It’s Monday morning in Australia and I’m about to have a group meeting at my house with my team to begin work on something new.
For most of my Internet business career I worked solo – and I really mean solo.
I built my website myself, created marketing materials like flyers and posters, promoted my websites, located and managed sponsors and provided customer and sales support. The only thing I didn’t do was actually provide the services, I had contractors do the editing when it came to BetterEdit.com my proofreading business and I had writers write the content on my first successful online venture, MTGParadise.com (although I did a lot of writing myself on that site too).
It’s amazing how far your enthusiasm and work ethic can take you in business. I’m proud of my achievements as a solo entrepreneur and I’m amazed at what I did manage to get done by myself. However after about 7 years of working without any support I realized that I couldn’t keep it up for ever, plus there was another pressing reason to get help – I had reached a ceiling point in my growth. Your business can only get so big if it’s just you doing the work.
With typical timing, it was around this time that Rich Schefren came to town with his first ground breaking report, the Internet Business Manifesto. I read Rich’s report and found myself agreeing with everything he said. I wasn’t exactly shocked by the revelation as some Internet marketers were when they first read the report. I knew I was working too hard and doing too much by myself, my problem was lack of action to change the situation.
Things finally did change in 2006. With my blogging business growing and my cashflow increasing I knew I could realistically outsource tasks to other people. With a looming trip overseas I decided I to do two things –
- Hire a customer service admin person to take over the day to day activities at BetterEdit, meaning I could travel overseas with a lot less pressure – no need to run to cafes for Internet access all the time while hopping from country to country.
- I signed up to Rich’s mentoring program.
This was a real turning point for me and my business. I knew it would be, but there’s a difference between knowing and doing – I was finally doing.
Angela joined me and took over management of BetterEdit, dropping my workload for this business down to a few hours a week.
Rich’s Business Growth System training was the perfect compliment to what I was going through with my business, and although the course is way too comprehensive to get everything done in a short period of time, the synergy was a comfort, as was being involved with a group of people at a similar stage of business development, who were also taking Rich’s program.
From this point forward I started thinking more about how I could get other people to do things I was not good at, but it really wasn’t until the launch of Blog Mastermind that I really built an entire team around me.
In late 2006 I brought together a talented group of people for a launch. I had Nick handling technical challenges – by far the biggest role outside of my own, Rob manned my website portfolio so I didn’t have to worry about that while I focused on the launch, Fran helped out with some admin tasks, Mick did graphics work and West was working on affiliate recruitment. I had a few other people help out with tasks like copywriting, transcriptions and audio editing.
Simply put – there’s no way I could have done a successful launch without these people.
I’ve spoken to Internet marketers who do nearly all the tasks themselves, but these guys work 12 hour days non-stop – it’s nuts – you don’t want to be like them. If you have plans to launch a product or even just expand what you do, you need people.
Outsource From Day One
I understand that people who are new to Internet marketing or who have limited budgets may look at outsourcing as something you do in the future. I totally get that – I had that mentality for a good seven years and it was probably the biggest mistake I made.
I was stubborn. I liked being in control, I thought I would make more money if I did the work myself and even after I broke down that belief, I still felt I needed more cashflow before I could hire people. I didn’t believe I could find the right people, or that it would cost too much or possibly the biggest reason – I simply wasn’t mature enough as a business owner to take the next step, I wanted to stay in my nice, safe, entrepreneur cocoon, even though it meant I didn’t make good money, I had to work hard and everything depended on me.
The very first lesson I give to my blogging students is to find a tech person you can rely on if tech is not your strong point. I’m grateful to know that many of my students take this advice on board and several have even told me that it was the most powerful lesson they learned from me.
Knowing Is Not Enough
You need to strike a balance between knowing what to do and having other people do it. I admit, because I did so many things by myself early on I now have a good intuitive grasp of how the Internet works from a technical and business standpoint. That makes it easier to understand how to get things done. It’s important to have a basic awareness of things like websites and content management systems like WordPress, but you don’t need to spend seven years getting that knowledge like I did.
Today there are so many courses and free tutorials online, you can spend a month or two, get a basic understanding of what you want your website to do and look like and then go get someone else to make it happen. That’s the mistake I made, I went and did it all myself with my mediocre technical skills.
I got by, made money, but I know I left a lot more money on the table and wasted a ton of time because I was trying to make code do things that I just didn’t know how to make it do. It frustrated me like crazy too, so I’d pour hours and hours into it, where I could have been using that time to move projects toward profitability.
