These people learned the hard way so that you don’t have to. Here’s my list of the top 9 overlooked outsourcing mistakes made by entrepreneurs. Check it out.
1. No managers
Obviously your employees can manage themselves for the most part, but they are not managing your business. Know the difference. I recommend having a project manager who is American be over your outsourced employees to keep tabs on them and be in the know about what’s happening.
2. Outsourcing to any country
Labor rates are lower in some countries but culture and language are the real keys to your business’s success. I really only recommend using the Philippines for outsourced work for a number of reasons. Trust me on this one.
3. Outsourcing too much
I’m an outsourcing junkie and I preach how important it is to outsource every day. I don’t see it often but occasionally I see people who have taken outsourcing too far. You are still the brain of the company – don’t try and give that away.
4. There’s only one way to pay
The “fixed price” outsourcing pay model is only effective for certain projects but not for others. Look at alternative pay options for your people.
5. The cheaper the better
Fair compensation is providing something higher than the market price but lower than you would have to pay in your area. If you’re cheap, you’ll get low-quality work. Your employees are your investment, so treat them like one financially.
6. Everyone thinks the way I think
I would say thinking this way is not a working strategy in life, or in outsourcing your business. Of course, it’s great to find like-minded people to work with. But also recognize that your employees will almost never think the way you think. The way you think made you the CEO. It’s also great to have people who think differently than you because more ideas and solutions can flow.
7. I’ll never need more employees
If you expect to grow, your outsourcing will need to as well. In fact, I would say that if you’re outsourcing the right way…you can guarantee you’ll need more employees to handle your leads that are coming from your current outsourcers.
8. I don’t need a relationship with my employees
You DO want to be as hands-off as you can be with outsourcing. But there is something invaluable about knowing the names of your outsourced employees and making them feel that they are important to you. After all, they are doing critical pieces of work for your company. Fostering a good relationship makes good employees better in terms of performance and overall trust.
9. I’ll outsource what I don’t understand
Yes, to a degree. Maybe you’re not a graphic artist, but you know and understand what graphic artists do, right? That’s key. If you don’t know what you need and why you need it, don’t try and outsource it or you’ll waste money and more than likely be taken advantage of.
Avoiding these simple but often overlooked mistakes in your outsourcing will absolutely save you time, money, regret, and the experience of bad business.
Remember, with outsourcing, you own the outcome.
Do it right.
(NOTE: It is highly recommended that you take my FREE 60 Second Outsourcing Test to find out if you’re ready to make more by doing less. Click here to learn if you’re ready to outsource in just 60 Seconds!)