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  • But You Do Need To Be Smart Enough to Buy It

    booksA lot of small business owners are good at what they do. But, they’ve learned that’s usually not enough to grow the business so they get outside help, quite often in areas related to marketing, so they can “focus on what they do best and let others handle the rest.”

    While no one can know how to do every aspect of business, and certainly there is work that makes sense to outsource or delegate, there is nothing in your business that you can abdicate.

    What I mean by this, for example, is that even though you may never fancy yourself a pay per click advertising expert, if you plan to hire someone who is, you do need to be smart enough about it to buy it. Same is true for SEO, for web design, for PR advice.

    It’s risky business to hand over your marketing on faith that someone is simply going to understand your objectives, your customers, your core message better than you. Even the most experienced marketing coach or graphic designer will struggle if you can’t participate in the results of the project. (It’s also important to know how to spot really bad advice – it’s not hard to call yourself a social media or SEO expert!)

    I’m going to repeat this – you don’t have to know how to do everything, you do need to know how to buy it and that means you have to invest in educating yourself.

    There is so much incredible free or low cost information online that there’s no excuse to stay in dark about any important element of your business. Books represent the best investment, pound for pound, you can make in yourself and your business. I’ve touched on marketing, but this goes for management, finance, legal, every aspect – learn how to read a balance sheet, understand the laws and requirements in your industry, attend workshops on social media – even if you have a full org chart of people responsible for these areas.

    Successful entrepreneurs are today’ polymaths.

    Freely outsourcing aspects of your business without taking the time to fully, or at least minimally, understand what you are outsourcing is a recipe for disaster.

    Taken a step further, Brian Clark of copyblogger has written what I think is a must read report related to today’s post called – The Outsourcing Conspiracy. Brian’s theory is that most business can’t be run continuously over the long-term with nothing but a single entrepreneur and a host of outsourced relationships.

    With regard to your employees, I’ve written a related piece at the AMEX Open Forum titled – Your Staff is the Key to Referral Success

    Would love to hear your thoughts on this.
    1) Outsource vs Staff – certainly pros and cons to each approach
    2) How do you delegate without abdicating?
    3) What are your best sources for learning?

    Image credit: Dawn Endico

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    Posted by: John Jantsch on Apr 22, 09 | 6:06 am
    Category: Marketing Plans, People Management, Vision | Tags: , , ,

    Comments
    • Hi John, I really appreciate the points you make, and I enjoyed Brian's ebook. I am a solo business owner (chief cook and dishwasher type), and I couldn't agree with you more about the need to understand all aspects of your business. I do wish I didn't have to know so much about the legal/accounting stuff, but it really pays off when there is a tax issue or contract dispute.

      In response to your statement, "... you do need to know how to buy it ...," I was recently listening to a conference call with Brian Clark and I asked him how he chooses markets when he creates new products. His answer was straightforward and liberating. He said he creates products for markets that he himself is in. He doesn't try to figure out what others need, he thinks about what product he would like to see and he creates that.

      To briefly respond to your questions above:

      1. Outsource (perhaps a small staff at some point, but the tax/legal/benefits stuff is too complex for me to deal with right now).

      2. Delegate? :-)

      3. My best sources for education are: the public library, blogs like this, watching how others market their products, talking with other business owners, my business coach, and the occasional online course or biz conference.
    • Drew - Brian's approach you mention is so true - it is so much easier to create and promote a product when you are the target market.
    • Not only should people know enough to purchase services, but once they find a good provider they need to be involved enough to guide the provider's effort. As a PPC manager I need client feedback to know what type of customers they want. Then I can select keywords and write ad copy that will bring qualified traffic to their site. So please, don't just hire an agency and forget about them.
    • Absolutely Robert - Ultimately success for both of you will depend on the ability to build an ever deepening relationship of shared interests.
    • John, great post. I have been thinking and there are pros and cons to this. It may be a double edged sword. When you outsource, you have the opportunity for a more seasoned veteran to handle the work, but how do you know if they are doing the work you hired them for. Of course you can have time cards with billable amounts of time blocked, but who is to say that is the actual time?

      When you hire staff, you have a better ability to mold and help transition these individuals into the working machine you desire. Both has a price to pay, but it is the owners decision. Instant results with a stranger or gradual results with a staff member. But there are exceptions to every rule.
    • Deborah F.
      This is a great post. I completely agree about small business owners needing to research and understand all areas of operation (at least enough to outsource to the right person and guide them in the direction right for that particular business). I believe business owners, as leaders, should lead in the example of continually learning and growing.
    • One of my great curses, you addressed very well. I started as a welder in a manufacturing company while in college and worked literally every job in the place before becoming president of it. That hurt me in some ways but allowed me to understand it very well and stay on top of things without micro-managing them.

      Even to this day, I test a lot of things before passing them on to customers, so I have knowledge of the process. You post on Amex was also excellent.

      To answer your questions:
      1...Outsource commodity, internalize expertise.
      2...Knowledge allows delegation
      3...Duct Tape Marketing Blog & Network ;)
    • I learned early on in my career from a manager at IBM that to be an effective hands-on marketing and communications executive, I needed to know a lot about a lot of things but I didn't have to be the expert on everything...I needed to know experts on the things about which I wasn't an expert.

