Finding the right resources, tools, and team to help us build a successful business is key. Finding good support can become a difficult challenge, unless you plan. Part of that support should be building a great subcontracted (or outsourced) team.
What Is A Subcontracted (or Outsourced) Team
Before hiring employees, as your business grows, consider hiring contracted workers. These are often called subcontractors (if they will work on your client’s work) or referred to as an outsourced team.
Subcontractor – will help you by working on your clients’ tasks. This is often the best way to start, so that you do not lose revenue. If you have them work on your backend tasks, you are immediately adding expenses and taking away from revenue.
Whereas a subcontractor can handle tasks for clients that you do not like, do not do well, or take more time to do. If they are more skilled in these tasks and are needed by your clients, you could potentially add new services, thereby bringing in more revenue.
An Employee – hired means that you will also need to offer at least some benefits. These may include health insurance, sick pay, vacation pay, and also be responsible for paying half of the Social Security. It could include other benefits as well.
Outsource – is a term meaning that instead of hiring within your organization, you will source talent outside of your company. They will be contracted rather than an employee.
Just as with the subcontractor, you will not be responsible for any benefits for this person(s). The outsourced persons, whether subcontractors or contractors, will be responsible for their own benefits, including all of their Social Security.
Choosing the Right Subcontractor
You can find good subcontractors in many ways, but I want to share several ways I’ve learned to find great ones.
The most common thing I am asked on this topic is how to find the right subcontractors for your team. I have found that one of the best sources is an online educational platform that includes a directory.
Here are some great ways to find your subcontractor:
- Personal Referral – this can be from a colleague, friend, or previous coworker (even a relative) IF they worked with the person.
- Specific Online Directories – a directory that is specific to the type of subcontractor/contractor you need. For example, if you need a social media manager, you would not look at a bookkeeping directory.
- Your Audience – if your following is the same type of person you need to get help from, then by all means, post the listing on your socials.
- Social Media Groups – those specific to your need or a general virtual assistant group. You can ask the administrator if you can post a job offering in the group. Most of this type of group appreciates it because you are helping their community.
- Networking Events – you may make new acquaintances at these, so be aware as you meet new people.
- Other Relationships – you may have a friend who is the right fit for your need. Just make certain you prepare a contract that you will both sign.
The reason I mention online educational platform directories is that if they are on a learning platform, they are most likely teachable. When we discuss character further down, remember this.
Types of Services to Outsource:
There are numerous services you can outsource today. I’ve included a large list below.
Some of the Most Popular Services to Outsource:
- Administrative (Virtual Assistant)
- Bookkeeping
- CRM Maintenance & Upkeep
- Digital Marketing (can include: social media management, email marketing, blog writing, & more if one group is outsourcing these services)
- Email Marketing
- Graphic Design
- Online Business Management (OBM)
- Online Event Specialist
- Online Marketing Specialist (Automations)
- Processes & Systems Specialists
- Podcasting Specialist
- Project Management
- Social Media Management (including posts, commenting, sharing, ads, analytics, & more)
- SEO
- Tech Specialist
- Website Designer & Maintenance
Tammy at Fearless Business Boss (article, “Why Hire a Virtual Professional versus an Employee?”)
Character Over Skill
As I speak to groups about outsourcing, one of the key ideas I try to convey is that they should focus on character over skill. Yes, they need skills; however, I much prefer someone with integrity over the most skilled person who has none.
Determine your personal and your brand’s values. What do you want to be known for? Those who work with you (even if contracted) will represent you to your clients and sometimes the world in general. The importance of this cannot be stressed enough.
What character types do you want representing your brand?
In The Fight With You
The other thing to consider when you bring on subcontractors is whether they will be in the fight with you. Simply meaning that they are willing to share your brand and be proud to represent it.
When we discuss outsourcing to subcontractors as you build your virtual team, we mean that you hope to continue to use these subcontractors in the future. They are not employees, but will work on your client projects on and off usually. Sometimes switching between projects as well. You want them to be on your team on a regular basis, but not full-time.
tammy durden of fearless business boss
Some of the best subcontractors are those who do not want to market their own brand but only want to subcontract with others.
Onboarding Your Outsourced Team
When onboarding your outsourced team, you must start with a contract. I include it with my welcome packet. Inside this is:
- Welcome Letter
- Contract
- Any Tax Documents Needed
- A Checklist of Items I Need Returned
Once you establish a template for this, it is very easy. You will only need to change out dates and names after you have your template in place.
How To Pay Your Subcontracted Team
This can be tricky for many online service providers. Deciding what and how to pay your subcontracted team is a business decision. I found it was best to establish a percentage versus a flat fee. If I paid hourly, I could not know how long it would take them to do a specific task ahead of time.
I may be able to do one task in 5 minutes, but it may take 30 minutes. If that is the case, I could end up losing tons of money.
Think it through carefully when deciding on how and what to pay them. I also included in the contract and explained this when we interviewed, that I would be paid once the company was paid and it hit the bank. Then they were immediately paid their portion.
Helping Your Team Succeed, Helps You Succeed
By focusing on helping your team rather than criticising if they do tasks differently, you will get the best from them. This will also help install loyatly and even a desire for them to grow in knowledge. If they see you value their growth, they will seek it out if encouraged.
If you need help understanding subcontracting or managing your team, feel free to reach out to me.
About Fearless Business Boss with Tammy Durden:
Tammy is a Business Coach & Consultant. Tammy loves empowering others to create and grow their agencies. Add your first subcontractor with her help.
Don’t put it off – Reach out if you have questions, or set a Free 30-Minute Session with Tammy.