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Young Entrepreneurs — Leveraging Outsourcing to Grow Your Business

Posted on March 29 2018



What is Outsourcing?

Outsourcing is now a common practice among business owners. It is the act of contracting a third-party to provide a service for a certain period of time. They outsource work to reduce costs and improve the operational efficiency of their businesses. This cost-saving method is mostly applied by young entrepreneurs who have just started their own business and want to make their operations more less-costly.

In the US for example, approximately 93,000 jobs certified by the Department of Labor are outsourced. Most companies outsource employees locally and even from other countries in order to save on labor costs, energy costs, and costs of production. Apart from that, companies can also devote to their own business core and delegate non-core functions to service providers.


“In the long run, outsourcing is another form of trade that benefits the U.S. economy by giving us cheaper ways to do things.”

 

  • Janet Yellen, U.S. Federal Reserve Board Chair Janet Yellen

Why do young entrepreneurs need to outsource?

The basic element of successful young entrepreneurs is to be able to do multitasking to leverage business from startup to consistently increasing profit. However, one of the things that make entrepreneurship hard for young entrepreneurs is the “lack of time.” With college and business demands mixing up in a short period of time, life can be tough. Consider also the fact that these young men and women are not yet well-experienced in the field. There’s dealing with the business itself and then the other different matters that need their attention. Luckily, with the trends and options that modern technology offers, these are no longer obstacles that are tough-to-beat.

We’ve heard a lot of young entrepreneurs stories in which they are enticed to take a hundred different paths; choices are indeed perilous for each of them. In such cases, management is the key to success and opting to outsource work to a third-party can definitely help you grow your own company.

Aside from the cost-cutting reasons, there are other benefits that young entrepreneurs can get from outsourcing. You can hire a team of experts that can handle loads of work and who are well-experienced with your business niche. This guarantees high-quality service, expert advice, and greater exposure. If you are outsourcing services from other countries, you can easily analyse day-to-day work progress considering the time difference, for example, between countries in Asia and the US. This means that you can get your work accomplished even at the start of your business hour.



Applying 80/20 Principle to Build an Outsourced Team

One common attribute associated with famous young entrepreneurs is that they use the 80/20 rule. This rule, which is also called the “Pareto Principle”, is an economic hypothesis introduced by Vilfredo Pareto, an Italian economist. It states that that only 20 percent of your input will account for 80 percent of your results. This rule does seem to apply in almost any situation or system you can think of, even in the business world. For instance, for team-based work assignments, it suggests that only 20 percent of the group will accomplish 80 percent of the tasks.

When outsourcing work, the 80/20 principle can be used to evaluate work shifts in your own company. If may be you are too busy to handle the business operations yourself, you can eliminate 80% of your activities by having someone else do it for you. For example, if you want to manage your website and your social media platforms and promote your business, you will need to create content, provide graphic materials, create videos, moderate comments, etc. Managing the website is the 20% that will give you 80% of the overall output. Hence, there is a need for you to outsource 80% of the processes so that you can devote your time and effort to the other 20% of your activities.

Moreover, Tim Ferriss’s self-help book “The 4-Hour Workweek” has inspired most young entrepreneurs by giving them ideas on the kind of jobs they can outsource: from content creation, social media management, online marketing, to virtual assistants. The concept of this line of thinking is that as a business entrepreneur, outsourcing some of your work can be easier and cheaper than bringing in new office staff.         



Business Success with Outsourcing

There are two reasons why outsourcing is the best tool to enhance business. First, it reduces the burden on business executives and a few workers who do not have to do all the tasks. Second, it increases productivity from your business operations.

Young entrepreneurs do not just stop at the realization of the strengths and benefits of outsourcing. They result to doing the right thing for the company. The mystery this article seeks to solve is how one can do the “right” thing for the company by outsourcing.

In order to outsource work efficiently, you should plan for it thoroughly. For the jobs you wish to outsource, prioritize the tasks that need much attention compared to others. Select two or three items that you think need immediate attention.

Another criterion you need to consider is outlining your weakest points; the ones you think outsourcing will help improve. Once these points and ideas are made clear, go ahead and look for the right candidate i.e. one who can efficiently correct these flaws. From your list of processes that need outsourcing, identify which skills and experiences are vital for each process. Along with that, consider how many hours the task demands and the allotted budget for it. In doing so, be sure to have a reasonable pay for the potential candidate who’ll do that job.


