Written by Julia Mosbauer, Owner of Little Black Duck Communications

Here's another one. I know how important this is, and I'm also acutely aware how *wrong* I got this aspect of business. So I think I'll raise the issue and then let all the experts tell us how they do it successfully...

While I was most definitely able to generate the work and establish strong programs with the clients -- I was trying to be all things to all people. I had no sub-contracting arrangements in place -- so I was doing everything from developing the strategic communications plan to writing news releases and advertisement and brochure copy, to maintaining my clients' customer databases, to interviewing for client newsletters -- and completing all the associated design, dtp and print production management.

Plan to subcontract or outsource elements of the running of your business. You will get to a stage where you realise that in order to be effective you cannot *do* everything!

2 types of outsourcing:

for the internal/physical mechanics of running your business (you alone are the customer)

for parts of work you do for others (you, directly, *and* your client, indirectly, are both the customers)

Learn the organisational lesson of *delegation* all over again -- but this time with outscourcing parts of what and how you deliver to the client.

Where is your time best spent?

Subcontracting tasks like dtp and print production and database maintenance would have allowed me to use my planning and analysing skills on the more strategic work -- and develop a larger number of long-term clients.

In hindsight, I would have also planned to take on the services of someone to provide me with "virtual assistant"/administration services -- phone answering from a remote office, once a week visit to do filing and bookkeeping, and the monthly financials and collection.

Think about where/how you generate income: through providing your product or service and working directly with clients, or through doing your filing and bookkeeping? There are so many worthy small businesses providing outstanding expert adminstrative services you are just crazy not to use them (or make the plans and adjustments required in order to use them)!

How do we plan and arrange to do this?

How do you do this? This much I know: find out what you need (in terms of support services), who provides it and how much it costs -- and find a way to build it in to your hourly rate calculations or product manufacturing costs. Perhaps some of the Field of Dreamers who provide such support services can outline some of the ways their clients factor in the cost of using such support into what they in turn charge.

In the instance of outscourcing, for example, dtp work and print production management -- you will have to factor in your time in checking and managing the quality of output, which you are responsible for doing *before* passing on to your client. You will also have to determine whether you will pay for the outsourced work, or whether your client will pay directly.

If you are a provider of dtp and publishing services, perhaps you could consider, for example, outsourcing the typing required to get a job done. Or the illustrative work that may accompany a brochure or training manual.

In arranging for brochures to get printed, for example, I had agreements in place with my clients that they would pay the printer directly from the printer's invoice. My time in liaising and directing the print production process was charged to the client on my usual invoice. I know of some consultants who would pay the printer themselves, then include the cost of the printing plus a 10-15% "handling fee" on their invoice to the client. To do it this way you obviously need to have your finances and cashflow already at a stage where you can afford the cash outflow to pay for what you outsource, most likely before your client pays you in turn.

The expectations of your customer

With something like arranging brochures to be printed for a client, your client is obviously not expecting you to be a printer. In the case of writing or dtp services, though, does your client expect that you are physically doing all of this *personally*? Is that why they are using you? Or are they just as confident that you can manage the process of arranging to get this done in the way they want? (And what expectations have you set up in their perception of how work gets done?)

Is *doing everything* part of your business' "unique selling proposition" -- what makes you different/better than your competiton?

For me, it was true that I had a couple of long-term clients who really *did* expect me to do *everything* -- from typing to writing to design to print prod. mgt. But in reality, I had set up that expectation -- I didn't *trust* anyone else to do it, and (therefore) nor did they!

Significant sign of your business "maturing"?

In my opinion, taking the steps to outsource parts of what you do is one of the *big* ones in growing your business effectively. It signifies that you are at a stage where you can budget and plan for the added costs of doing this -- and balance them against the fact that you will have more time for strategic work for your client base -- as well as perhaps extend yourself to look after more clients.

In some ways (tell me if I'm wrong!) it's like the identifying step *before* the step where you seriously consider employing someone to help you.

But the outsourcing concept has to be balanced against how you (and your clients) *feel* about sending out parts of the job. Are you worried that no-one else will do it as well as you? Is this a perfectionist/control issue for you??? Or do you *really* love handling every single part of the process?

I know that sometimes I felt the more *mundane* parts of doing a job for a client (say, stuffing direct mail pieces into envelopes) gave my brain a "breather" and time to think.

Managing the work of others

It's a very legitimate concern to be sensitive about the quality of the work. And you'll have to check everything carefully to make sure it's done to the standard you want for your client. Perhaps you don't have time for this? Estimate the time you'll take to do it yourself against the time you'll take to check the work of someone else. How precious is that time?

Does it really take longer to tell/show someone else how to do it than to do it yourself?

What do other Field of Dreamers do?

If you *are* outsourcing at the moment, how do you resolve the quality/management of the outsourced work? How do you factor in these costs for a specific project, and how over a long-term arrangement with a client?