It was a lesson learned the hard way for me, but it doesn’t have to be for you. You can build a team from day one and I’d start by considering two particular roles you can outsource immediately –
- Hire a tech person, someone who knows servers and HTML and CSS and PHP. They set up your websites and server side scripts, plug all the web tools together and make things work. This person is critical and when you get a good one they can make you so happy – they produce output 500% quicker than you do and make things look prettier too.
- Next I suggest an admin assistant who can also be your support person. As you start, you probably won’t have many support queries, but trust me, you will eventually. In the meantime you can have your helper do all kinds of things – marketing tasks, documentation, setting up systems, working your calendar – even basic tech things like buying domain names and setting up new hosting accounts. This role is a real jack-of-all-trades position and when you get the right person you will be amazed how you ever got by without them.
You Make More Money Outsourcing
One of the biggest mental hurdles to get by when you first go to outsource to other people is the idea of spending money to have things done that you can do yourself and thus save that money.
Business systems and outsourcing experts go through detailed calculations to show that for each hour of work you do it’s worth X amount of dollars, thus if you can outsource that task to someone else for a lower hourly rate it’s more profitable.
That’s great, but it does assume you have *some* cashflow and until you do, every dollar you spend doesn’t come back quite as easily.
However, that doesn’t really matter, unless you have no money at all.
If you look at your business with a view to the future then you will grow and even if you have to spend now to contract to other people tasks that you could do yourself, by doing this you get to future goals quicker. Plus you have the added benefit of forming relationships with outsourcers before things go critical, so when the work starts to flood in, you are comfortable, rather than rushing around trying to hire people at the same time as deal with all the new business.
There are probably one or two tasks that are big money tasks for you. You should focus on handing off everything else that needs doing until you have the freedom to spend all your working time just doing the money tasks. Even if it costs you in the short term, if you can invest time in activities that deliver the highest return for your business, you will make more money long term and grow quicker. It is a process and if cashflow is tight you have to be strategic with how you outsource, but the important thing is to do it – form the habit early and you will benefit.
Big Profits
One of the very early pillar articles I wrote to this blog is this about small business realities – Do You Want to Run Your Own Business? Read this First!.
Point number three in that article is the often sad but true fact for so many small businesses:
“You may never make real money until you sell your business”
Many small business chug along, making a reasonable salary for the owner but don’t move beyond that. The owner lives with the hope of one day selling their business and making enough to retire on, in the meantime they work like a dog just keep things afloat.
In this case, our budding business owner shows some entrepreneurial spirit but really is someone who has a skill and decided to go out on their own. The end result is a business that really is just a job – and one of the worst jobs ever because the owner has to not only provide the service or manufacture the product, but do everything else that goes along with running a business.
When time comes to sell the business, the owner struggles to find a buyer or get a high price because no one wants to buy something they have to work so hard to maintain. If you want to make big money selling a business, it should be profitable with minimal input from the owner. If the asset makes cash and you don’t have to work 12 hour days to keep that cash flowing, then you have something of value.
Take BetterEdit for example. I could have sold the business when it was just me running it. I would have been able to show a nice salary sized income, but to make that money you have to lock yourself to your computer seven days a week to monitor email and get out and market the business. It’s effectively a full time job for an okay salary.
After hiring someone to handle the day-to-day stuff, BetterEdit goes from a job, to a business and an asset that requires the owner step in only a few hours a week to perform easy tasks. Now the business is worth so much more to a potential buyer because they can realize profits without substantial commitment.
Think About Team Building
At all stages of business building you should look to foster a team around you. It can make your day-to-day working life easier and when it comes time to sell, your business is a lot more attractive to potential buyers.
It doesn’t have to happen overnight and I understand your fears about money and control, but as long as you take baby steps and wholeheartedly commit to the concept of outsourcing and team building, then you are on your way. Just don’t take as long as I did to action this mindset.
Yaro
Not Outsourcing Blogging
Yaro,
I’m interested in starting a vlog (or more specifically a online tv channel ala Tomgreen.com style — although it would be a little lower budget).
Do you know of any good resources to develop something like this? Or know of any other “amateur” online tv channel pioneers?
J
Do you really recommend hiring people straight out? Wouldn’t it make more sense to wait until you’ve got the cash flow so you can pay your employee with operating profit rather than hard earned savings?
