Increase productivity by outsourcing 

Outsourcing elements of our solo business can help us double our productivity and buy back important life time. It makes sense as many soloists struggle to work within their skill set alongside the day to day running of their solo business.

Much as outsourcing boosts our productivity and improves the overall health of our business, many soloists struggle to let go of the idea of being everything to everybody. As a result, they don't have the time or energy to apply to their key strengths.

When starting out as a soloist over five years ago, I suffered the hangover from the employee mentality where doing a job meant completing every aspect.

After transitioning into consulting then finally my own business, I was still trying to work this way. Initially it was exhilarating; learning new skills, and taking on areas I’d previously avoided… bookkeeping work mostly.

After four years I realised that my lack of skill was holding back my business. Try as a might to keep on top of things, I just found much more stimulation in new client sales, networking, creating new programs, marketing, optimising my website, thinking strategically about my business and being a mum. All the things that fitted my skill set.

But eventually the cracks started to show. It was time to do a cost benefit analysis.

Here are the steps for you to follow:

• Make a list of all the tasks in your business that you are poor at -be really honest.
• Break down how many hours you spend on each task weekly
• How much does this cost your business (hours x your hourly rate*)?
• Does this represent value to the business?
• How could your time be better spent?

* Remember you might pay yourself a certain hourly rate, but what do you bill yourself out at? A consultant charging $2000 per day is $250 per hour. This is the lost opportunity cost and should be used for your calculation here.

After completing this exercise, I determined that my 10 to15 hours on bookwork, chasing up bad debtors, paying bills, completing the BAS and issuing invoices represented gross inefficiency.

So I went in search of a specialist. My bookkeeper can do in four hours what took me 15. At $25 an hour this represents awesome value. Not only does it free me up to generate more business, the heavy weight of guilt is no longer upon me. Each week, month and quarter, I receive a breakdown of the business and can really make decisions like a business owner. Instead of being bogged down in the detail.

Seven months later and I’ll never look back. We have doubled our business. I have just engaged a part time PA to systemise my client service protocols and handle new client enrolments. Again this has freed me up further to focus on business development.

I am still a soloist, I simply use the services of other soloists to grow my business.

There are specialists in every area you could think to outsource:

The list goes on. The key to maximising the growth of your business through this process is identifying your key strengths and applying the extra time and energy there.

• Published 12 January 07
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Business growth (8) | Business innovation (7) | Business performance (10) | Business plans (10) | Business processes (15) | Business tax tips (4) | Decision making (4) | Financial management (12) | Outsourcing (10) | Problem solving (4) | Professional development (10) | Time management tips (13)

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8 comments | Add your own 1 2 | Next» View all»

• Yes I agree. It's always hard to be brave and let go though (of the work and the cash). It's equally hard to find good people to hand off those tasks to. Who did you say your bookkeeper was?! dinah from sydney

• I've just handed over my bookkeeping this week and am very excited to be (mostly) rid of it. I think in her first week she has paid for herself. And it has taken something to "give up control" even though I despise doing it myself. This of course doesn't mean I don't have responsibility for it and my job now is to make sure I agree with the books.
  Dinah - I went out to my network and asked for referrals and came up with 5 highly recommended people. It beats going in cold. Why not try that with yours? Janelle from Sydney

• Summer, can I use your article in my newsletter to illustrate to potential clients why they can use my services for secretarial work & book keeping. It becomes frustrating to watch small businesses waste precious hours on tasks that they are not good at (and I am!) when they could be using those hours to increase their own business and do what they are great at. Too often they worry about spending the money without doing the sums as to what their time is really worth. They spend hours doing something that a specialist can do quickly (and without the headaches) Your article, with a couple of testimonials from my local clients that have made the switch, would be an excellent feature in my next issue if you are interested. Karen Nankervis from Beechworth

• Hi Karen, In most circumstances we are happy for articles published on Flying Solo to be reproduced elsewhere. Contributors have given their permission for this too. You can get in touch via this form, which also lists the conditions of article reproduction: http://www.flyingsolo.com.au/p173255529_Request-to-reproduce-an-article.html
  Sam Leader from Flying Solo | Read my articles

• I do not know a good bookkeeper. Any referrals welcome, if i am allowed to use this space to ask?? dinah from sydney

• Dinah,
  Can I sugget you ask your accountant to rtecommend one, and also ask the bookkeeper for references and qualifications. You really want one who is at the minimum a Registered BAS Services provider.
  I earn a lot of money as a consultant - picking up the mess after a cheap bookkeeper who I suspect has no qualifications - has messed up the books and cost the business thousands in lost revenue because of their inaccurate treatment of GST etc.
  If you contact me directly I may be able to recommend someone in your area & also please let me know what accounting package you are using.
  BUT your first port of call should be your own accountant.
  Good Luck. Heather Smith ~ www.ANISEConsulting.com from BrisVegas

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