Outsourcing (by Wikipedia) – in business, outsourcing involves the contracting out of a business process to another party…and includes both foreign and domestic contracting, and sometimes includes offshoring (relocating a business function to another country).
For real estate investors most common is to hire Filipino workers for lower that American wage and delegate daily tasks that can be done remotely like data entry, seller calls, social media management and more. Outsourcing doesn’t always involve hiring a foreign virtual assistant (VA), it also encompasses hiring local people to help put out bandit signs, prepare mailers and more sophisticated investors even have folks to go to appointments and handle their sales department. This is all part of outsourcing.
Often times real estate investors have to wear multiple hats in their business. Especially when we first start out and have not yet built a good support team, there is simply too much to handle. And certain tasks like scouting for FSBO leads, preparing mailers for the next mailing campaign or putting out road (bandit) signs are time consuming and have to be done very often – up to a few times a week.
That’s why it just makes sense to get help, local and virtual, and the faster you realize it, the quicker you can grow. But please,
Read this article to know what 3 Questions to ask yourself before you say the “O” word.
How do you know it’s time for you to start outsourcing?
We see too many people get seduced by fancy word “outsourcing” and jump into hiring a virtual assistant because it’s cheap or looking for other help because “CEO is not supposed to do that”. However those are not the best reasons and I believe it’s best to start outsourcing those tasks that you have done and hopefully mastered, so you can explain it to your new team member and be able to manage them afterwards. Even putting out bandit signs, I suggest you do it yourself once or twice to realize how much time it takes and how quickly they get pulled out so you know what to expect and require from your workers. The best time to start outsourcing is when you have a good plan of what you want to achieve with your marketing campaign (we’ll talk about marketing plan and budget in the later videos) and when you outline your budget how much you can afford to spend weekly/monthly so you don’t run out of funds before sending out that mailing campaign. So:
Learn your tasks >> Outline marketing plan and budget >> Outsource
Are you the right person to be outsourcing? As crazy as it may sound, not everyone should do it! Why? Because besides the steps in the previous paragraph, the fun part begins when you actually hired your helpers. Are you ready to train your team members, can you manage them on a daily basis, can you tweak and adjust their tasks? Outsourcing does not mean “stop working yourself”, it means more responsibility and more free time for other things. Are you ready for that? I believe you need to be a smart leader, first of all, and be able to fulfill these requirements to be able to sort through the bad hires (and you WILL have plenty of those) and spot the great team members even when they are not yet rocking your new task. Maybe even babysit at first, so they don’t screw up. You gotta be patient, and be able to follow your own plan if you want this to work out for you. And even then, be prepared to waste some money on bad hires, wrong marketing campaigns and other unexpected by newbie investors things.
Good luck and here is to your outsourcing success
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