Outsourcing and Virtual Assistants: Small Business Saviors

Work smarter, not harder

What is one of the best ways to work smarter without working harder? The answer is outsourcing. Whether you need occasional or ongoing assistance, outsourcing can save you money and time. Graphic designers, copywriters, bookkeepers, website programmers, office assistants, and other types of professionals are all readily available.

And, there's a new way of hiring people ? the World Wide Web connects independent professionals and small businesses that don't need or want full-time help. Try typing "Virtual Assistant" into a search engine. You will find a vast array of online resources. According to the International Virtual Assistants Association,

"A Virtual Assistant (VA) is an independent entrepreneur providing administrative, creative, and/or technical services. Utilizing advanced technological modes of communication and data delivery, a professional VA assists clients in his/her area of expertise from his/her own office on a contractual basis."

This means you can find a virtual assistant for almost any type of work. Are you a plumber who needs accounting? Or a professional speaker who needs help arranging your appointments? Perhaps you would like some help writing proposals, designing a new website, or sending out press releases. You can find someone online for all of these services.

For many "around the office" types of jobs, virtual assistants get paid $20 to $50 an hour. More specialized services such as programming, legal assistance, graphic design, or coaching can cost $75 to $125 an hour. This may sound expensive at first. However, if you are not in need of a person in your office 40 hours every week, it becomes a very cost-effective solution.

While I realize, costs fluctuate widely, let's look at some sample numbers to compare the typical costs of maintaining an employee versus outsourcing:

Sample costs of a full-time employee Employee Salary: $36,000/ $17.31/hr.

·Two-week paid vacation: $1,385 to cover your employee's role (more if a temp is hired)

·Health Insurance (employer portion for 12 mos.@$150): $1,800

·FICA Taxes (7.65%): $2,754

·Worker's Comp. (.61%): $220

·Unemployment (State & Fed): $309

·Misc. costs (Vision, Dental, Disability & 401K Matching, Profit Sharing & Stock Options): >$3,000

·Office Space, Equipment, and Software (100 sq. Ft. @ applicable rate): $2500 ($25/sq. ft. is conservative)

·Annual Bonus (1 mo. salary): $3000

·Sick Time (10 days/year): $1385

·Other intangible costs (furniture, testing, training & fees, sick children, etc.): $1200

Total Typical Costs: $53,553/ $25.75/hr. total effective hourly rate at 100% productivity

At a 75% productivity level, this employee's cost for actual work becomes $34.33/hour and at a 50% productivity level, it's $51.50/hour. A full-time staff person is very unlikely to be 100% productive because of idle time, errands, tasks, personal matters, and a learning curve for certain functions. This is combined with an employer's inability to generate work due to distractions, staff meetings, company functions, lack of time to delegate or supervise, and sales fluctuations.

So, depending on the productivity level of a full-time employee, you may be paying up to 3 times his or her actual salary! You do the math! What's the wise choice? Does an in-house employee save money? In most small businesses, this method simply is not the most cost effective.

Entreprenuer, get your life back!

Outsourcing will save you money, time, and energy. Virtual assistants and other out-of-office professionals own their own equipment with the latest software, they pay their own taxes and benefits, they are experts in their field, they don't require morale building or training, and they aren't going to bring their personal problems into your work space. Virtual assistants and outsourced professionals offer even more advantages: they are loyal to their client companies and will support your goals ? they will help you generate ideas and allow you more time to make your business more profitable.

So, if you have employees that you are happy with, then of course that's perfect for your business. Don't fix what ain't broke. However, if you find you are paying too much overhead or spending too much time managing, try a virtual assistant. If you need a new type of service, but don't have the in-house expertise, outsourcing is a great option. There's a world of online help available at your fingertips.

Wendy Maynard, your friendly marketing maven, is the owner of Kinesis (http://www.kinesisinc.com). Kinesis specializes in marketing, graphic and website design, and business writing. You can visit her marketing blog, Kinetic Ideas at: http://www.wendy.kinesisinc.com

Want to harness the power of kinetic marketing? Sign up for Kinesis Quickies, a free bi-monthly marketing e-newsletter: http://www.news.kinesisinc.com

---

Creating Time the Virtual Way

Time. As a small business owner, it's the commodity you... Read More

Secrets of Cleaning Truck Trailers in Your Fleet from a Veteran Truck Washer

Cleaning the trailers towed by big trucks is not easy,... Read More

Shocking Experienced Copywriter Reveals Little-known Secrets To Closing BIG Ticket Deals!

Hogwash!That's what I say to people who tell me that... Read More

Mobile Detailing Expansion Considerations

Expanding your business requires you to take a good hard... Read More

Covenants Not To Compete: Another Franchise Quandary

Imagine that you have operated a successful franchise business for... Read More

Starting a Tractor Washing Business

In the heavy equipment cleaning business you can make good... Read More

Small Business Debt Collection Laws

In your small business debt collection laws will eventually become... Read More

Small Business Marketing Series ? Choosing a Niche Market

Many smaller businesses choose niche markets for various reasons and... Read More

Learning and Growing

As you reflect on this year and prepare for next... Read More

Credit Repair Business Opportunities - Huge Profit Potential!

In the world today, many people are further in debt... Read More

Mobile Car Washes and Shoe Policies

Mobile carwashing is hard work, it is tough on the... Read More

Is Your Success Predetermined?

Your on-line success is based on your efforts and yours... Read More

Where Can People Find Information About Starting A Business?

Approximately 200,000 new businesses are started each year. More people... Read More

The Inside-Out Business Plan? -- Your Small Business Plan in 10 Easy Questions

Writing a business plan for your Solo Entrepreneur business doesn't... Read More

Is It Recess Yet?! Confessions of a Self Employed Workaholic

I have a confession to make. My name is Caroline... Read More

Do You Want Your Own Fully Programmable ERP? - Part 3

Continuing from the second article:6. About the aground mathematical model,... Read More

Hiring A Virtual Assistant Can Help Your Business Grow

Are you a home or small business owner and you're... Read More

The Advisory Board: A Business Owners Most Valuable Resource

As a company grows, the owner's role begins to change.... Read More

SBAs 8(a) Program Can Help Some Companies Compete

Q: A friend told me that as a woman of... Read More

Loose Lips Sink Ships - The Fastest Way to Put Yourself Out of Business

I agree that knowledge should be free, but the next... Read More

Small Businesses - Big Obstacles

Everyone is talking about small businesses. In 1993, when it... Read More

A Key to Success: Be Consistent

Over the years I heard the best way to learn... Read More

Should I Franchise or Not?

A reader of one of my online sessions asked should... Read More

Employee Monitoring - Business Risks For Employers And How To Avoid Them

E-mail and Internet use are integral parts of the typical... Read More

Finding the PERFECT Alliance Partner

Where do you look for the appropriate alliance?One of the... Read More

How to Get Maximum Results With Minimum Effort

Get maximum results with minimum effort. Sounds great doesn't it?... Read More

Dig Deep for Small Business Ideas Before You Start the Wrong Business

If you're serious about wanting to start a business, the... Read More

Cleaning Grain Silos, Towers, Containers, and Combines

If you run a pressure washing company in a rural... Read More

Tracking Revenue For MORE Profits

The revenue history is a vital piece of your power... Read More

Firing Underperforming Employees in Your Small Business

Here are a few tips on how to hand out... Read More

Overcoming Your Biggest Competitor

Before you read any further in this article, I'd like... Read More

Choose Your Own Guru

What is a guru?A guru is a teacher. A mentor.... Read More

Common Sources of Financing for Small Business

The choice of financing is an important determinant of whether... Read More