Online Outsourcing

The flexibility to hire personnel only when needed is what makes most young entrepreneurs resort to online job websites. You can easily find highly-qualified professionals there at a much lower rate as compared to hiring an office employee in your local area. For example, hiring a programmer in Miami can cost your company $80 - $120 per hour. Whereas, utilizing outsourcing websites to hire programmers in the US will only cost you $30 - $40 per hour. You can even hire programmers from the Philippines, India or Russia for only $10 to $15 per hour.

There are so many websites today that can help you find a reliable team and low-cost skilled workers to take over part of your business operations. Sites like eLance.com, freelancer.com, upwork.com (formerly odesk.com), and guru.com are among the most well-known and best-serving online job websites. These websites utilize different systems but their main agenda is to help young business entrepreneurs and online job seekers to meet in a virtual space and transact business in a secured network.

In general, this is how most online job websites work: you post a job and add a description, and interested freelancers will bid on the job. Just like the normal hiring process, you’ll compare profiles, credentials, etc., and screen applicants based on your job requirement(s). Make sure to conduct an online interview (on Skype or any other communication tools) to get a feel of how you can possibly work together. Negotiate the payment terms and rates for the job before making your final selection of the right candidate.



How to work closely with your online workers?

Once you’ve chosen a freelancer to work with, it is important to establish ground rules and set the amount of control you give them. There should be proper coordination when delegating tasks and you need to keep your communication lines open for a smooth working relationship.

 

Making the Right Choices in Outsourcing

Since now you know all the details about outsourcing online and how to go about it, the next step is to put those plans and considerations into action. Once you’ve hired a freelancer, give him/her all the necessary files and documents he/she needs to do the job. You’ll also need to be in the know of the latest features of file-sharing websites and social media connections. This will be vital when assigning work, giving and receiving feedback, and processing payments.

With all these ideas and tips, young entrepreneurs are definitely set up for success. The only thing left to do now is to put them all into action. As to what the ENTRPRNR brand always believes in--- ACTION IS KING. Lastly, with a positive attitude, lack of experience will never be a hindrance to business success.


Join the Self-Made Movement. | ENTRPRNR®

Stagnanacy is the Enemy. Action is King.





What is Outsourcing?

Outsourcing is now a common practice among business owners. It is the act of contracting a third-party to provide a service for a certain period of time. They outsource work to reduce costs and improve the operational efficiency of their businesses. This cost-saving method is mostly applied by young entrepreneurs who have just started their own business and want to make their operations more less-costly.

In the US for example, approximately 93,000 jobs certified by the Department of Labor are outsourced. Most companies outsource employees locally and even from other countries in order to save on labor costs, energy costs, and costs of production. Apart from that, companies can also devote to their own business core and delegate non-core functions to service providers.


“In the long run, outsourcing is another form of trade that benefits the U.S. economy by giving us cheaper ways to do things.”

 

  • Janet Yellen, U.S. Federal Reserve Board Chair Janet Yellen

Why do young entrepreneurs need to outsource?

The basic element of successful young entrepreneurs is to be able to do multitasking to leverage business from startup to consistently increasing profit. However, one of the things that make entrepreneurship hard for young entrepreneurs is the “lack of time.” With college and business demands mixing up in a short period of time, life can be tough. Consider also the fact that these young men and women are not yet well-experienced in the field. There’s dealing with the business itself and then the other different matters that need their attention. Luckily, with the trends and options that modern technology offers, these are no longer obstacles that are tough-to-beat.

We’ve heard a lot of young entrepreneurs stories in which they are enticed to take a hundred different paths; choices are indeed perilous for each of them. In such cases, management is the key to success and opting to outsource work to a third-party can definitely help you grow your own company.

Aside from the cost-cutting reasons, there are other benefits that young entrepreneurs can get from outsourcing. You can hire a team of experts that can handle loads of work and who are well-experienced with your business niche. This guarantees high-quality service, expert advice, and greater exposure. If you are outsourcing services from other countries, you can easily analyse day-to-day work progress considering the time difference, for example, between countries in Asia and the US. This means that you can get your work accomplished even at the start of your business hour.



