If it flies, floats or fornicates, always rent it… it’s cheaper in the long run.
Felix Dennis, billionaire publisher
In this day and age, the more you can outsource the better. Outsourcing reduces fixed overhead for wages and space. Outsourcing allows you to change vendors quickly and easily if they are not meeting expectations or deadlines. Outsourcing allows you to gear up or gear down easily. Outsourcing allows you to get specialized help rather than forcing your existing staff to do things they are ill trained or ill equipped to do well.
Outsourcing usually costs more per hour than doing it inhouse, but overall you will save money. For example, a lot of my clients try to do telemarketing in-house, especially when things are slow in the winter. The employees they reassign to make the calls are usually untrained, hate it, and generally fail without finishing the job. It would be far cheaper and more effective in the long run to outsource this to a telemarketing company and let them deal with the headaches.
The same can be said for a thousand other tasks that you might let staff do because they volunteer or have nothing better to do, like building websites, designing brochures, or writing sales copy. These are all highly skilled jobs when done properly and should be outsourced to experts. The fact that an existing employee can design a website that looks nice means nothing if it doesn’t have all the elements or functionality that a professional website designer and marketing person would include.
My favorite example is from a seminar I did in Atlantic City, New Jersey. A business owner at the seminar got up and announced during my segment on sales that, “I don’t like selling, I am no good at selling, and so I hired this lady to do the selling for me.”
“Great,” I said, “Who’s training her how to sell?”
“I am,” he says, oblivious to the giggles around him.
Use your existing staff for what they do best, and outsource the rest.
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