      Thoughts on Outsource vs Staff: I prefer staff wherever possible. Staff knows the company inside out and owns the results of the department and organization. In a young company, they also live and breath its success. Outsource vendors/individuals own the results of their businesses first and their clients second (no matter what they try to tell you...I know..I was an agency exec for 13 years). The best way to utilize outside vendors is treat them like hires/staff.

      Thoughts on Delegating without Abdicating: If you've hired a good team, have defined their roles and inter-relationships clearly, and foster an environment of open communication and supportive risk-taking, then delegation is giving them a chance to excel. Abdication sounds like giving up.

      Thoughts on Best Sources for Learning: Peers, especially those who've done it before.
    • Mark - thanks, great points.

      Here's something in your comment that people really need to wrestle with - it's reality, but it's OK as long as you accept it and deal with it.

      "Outsource vendors/individuals own the results of their businesses first and their clients second (no matter what they try to tell you...I know..I was an agency exec for 13 years)"
    • joel
      I don't entirely agree with this

      "Outsource vendors/individuals own the results of their businesses first and their clients second (no matter what they try to tell you...I know..I was an agency exec for 13 years)"

      and of course, there's always two sides of the arguement; probably true yes, regarding agencies and firms doing genuine business building, but not necessarily for avid freelancer/contracter which I was for sixteen years.

      I felt I was like a hired samuri, completely dedicated to whatever client I was serving, and always considered msyelf part of the team regardless of the position I was playing.

      Perhaps, if you outsource, you want to be simply more diligent as to who you engage. I know in the book, "hug your people," he agrees, stating the treated vendors and outsourcers as very much part of the team, instead of simply hired hands. Maybe we should consider more like Brian says, the partnering idea.
    • Valid point Joel - I do think in the world of online platforms that allow you outsource without interviewing or taking the same steps you would locally, it is important to remember the care that needs to go into finding good fits.

      I think there are a lot of outsource folks who take your view and in some cases care more about the results they are getting for client than the client does.
    • Great topiic and a hot one at that. When I was getting my MBA and I took an entrprenueral class. One of the most profound things I remember was he asked.

      "How would you do your job if you didnt have any one to show you and tell you how to do it???"

      I really thought about that for a while... You would probably dig in a little bit to make a checklist, then start researching and looking for experts in each of those fields. Start asking questions and learning. As we all probably agree, knowledge is power.

      I think the best leaders and managers, hire in the best people they can. To do that, you have to know how to sit in that seat (at least somewhat) so you can hold them ACCOUNTABLE.

      Now, I dont think you have to be an expert, but you definitely have to know the basics, processes, set guidelines and by your research & hiring of the right person, they take the basics and expand & elevate what and where your knowledge leads off.

      Then you learn from them and keep your finger on the pulse. Continue learning with them and also from other sources. You cant just plant seeds and walk away. That can be fatal. Because when you come back, there may be a flower with a bed of weeds...

      Chad Rothschild
      http://employeeandclientengagement.wordpress.com/
    • as a consultant who works extensively with small retailers, I agree completely that there's a whole host of areas that small retailers typically need help with. In the current environment, I'm strongly recommending that they work with an experienced retail consultant, whether paid, or with a retired retailer through their local SCORE chapter.
    • I absolutely (and reluctantly) agree. (Reluctantly because while I recognize that I need to understand all aspects of my business, there are some areas that I really don't enjoy ... so I do learn them, and then try to find someone to do them, e.g. my book keeper.)
    • Very interesting thought. While some small start ups cannot afford to re-invest until they learn to do for themselves at some point it makes sense to outsource. Then if you market right and keep growing it makes sense to hire. Hiring give you more control but usually involves more cost. Outsourcing can be very risky if you get the wrong people even more so than hiring, and like another poster put it, in house staff is just a better idea as far as quality control.

      Of course the outsourcing conspiracy must be correct. After all how can a business continue to operate over the long haul when life has a limited number of years. A single entrepreneur is only as good as his/her lifespan alots. Even during that time a business may suffer if it continues to become stagnant the owner may concentrate on other ideas.
    • Hi John, I agree that outsourcing isn't the right answer to everything.

      I like the idea that management whether of staff or outsourced companies has a "parenting cost". It isn't visible in the quoted price - but it's real; and part of the knowing how to buy is making sure that you know how much "parenting cost" you are taking on.
    • SJ
      If anyone would like to see more results in your business email sjbusiness24@yahoo.com and i will email you some information.
    • Outsourcing Through Rentacoder explains the proper way to outsource online before making mistakes via trial and error.
    • melaniebensonstrick
      Great post, I totally agree that an entrepreneur can't grow if they are the only ones that can get things done.

      Making the decision to delegate is just part of the puzzle, knowing how to delegate to the right people, profitably is key.

      I suggest starting by making a list of all the tasks you do, marking ones you are competent at or procrastinate doing.

      These become the "hot" items to get off your plate.

      Happy growth!

      Melanie Benson Strick
      CEO Success Connections
      and Team Building Expert
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