Can you make money by doing nothing? Of course you can’t. This chapter is dedicated to managing your business by letting others do the hard work. For example, your business required the production of a five hundred word report on marketing opportunities for climbing equipment in Iceland. Your client will pay you $250 for this report and if you put your mind to it you could finish it in five hours.

So your job is worth $50 dollars per hour of your time. However, you could pay an outsourcing agency to do the job for you. You may have to pay somebody $10 per hour, and their lack of efficiency means that they will take 10 hours to complete the job. Therefore you will have a $100 bill to pay and it will probably take you an hour of your time to organize the subcontract and to administer your client’s needs. Therefore, your hour of work will repay you $150.

Working for $150 per hour is much better than working for $50. By outsourcing you have increased your chargeable rate threefold. This is the whole purpose of outsourcing, and it is possible to gear up your efforts much more than three times! So you may not be making money doing nothing, but you are able to make much more money than when you do the work for yourself. The trick is to be able to find the right persons to do the work, at the right price and in an efficient and appropriate way.

Decide on your business plan

Deciding on what business to pursue and how to go about setting it up are the two big questions being covered in this business start up guide. They are also the two hardest areas to cover. However, once you have started you must ensure that progress is efficient and not loss making. I have met a lot of people who have made the break and started their own businesses. They have become busy, sometimes too busy to realize that they were only just keeping their heads above water. One of the biggest drivers to starting a business is to go it alone, but that attraction has almost always been derived from a desire to do well. You must not lose sight of the fact that if you are not successful.simply working for yourself will soon lose its attraction.

Therefore, whatever you are doing, start thinking of ways to farm the work out to others. It could be running a shop – not only managing the sales but also the buying, the routine cleaning, the accounting and the business development. It could be market gardening – staff are essential for any business that requires labor – but also think of advertising (including web development), new product development and market research.

Targeting professional service businesses

There is no doubt that non physical businesses that provide services to others are perfect candidates for outsourcing.

Tips for instructing outsource workers

 

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