Are You Ready To Outsource Today…or Tomorrow?

Written by Tammy Durden
 

By: Tammy S. Durden of TammysOffices.com

Reasons Why You Should Outsource

We are all familiar with the term, Outsourcing by now.  It used to mean overseas hiring of a person to help with office work.  Today, however, it has really grown to include so much more, including many specialty niche markets.  In the past decade, in fact, it is up over 10%, according to one statistic [even more from 2004 to 2014, as it rose over 30%].(1)  As a Virtual Business Service provider I am often asked many questions from other Online Business Managers, friends & family, and, of course, prospective clients. One of the comments, I frequently hear is: “I am just not sure if it is time to outsource‘; many times people do not even know the reasons why you should outsource.  Another common way the question is asked: ‘When Should You Outsource?‘. I usually chuckle a little to myself, when discussing these, because generally, if a business owner (or Manager) asks or is even thinking about these questions, it usually means – IT IS TIME TO OUTSOURCE!  Usually Today, not tomorrow.

When to call for HELP

In a perfect world, the best time to outsource is when you have an almost ‘full plate’ (not quite overflowing). In other words, just before you feel overwhelmed…go ahead and call for assistance! It is so much easier than waiting and having to hit the ‘Outsource Panic’ button.

 

I also understand, as a business owner myself, that we try to keep expenses down and therefore do not want to need that extra help.  There are two ironies here, one being that it will take the person helping you longer to figure it all out if you are already past your boiling point.  You will not have the time to go over processes or give full directions.  Truthfully the best way to add help is to make it a part of your business processes. This allows you to have the tasks working smoothly and can easily be handed over to someone else.

The Cost Of Outsourcing

The other irony of waiting to outsource to a VA, (or Virtual Business Service company) is that you will actually save money in most cases. Right about now, I have some you saying… ‘Wait…What!?’ So, please just hang in there with me.  Let me explain. Regardless of the outsource specialty you require, whether admin., social media, bookkeeping, writing, or more, you will be able to save money.  The reason you will save money is that you, more than likely, make more per hour than you are going to pay an average VA (general range $15 to $45 per hour).

As an example:  Let’s say a lawyer making $150 per hour has 1,000 emails backed up (containing leads, clients, and all other manners of things mixed in).  If they attempt to conquer this (although they have not in weeks or months) themselves, it may take 3 hours.  Not only that, but the task will keep the lawyer from actually making money working on billable client work.  The lawyer will lose $450 of the actual client billable time doing the task himself/herself.

Now, let’s take the same example, this time use a virtual assistant that is going to charge $20/hour to do the task.  At the same time, the lawyer works on the billable client work.  If it takes the VA 3 hours, then the lawyer still made $390, rather than cost him/her $450 for doing it themselves.  Now for those of you who I completely lost because as soon as I started the example you thought, ‘Oh NO! It is a math word problem.’ Here is another way to look at it:

A Lawyer makes $150 per hour x 3 hours = $450

A VA makes $20 per hour x 3 hours =             -$60

The balance after subtracting the VA work gives the lawyer $390.

In the example, not only does the lawyer have billable time, but he/she gained assistance in doing the work they really had no interest in doing. Keep in mind also, that oftentimes an outsourced professional will take less time.  This is because they are often used to the tasks given and do not have emotional ties to the work. It is very possible that the VA may only take 2 hours to do the work, leaving the lawyer a nice $410.

This holds true for most industries; perhaps not to that high of an earnings difference. Yet if you make more than the person you hire, per hour, you will always come out ‘on top’ by outsourcing!

Other Reasons to Outsource:

Are you still unsure whether you need (or want) a Virtual Assistant or Online Business Manager?  Here are a few more reasons you should outsource.

Just to clarify what is pointed out, the reasons begin with these and you can probably list so many more!

You Know it is time to Outsource If…
  • You are Spending Too Much Time Working IN Your Business and Not ON Your Business.
  • You are Overwhelmed and Trying to Do It All On Your Own
  • You Want to Go Green & Better Organize Your Files
  • You Are Up Late At Night, Trying to Reconcile Your Business Checking Account
  • You Have No Time To Plan for Your Business’ Future
  • You continue to put off Fun Time with your family and friends
  • And many other reasons – what are some other reasons you can think of for Outsourcing  Work?

I would love to hear your reasons for Outsourcing, whether you currently are or not!

As always, I so appreciate you taking the time to read the article.  I also hope you will like, share, and even comment to help us empower more disabled professionals to work, please.

 

(1)The Global ISG Outsourcing Index 2015

(2)www.inc.com/michael-alter/small-business-strategy-when-to-outsource

Find us online at:  www.tammysoffices.com

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