Many start-up businesses fail, and the main reason is a lack of money. If business owners could do one thing to improve their business success early on, it would be holding onto more money so they can become profitable and, therefore, viable. Employees are expensive–as they should be–and all the details of hiring someone and letting them go if they don’t work out can be really complicated and expensive. Don’t make rookie mistakes and become a statistic. In your first years of business, try something different. Don’t hire your first employee; contract specialized freelancers instead.
Building Your Business with Outsourced Teams: A Guide to Leveraging Freelancers and Your Network
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Starting a business involves juggling multiple tasks and responsibilities, often without the resources to hire full-time employees. But there’s a strategy that can help business owners manage this effectively without compromising quality or breaking the bank—outsourcing.
Leveraging freelancers on platforms like Fiverr and through your personal and professional network, you can build a robust, flexible team capable of carrying out essential business activities.
I’ve hired employees many times. My first business in telecommunications sales required several employees. I hired people by advertising via websites and then went through extensive interview processes. Ultimately, over 80% of the candidates were not a good match, and another 15% would start but not work out for whatever reason. Letting them go was complicated. I had a couple of periods where I really should not have hired someone, but I did, and it was a disaster when I had let them go. It gets challenging and expensive very quickly. Including lawyers and human resources professionals makes it even harder.
There are areas in which we really do need to hire employees, but there are many reasons not to hire and to outsource instead. If you can find a balance, figure out what works for your business, and put a process together for what you can outsource and what needs an employee, you can figure out if you need an employee at all. Save your resources early on and outsource as much as you can.
Why Outsource?
Outsourcing allows you to focus on your core competencies while specialized freelancers handle other aspects of your business. For startups and growing businesses, this approach is not only cost-effective but also provides access to the global talent pool without the commitment and expense of hiring full-time staff. Employees come with a lot of extra expenses, including taxes and benefits, if you offer them. Early in your business journey, when funds are tight and instability is constant, outsourcing can provide the agility you need to adapt and grow. People who have the flexibility to work on contracts or freelance are generally happier and more personally responsible, making them easier to manage and freeing up your time to dedicate yourself to your main focus–your business.
How to Start Outsourcing
1. Identify Your Needs
Before you can find the right people, you need to clearly define what tasks are taking up most of your time or require skills that you don’t possess. Common outsourced tasks include web development, graphic design, content creation, digital marketing, and administrative duties. I work with a freelancer who’s my project manager for my main business. She also helps with reaching out to customers with personalized prospecting emails and does fantastic follow-up. Business plan what you need early on.
2. Sign Up for Fiverr
Websites like Fiverr are fantastic for finding freelancers. Fiverr makes it easy to connect with professionals from around the world, view their portfolios, and read reviews from other clients. Whether you need a graphic designer or a virtual assistant, Fiverr can help you find qualified candidates quickly. *Use our affiliate link to sign up for Fiverr and start finding the right freelancers for your business.
3. Utilize Your Network
Often overlooked, your existing network can be a fantastic source of talent. Reach out to your professional contacts for recommendations on freelancers they have worked with and trust. Networking events, both online and offline, can also be great places to meet freelancers who come highly recommended. Make sure if you are going to work with a friend or family member, even if it’s a friend’s family member, that you are clear about the expectations and that you won’t be able to keep them if they can’t meet your expectations. I’ve worked with friends, and I hired them to do a project, and it was a disaster. People we have close ties to can take advantage, so be careful.
4. Set Clear Expectations
Clear communication is crucial when working with freelancers. Define the scope of the work, deadlines, payment terms, and any other expectations upfront. This clarity helps prevent misunderstandings and ensures both parties are satisfied with the arrangement. When you’re thinking about what areas of your business can be outsourced, make sure to jot down some expectations of how the outsourcing will work and what you will be getting back for your investment. Knowing these details early on will help you determine your expectations once it comes to negotiations.
5. Establish a System for Collaboration
Use tools like Slack, Motion, Notion, or Asana to manage projects and maintain communication with your freelance team. These tools help keep everyone on the same page and can streamline the workflow, making it easier to track progress and meet deadlines. Life and business get complicated; too many tools can be frustrating. Try to have as few communication tools as possible. Slack is great for conversations, Motion, Notion, and Asana are great for task management, but you also have a chat feature and other communication tools inside the project management dashboard. While tools can be great, don’t rely solely on them; make sure to schedule a regular call or meeting so you can openly discuss progress and expectations, as well as field questions, once a week if possible.
6. Start Small
If you’re new to outsourcing, start with a small project to gauge the effectiveness of the freelancer or team. This approach allows you to build trust and refine your management process without too much risk, allowing you to determine if they are a right fit for you with low stakes at hand. Quality work and a genuine desire to help your business are required and don’t accept anything less than exactly what you need to grow your vision. That’s the great thing about hiring freelancers; they tend to be some of the best, so you get what you pay for. Expect nothing less than high quality, and that is what you will receive.
The Benefits of Building an Outsourced Team
Flexibility
With freelancers, you can scale your workforce up or down based on current business needs without the complexities of hiring and laying off employees. Depending on the season and workload, you can add as needed. Make sure to organize your timelines and clearly communicate expectations as early as you can. If you can let freelancers know how much work is needed and what work is needed a month or more before they start the work, they can set their own expectations of how much work they can provide, and they can be careful not to over-commit themselves. Be courteous of their time, as many of them juggle multiple clients and projects simultaneously.
Access to Expertise
Outsourcing gives you access to specialized skills on-demand, which can be pivotal for projects that require expertise outside your proficiency. You can use Fiverr filters, post jobs, and even ask Fiverr chat to find specialists to narrow down your search parameters to find the right fit for the project you are organizing.
Cost-Effective
By only paying for work as it’s needed, you can better manage your budget and reduce overhead costs associated with full-time employees, such as benefits and office space. Freelancers only charge for what you need and negotiate in advance, enabling you to manage your costs better.
Focus on Core Business Functions
Outsourcing routine or specialized tasks allows you to focus on growing your business and refining your core offerings. Knowing what you need in advance will help you organize and fill gaps as you find them with outsourcing. Before starting, take the time to plan what you want to outsource, how much time you need to manage the outsourced work, and what you need to do to make sure it all comes together to meet your expectations. The better planned you are, the better you can set expectations both with work and finances.
Leveraging an outsourced team can make running a business significantly more manageable and cost-effective. Platforms like Fiverr and your own network connections are invaluable resources that can help you assemble a team tailored to your specific needs. Remember, in the early stages of your business, flexibility is your greatest asset. Outsourcing provides just that, allowing you to operate more fluidly and scale as needed, laying a strong foundation for future success. Planning and communicating will maintain an organized approach, which helps your business management day to day.
If you’re beginning your journey of building your freelance team, *sign up for Notion or Motion to find the right communication tools and project management resources to get started on your outsourcing journey today. Subscribe for more business posts. Have a lovely day.
