What is the Secret To Outsourcing?
I just keep thinking about a question I was asked last week about outsourcing and specifically the fear associated with outsourcing.
How do you get over it?
My answer is twofold.
1. Shift Your Mindset
Shifting from a place of scarcity, where we’re worried that if we bring someone into our business we won’t be able to sustain paying them, to shifting to a place of abundance, where we believe that the money we need to make is around us and the clients who need our services are going to come to us when we take power moves or make our power moves to bring them to us.
2. Manage your cash flow.
Take your income and break it into buckets.
The first bucket is taking that dollar that comes in and putting a percentage away for taxes. Not every penny that comes into your business is yours to keep. I tend to put 30% away, knowing that the tax guy’s going to come calling and here in Canada, we pay very high taxes.
That means for every dollar that comes in, you’re only keeping $0.70.
From there, think about breaking that $0.70 into other pots. One is paying yourself and another one would be operating expenses. You’ve got to decide what percentage is going to suit you and what works for you. Your business budget is that which is going to keep the lights on. It’s going to pay for all of the monthly costs that you have associated with the pleasure of doing business—things like your software, things like perhaps an accountant, things like outsourcing.
Once you can see, on average, how much money comes in and how much you have in your operating budget, you then have a better idea of how much you’re able to spend on outsourcing and on bringing people in.
It’s a shift that has to happen. Much like reclaiming your power when it comes to money.
Knowing those numbers and managing your cash flow in a way that accounts for everything is going to be the difference between you being able to build your team and shaking your moneymaker and doing the work that you love and bringing in other people to help you build a stronger business.
Anyway, that’s what’s on my mind this week. I look forward to talking to you next week.