David ThoreauTHE HOT BUTTONS What are you looking to outsource? Specific tasks you want to offload? Specific problems with current hirees?WHYTHE USUAL SUSPECTS Time leverage Grow your business Get more done Got it done. Get it done better Keep it fun Focus on core competencyOUTSOURCING IS FREEDOM Mindset shift Freedom to grow (business) Freedom to decide (lifestyle)WHATDIFFERENT 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 ManagerSo you can focus on doingwhat your customers value mostSo you can focus on doingwhat you value mostLIFESTYLE OUTSOURCING Laundry Grocery shopping Yard maintenance Everyday errands Household cleaning Cooking Driving WHENLOOK AT WHAT'S STOPPING YOU Am I procrastinating on this task? Do I dread starting this task? Am I awesome at this task? 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?EXAMPLEScottsdale 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: YOUR COMPETITION Can you hire cheaper than your rate? Find a profitable task Spend as much as possible on it Rinse & repeat HOWRIGHT TOOL FOR THE JOB People SoftwareGET 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 ConsultantFIND GREAT WORKERSKey is knowing exactly what you're looking forMANAGE 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 mindsetAVOID 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 EinsteinWHERE TO START Virtual Assistant & Ebook Podcast Good info even you dont hire in PHRECAP 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 vacationHIRING LESSONS FROM THE PROSHow The Fortune 500 Does ItBIGGEST MOTIVATION Cost, but Big companies have learned from their mistakes, 2nd and 3rd generation outsourcers1ST 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 foundation2ND 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, communication3RD 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 strategyLESSONS LEARNED1. 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?


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