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3 steps to ensure outsourcing saves you time and money. Part 2.

outsourcing Sep 01, 2020

Part 2. Making sure your numbers stack up and understanding the ROI of your outsourcing.

Getting support, and outsourcing frees you up to grow your business and enables you to work on the areas that you should be working on, rather than the things that are keeping you stuck and busy.

You have to think about what you want. Do you want to be a full-time freelancer? Or do you want to scale your business?

Perhaps when you hit capacity, it's a chance to get higher paid work and sift out the lower-paid work? Maybe it's time to outsource parts of what you do to make more money charging for premium services. 


"It's not that expensive to get a little bit of help with the tasks that cause you the most stress. Start small but start. Two hours won't break the bank but might give you some breathing room to work on your business, write your book or to create your course. Things that could pay you for years to come". Denise Duffield Thomas
 

 

Let's look at a fictional example as to why it's cost-effective to outsource.

Clare is a Digital Marketing consultant with several service-based packages.

  • Power Hours - digital marketing strategy £150/hour
  • Training sessions £500/day (including 1-day prep and travel)
  • Creating content and video editing £50/hour 

She also spends time on the following tasks:

  • 4 hours a week on her admin and accounts
  • 4 hours on her marketing and social media management
  • She also works from home and spends one day a week (average) on house admin, housework and laundry etc. (you get the idea).

That’s sixteen hours where she's working on things that don't light her up and these things stop her taking projects she enjoys.

She's weighing up the various outsourcing options and has had the following quotes.

  • £25/hour for a VA who can do bookkeeping and social media management 
  • £15/hour for a cleaner/housekeeper (please note you can't put this down as an expense as it's not purely a business cost).

Outsourcing cost = £200 VA + £120 cleaner and when she could be charging £500/day

This would free up two days to work, potentially earning £1000 in revenue.

Potential profit or loss =  £1000 (2 x £500 days potential revenue) - £320 (outsourcing costs£200 VA + £120 cleaner) = £580 (profit)

Ok so this is a crude example - but you get my point?

Next time you think “I can’t afford to outsource” do this exercise.  

And ask yourself this question “what is doing everything myself costing my business?”

Dig deep and consider the possibilities and opportunities that outsourcing could generate for your business.