Over the New Year’s break I took myself and my children to Taranaki to hang out with my family. One of my clients is based in New Plymouth, so I took advantage of the opportunity and beautiful weather and invited her out to a working lunch.
We spoke about her upcoming plans for her business; which new ideas she wants to explore, and which ones she wants to pivot and adapt to her changing needs.
The conversation evolved and we discussed a question I’d never had the opportunity to ask…
What made you decide to outsource your administrative work?
The admin itself was only taking my client 2-3 hours a month to do. In her mind, 2-3 hours a month was not too long, and her time was free. So it stands to reason, just as it does for most business owners…. why wouldn’t she just do the admin??
“My cousin runs a small sole-trader business. We are very similar in personality and way of thinking. She essentially told me I was wasting my money if I didn’t have a Virtual Assistant.
I don’t like wasting my money.”
~ My Frugal Clent ~
During the discussion with her cousin, the cousin asked these questions:
Add to these questions the aspect that my client is not very excited about sitting down behind a computer. She’s a “get out there and get things done” kind of woman. She soon realised her time was not free…
…doing her own admin was actually costing her money!
Not only was it costing her money, but it was also costing her energy. Instead of focusing her energy on organising her calendar of work for the week and other important tasks only she can do, she was spending that brain power on filling in paperwork and completing invoicing.
My client is frugal, she does not like spending money where she doesn’t have to. However, being frugal isn’t always about not spending money. It’s also about knowing where to spend the money. In this case, my client realised the opportunity cost of not outsourcing her admin.
I have written before how bringing a VA into your team is an investment, not an expense. Spending money in the right places allows you to make the most of your time and energy, allowing you to reinvest those precious resources into your business (or your family).
Natalie Coombe, pricing expert, also writes how outsourcing is one tool in your bag of tricks to increase your revenue without increasing your prices.
Step 3 – Review your Services ..are there tasks that you could outsource?
When you are exploring this option, you need to look at the cost effectiveness of outsourcing.
Work out if you are able to outsource the task and still add a margin on top.
Natalie Coombes –
5 Ways To Increase Your Salary Without Increasing Your Prices
Your time and energy are what grow your business into a success.
This precious resource needs to be focused on all the tasks only you can do as the CEO of your business.
Your time is not free!
