| Bottom Line: How do you leverage your internet | | | | The difference between outsourcing and out-tasking is |
| business to increase your productive hourly income | | | | that outsourcing is developing a trusted repeatable |
| each day? For the answer think about this... When you | | | | source and out-tasking is constantly searching for the |
| realistically have two productive hours, five days a | | | | cheapest source each time. This is time consuming |
| week (520 hours a year) to make $ 260,000 a year, | | | | and offsets any supposed savings, along with not |
| then you need to produce 500 an hour of productive | | | | knowing if the job will be done satisfactorily because |
| time. | | | | you have never dealt with this source before. |
| PRODUCTIVE AND NON-PRODUCTIVE TIME | | | | Don't make the mistake of thinking where or how can I |
| SPENT | | | | get this done the cheapest? It's basic that you get |
| Productive time is spent creating products, marketing | | | | what you pay for. Usually when you pay a little more |
| products, improving your marketing process, managing | | | | you get a lot more productivity and is the best choice. |
| money making projects, setting up joint venture deals | | | | When you outsource, you want to let go and simply |
| and creating leverage in your business. Non-productive | | | | monitor the results, not be involved in micro managing |
| time is everything else, including answering emails, | | | | the activity. |
| phones, day to day tasks running the business, etc. | | | | Some people have found it is very efficient to offer a |
| Now your thinking changes to assess what activities | | | | 25% bonus if outsourced projects come in on time |
| you should personally be spending your time on and | | | | without help from you. Pitfalls to avoid include lack of |
| which activities you should be having others do for | | | | project management skills, lack of a good process for |
| you. The trick is to consistently focus on those | | | | specifying the work and did not have the right metrics |
| activities that can raise your hourly productive rate. | | | | for measuring the performance. |
| Have others do what needs to be done when it costs | | | | SYSTEMS, PROJECTS AND PROCESS MAPS |
| you less than the hourly rate you need to generate. | | | | A system is for day to day activities that are |
| You isolate activities that generate more income than it | | | | performed routinely for the most part. A project is a |
| costs to get it done. Many people mistakenly think | | | | one time task that has a beginning and an ending. You |
| missing knowledge is what keeps them from making | | | | must be taught this skill, and Rich Schefren offers such |
| their target hourly productive rate. You increase one or | | | | a program. |
| more of the variables of any of the profit producing | | | | Use process mapping to describe what you are doing, |
| formulas. You develop and implement a business plan | | | | or you don't know what you are doing. You separate |
| that creates leverage through a tight focus and the | | | | activities and tasks into either a decision or an action. |
| proper strategy. | | | | Then you put arrows showing how and where each |
| ONE NICHE MENTALITY | | | | task flows into the next task. This will likely reveal how |
| You get your business to serve you by sticking to one | | | | to improve this work flow process. The first time you |
| niche, developing a full funnel of products, instituting | | | | do anything will not likely end of being the best way. |
| cross-sell, upsells, and-back-ends to your audience. By | | | | Ninety four percent of any breakdown inside a |
| working that niche, every successive product | | | | business is due to a faulty process, not human |
| becomes more profitable. This means that each new | | | | problems. A process map is crucial to streamlining your |
| product can be sold to your existing customers. It is | | | | current operation. |
| much less expensive to sell to past customers than to | | | | SERVICE LEVEL AGREEMENTS |
| find and sell new customers. This is where you | | | | When first outsourcing you must have a Service Level |
| increase your leverage by decreasing your cost of | | | | Agreement between you and your outsourcer about |
| selling to customers. | | | | how performance will be measured and the minimum |
| OUTSOURCING VERSUS OUT-TASKING | | | | acceptable levels of service. |