Small Business Owners: Are Entrepreneurs Compromising Quality for Cost Savings?

by | Mar 17, 2022 | Blog

    Outsourcing is now becoming a part of every modern business. It’s being used by almost all industries and is now becoming a bigger part of the small business world. So the debate is… are we compromising quality over price?

    Do we outsource when we want something done cheap or done well?

    Let me tell you about the first time that I experienced outsourcing.

    It was about 14 years ago, I was at a doctor’s appointment with my husband and he was seeing a specialist for an important eye surgery. The outcome of this surgery would determine if he was blind in his right eye.

    After the doctor went through the details of the surgery he did a dictation into his phone and gave an update about my husband’s emergency situation. He explained, the notes would be transcribed by an outsourcer by morning. And this is how my husband would get into surgery the next day under such short notice.

    So let’s examine this for a moment.

    In previous years, this high end specialist could only do 6 surgeries a day.

    With this admin change he can do 8.

    The doctor’s waiting list was shortened because he wasn’t burdened by any administrative tasks.

    I found this inspiring!

    Remember, he was a sought after specialist and his work truly changed lives.

    Gavin and I talked about how to cut through the noise that you hear about so many different productivity and time management strategies and training to the stuff that works in a really simply and accessible way.

    Let’s look at how outsourcing benefits the average entrepreneur and gives you and competitive advantage.

    Outsourcing a virtual assistant widens the talent pool. If you were building a football team, wouldn’t you rather have the best players from around the world versus the best from your local community? Teamwork is everything in business! Wouldn’t you want the very best team you could get?

    Outsourcing allows you to purchase help on demand. It’s become quite easy to bring on board an independent contractor. Let’s say you need a video editor for your social media but you only need them two hours a week. That’s no problem with outsourcing. And of course, this really aids in labor costs.Let’s look at how outsourcing benefits the average entrepreneur and gives you and competitive advantage.

    Another benefit is that you don’t have to pay for any overhead. The video editor you hired has their own computer and necessary software. This is a huge cost savings

    Outsourcing gives you very flexible hours. The hours can change weekly. If you need someone for 3 hours this week and 6 hours next week, it doesn’t involve a whole bunch of scheduling and planning. And it’s a real asset to labor productivity.

    The job satisfaction of outsourcers is often higher. For example, a video editor may only work two hours a week for you but they have other clients. All their hours are focused on their area of interest.

    If for any reason your outsourcer doesn’t work out it’s super easy to end the contract. It’s not a big legal process that you need to fulfill.

    I have also found that I learn a lot from outsourcers. Because they are zoned into a particular talent they become a great resource.

    I have fantastic outsourcing relationships that have really moved my business forward.

    The Downside Of Outsourcing

    If you’ve had bad experiences in this area, it always comes back to you.

    You didn’t have an efficient hiring or training processes.

    When I hired my first outsourcer 12 years ago, I really had no idea what I was doing and my results showed it. Everything from my job post, to my interview process needed improvements. Now I can put a very simple post up and have somebody fully implemented in our team within 24 hours.

    So if you’ve ever heard yourself say

    • “It’s easier to do it yourself”
    • “It’s hard to find good help”
    • “This next generation is…”

    I promise you just don’t have the right system in place.

    Change your system and you’ll change your results!

    Entrepreneurs – Do You Compromise Quality When Outsourcing?

    5 Things Every Entrepreneur Should Know About Outsourcing

    Outsourcing can save a lot of time and money, here’s some ways to maximize your results!

    1. Delaying is expensive

    Outsourcing lets us be as efficient as some bigger companies we may admire.

    With outsourcing, you don’t need to…

    -wait until you have enough work to maintain minimum hours

    -pay for a desk and computer for the new person

    -fire someone that you no longer need

    There is no need to delay anymore. You need help, post a job, put your hiring process in place and in 24 hours you can have the project moving forward. No missed opportunities!

    2. Size doesn’t matter!

    As an entrepreneur, I thought, “who has time to manage a team.”

    The goal here is to keep the team small and efficient!

    All outsources should immediately accelerate your progress, if they don’t then you need to make a change. In fact, I believe that your team should manage you instead of you managing them.

    We’ve been very successful with this and our clients love it!

    3. When do I outsource?

    By using outside experts, you save time, pay only for results and reduce the noise.

    Before I outsource a task…. I ask myself ..

    -Can we do this better, faster or cheaper by an outside expert?

    -Do I need to learn a new skill set to do this work?

    -Will outsourcing this increase the speed of implementation?

    If the answer is yes…

    I outsource so I can focus on what I do best.

    4. How Much Do You Need To Learn?

    Many times, my clients have tried to do something that was out of their scope but thought they only needed to learn a “little about it,” to get the job done.

    They felt they didn’t need help or worse feared it would cost too much.

    So they tried to learn enough to get the project off the ground.

    For example, one of my clients is a high end accountant for government funded military businesses.

    One night she was up till 2 am trying to create a flyer for her annual summit.

    Activities like this lead to burnout fast!

    Identify where your talents are and why your customers choose to buy from you.

    This is where your main focus and resources should be.

    5. Outsource If Someone One Else Can Do It Better (Or Quicker)

    Effective scaling means leaning into what you are good — and what moves the needle forward.

    Too many entrepreneurs think doing it themselves is cheaper.

    They think because they aren’t paying anyone they’re saving money.

    The huge problem here is that they have no idea how many opportunities they’re missing because their work isn’t in the marketplace.

    Remember: Focus on what you do best and outsource the rest

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