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How much outsourcing is TOO much?

by jtripp
12 replies
I don't post often but have been reading and learning alot over the past few months as I put together a plan to expand my offline business. Thank you to everyone for all the amazing tips and tricks you've shared.

For quite a while I have dabbled in offering offline services but am now serious about making it my focus and I need some opinions from others who have done it.

I'm lucky that my other ventures have given me a decent amount of startup capital so I am able to hire outsourcers to do most of the work for me. I've hired telemarketers and a VA to handle marketing as well as a mobile site designer and graphic designer to handle the work for each client.

That just leaves the person who deals with the clients after they've purchased. I assumed that would be me until I got thinking about the logistics of being available when my client's need me (I have 2 children who are at home every other day). Now I'm thinking that maybe I should hire an account rep and then I would just be the project manager. Still a lot of work, but it can be done with kids screaming in the background

I could probably handle a few clients but worry that when it is time to hire an account rep it will be a messy transition if they are used to dealing with me.

I want to make sure I set everything up right from the beginning so I would appreciate any advice from those who have "been there, done that". How much outsourcing is too much outsourcing? Has anyone tried to outsoure too much and had a hard time keeping employees so it ended up being more work than it was worth?

Thanks in advance for any and all advice.

Jennifer
#outsourcing
  • Profile picture of the author kenmichaels
    Originally Posted by jtripp View Post

    I want to make sure I set everything up right from the beginning
    Good luck with that, over 15 yrs in business for myself, i still never get
    everything right from the start. not once.

    besides, new businesses evolve, almost daily... that alone keeps you
    from getting it all right from the start.

    Don't sweat the small stuff. Jump in and get it running, when the time comes
    for you to transition to a rep, it will sort itself out.
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    • Profile picture of the author jtripp
      You're probably right Ken.

      I've been in situations before where I've had to scramble to make major changes to how a business operates and it's a huge headache so the fear of that happening is holding me up.

      I should just go with my gut and - most importantly - just get going.

      Thanks,
      Jennifer
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  • Profile picture of the author CyberAlien
    Very simple: don't worry about stuff like that before getting started. It's something that will definitely work itself out when the time comes. Worrying is just going to prolong getting your business going. Good luck
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  • Profile picture of the author iAmNameLess
    The idea of the 4 hour work week.. ignore it.

    Outsource what you don't have time for, outsource so you can focus on money making activities. Don't outsource because you're lazy. Don't outsource just because you have funding available, since that will just drain your funds.

    How much outsourcing is too much? When you lose quality, when you're managing your outsourcers, or managing your project managers instead of making money. Realistically... I handle pretty high volume and if needed I would only need myself, my graphic artist, and one other person that helps on sites and we could knock it all out. I have more than that, I have a couple graphic artists, coders, link builders, VA's etc., but they aren't absolutely needed. Just make my life easier so I can focus on money generating activities.

    You need to have work, in order to outsource like that. If you don't have sales you shouldn't be wasting time worrying about that.
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    • Profile picture of the author tedgichia
      As always, great advice from IAmNameless.
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  • Profile picture of the author HAdrian1239
    iAmNameLess is spot on once again. Don't over think yourself into non-action. And, as Gene Simmons has said "Do only the things you enjoy, which also make you money" the rest of it...find someone else, and pay them to do those other things......

    It's slightly more complicated than that if you're just starting out, but the sentiment is the same. Don't waste time with menial tasks... UNLESS you just flat are new and don't know anything about it.

    I always tell my students to learn the basics at least, so that they'll be able to better direct those people they do outsource to.
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    • Profile picture of the author tedgichia
      Originally Posted by HAdrian1239 View Post

      "Do only the things you enjoy, which also make you money" the rest of it...find someone else, and pay them to do those other things......
      Absolutely right. I live by this principle.
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  • Profile picture of the author citadelburla
    I dont think it will cost you high. It depends to whom you are selecting for this work. If you select provider from europe or america then it will cost you more but if you select provider from philipines or india then it will cost you low
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  • Profile picture of the author kebertt
    Be smart about it - every business is different. There are some aspects of a business that the owner just had to do himself. Use your judgement and determine what you can do, but don't let your services fall short because of it. Compare your strengths and weaknesses, do what you think you can do, and jump right into it - no matter how much planning you do there are always going to be issues and changes that need to be made.
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  • Profile picture of the author khairole
    The cost depend on your provider and what you want to accomplish. Choose provider from asia like philipines and your cost could be lowered.
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  • Profile picture of the author JerrickYeoh
    Sometime keep on hire people might not a good solution to reduce your work flow.
    Because the more people you have , you might need to managed them time to time. It would be best for you to search for some technologies or ERP which able to reduce your time in job task and making decisions.
    But for account rep usually cant ignore because figure stuffs usually make you big head with . You might hire a account rep which is part time then will not cost too much to you .
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  • Profile picture of the author John Jonas Phil VA
    Before you outsource, you have to learn as much as you can about outsourcing and put yourself in the right mindset. Only you can tell whether you're outsourcing too much or too little, depending on your business model, your needs, your budget, and how much you actually want to outsource.
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    Hire a Filipino virtual assistant and make your business better through outsourcing.
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