Home-based businesses are typically run by one or two people. It’s one of the major perks of owning a home-based business because there is no red tape to get through when you want to try something new, there are less people to split the money with, you are your own boss, you don’t have to wear a shirt and tie anymore, etc.
But it also means you have to handle all facets of your business-even the ones you don’t want to or don’t know how to do.
I’ve heard this called the “lone ranger” syndrome. It’s when home based businesses run by one or two people assume all duties and tasks that come from owning your own business.
If you have a home-based business you already know that you can’t do it all yourself. It’s impossible. There is simply too much to do and never enough time.
You have to be a webmaster, marketing director, bookkeeper, customer service representative, writer, production coordinator, shipping and receiving director, and many other roles all in one.
If you perform all of those functions day in and day out eventually something will have to give, and it will probably be to the detriment of you or your business. You’ll either burn out from working too hard or important tasks won’t get completed and your business will suffer. Consider how much more money you could be making if you were able to devote more time to bringing in new business rather than doing mundane things like bookkeeping or answering the phone.
Outsource the duties that don’t make you money or you don’t know how to do. You’ll save yourself more than time, you’ll save yourself money too!
Why Outsourcing Makes Sense
The ability to devote more time to the tasks that make you the money is not the only reason to consider outsourcing. Outsourcing allows you to save money over hiring a full-time employee. Hiring additional staff may cost you thousands of dollars a month; outsourcing will cut those costs in half. Generally you should expect to save 40-60% off the cost of a full-time employee, depending on the position and tasks required.
In the early stages of your business, outsourcing tasks and projects will help you keep costs down. This in turn allows you to direct more of your funds to revenue-producing products, services and ideas. Every new or small business has cash flow problems, outsourcing allows you to pay only for the tasks you need rather than paying for an additional full-time employee. When you save money by not hiring unnecessarily you can funnel more of your cash into projects that will give the greatest return on investment.
Also consider the fact that if you hire an employee for your home-based business that they will have to come to your home every day to work. You and your family will lose all or much of your privacy. Think about how uncomfortable having an employee in your home might make your wife, husband or children feel. Also consider that you will have to be at your house full-time once you begin hiring employees. It won’t be as easy to run out for a minute or stop working at the drop of a hat to do something fun if you have people working from your house.
Real Cost of Employees
Do you know the actual cost of hiring an employee? It’s higher than you might think. In addition to an employee’s base salary you must also pay payroll taxes, health insurance, workman’s comp, retirement packages, and paid time off.
Lunch breaks, appointments during office hours, and other interruptions during working hours brings the actual cost of an employee to nearly double their salary. Experts estimate the actual cost of an employee at 30% over an employee’s salary tacked on to the salary itself.
Not to mention the costs of training new employees. You will have to take time away from generating money for your business to teach any new employee skills they’ll need for the job and general information about your business.
How To Decide If Outsourcing Is Right For You
There is an easy formula for determining if outsourcing will benefit your business. First determine what your hourly rate is. This number is important to establish for a base line. Next compare what you make per hour to the hourly rate of a contractor for the specific task you would be outsourcing. For example, an internet marketer who makes $120 an hour can save a significant amount of money by outsourcing customer service tasks like answering customer’s emails, refund requests and questions by phone. Customer service representatives can be outsourced for less than a third of what the internet marketer makes per hour. Not to mention the fact that it may only take the outsourced representative half the time to complete the task because they have a higher skill level than it would take the internet marketer.
When deciding what tasks to outsource think outside the box. Re-examine your work load and daily tasks. Figure out which tasks only require part-time work from yourself and determine if you can outsource them. For example you may only do your accounting and bookkeeping every other day or for just a few hours a day. Outsourcing these tasks allows you to devote more time to other tasks while saving money by not having to pay a full or part time employee.
Where To Go For Outsourcing
When deciding to outsource visit any of the website below. You should post a description of the tasks or projects you are hiring for, how much you are willing to pay, how long the job will last and if there are any special requirements (i.e. college degree, location, language spoken and understood).
Elance.com
Freelancer.com
Guru.com
Craigslist.com
Rentacoder.com
Sologig.com
Simplyhired.com
Until Next Time…
Ethan Warrick
Editor & CEO