Tough one…
I suppose the problem is more in one’s attitude than in one’s cash flow.
If you have the right attitude, you’ll find the money, no matter what…
So, now it’s my turn to work on my attitude!
Thanks Yaro!
Gideon Shalwick
very much sound theory which is from the words of tim feriss 4 hour work week being the most productive in the least amount time and outsource everything else that isnt making money directly
Solo…but you are doing awesome Yaro!
This is a great article Yaro. I am not a tech-savvy blogger, and I did not know how to set up my site. Luckily, I met a great tech guy on the web who set up my blog and he is still helping me alot.
I knew that writing was my strong point, and that in the end it is more important to get my blog up and running a month earlier than I would have without the help.
This is definitely a point that many beginning bloggers can learn from.
Keep up the great topics Yaro!
Oh so true! I am actually going through this myself as we speak. I normally outsource technical tasks and I decided that for a couple of days I would attempt to handle tech tasks thinking I would handle the ‘easier’ tasks: Results: I deleted one post and butchered the code on 3 others.
Yaro…thank you sir. The value you have added to my life esp through blog mastermind has been 2 much 2 2 much.
Cheers
You know, if marketers weren’t hiding the truth to make money on behalth of the newbies, I’d do this from the start!
I am not involved in Strategig Profits, but I am a Get Altitude Student, and I am very happy with what I’ve learned.
this is true, one of the most important thing you can do for your biz is outsourcing.
I’ve been following your blog for quite a while now, and your grow was a reward. You’ve done a really great job.
Franck.
This is a very important lesson which I have also learned the hard way. Building a team is an amazing catalyst if you want to get to where you are going fast. In fact this is a topic which I am going to be discussing through out the week in my blog at http://www.usmansheikh.com so if your interested into how to successful build your ideal team I can share with you quite a bit of experience I have had.
Yaro you are doing an amazing job with this blog. Best of luck in 08.
I have done this in the past and is really a stress saver to have outsourcing some tasks, the only problem with me is that with more free time I always begin to procrastinate, maybe if I hire someone to slap my face every time I waste my time 🙂
Great post !!
A good discussion about marketing!
Online business is not so different from any other sort of start-up venture; the same principles apply. Think about what makes an “offline” business successful, and then analyze your Web business in the same way. To get you started, I’ve outlined some of the essential steps you’ll need to take.
Hi Yaro,
You’re posts become more and more interesting, you are learning and it is great to learn by reading from you.
I agree with your points much, but there can be two problems:
1. Lack money in the beginning causes that you cannot outsource
2. Finding partners is not that easy
Both problems hit me. First I have no additional money and therefore my business grows slowly. Hopefully we have great business incubators here in Finland and it looks like they will take me in with my business idea. That would help much. When you’re income is little and you have no money, you need to take a loan and I am not ready to do that when my income is just too small (hundreds a month).
The second problem is that I have asked my friends and keep on asking to join me, but most of them are suspicious and cannot believe it works. I have already proven that it works and the market seems potential, but they just don’t want to take risks. I am ready to take risks (except big loans) and therefore I am building my own business on top of my day job. I mean I work with my own idea every single night. Most of my friends are not willing to do the same and I really understand why.
So, the conclution? Try to build your business and get it growing so that you can outsource parts of your work with the money you are making. Consider taking a small loan to speed up your growth or look for investors. Network and find partners as soon as possible. Get yourself into a business incubator program in order to speed up. Set high goals and work hard, and so on..
Well, there are more to say, but I think this is all that came to my mind while reading you’re good article.
Yaro , I learned this lesson when I was about your age. I had a mentor who was older and wiser, at the time I wasn’t sure he was right , ultimately one finds out time is the most important commodity you possess. Your hands can only do so much ,
It’s great post Yaro. I completely agree with your points. I think it’s not specifically the case for building online business. I learned most of these in offline business too. But, frankly sometimes – or often – I feel like what you said, I just wanna wait and wait for more cashflow for my online business. Well, I know it’s not good idea. I’ll rethink more on this. Thanks for the great insights, Yaro.
Wonderful post!
I am at the point in my business now that I’m learning that I cannot do it all myself. I find it hard to give away my duties as my business is my “baby”, but I’m getting better.
@Jason – Feel free to ask off topic questions in my forums.
@Will – I recommended hiring casual contractors for a few hours a day or even a month as a start. The habit is hard to form if you are used to doing it yourself, so even just outsourcing one task is a good start (that should really be out-tasking, but no one uses that phrase).
