There is one thing that is true: you can’t do everything simultaneously on your own, and if you try you’ll likely get burned out. This goes for anyone – and it’s especially important for entrepreneurs to understand this. That’s where the subject for today comes in: why you need to outsource.
Outsourcing is what you do when you have a lot of tasks in order to run your business and even in your personal life – you outsource the tasks that doesn’t necessarily need your attention or personal hand in, such as tax declaration, bookkeeping, organizing, replying to support e-mails, paying bills, cleaning clothes and house, making and maintaining a website and so on. For a music composer: mixing your music, mastering, writing orchestral score sheets based on your MIDI mockups, finding an album cover artist, and tons more.
There is so much you can delegate, effectively freeing up your time.
Here’s a simple example: you’re a store owner and you take care of everything yourself. You do all bookkeeping and administrative tasks, you manage import and storage, all declaration and tax matters. You even stand in the counter all day receiving customers.
Doing it this way will save you some money, but it costs you a lot of precious time. How about maybe pay a little extra in business expenses, and gain a bunch of time? Instead of standing in the counter yourself, you hire a cashier, saving you many hours of work. Sure, it costs to hire someone, but you’re paying a few % of the store’s income but save 80% of the work hours you put in originally.
Delegate the tasks you are not required to personally attend.
This is extremely powerful in business, because once you’ve delegated 80% of your tasks to others (remaining the owner), by offering up 20% of the income to hire outsourced people and employees, you will have so much free time over to do what you love, start new businesses, spend the valuable time in important aspects of the company or whatever you wish – the company is now almost running itself and you remain the owner and main benefitter. This is the main subject of Tim Ferriss best-selling book The 4 Hour Work Week and is where I really began understanding the concept’s true potential.
I also recommend that you pick up 4HWW. Great and inspiring book for anyone wanting to get into entrepreneurship and create a passive income source. But for now, keep this concept in mind and soon you’ll be freeing up a lot of time and effort doing things you don’t necessarily need to do yourself. But before you go and delegate away everything, be smart about what you really don’t want to take care of yourself. There is a perfect opportunity to learn a new skill by doing it yourself (like mastering your music), and a lot of tasks will need your attention early on in a start-up. So be smart about which tasks you really don’t need to outsource, and do those yourself. But do you really need to sit for hours doing tax declaration and bookkeeping when you can be spending time on your real business, improving your product or service, learning valuable things, etc?
Until next time!