by Melissa Stewart
If you’ve read The 4-Hour Work Week by Timothy Ferriss I know you’ve daydreamed of outsourcing your way to millions. While outsourcing is a great way to “work smarter – not harder” and a great idea for your business, you need to do your homework before jumping in.
What are some of the advantages of outsourcing?
1) It increases your personal earnings per hour
In any given business, there are tasks that are worth much more than other tasks. For example, buying a domain, setting up its hosting account and email accounts are all maybe a $4 an hour job.
On the other hand, if you do the math a year later, managing your PPC account may be a $200 an hour job.
If you can outsource your low-skill tasks in your business, you effectively raise your personal efficiency and therefore your earnings over time.
2) You move closer to putting your business on autopilot
When you’re doing everything yourself, you will never ever have income that’s passive. Your business will always be on your mind; because if it’s not it will fail.
That changes once you bring in other people. If one of your goals is to eventually have a business that runs itself, then bringing out outsourcees is a good first step.
3) Your limit on what you can earn goes up
If you want your business to scale, you’re going to have to hire others.
In just about every business book by someone worth over $100 million dollars, one of the top three things they say matters in business is hiring the right people.
There’s no such thing as a multi-million dollar business run by one person. Few businesses make more than low five-figures a month when run by just one person.
If you’re interested in scaling your business up, eventually you’re going to have to outsource or hire. When you do, your business becomes more scalable and has more potential to grow.
What are a few of the drawbacks to outsourcing?
One drawback for beginning entrepreneurs is that they simply don’t have the immediate cash to outsource. Even if they have the money, the return might not be seen for a few months, which for a new entrepreneur is a long time.
Should you spend $500 a month on outsourcing when you’re only making $2,000 if it will possibly bring you to $3,500 in six months? Like anything else in business, it’s a risk that’s your choice to take or not.
Another drawback is quality control. If you outsource to someone, you’re still responsible for the quality to your customers. Unfortunately, many outsourcees just don’t provide quality services.
The answer is not to cross out outsourcing completely. The answer instead is to be absolutely meticulous about outsourcing only to A+ workers.
Where can you find your virtual workforce?
Now that you’ve done your homework, what are you waiting for? Go create your outsourced life!