Harlan Jacobsen
You can contract out anything and never leave home.
Do only that which you cannot get someone else to do better, and/or for less.
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<<  Author Left, Now 80, has been Hiring Himself since 17, Starting More than 50 Do It Yourself Different Businesses.

Business, Unlimited Expansion Capacity

Multiply Yourself, Be Twins, Triplets,etc




Outsource New Business Overflow

Was fascinated several years ago when I first heard of digital "outsourcing". This opened up so many possibilities I could go on with ideas for you to expand on for years.

Understand my first exposure was a software firm in Oregon that wrote software on rush order basis for firms that wanted it fast but not necessarily able to pay extra.

How did they do it faster than anyone and beat everyoneís price. Simple their Oregon people worked on the software until five. Sent it digitally to people they had sub contracted to in a country that was 8am.

That country engineers worked on it for eight hours and sent it to a country a third of the way around the world, where it was just 8am at their quitting time.

Those engineers worked on it for eight hours and usually by morning in Oregon it was back for only finishing touches.

24 hours or intense work on this project in 24 hours. 16 of it at rates a third of US costs. Some of the finest engineers in the world worked on it, people they would never have found in this country at reasonable cost.

The Oregon staff had merely to personalize it for the client and deliver it at amazing speed, unheard of.

Could their soft ware competition compete? Not on your life. They never knew how they did It.

You could do it in U.S. totally; it does not have to be overseas.

You could take a job for anything at all in California at 5pm and have it back 8am In the morning having been worked on 4 hours by someone in North Carolina, etc.

It need not be across the country, you can outsource to your relative down the street.

You can start a medical overnight second opinion service with the finest doctors in India. You send them an x-ray; they read it and send back an opinion overnight. They will charge 20% of the U.S. rate, you will charge 50% of the routine charge in the U.S. and it will be delivered to your client in 24 hours, with a top authority reputation.

Thatís just an idea extension to get you thinking. There is a lot of outsourcing you can do with physical shipping back but that does not work as well. It must be able to go both ways digitally. (Means no delivery cost and no delay.)

An example, you find a printer that does full color post cards for a third of the U.S. Price, and you do personalized postcards for motels etc. You can book them and everything from the client digitally but they have to come back physically, the cost and delay does not work.

You can do a business booking hand painted portraits (or baby pictures etc) overseas by a terrific artist, made and sent from a digital photo. That might justify paying a $50.00 shipping charge overnight.

We have 7 overseas full time subcontractors, we pay weekly via zoom. We, had one US person, we trained on line do contract work with me full time for six months before I ever met her. Had four others for a year all around the country I never did meet. 95% of our web work was done out of house.

What you need do can more easily and best be done for your business, by doing it yourself nowadays.

We, in contrast, are a publisher and deal in thousands of pages.

Outsourcing is not for everyone, but can be learned. It is a skill they do not teach in college. Most people that try it cannot manage it. LEARNED. I am still learning, way on the bottom of the curve.

Outsourcing, subcontracting your work in U.S. is a snap.

Warning: Overseas, a PAIN until you figures out a system.

Let me explain why you are important cog to the customer, why don't they just go direct with the provider once you send them the person doing the job and you lose the client.

If you send a person to install this or that... that customer will likely never have that job done but once in a lifetime. So he is NOT a long term prospect. The worker can do a sloppy or defective job and not to worry he was never going to get any more business there anyway.

If booked thru you, if he does a good job he is assured of you sending lots of work regularly, and if he does a lousy job, you make him correct it or he loses a LOT of future business. When they book thru you, YOU HAVE CLOUT.

You soon figure out how to identify a good subcontractor that will get you repeat and referred customer business.

Back to that portrait artist overseas idea.

If he does a terrific picture, others will see it and want one done for a birthday present. Letís say a $100. Hand painted oil portrait. $25 to the Artist, $25 for you and $50.00 overnight ship. This would likely be $500 U.S. similar quality. My son Ken is a commercial artist. He gets $2,500. For a portrait. http://www.penart.com

You can likely set up and dig up work for him and as an agent hundreds of other U.S. commercial artists, that do mostly narrow niche work, in fact he does mostly logos, trademarks etc. Most of this type artistís work comes thru an agent. A self employed person with a phone, and address and web presence. They just know the art industry and know how to dig up clients (and jobs) for their artist list.

What I am trying to teach you is that the opportunity today is in learning HOW to develop customers. YOU develop and Control the customer list, the work, service or supply, you OUTSOURCE.

Note: When you buy a going business the ONLY thing you are buying you want is CUSTOMERS. Let them keep all that stuff they want to sell you with the business. You do not want or need it. You need the income the customers represent, (assuming you have assurance you retain the customers,) assurance from the customers.

My simplest to understand business is a window washing route. You go out there and bust yourself calling on prospects and after some time you manage to snag three clients to wash their windows every two weeks. That not enough to make a living on, but you can do many other services too.

But letís say, you hear that Charley the guy that washes windows on the east side of town will sell his clients and retire if you pay him Five months income per client.

You do not want his window washing bucket, blades etc. You want ONLY his customer list and continued business.

(Now extend this up to ANY business you might consider buying.)

You set it up that you do the work on the window route (or sub contract it) and he is to get the next five months income from the route. (That way if they do NOT stay with you they do NOT cost you.)

Subcontract out the work for 70% of the billing and you bought yourself an income for 70% of the first 5 months income. (Did you follow that?) You now have an ongoing income, after 5 months, that if you add customers over the years (your thing, thatís what you do) you will have a growing monthly income based on time. (Remember you can also outsource the billing, collecting etc.)

Every month so much money arrives in your bank account, you never did the work.

You owned the INCOME, Namely the customer. You do NOT want to own any of the JUNK. Subcontractors do that.

You do NOT have to make a living from this window washer route. You can do MANY other businesses at the same time. Two out of ten will take off,

Even if this one does not take off. Say you only have enough clients to start to keep you busy two days a month. If you want to you can do the work yourself. Keep ALL the income. Or start that way, and then as you get other businesses going. (We suggest look to start ten.) Farm out sub contract, outsource out more and more.

As your time is obviously sooner or later, best spent GETTING CUSTOMERS.

When interest develops we will be doing many more articles, videos and blogs on outsourcing. It is a fascinating scalable concept with huge potential.

One of the fascinating ones will be how to set up (and market) overseas, (and or U.S, (masters degree) private tutors working live online with U.S. kids with school problems.

 

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Harlan Jacobsen
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