If you *don't* outsource, but have seriously examined it as an option, what were the reasons you decided not to? Have you tried it and had an uphappy/unsatisfactory result? Does it somehow make doing business *impersonal* for you?

What are the "natural" or most obvious outsourcing matches for various industries?

For example:

Marketing, communications, public relations: outsourcing dtp work for brochures, publications, etc.

Desktop publishers: typing, print production?

Everyone (*except* the bookkeepers and accountants)

bookkeeping and accounting?
Manufacturers: distribution?
Web page designers: ???
Writers: ???

Which industries/fields are inappropriate for outsourcing elements of client work?

Hairdressing?
Health professionals?

I think this one's really important! And I know I have a lot to learn in this area... so calling now on the experts!

Response From: Julie Hewett 

If people seriously look at what they do everyday -- ways can be found to make oneself more productive. Often the objection to outsourcing is the cost. But if you look at it as "creating productive time" it often is cheaper! Example -- if hiring someone to do your bookkeeping costs $150 a month and saves you 10 hours of work. You spend that 10 hours in developing your client base and you are able to find 1 new client a month -- didn't you just pay for your bookkeeping plus?

But the outsourcing concept has to be balanced against how you (and your clients) *feel* about sending out parts of the job. Are you worried that no-one else will do it as well as you? Is this a perfectionist/control issue for you??? Or do you *really* love handling every single part of the process?

Eventually every business will have to get over this one! If not -- they will not grow. 1 person CANNOT to it all. Even if they hire individuals to work directly for them in their office to accomplish the task. One suggestion is to work at this gradually. Develop business relationships with QUALITY individuals who feel the same way. Eventually you will find that others can be trusted to get the job done and get the job done right!

I know that sometimes I felt the more *mundane* parts of doing a job for a client (say, stuffing direct mail pieces into envelopes) gave my brain a "breather" and time to think.

It is easy to fall into this one :-) I think that we all do it. When you really think about it -- can your honestly afford to pay the owner to stuff envelopes? Is that using company resources wisely? I used to work in a small company with 5 employees. The VP enjoyed getting his hands into the bookkeeping because he needed a task that could be completed without a hassle. The only problem was that the company was paying him approx $35 per hour! That was a very expensive bookkeeper! Eventually I changed all of the passwords so that he could not get into the computer :-) which forced him to use his time differently and hopefully more productively!

Which industries/fields are inappropriate for outsourcing elements of client work?

-- Hairdressing?
-- Health professionals?

Here I would have to disagree :-) Even in these fields you have "routine" tasks that can be outsourced - bookkeeping, purchasing, marketing etc. I honestly believe that every company has tasks that can be outsourced. You just need to look at what you are doing and ask "WHY" or "how can this be accomplished more effectively?

I think this one's really important! And I know I have a lot to learn in this area... so calling now on the experts!

My advice to anyone looking to outsource is to choose carefully. Get references, give "test" tasks - so that you are comfortable with the situation. Many of my clients have "tested the waters" - giving me small tasks to start with until eventually I had "proven" myself and my capabilities. Now they don't hesitate to give me assignments because they know I will produce.

My second piece of advice is to develop a working relationship with outsourcing companies BEFORE you really need them. Often decisions are made quickly because of project deadlines and the outcome is unacceptable. 

Outsourcing also allows for small companies and start-ups to compete. When you cannot afford to hire a full time staff - but still need to have those resources available, outsourcing can fill in the gaps and provide the necessary resources.

Response From: Marilyn Strong 

To determine if I needed to outsource anything I created a customer value chain. To do that I determined what it is I 'do', using active verbs (teach, speak, coach, present, keyboard, deposit money, etc)

Then I chose one customer and determine what they do using active verbs (sell computers).

My job then is to figure out how each of what I 'do' adds value to what my customer does.

Then my question is: does depositing money in the bank help my customer sell computers?

The answer is no, therefore I don't do the deposits unless I have to.

Sometimes there are grey areas, such as keyboarding a report.

Question: Will keyboarding a report help my customer sell computers?
Answer: maybe yes.

Question: Do I have to keyboard the report or is it a more effective use of my time to dictate the report and then have someone else keyboard it?

Answer: I don't have to keyboard if I can dictate it because I can talk faster than I can keyboard.

I wish I could promise you that I now only do work that adds value to my customers, but that's not the reality. I am getting better though and I know when I'm not doing value added work that I'm losing money.

I do the bank deposit if it needs to be done and I'm going to town anyway; I'll keyboard a report instead of writing it or dictating. But I also know that making a deposit takes away from my time to work with my clients and so does keyboarding a report at 7pm at night.

For control freaks like me, giving up control and focusing on what adds value to my customers has been a great learning experience. If it wasn't for the customer value chain I'd probably still be spending Saturdays posting all my bookkeeping, doing the deposits, and writing the cheques instead of doing things that help me relax and recreate so I can serve my customers even better.

Marilyn Strong, The Strong Communication Group Inc.