Hey Yaro,
great article. Even your post sounds theory for some reader, but if you think your business/project has potential to grow, why should you stop and not try it out with outsourcing. And like you said, it’s not necessary to hire someone full time right away. You can see the benefits of outsourcing, if you do it for several hours each week or month. There is no long term commitment.
But the key of success and growing with outsourcing work is, hiring the RIGHT people. Wrong people can even harm your business.
Another advice is not to look for some one like you. Instead look for someone who can add talent and additional knowledge to your business. Like you mentioned, hire a tech guy, if you not a real coder.
Thanks for sharing another great lesson 🙂
Alex
Building a right team for any business is the key to success as well as growth.
Spot on. I’d have to agree with the points you listed, and must admit that I’ve been extremely stubborn in the past when it came to accepting my faults.
Good work mate!
Yaro, you make great points. My problem now is similar to many others. I have a full time job that demands 50+ hours per week but don’t have the money to pay for help!
I like your idea for outsourcing though, but outsourcing is a bad word here in the States! I haven’t found a good tech person yet, but I do have some leads. I need one. A few days ago, IE was hanging up on my site with a stack overflow at line 1590 error and you had to restart your computer to get it to go away. It took me all day and even my hosting provider couldn’t solve the problem. I discovered that having two links to the same book on Amazon caused it but it took me several hours to figure that out, hours I could have been using to do something more productive.
Hi Yaro,
I’ve been outsourcing for the last year or so but it’s only this last December 2007 that I’ve been seriously and steadily hired out for work that I need done. I’ve already seen a much greater result in income from doing this.
Thanks for sharing!
Vera Raposo
Hi, Yaro. Thank you for this great information! Keep up the good work!
Sherri
Very very true, I can’t tell you how long I worked solo before I learned to admit that I needed help. It’s a hard thing to do but once you do it things become so much smoother!
Hi Yaro,
What are your suggestions for finding a good admin. assistant?
Thanks,
Coop
This is a great post. I agree about the comment on attitude as well. You need to have and stay positive through rough times. Any business will have issues growing, and those who become demotivated are doomed for failure.
Yaro,
This article came at a perfect time for me. I am getting ready to start a new project and I was planning to outsourcing some of my responsibilities. Before I read your article I didn’t know if outsources from the beginning was a smart thing to do. I am earning an income through my other blogs and could use that income to pay a admin assistant for this new project.
Anyway, I just want to thank you for writing this article. It was very helpful 😉
Hello Yaro,
Just want to say that this is a very informative post that can help me in my first step towards my newly create online business (www.imallow.com). Right now I’m on the verge of exploring and reading articles that can help me market, generate enormous traffic, and make money on my website.
I think this is one those information that I’m looking. Thank you for sharing!
Best Regards,
Wendell
Yaro, have you found difficult to hire and settle a team?. What web resources did you use to find them?
Hi Yaro,
I couldn’t agree with you more! Getting support is the smartest thing any entrepreneur can do. We offer VA services and often first time entrepreneurs are hesitant. But once they see the results of that support they say the same thing: Wish we had done it earlier!
I think what would be useful for people would be to list some websites where people can get virtual assistants and outsource work online. Below is a brief list of the websites I know (some of the info is sourced from 4 hour work week):
Elance
American Express Platinum Concierge
Ask Sunday
ODesk
Get Friday (Your Man in India)
Do My Stuff
Amazon’s Mechanical Turk
Craigslist
Workaholics for Hire
Brickwork India
iFreelance
Scriptlance
Guru
Agents of Value
Rent a coder
Refer to Tim Ferris’ 4 hr work week website for more information. If anybody else has any websites they can list, please list them here.
Mwangi-we offer these services as well. http://www.AfterTheLaunch.com
Excellent post, Yaro! And right on time, for me, as I’m doing the 12 hour work day, like a madwoman! Sick thing is, I enjoy every second of it- it’s a learning experience.
I think you’re absolutely right, it takes its toll, but I haven’t matured yet. Reading your article made me think of the teacher’s role- you try to explain yourself as best as you can, but sometimes, us grasshoppers, have to find it out for ourselves. nothing beats experience, and after a few years of our own 12-hour work days, I think the information will sink in. And we’ll remember Yaro’s post, in the backs of our heads, and come back, so we can finally outsource, too.
Nothing like having your own entrepreneur’s journey 😉