What are the cost benefits of outsourcing? Part One

Many small businesses owners are realizing that a business isn’t that easy to run by themselves. The main problem is a small business owner has to wear a thousand different hats, whether it be marketing, website design, administrative or customer service. We all know that you can outsource your marketing and website design but not too many people know that you can outsource your administrative work as well.

Many people think that outsourcing their administrative work is too expensive but in reality, it’s not. I am going to throw a couple of figures out there for you to consider:

Your hourly rate: $100.00
Administrative work: 2hrs/day
Total loss of money: $1000.00 per week

Your hourly rate: $100.00
Administrative work outsourced: 2 hr/day @ $50 per hour
Total Money Gain: $500.00

So now you are wondering how did I come up with that figure. Well, businesses owners spend an average of 2hrs/day working on their administrative work. That 2 hours per day are non-billable hours.

Those two hours could be spent doing marketing, contacting clients, filling orders for clients, or just to relax as well. Sure relaxing would cost you some money as well but you have to have some relaxation time in order to keep that brain focused on the more important things in your business. If you get burned out, that isn’t good for business either. If you handed some of that work off to somebody else, you could be putting an additional $500 or more in your pocket.