As a small business owner, you’re busy. Most days you’re rushing to get everything done and often, you just don’t. You keep thinking that you could use some help, but you’re not sure what kind of help you need.
One solution is to outsource some of your tasks in order to free up more time to work on what really matters in your business.
But how do you know if you’re actually ready? These five signs will help you determine if you’re ready to outsource in your small business.
TIME-STAMPED SHOW NOTES:
[01:15] Why Outsource?
[03:14] Outsourcing vs Hiring
[05:50] 5 Signs That You’re Ready to Outsource
[12:54] You Can Start Small with Outsourcing
[14:29] Bloopers
Why Outsource?
[Theresa] As a small business owner, it can be hard to know when you’re ready to outsource or hire a team. You’re so used to doing everything yourself and the idea of bringing someone else on board can be absolutely terrifying!
[Meghan] Scary as it may be, it can help to know that other small business owners are in the same boat. In fact, more than a third of small business owners outsource at least one business process. So, it’s a pretty common practice.
[Theresa] As a matter of fact, both Meghan and I have outsourced from time to time for a variety of reasons. I usually outsource tasks that I can’t do myself or that I’m not very good at doing.
A quick example would be website design. I’m not a web designer, but I do have some design experience and skills. I know enough about coding to be dangerous to myself and others. However, it takes me a very long time to figure out how to make something look the way I want it to. That means I’ll spend a lot more hours doing something than someone who specializes in web design.
Not only that, but I don’t enjoy designing websites. So it causes me stress and frustration and then I usually end up procrastinating.
[Meghan] Good example. I’m also going to point out that Theresa is not in the web design business. So, if she spent time designing her website, it would take her out of her Zone of Genius and away from doing work that matters in her business.
Take a minute to think about the tasks that you’re doing. Which ones cause you frustration? Are there any tasks that zap your energy or feel like a chore to do? Maybe there is work that you’re doing that someone else would be better at?
[Theresa] If Meghan’s questions are triggering thoughts of specific tasks, those might be good things to outsource.
Outsourcing vs Hiring
[Meghan] Hold on for a moment. It occurs to me that we may need to explain the difference between outsourcing and hiring. Because they are NOT the same thing.
[Theresa] Oh yeah. You might be right, Meghan.
Well, hiring is exactly what you think it is. That is when you bring someone into your company. They work internally in your business. You pay them, train them, manage them. You are also responsible for all of the associated costs and any tax implications.
An outsource is also a hire, but they are external to your business. The outsource might be temporary, meaning you have an agreement with them for a limited period of time.
For example, a web designer you’ve contracted to build your website. They work with you on a per project basis. You hire them for their expertise, so there is no training needed. And once the work is complete, the contract is over.
There are also different tax implications, which I am not going to get into because that varies from state to state and from country to country.
[Meghan] Best to stay away from tax guidance! Lol
There are so many types of services you can outsource. I hear that one of the best solutions is to use a virtual assistant, although I’ve not outsourced one myself. But, I think we’ll cover that in a separate episode. Right, Theresa?
[Theresa] Yes. I think that’s a great idea.
[Meghan] All you need to know for now is that a virtual assistant, or VA, is someone that works external to your business. Their services are performed remotely, so they don’t come into your place of business. This is helpful if your place of business is your kitchen table.
VAs can perform any number of tasks, such as writing, social media management, admin, SEO, blog management, and just about anything you can imagine.
Virtual assistants can perform any number of tasks, such as writing, social media management, admin, SEO, blog management, and just about anything you can imagine.
Plus, VAs are easy to find. There are so many companies online that offer virtual assistant services. And when you’re outsourcing for a skill set, that means less time you have to spend training.
[Theresa] There are definitely pros and cons for both hiring and outsourcing. If you’re not quite yet ready to start hiring in-house employees though, outsourcing a good place to start.
[Meghan] You may be wondering if you’re ready to outsource in your small business. It can be a little scary, right?
But don’t stress! Would we leave you hanging like that? Of course not!
Theresa is going to share the signs that business outsourcing could be the right next step for you. What’s the first sign, Theresa?
5 Signs That You’re Ready to Outsource
Too Many Clients, Not Enough Time
[Theresa] One of the most obvious signs that you’re ready to outsource in your small business is that your time is tight because you have so many clients.
Having a lot of clients is a good problem to have, but there are consequences. This is especially true if you have deliverables for those clients.
You may feel:
- Overwhelmed by your workload
- Inundated by constant client requests
- As if you’re working 24/7
- Like you’re never getting ahead or making any real progress on anything
- As though there’s no time to grow your own business
[Meghan] Another sign that you’re ready to outsource is that you’ve actually had to turn away new clients. That seems like a good thing, but when you can’t scale your business, it’s time to get some help!
Someone Else Could Do it Better
[Theresa] Yes it is, Meghan.
Another sign that you’re ready to outsource in your small business is you’re certain someone else can do it better than you. Let’s face it. You might be doing everything right now, but you can’t be the best at everything.
If there are tasks within your business that you hate, know you’re not good at or that take you too long to do—you’re ready to outsource those tasks.
[Meghan] Find amazing people who excel at those tasks and then let them do their thing. Steve Jobs once said, “It doesn’t make sense to hire smart people and tell them what to do; we hire smart people so they can tell us what to do.”
