When you’re a self-employed entrepreneur, your focus is probably almost invariably on building your business. It can be overwhelming to say the least, particularly when it comes to prioritizing tasks and knowing where you should put your attention, versus what you should delegate, particularly in the name of better managing your own time.
Most new businesses probably don’t have a huge budget to work with when it comes to hiring a lot of employees, particularly full-time employees that require not only a salary but also overhead costs. One solution many entrepreneurs turn to is outsourcing work to freelancers or contractors, but how do you know which tasks should be outsourced, and which you should save money on and do yourself or manage in-house?
Consider the following things when you’re deciding whether or not to outsource.
Does It Contribute to Your Bottom Line?
According to a 2012 study, most people spend a quarter of their workday simply reading and responding to emails. That’s about two hours a day spent essentially on busy work, rather than doing the things that will actually help you be more profitable.
Think about it this way: how much would you charge for your time on an hourly basis? You can then look at that in terms of how much time you’re wasting on answering emails and administrative tasks that could be better spent elsewhere. If you’re doing tasks that aren’t contributing to your bottom line, go ahead and ditch them for an outsourced employee.
This is also a good scenario to help you decide your budget for certain things as well. First, if you’re someone who charges, for example, $100 an hour for your professional services, and you spend 10 hours per week on answering emails it adds up. That’s $1000 per week, so if you can find someone to do these tasks for you for $300 a week, you’re theoretically saving an enormous amount of money and putting your focus on profitability at the same time.
Could It Lead To A Legal Issue?
There are a lot of areas within your business that are related to legal issues and regulations. It can almost always be a good idea to outsource these tasks, not only from a time management perspective but also to keep your business compliant.
If you outsource things like taxes and accounting, employee benefits and safety training, you’ll probably end up saving money in the long-term, because you won’t be the object of potential fines or lawsuits.
What Are You Not Great At?
Finally, a lot of entrepreneurs tend to have an attitude that they can do it all, but if you’re not doing it all well, you’re not doing your business any favors. Are there things that you’re currently doing that you’re just not good at? Maybe it’s copywriting, social media, or graphic design. You might be able to skate by and do the bare minimum, but could it be better? If so, it may be time to consider outsourcing.
Outsourcing work as a self-employed entrepreneur is good to achieve better time management, but it’s also one of the most valuable ways to grow your business and make sure it thrives.
