10 Mistakes of Outsourcing
We’re covering 10 common mistakes that people make when they’re outsourcing and hiring other people in their business, with special guest Nathan Hirsch from FreeeUp. All coming up in this episode of the Amazon Seller podcast.
Andy: (02:34) So today we’re going to look at the 10 mistakes of outsourcing. So if you follow us on the podcast, you know that we have about 40 of remote workers that worked full time and the different services that we offer It hasn’t always been easy finding those 40. We’ve probably hired over a hundred and so that means we fired about 60 folks. And so we made a lot of mistakes along the way. Nathan has helped us tremendously understand the hiring process and he’s helped us to kind of walk through the minefields of working with remote workers. So what we want to do today is we want to look at the 10 mistakes that folks often make with outsourcing. So let’s get right into it.
Mistake #1 – Not Knowing what to outsource – Nathan Hirsch: (04:31)
Mistake one is not knowing where you are as a business owner and where to get started first. Either figuring out that list with the easiest tasks and ticking them off your plate or figuring out what projects or what experts you need to bring in to handle high-level tasks.
Mistake #2 – Not having an organized interview – Nathan Hirsch: (05:51)
When someone gets through and they’re a really good hire, go back and look at the questions you asked and their answers and think, how do I, can I get more people like that? And if they get to the end and they shouldn’t have gotten to the end, go back and say, Hey, what new questions can I add to make sure that I don’t hire that exact same type of person again?
Mistake #3 – Hiring the cheapest workers – Nathan Hirsch: (06:58)
You want to hire people at a price that you’re happy with, they’re happy with that. You can give them raises and bonuses over time that makes sense for your business.
Mistake #4 – Not setting clear expectations – Nathan Hirsch: (08:51)
So make sure that anytime you’re setting expectations, you’re doing the full picture in writing. This is how we communicate, this is when stuff is due, this is how we do things in my company. Here are things to not do for any reason.
Mistake #5 – Not diversifying your workers – Nathan Hirsch: (10:58)
So make sure that you don’t fall into the classic entrepreneur trap where hiring is hard. You make a few bad hires, you finally find someone you like. So what do most people do? They just load that person up with everything. It’s incredibly risky. Make sure you departmentalize and protect your business as much as possible.
Mistake #6 – Failing to properly set up workers – Nathan Hirsch: (11:27)
I like to tell people, hey, this is who you go to for this, or hey, here’s my pet peeve. Like, don’t contact me after a certain time. Here are the documents you need. Here are the communication channels we use.
Mistake #7 – Not cross utilizing and free time – Nathan Hirsch: (12:31)
So as you have those slow weeks as business goes by, as you go from quarter to quarter, make sure that you’re teaching people how to do different things. You still want to divert, diversify and departmentalized. But you can have people that know how to do different parts of your business so that you don’t get sucked into the day to day operations when things happen, like family emergencies or time off.
Mistake #8 – Not fully integrating your workers – Nathan Hirsch: (13:29)
People want to know how their work is contributing to the big picture. I have graphic designers that I use a few times a month, but I still tell them, hey, we had a good month, we had a bad month. These are the projects we’re working on.
Mistake #9 – Not listening to ideas and feedback – Nathan Hirsch: (14:34)
He told me everything that was wrong with my culture, my interview process, my management style, my leadership. But I should have written that guy a check right there because that information saved me hundreds of thousands of dollars down the line. And now my turnover is less than 5% and one the things that has stuck with me to this day is at the end of the meeting, he goes, Nate, you know, I’ve been here for three months, whatever it was. And he said, this is the first time you ever asked me for my feedback.
Mistake #10 Not allowing your workers to grow – Nathan (15:50)
I also have freelancers who don’t work for me. They have lots of other clients, but they’re constantly learning new skills. They’re offering new services and I find different creative ways to use them for different things. And a lot of times that’s when you can find some of the best deals, the best value.
Special Offer from FREEEUP!
I think you might have a special offer for the podcast listeners.
Nathan Hirsch: (17:10)
Yeah, so it’s free up FreeeUp.com. If you go there and mention Amazing Freedom, you get a free $50 credit to try us out. It’s free to sign up. There’s no monthly fee, there are no minimums. You can stop using us at any time. It’s in our best interest to get people you actually like that helped you grow your business. And you can book a free call right with me at the top of the website. I looked forward to helping you with your business. Thanks so much for having me.