Outsourcing Advantages and Disadvantages
Without a team…
1. Your new revenue projects take longer to get out.
2. Missing even one opportunity can be costly, considering the lifetime value of your clients.
3. Missed opportunities tend to lead to other missed opportunities.
4. Without a team, something minor like the common cold derails your business. Your workflow slows way down or even stops.
5. As your work demands grow, so do your hours, making you increasingly less effective.
6. You tend to multi-task to keep up which decreases your productivity by 40%.
7. You’re limited by your own knowledge. You don’t have a team that you can lean on for expertise.
8. You have no one to check or proof basic work.
9. You bottleneck ALL your own projects.
10. You’re constantly stressed and you repeat the cycle of the entrepreneur burnout
11. You become a sufferpreneur
12. You’ll never have the freedom lifestyle you were promised when you started your business.
The World Is Your Oyster
In the past businesses, we’re limited by geography.
You Can Save A Lot Of Money
Did your mother ever tell you stories about when she was a kid…
And how a candy bar only costs 25 cents…
and for a wild moment, you thought how great it would be to go back in time!
Well, this is a bit like that!
With resources now being global, it definitely gives you a variety of hiring costs. Entrepreneurs are dealing with different economic regions and the pay expectations vary. This means you can get very affordable and high skilled labour that would fit well into the needs of your small business.
You Save Big On Overhead Costs
It’s A 24 Hour Day!
When working with outsourcers around the globe, you could have a 12 hour time difference. This means you can wake up in the morning and your work is done. This is a wonderful benefit as it gets work done around the clock.
Another really great asset to outsourcing is it increases everyone’s job satisfaction. When you can outsource, it allows you to have your team focus on specific talents and skill sets that they possess. You do have to assign work just because someone has to do it.
Many entrepreneurs have local and in-house employees as well as outsourcers. One of the reasons for outsourcing is it allows your company to grow, bring in more revenue and reward your existing team with pay raises.
Take On Any Project
Outsourcing also allows you to take on projects at a moment’s notice. You can hire almost instantly to meet the needs of any ambition.
The Options Are Overwhelming
Some entrepreneurs find the idea of global resources overwhelming. They feel like it’s a huge undertaking and they just don’t know where to start.
Some cultures outside the Western world come from a more passive position where they feel they are supposed to show the utmost respect for their employers.
What this means is they don’t speak up as much or introduce new ideas. Without the right leadership, you may not be getting the best out of your team.
At the end of the day, all you have is their email address or a Skype Contact. If for some reason they don’t show up it just feels like you have less options. This is a common complaint when dealing with outsourcers. Your outsourcer could be dealing with an illness or they have no Wi-Fi due to bad weather. It could take days before you sort that matter out. When somebody works for you locally and they don’t show up for work it just seems like you have more resources. (However, I don’t think you do. It’s very easy to ignore a phone call).
They Don’t Have To Quit
Probably the biggest complaint about outsourcers is they can simply quit. If they are not happy working with you or there have been other issues, it’s easier for them to just stop emailing you. They don’t have to formally quit. (If this is happening, you have issues in other areas like you’re hiring and onboarding practices.)
For some entrepreneurs, the time difference is an issue. They want everyone working together and on the same schedule. There are many outsourcers that will work the midnight shift in order to accommodate your hours. (Personally, I don’t think you get the best out of anyone at five in the morning.)
You can teach someone a new skill but you can’t train their personality or attitude. When I’m looking to add to my team, I always focus on personality first.
Keep these things in mind:
-are they passionate about what they do?
-if you were stuck, do they seem like they would step up and help?
-are they eager to learn?
-do they seem excited to work with you?
After 10 years, I’m still amazed by my team’s enthusiasm. They seem to be just as passionate about my dreams as I am. This kind of enthusiasm definitely makes everything easier and really gets stuff done!
Action: Get them doing something! Always Test
Regardless of the position that I’m hiring for, I always do a mini-test.
I definitely do this for outsourcers but I’ve done this for in-house positions as well.
Let’s say you’re hiring a new virtual assistant. Give them a little task of something simple. It can be a quick research project. And see how they manage.
I’m not looking for free work…
-I’m looking to see how quickly they turn it around,
-when they ask questions,
-and the type of work that they produce.
Testing is especially helpful when you are narrowing it down among a number of candidates.
But honestly, I would never hire anyone for anything without giving them a mini test
During the interview process, ask them to list their strengths. Any successful candidate should be able to articulate their strengths. It’s a simple question that we’ve all been asked. How well do they answer?
I always ask a candidate what’s their biggest or most recent success. You can tell a lot about a person with this one question. I’ve had answers from:
“I finished a 5km run. I used to be very out of shape and this really renewed my passion for life”
“I have a bad habit of quitting things when it gets tough. Recently, I finished a course I was struggling with”
The Results Are…
Win The Hour, Win The Day Winners Circle