Outsourcing Your Business – When is The Right Time?

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If you have a growing business there comes a time when you need to outsource tasks in order to maintain growth.

In fact, there are some activities which necessitate being outsourced because you may not have the skills required.

What we’re trying to figure out is when to begin outsourcing.

If you begin outsourcing at the wrong time, it could hinder your growth and cause more problems.

A lot of people make the mistake of waiting too long to outsource.

By waiting too long to outsource, you could lose the motivation to work on your business. If you have to do everything yourself, it gets pretty easy to become bored and complacent.

If you find yourself doing the same activities over and over again then you must figure a way to systematize your activities and then hand it over to a qualified freelancer.

By creating a system to optimize your work flow, you will reduce your outsourcing costs. An optimized method of doing things will speed up the production of your outsourced project. If you’re paying by the hour for a virtual assistant you could greatly reduce your costs.

Something else to consider before you outsource is your profit margin
and the value of your time.

While outsourcing can cut into your profits, it can greatly increase your productivity, allowing you to scale your business.

Let’s say that you can consistently make a profit of $200 while working on an activity for 4 hours. Let’s say that number is an average profit for 4 hours of work.

When calculated, you’re making $50 an hour. If you can pay someone to duplicate your process for under $50 an hour then you’re making a
profit.

Of course, when you’re first teaching your process to someone it will
take them some time to learn at first. Once they learn the process,
they can complete it faster and increase your profit margin.

Let’s recap what we’ve discussed thus far.

Before you begin outsourcing, you should optimize your work flow by creating a system that is duplicatable by someone who has little to no knowledge of your system.

You should also write down the amount you make per hour doing things yourself. This way you know how much to pay freelancers to take over your work.

By outsourcing at the right time, you will substantially increase your volume of work and not lose motivation in your business.