You know that outsourcing is my jam.
I encourage entrepreneurs of all kinds to delegate everything from sales tasks to household work so that they can focus on the big, audacious, rewarding aspects of business-building. And I have a team of fantastic contractors who help me keep my own endeavors humming along, so I practice what I preach.
BUT! What I definitely don’t want is for anyone to dive into outsourcing without understanding both the benefits and drawbacks.
I believe the good far outweighs the bad when it comes to delegation, but I also think it’s essential to be informed before taking the plunge. So let’s explore some of the big pluses and challenging minuses of sharing your workload with team members.
Outsourcing Pros and Cons: TIME
PRO: Another guiding principle I hope all entrepreneurs embrace? Acknowledging that our time is valuable! Doing everything ourselves may seem like the most efficient route, but it really isn’t. And when we delegate work to capable freelancers, we free up precious time in our own schedules.
CON: Since getting contractors up to speed requires some training, you’ll have to invest time before you can start earning it back. But it’s a worthwhile investment! Training your team makes them autonomous, enables them to train new freelancers themselves, and helps you worry less about the work you’re delegating.
Outsourcing Pros and Cons: SCALABILITY
PRO: If you’re handling every scrap of work on your own, you’ve effectively capped your business’s ability to grow. After all, you’re just one person and have a finite number of hours in each working day. Outsource some of your tasks to talented contractors, and voila! You’ve instantly made your company more scalable.
CON: You have to be organized to keep a team running, especially at first. While it’s possible to put your contractors on autopilot eventually, you’ll always need to be attuned to their needs and aware of their workloads. Having the support of a reliable team will help you scale, but it will also require you to be diligent and communicative.
Outsourcing Pros and Cons: MONEY
PRO: With skilled contractors supporting you, you can get repetitive tasks like accounting, scheduling, and content creation off your plate to focus on higher-paying work. Book more clients! Create more courses! Design more products! Outsourcing makes it possible for you to earn more money, and do it by focusing on the energizing and creative aspects of your business.
CON: Obviously, you’ll need to pay the people you hire … but there’s another way that outsourcing can be costly. Hiring inexperienced contractors or giving the wrong workload to the wrong freelancer can suck up money and cause you loads of frustration. You’ll definitely need to stay smart while hiring contractors to make their contributions valuable.
Outsourcing Pros and Cons: CUSTOMER EXPERIENCE
PRO: If you’re in a position where potential clients have to wait for days—or even weeks—before you have time to get back to them, that can hurt your business. When your trusted team members are equipped to help both new and returning customers through their initial needs, stress is reduced and the customer experience is enhanced. With the right support, your clients will feel valued and important even if they’re not interacting with you directly.
CON: The “right support” is key. If your team is not well trained or left entirely unmonitored, allowing them to interact with clients can be disastrous. You want contractors who know exactly how to represent you when speaking with your customers since their behavior reflects on you.
Like any strategic business move, outsourcing has risks. But as long as you’re aware of those risks and do everything you can to mitigate them, you can reap some incredible benefits for your business.
When you’ve got a loyal team of talented contractors on your side, you’re positioning yourself for sustainable growth!