A consultant in my coaching program recently asked me, “When should I hire contractors?”
Change your mindset
I remember when I first started one of my consulting businesses, this was a question that I was struggling with. At that point I was making about $6,000 to $8,000 a month and I wasn’t quite sure.
If you spent a little bit more money to hire someone who was really good at it, that would free you up significantly to spend more time on the higher valued areas of your business like working with your paying clients.
I was putting off the idea of hiring contractors because I kept saying to myself, “Well, I can do this better than they can and I can do it faster than they can. And if I need to spend money to hire them it’s going to cost me. That’s an expense. That’s going to take money out of my pocket.”
I continued to put it off, and as my income climbed I started to become a little more comfortable with the idea. It wasn’t until I really recognized that I needed to shift my mind set.
Because every hour that you spend on lower-value tasks – things like administration whether it’s bookkeeping or filing or going to the post office, doing reporting, playing with PowerPoint or KeyNote presentations…these are things that are actually taking you away from spending more time on higher-value tasks.
What’s it worth to you?
If you look at what you are receiving in compensation from working with your clients and we adjust it to an hourly level (you likely know by now if you’ve been following my videos or ConsultingSuccess.com that I’m not a fan of hourly fees or any period of time), you get a sense that your time is worth significantly more than what it would cost you to outsource and bring in a contractor to work on certain areas of your business.
The best way for me to demonstrate is to think about it this way: if your current hourly fee is $200/hour and you’re spending five hours each and every week doing the lower valued tasks – things that you can get someone else to do for $20 or $30 an hour, what that means is you’re losing $170 for those five hours each week (the difference between what you could be making if you were working with a client compared to what you’re paying someone to do it).
Not only does that add up significantly over each week/month/year, but what you’re also not seeing is that every hour that you spend on lower valued tasks is actually taking you away from opportunities that are bigger – and from going out and landing bigger clients and bigger projects.
Think about what are you doing right now that someone else could be doing for you. And even if you paid $30, $40, or $50 an hour to get somebody really good at it, I’m very confident that you will quickly see that you can be creating significantly more value than that.
More time + more clients = more money
Right after watching this video, quickly make a list of everything that you’re spending time on that is lower value that someone else could do and most likely do even better than you. If you spent a little bit more money to hire someone who was really good at it, that would free you up significantly to spend more time on the higher valued areas of your business like working with your paying clients.
Like going out and attracting more clients or closing deals, working on finalizing proposals.
These are all areas that create significant value. The lower valued tasks don’t add value. Yes they are a necessity and a requirement for you to do business but no you shouldn’t be doing them yourself. As soon as you make this mindset shift from seeing outsourcing or contracting as an expense or a cost to an investment that’s when your world will radically change.
A real value proposition
That’s when your business will grow by leaps and bounds or at least have the ability to start scaling. The reason for that is because you can then very quickly start to see that you’ll be able to spend significantly more time creating value as opposed to being repressed and held back by lower valued tasks that other people can do for you.
Give that some thought. Think about what are you doing right now that someone else could be doing for you. And even if you paid $30, $40, or $50 an hour to get somebody really good at it, I’m very confident that you will quickly see that you can be creating significantly more value than that.
And it would be a very wise investment for you to take that step.