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

  1. 1. THE LESS YOU DO, THE MORE YOU MAKE A Simple Guide to Outsourcing
  2. 2. 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
  3. 3. 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
  4. 4. THE HOT BUTTONS ● What are you looking to outsource? ● Specific tasks you want to offload? ● Specific problems with current hirees?
  5. 5. WHY
  6. 6. 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
  7. 7. OUTSOURCING IS FREEDOM ● Mindset shift ● Freedom to grow (business) ● Freedom to decide (lifestyle)
  8. 8. WHAT
  9. 9. DIFFERENT GOALS ● Outsourcing for lifestyle ● Outsourcing for business ● Which comes first?
  10. 10. BUSINESS OUTSOURCING ● ● ● ● ● ● ● Virtual Assistant Web Developer Content Writer Graphic Designer Community Manager Executive Assistant Project Manager So you can focus on doing what your customers value most
  11. 11. 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 So you can focus on doing what you value most
  12. 12. WHEN
  13. 13. 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
  14. 14. 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?
  15. 15. 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
  16. 16. OUTSPEND YOUR COMPETITION ● ● ● ● Can you hire cheaper than your rate? Find a profitable task Spend as much as possible on it Rinse & repeat
  17. 17. HOW
  18. 18. RIGHT TOOL FOR THE JOB ● People ● Software
  19. 19. GET YOUR MONEY'S WORTH ● Local (full or part-time) employees? ● Offshore (full or part-time) employees? ● Project-specific contractors?
  20. 20. FIND GREAT WORKERS ● Web-Based Marketplace ● Personal Referral ● Recruiter / Matchmaker Consultant Key is knowing exactly what you're looking for
  21. 21. 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
  22. 22. AVOID GOTCHAS ● ● ● ● ● ● ● ● ● ● Probation period/task Language gap (written & spoken) Culture gap Time zone difference Assumptions Lack of management Micro-management Under-utilized "Intellectuals solve problems, Over-utilized geniuses prevent them." Under-paid ~Albert Einstein
  23. 23. WHERE TO START ● Virtual Assistant ● chrisducker.com/va-infographic
  24. 24. TEMPLATES & RESOURCES outsourcetothephilippines.com/category/ottp-podcast ● Ebook ● Podcast ● Good info even you don’t hire in PH
  25. 25. 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
  26. 26. HIRING LESSONS FROM THE PROS How The Fortune 500 Does It
  27. 27. BIGGEST MOTIVATION ● Cost, but ● Big companies have learned from their mistakes, 2nd and 3rd generation outsourcers
  28. 28. 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
  29. 29. 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
  30. 30. 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
  31. 31. 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?
  32. 32. Feedback? Questions? chris@chrismohritz.com

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