Outsourcing, when done right can be amazing. It frees you up from the tasks that require the most time, and lets you do the other tasks that are somewhat more important, like networking and sourcing for opportunities to expand your client base.
Contrary to popular belief, outsourcing can help boost your income much more than the expenses incurred paying the outsourced help. Have you ever seen an entrepreneur with a lot of free time? If you have, the chances are that while that entrepreneur owns their own business, a majority of their clerical and support teams are outsourced and not done by the entrepreneur themselves.
This gives them the freedom and time to do what they want while giving others a job. It’s a win-win situation for both parties!
We’ve identified a few reasons why you should also outsource when you can!
- Identifying time consuming (and the dreadful) tasks.
One reason for outsourcing work is simply to cut down on the more time-consuming tasks. For example, typing a long essay or article can often take days, more so if you’ve to type more than one. A team or a competent typist can typically do it in much less time, which frees you hours on end every week, time that you can use for other more important things like spending time with your children, or finding new clients as well.
- Removing roadblocks.
In many cases for entrepreneurs, the roadblocks would be the total amount of time you have to serve your clients. No matter who we are, we all only have 24 hours a day. In 24 hours, you can only do so much, which tends to limit the total amount of income that can be earned, hence a roadblock.
By hiring someone, you’d have much more free time to help grow and scale your business via securing more clients and contracts. Plus, the business can run almost without your direct involvement in it, which is the real benefit of outsourcing and being an entrepreneur. You could finally sip margaritas on the beach while the income rolls in!
- Trade-off of profit
It can sometimes be a bit hard to want to pay someone for something that you could do yourself. For example, you want to outsource writing and typing to a 3rd party. But you can do it too!
The trouble with that again, is that first, you’ll be burning through time that could be used to grow your business or spending time with loved ones. Second, if your billable rate is say $40, wouldn’t you rather outsource writing to someone who bills at $5/hour? You could be using your time to make that $40/hour turn into $100/hour if you choose to outsource!
- Keeping your eye on the bottom line
As entrepreneurs, the most important thing is keeping a close watch on that bottom line. Obviously, no one wants to operate our business in the red. To ensure that, we must first and foremost be wary of where we turn our time to – are we doing tasks that take away our time from profit-generating work or important networking?
Imagine you needing to handle all the administrative and support calls, 24/7. What an absolute logistical nightmare! Having to be on standby at every hour is hell on your body.
This is another key reason for outsourcing – the time needed to wake up at 3 am to call back clients can be better put to use to think of profit generating ideas. Plus, you won’t have to worry about when to call the clients, or if you forgot to call at all. At the very least even if you’re not a night person, you’ll sleep a little better at night.
- You don’t always have to pay people a lot, if at all.
If you’re only just starting the business and a little short on money, you don’t always have to pay the person you outsource in cash. Sometimes, there are people who are in need of other talents and skills, such as developing marketing plans or crafting speeches. Sometimes, bartering can be the way to go!
You could also hire an intern instead of a full-time outsourced partner. They’re usually cheaper and are willing to do a lot of things for experience.
She was nominated and selected for FORTUNE Most Powerful Women conference in 2016 (Asia) and 2015 (San Francisco, Next Gen).
Anna has 10 years of experience in the financial sector and is currently a Director in Tera Capital. Her previous work experience includes positions at Citigroup, United Overseas Bank, a regional role in Business Monitor and a boutique private equity firm based in Shanghai. She graduated from Singapore Management University (Finance and Quantitative Finance).