[Show Transcript]
I’m Randy Charach from RandyReport.com and THIS is the show that takes you from internet zero to business hero!
In this week’s lesson we’re going to talk about outsourcing. It’s a very hot topic indeed. But before you rush into outsourcing everything from setting up your website to blowing your nose you better listen to what I have to say about this very important and highly misunderstood topic.
Okay, you’re all set right… you have an idea for a product or service to sell online…now all you need is someone to write your sales copy, create your graphics, set up your website, build inbound links and write and submit articles so you can get traffic to your site, set up your shopping cart, so you can take payment, and do whatever else needs to be done in order for you to make money on the Internet.
Piece of cake, right?
After all, you’ve been told that it’s easy to make money on the Internet. That you don’t actually have to do any of the work yourself…just outsource everything and sit back at the beach and watch the money flow in, right?
Wrong!
Sorry to be the bearer of bad news, but it’s just not that easy. No matter what anyone tells you; mark my words…there’s no magic pill. How do I know for sure? Because I’m one the most resourceful people you’re ever going to meet, and although at first, when I got into this business, I thought I could find or create a magic pill and even thought at times that I had found a magic pill, I was wrong.
And I’m here to tell you from personal experience that the day you start looking for an easy out — – — a way to make money that requires little or no effort on your part — – — is the day you start going on a downhill slope with no way back until you realize that making money requires serious effort on your part.
It’s crucial that you understand this before we start our discussion on outsourcing. Any outsourcing that you do needs to come AFTER you have personally rolled up your sleeves and got involved at some level in the activity that you’re going to outsource. If you don’t understand at least the basic fundamentals of what you’re outsourcing then you greatly increase your odds of wasting a ton of time, money and energy.
You also have to be prepared to manage the people that you’re outsourcing. Especially if you’re hiring cheap labor for North American standards and outsourcing to a place like India or the Philippines. There are language and cultural differences that need to be understood and dealt with in order to effectively outsource to other countries. If you go in blind about the tasks which you’re outsourcing you’re adding an unnecessary layer of complexity on top of the language and cultural challenges.
Commit to understanding and doing the initial work yourself that you’ll ultimately outsource to gain a clearer understanding of what it is that needs to be done… how long it should take…and to establish a standard of work. Without that, you’re going in blind and have nothing to compare the work of the outsourcer with.
Even if you find a diligent, efficient and capable person or company to do work for you, without first-hand experience you’ll be unable to contribute to the process and help raise the bar in the level of work that’s been done for you. You see, it’s your job as the person who’s outsourcing the work, to oversee what’s happening and find ways to improve the overall results. You simply can’t do that, if you don’t know the ins and outs of the task as well as what can and can’t be done.
My message to you about outsourcing is simple; it comes later, once you’ve already established the groundwork. Outsourcing is a great way to leverage your time and funds and does have a place for you in your business. You can outsource work on a piecemeal basis, meaning one job at a time, or even have a part time or a team of full time people working for you effectively and efficiently while saving you from the potential headache and big expense of running and housing your own local staff.
So, what can you outsource? Realistically, once you have your business systems in place you can outsource almost everything in your business. There can be a point where you sit back at the beach and the money flows in, and daily tasks are handled by your outsourced workers. Your job will still be to manage the outsourced workers or your staff person who manages your outsourced workers for you, oversee your entire operation, and make sure your systems are working. This is as close as you’re going to get to THE ultimate business — by any set of standards.
As long as you’re willing to do the initial work to put effective marketing and sales process systems in place then you have the potential to make millions of dollars on the Internet and live your life with the level of freedom that you desire. Just don’t expect some business in a box, a coach, or a seminar to build your business for you. It’s just not going to happen. Sorry! Those are just pieces of a puzzle and only YOU can put those pieces together for YOUR business.
Okay, the first the first quote job description I suggest you outsource is that of a virtual assistant, also known as a VA. This person is going to work directly with you and act as gatekeeper and protector of your time. Have him or her handle your customer support e-mails and other time sucking repetitive tasks that don’t need to be handled directly by you. Of course, by this point, you will have followed my advice and have solid systems in place.
For example, you already have an FAQ online to limit the number of support e-mails that you receive. Your VA is also very familiar with the frequently asked questions and is well-equipped to handle repetitive inquiries and update your FAQ as new inquiries come in. These updates will require your input in many cases and it’s your job to be available to assist your VA in the never ending process of building upon your systems. Building systems is an ongoing process and will require your involvement since you are the one who is ultimately responsible for raising the bar in your business.
Once you have a competent VA, or personal assistant that works with you in your own office if you prefer — that person can then hire and manage your other outsourced workers. It’s crucial that you have a competent and reliable assistant in place before you start having that person be in charge of others.
Otherwise you’ll have the insane running the asylum. Trust me on this, I speak from personal experience.
At one point, I had a business approaching a million dollars a month in sales implode on me because I was delusional and thought the business could continue and thrive without my personal involvement. No one cares about your business more than you. The buck starts and stops with you. If you build your business, slowly and methodically and take personal responsibility for putting systems in place, then you can outsource almost everything AND have a sustainable business like no other.
Another important principle I want to share with you regarding outsourcing is to continually monitor the effectiveness of your outsourcing dollar. If you’re paying three dollars per hour for an overseas webmaster and it takes them 10 times as long to do the work as a $15 local webmaster then you’re paying twice as much money for the same job. And that’s assuming that the quality of the work is the same. Again, I’ve been there before, and those are real numbers from a real experience I had. While it’s not usually the case, it’s something you need to be aware of and monitor in order to outsource effectively.
As you know, I generally don’t recommend specific companies and refer you to websites on the show since companies and links and prices and quality of service from certain companies change rapidly, so for my up-to-date recommendations on places to go for outsourcing be sure to visit FreedomUniversity.com. Speaking of which, one of the students from FreedomUniversity.com sent in a question about outsourcing.
‘QUESTIONS FROM STUDENTS’
Our question today is from Jeff G.
“I have one person who handles everything in my business except the marketing, and I really rely on his person to run my business. It’s been three months, and so far so good, but what if something happens to this person?”
It shouldn’t really matter if anything happens to your support staff because before you hired them you had systems in place. A new person should be able to step in, pick up your training manual, and after a short period of time seamlessly take the other person’s place. If you don’t have the systems in place, Jeff, you spent way too much time training your assistant, I’ll bet you’re micro-managing, and, the bottom line is, you hired to early. Have your current assistant help you compile the notes and procedures that I’m guessing you’ve created together and have it ready before there’s a problem.
Today you learned that like everything else in life you and only you are ultimately responsible for your own success. Until you know exactly what needs to be done and have systems in place to do it you’re not ready to outsource. When you reach that point, do what you do best, what you enjoy, and what’s most important to your business; and outsource the rest. Always ask yourself the question — – is this the highest and best use of my time right now. If not, then systemize and outsource.
[End of Show Transcript]
