Tuesday, September 16, 2008

Outsourcing - 7 Tips For Scaling Your Business

Outsourcing is the process of paying someone (a freelancer) to take on a project, or part of a project for you. It's a bit like having a temporary employee, but without the administration and legal headaches, and it means you can leverage other people's time and massively increase your productivity.

The work could be writing a report or article, creating a website, programming or script writing, graphic design, market research or any number of other tasks. The two things that typically put people off outsourcing for the first time are the cost, and the difficulty of finding the right freelancer and setting up the transaction. In truth however, the cost can be very low, and hiring a freelancer can be very simple if you follow some simple guidelines. Here are 7 tips to make sure your first attempts at outsourcing are cost effective and painless :

1. Plan your project

There's a famous saying: failing to plan is planning to fail. The person you hire might be great at what they do, but they will only work within the specifications you give them. Be clear about what you want and you'll find your outsourcee more likely to deliver.

2. Be specific

The more detailed you can be about your project, the better chance you'll end up with what you want. For an e-book or report give a synopsis, chapter headings, a short brief for each chapter and a suggested length for each section. If you can also give a sample of writing style that will help ensure the end product is up to your standards. Examples of resources (books, websites etc.) to conduct research is also a good idea - the person you hire might be a great writer, but that doesn't mean they are an expert on the topic you're asking them to write about.

3. Research your freelancer

Most outsourcing sites (getafreelancer.com, elance etc.) have some kind of feedback system. However, it's also a best to look at a samples of previous work. Discuss the project with your bidder before rushing in to a decision, especially on bigger projects.

4. Define your rights

You need to be clear about who gets the rights to the work. To avoid any potential legal problems in the future, use a written contract which grants you full rights to the work, and preventing the person you hire from reselling or reusing it.

5. Use multiple freelancers

A great way of saving money on bigger projects is by having the work done by multiple people. Having a book ghost written by a native English speaker may cost a fair amount, but you could have it written considerably cheaper by a freelancer in a developing country . You can then have it edited by a native English speaker at a fraction of the price of having them write the book.

6. Agree a payment schedule

For big projects set up multiple payments by escrow in advance. You can release the payments as the project develops. For example, make a payment after they deliver the first chapter, another when half done and the final payment on completion of the project. This will help to create trust between you and the freelancer and allows you to monitor the project. You can then spot potential errors early on and have them fixed before too much time has been invested into the project.

7. Start off small

Giving up control of a project can be difficult for many entrepreneurs. Try starting with a small, non-essential project to break yourself into freelancing without too much pressure. Learn from your experience and try out the freelancer you're hiring. If they do a great job you'll feel more comfortable delegating a larger project in the future.

There are only 24 hours in every day, no matter how hard you work. If you want to increase your productivity you may have to give up a little control and delegate by outsourcing some of your tasks. Start small, test the water, follow the tips above and watch your productivity soar!

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