Many successful entrepreneurs believe that they are actually being frugal by not getting the help they need. Some assume that by doing everything themselves, they are saving money and thus earning more. In most cases, this simply isn’t true. When you use your valuable time performing the tasks that generate the most profit for your company, you are using your time to its full income earning potential. If you are like most small business owners however, a great deal of your time is likely spent on paperwork and other administrative functions that are necessary to the success of your business, but don’t directly generate income. Imagine how much more profitable you could be, if you could virtually erase this clerical time from your task set.
In order to illustrate this point, let’s use the example of an entrepreneur who works an 8 hour day, and earns on average, $400 per day. This would mean that this business owner earns an hourly wage of $50. But, 2.5 hours of his or her day is spent on administrative functions. If we were to eliminate the time spent on these tasks, the entrepreneur would be earning close to $73 per hour for the remaining 5.5 hours. Now imagine if the entrepreneur could spend a full 8 hour work day on the tasks that generate the most revenue for their business. He or she could potentially be earning $584 dollars a day minus the cost of outsourcing the clerical work, which should be significantly less than the $184 per day gained.
Until recent years, the thought of getting the administrative aspects of your business off of your plate meant that you had to hire an employee. But, for many entrepreneurs this was not feasible due to lack of space or monetary concerns. This left many business owners with few options, except to continue doing it all themselves. Luckily, in today’s world of advanced internet technologies, there are alternatives. In fact, there are very few tasks today that can’t be outsourced. There are companies that specialize in customer service, Virtual Assistants for a variety of administrative functions and Accountants and Bookkeepers for financial matters. A simple Google search for just about any task on your to-do list should give you a variety of companies that specialize in the outsourcing of this service.
Virtual outsourcing is a means to accomplish the tasks you need performed without the significant cost of hiring an employee. Contracting the clerical aspects of your business on an as-needed basis means that you are paying only for the exact task you need accomplished. If this is a couple of hours of bookkeeping or administrative duties, it shouldn’t cost you a fortune, and in fact will likely cost you much less than the money you could be earning by using this time on your company’s primary income gaining functions.
How much is your time worth? If you do the math, you might be surprised at how much you could benefit from getting qualified help. Virtual outsourcing will likely make your business more profitable.