Even if you’ve been forced to downsize your staff, the work goes on and you probably still need workers to help you in the operation of your business.
You probably can’t do it all.
More and more companies affordably scale their businesses successfully by hiring independent contractors or freelancers.
Here’s how to be successful in outsourcing your projects:
1. Assess your needs that can be outsourced
Analyze your to-do list. As the boss, you should be focused on the overall strategies of saving time and money while increasing profits. Instead, you might be busy doing mundane or low-level things such as data-entry.
That means you have a very expensive clerical worker because it isn’t the most productive use of your time.
For cost-effectiveness, there are two basic functions to outsource:
— Repetitive or low-level time-consuming duties.
— Highly specialized work that would cost you too much time and money to learn.
For example, you’d be better off by outsourcing projects to social-media specialists, an advertising agent, freelance writers, a virtual assistant, an IT professional, or a bookkeeper.
So to analyze your time: Record how you spend your time each hour for a week. Also consider what you’ve been putting off because you haven’t had the time.
Identify the mundane or highly skilled work that should be done by a freelancer.
2. List your job requirements
Begin this process by making certain you identify your specific needs with an accurate description of the work.
Understand the type of person you need in terms of experience and know-how. In essence, create a thorough job description as you do for an employee.
3. Ask for referrals from people you trust
A reliable testimonial from a colleague or peer can save you a lot of time in recruiting, screening, interviewing and checking references.
Hint: Keep an open mind. Birds of a feather flock together. I once got an outstanding bookkeeper by merely talking to my dry cleaner. She was a true professional who knew of a great candidate for me.
You can also seek input from your connections on social media such as LinkedIn.
4. Thoroughly examine qualifications and references
Ask the right questions. Review your candidate’s information on a hiring platform, on LinkedIn and ask for references.
Depending on the type of work, you can ask for work samples and check their Internet site or profile.
5. Communicate your expectations well
Be prepared to communicate your specific requirements and even key performance indicators.
Don’t omit any details. If necessary, give examples.
Create a paper trail. After meeting on the telephone, send a follow-up email outlining your expectations. Get an agreement from the freelancer on your specific needs.
6. Anticipate writing a contract
Your contract should specify the deliverables, scope of work and method of payment. Include important information such as allowable edits or revisions and limits to avoid mission creep.
If necessary to maintain proprietary secrets, include a non-disclosure agreement (scroll down to the Coach’s Corner for tips on non-disclosure agreements).
Unless you’re skilled at creating agreements, use an authoritative template from the Internet or from an attorney.
7. Know the difference between freelancer and employee
A freelancer is not an employee. An independent contractor can’t use your equipment or work under your direct supervision like an employee.
Self-employed freelancers want to enjoy their freedom and establish their own work schedules. That means you can’t ask for an infinite number of changes or expect immediate responses.
You might be saving money such as in payroll taxes and benefits but they aren’t employees.
8. Anticipate the right optimal payment method
Beware that successful freelancers probably already have their preferred payment requirements.
Before you enter into an agreement, do your research and perhaps Google job ads and postings. Know the optimal options for you.
Get an agreement on the amount and payment structure before hiring the person. Decide whether you’ll pay per project or hourly, weekly or monthly. Will you pay upon receipt of an invoice, via check, or Paypal or Venmo?
Anticipate what to do in the event the freelancer fails to adhere to the agreement or delivers inferior results.
Be careful about making down payments.
9. Be careful in planning your timeline
Plan well. Even if it’s an emergency project try to allow for surprises. Include a buffer or cushion in your timeline.
10. Use the golden rule
Treat your freelancers respectfully – as though they’re valued customers – just as you’d want to be treated.
For the best results, explain your motivations and goals for the projects.
Be respectful. Promptly give them all the information and resources they’ll need to deliver good work.
Be realistic. Be transparent about any negative surprises. Don’t waste their time with unnecessary changes or requests. Promptly respond to their questions or concerns.
Upon a project’s completion, give a feedback assessment. If warranted, be generous with compliments.
Pay well and promptly.
Do these things well and you’ll be a happy camper. Good luck.
From the Coach’s Corner, here’s relevant information:
Save Time and Money by Outsourcing 4 Business Processes – In business process-management, small businesses with tight budgets have to resort to outsourcing for successful completion of projects. Small businesspeople must capitalize on money matters and save in time management — all while overcoming staffing shortfalls for strong results.
Basics in Hiring a Consultant to Help You Improve Your Company – When hiring a consultant, here are some pointers to keep in mind.
Ecommerce: Strategies to Pick the Right Digital Partner – True, if you don’t have the necessary expertise, ecommerce services can be expensive. So to maximize value for profitable sales, it’s imperative to choose the right digital agency as a partner. Here’s how.
6 Tips to Save Time and Money by Hiring the Right Tech Consultant – If you need to hire an information technology consultant, it can be costly in time and money, if you choose the wrong person. Use due diligence. Sophisticated tech vendors and consultants of all sizes have been known for cost over-runs.
Basics to Consider Before Writing Nondisclosure Agreements – If you have business secrets to protect you might want to use a confidentiality policy, a nondisclosure agreement and possibly a noncompete agreement. Here are the pros and cons.
“If you think it’s expensive to hire a professional, wait until you hire an amateur.”
-Red Adair
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