You can totally find amazing people through outsourcing. You save time, money, and headaches when you get help from someone who excels at a specific expertise.
[Theresa] That’s exactly right! I’m going to take a minute to make Meghan’s point. One of the things I outsource in my business is my content strategy. I happen to outsource it to Meghan.
When I first began producing content, I had no idea that there should be a method to the madness. As my business began to mature and I learned more about how to create great content, I became aware that I needed an effective content strategy. While I understood the process of creating one, it was hard for me.
So I outsourced that project to Meghan. Why? Because SHE is an expert at anything content related. She did it way better and faster than I ever could. And I got a lot more than just a phenomenal content strategy that was perfect for my business. It saved me time and made business easier for me. And I’m all about that!
So, hire amazing people, like Meghan! Let them do their thing, and then focus on the parts of your business you love and that you’re actually good at!
[Meghan] Wow, that was a wonderful and unexpected testimonial, thank you Theresa! And, that’s great advice—we all need to be open to getting help from experts.
What’s another sign that you’re ready to outsource in your small business?
Someone Else Could Do it Cheaper
[Theresa] You’re definitely ready to outsource if someone else can do the tasks that you’re currently doing for less money.
[Meghan] Ok. Hold up! When I am doing a task in my business, I’m not expending any dollars. So, how can someone else do it cheaper than that?
[Theresa] I’m so glad Meghan asked that question. I know that’s what you’re thinking, too. So let’s address that elephant in the room.
There is no work that you do in your business that is free. It costs you money to produce any deliverables in your business. That’s because your time is worth something.
There is no work that you do in your business that is free. It costs you money to produce any deliverables in your business. That’s because your time is worth something.
Let’s say you’re a Reiki Practitioner who charges $100 an hour for a session. That’s your hourly rate.
Now let’s say you’re creating and posting your own social media graphics. For every hour you spend doing those things, you’re not seeing a client. So, guess how much you’re spending to create and post your own graphics? You’re spending $100 an hour.
Let me put it another way. I’m gonna do math here.
Your one hour Reiki session brings in $100 to your business.
Your one hour of social media graphics and posting brings in $0.
But, if you hired someone at $20 an hour to do the social media tasks, you free up an hour to work with a client that gets you $100. So yeah, you’re spending $20, but you’re still making $80 as opposed to $0. Make sense?
[Meghan] Totally. That’s an important distinction Theresa just made. Pay attention to it!
It’s never a good thing when non-income producing tasks take you away from revenue-generating work, like finding new clients or creating new products. You lose money, time, and energy that way.
Why continue to spend WAY too much time on tasks that someone else can probably do in half the time and at half the cost? Instead, focus on work that only you can do! That’ll bring in the big bucks.
Your Business Growth has Stalled
[Theresa] If you’re a solopreneur, there’s really only so far you can go with your business. There will come a point when you need to outsource or hire a team in order to reach the next stage of growth.
If you’ve been feeling like your growth has stalled already, then you’re ready to outsource now.
Look, growth doesn’t happen on its own. It requires you to be actively working on new products or services, finding new clients, and getting out there and selling. All of this takes a tremendous amount of time.
Look, growth doesn’t happen on its own. It requires you to be actively working on new products or services, finding new clients, and getting out there and selling. All of this takes a tremendous amount of time.
If your sales have plateaued, and you’re ready to seriously accelerate your growth, this is a huge sign that you’re ready to outsource in your small business!
[Meghan] That’s a huge indicator. So, don’t let fear keep you from getting help. A good first step is to start with outsourcing one task or role.
You’re Not Finding Happiness in your Business Anymore
[Theresa] Yes! Outsourcing is a great first step.
I have one more signal to share with you. You may be ready to outsource in your small business if you’re just not finding any happiness in your business anymore.
There are many reasons this could happen, but a common culprit is burnout.
If you often find yourself dreading each new workday or feeling overwhelmed by the amount of work you need to do, you may just need some help. That’s where outsourcing comes in.
If you often find yourself dreading each new workday or feeling overwhelmed by the amount of work you need to do, you may just need some help.
[Meghan] True! By getting some of that busy work off your plate, you may find a renewed love for your business again. And you’ll definitely reduce your stress and overwhelm.
Hand over the tasks you know that you’re not good at or that you don’t enjoy. Focus on serving your clients and doing the work that actually brings you joy!
You Can Start Small with Outsourcing
[Theresa] Ok, you’ve decided it’s time to outsource. So, what’s next? How do you make sure your business is ready for this next step?
You start small, of course. Here’s an action step you can take right now.
As you’re going through your work week, start paying attention to things you don’t like to do, things don’t want to do, and things that may be done better by someone else. Keep a list of those tasks in a Google Sheet, Word doc or a notebook.
[Meghan] You may discover that there are only a few things you’re ready to release right now. That’s ok! Start by outsourcing just a few things for a few hours a week. Then add more tasks and hours as needed or as you feel more comfortable.
We know that it’s a big step. But you’ll be happy you took it.
[Theresa] That’s it for today’s episode.
So, what do you think? Are YOU ready to outsource? Let us know in the comments.
And don’t forget to click the FOLLOW US button below to get notified when a new episode and blog post launch.
