fbpx
WHEN TO OUTSOURCE

WHEN TO OUTSOURCE

Do you have trouble delegating or outsourcing? Either to an employee or a service provider?

Most small business owners seem to hate the idea of giving work to someone else, whether that is an employee, a service provider or a sub-contractor.

 

This mostly comes from two common believes. The first believe is: “I can do it better”. And the second believe is, “I want to save costs”. Today we’ll look at how these two believes are hurting your business by explaining when you do need to outsource.

I CAN DO IT BETTER

Most business owners want to give perfect results to their clients. And if you want to have something done right, you have to do it yourself, correct? FALSE!

There is also something called good enough. When it is good enough for your clients, then why shouldn’t it be good enough for you?

 

I also often hear that business owners have bad experiences with the quality of service providers. In most cases this is due to hiring the cheapest service provider instead of the best.

 

If it is true that you can do it better than your service provider, you hired the wrong service provider. You need to hire people that can do something better than you can. But those people are so expensive, I hear you think. Which brings me to next common believe.

I WANT TO SAVE COSTS

A business owner that works an hour to earn 10 euro profit, is that smart? No, of course it is not, but in many cases business owners are making this mistake in a slightly different way.

If you work a day on your website which a pro can do in two hours for 40 euro an hour, you saved 80 euro by working 8 hours, so you saved 10 euro an hour. Exactly the same thing, but it feels different. Why? Because we don’t like money leaving our business. It kind of hurts to have to pay someone else, doesn’t it?

What is important is your realization of what your hourly income is. And by that I mean not how much you charge your clients (if you charge by the hour), but how much do you actually earn for every hour you spend in your business? If you make 2000 euro in 4 weeks, that is 12,50 euro per hour. That is your “salary”. Anything you do that someone else can do for less than that amount is costing your business and you.

So in the example above, you spend 8 hours times 12,5 is 100 euro. While a pro can do it for 80 euro and probably do a better job, if you hired the right professional.

 

Imagine what you could have done with those 8 hours instead! Providing value to existing clients, getting more clients, create business systems that keep working for your business in the future.

 

As a business owner you should mostly be focused on building your business and delivering value to your clients. Not on tasks that are not your expertise.

These were the two main false believes around outsourcing. 

What is stopping you from delegating or outsourcing work? Let us know in the below comment section.

 

See you around!

Kind regards,

Timon Vinke

Leave a comment

Your email address will not be published. Required fields are marked *