Applying 80/20 Principle to Build an Outsourced Team

One common attribute associated with famous young entrepreneurs is that they use the 80/20 rule. This rule, which is also called the “Pareto Principle”, is an economic hypothesis introduced by Vilfredo Pareto, an Italian economist. It states that that only 20 percent of your input will account for 80 percent of your results. This rule does seem to apply in almost any situation or system you can think of, even in the business world. For instance, for team-based work assignments, it suggests that only 20 percent of the group will accomplish 80 percent of the tasks.

When outsourcing work, the 80/20 principle can be used to evaluate work shifts in your own company. If may be you are too busy to handle the business operations yourself, you can eliminate 80% of your activities by having someone else do it for you. For example, if you want to manage your website and your social media platforms and promote your business, you will need to create content, provide graphic materials, create videos, moderate comments, etc. Managing the website is the 20% that will give you 80% of the overall output. Hence, there is a need for you to outsource 80% of the processes so that you can devote your time and effort to the other 20% of your activities.

Moreover, Tim Ferriss’s self-help book “The 4-Hour Workweek” has inspired most young entrepreneurs by giving them ideas on the kind of jobs they can outsource: from content creation, social media management, online marketing, to virtual assistants. The concept of this line of thinking is that as a business entrepreneur, outsourcing some of your work can be easier and cheaper than bringing in new office staff.         



Business Success with Outsourcing

There are two reasons why outsourcing is the best tool to enhance business. First, it reduces the burden on business executives and a few workers who do not have to do all the tasks. Second, it increases productivity from your business operations.

Young entrepreneurs do not just stop at the realization of the strengths and benefits of outsourcing. They result to doing the right thing for the company. The mystery this article seeks to solve is how one can do the “right” thing for the company by outsourcing.

In order to outsource work efficiently, you should plan for it thoroughly. For the jobs you wish to outsource, prioritize the tasks that need much attention compared to others. Select two or three items that you think need immediate attention.

Another criterion you need to consider is outlining your weakest points; the ones you think outsourcing will help improve. Once these points and ideas are made clear, go ahead and look for the right candidate i.e. one who can efficiently correct these flaws. From your list of processes that need outsourcing, identify which skills and experiences are vital for each process. Along with that, consider how many hours the task demands and the allotted budget for it. In doing so, be sure to have a reasonable pay for the potential candidate who’ll do that job.


Online Outsourcing

The flexibility to hire personnel only when needed is what makes most young entrepreneurs resort to online job websites. You can easily find highly-qualified professionals there at a much lower rate as compared to hiring an office employee in your local area. For example, hiring a programmer in Miami can cost your company $80 - $120 per hour. Whereas, utilizing outsourcing websites to hire programmers in the US will only cost you $30 - $40 per hour. You can even hire programmers from the Philippines, India or Russia for only $10 to $15 per hour.

There are so many websites today that can help you find a reliable team and low-cost skilled workers to take over part of your business operations. Sites like eLance.com, freelancer.com, upwork.com (formerly odesk.com), and guru.com are among the most well-known and best-serving online job websites. These websites utilize different systems but their main agenda is to help young business entrepreneurs and online job seekers to meet in a virtual space and transact business in a secured network.

In general, this is how most online job websites work: you post a job and add a description, and interested freelancers will bid on the job. Just like the normal hiring process, you’ll compare profiles, credentials, etc., and screen applicants based on your job requirement(s). Make sure to conduct an online interview (on Skype or any other communication tools) to get a feel of how you can possibly work together. Negotiate the payment terms and rates for the job before making your final selection of the right candidate.



How to work closely with your online workers?

Once you’ve chosen a freelancer to work with, it is important to establish ground rules and set the amount of control you give them. There should be proper coordination when delegating tasks and you need to keep your communication lines open for a smooth working relationship.

 

Making the Right Choices in Outsourcing

Since now you know all the details about outsourcing online and how to go about it, the next step is to put those plans and considerations into action. Once you’ve hired a freelancer, give him/her all the necessary files and documents he/she needs to do the job. You’ll also need to be in the know of the latest features of file-sharing websites and social media connections. This will be vital when assigning work, giving and receiving feedback, and processing payments.

With all these ideas and tips, young entrepreneurs are definitely set up for success. The only thing left to do now is to put them all into action. As to what the ENTRPRNR brand always believes in--- ACTION IS KING. Lastly, with a positive attitude, lack of experience will never be a hindrance to business success.



Join the Self-Made Movement. | ENTRPRNR®

Stagnanacy is the Enemy. Action is King.