| One of the hardest things for entrepreneurs to | | | | the next morning, they have finished that task. |
| learn is the "art of delegation". As you will soon | | | | Can you imagine the productivity gain you would |
| learn if you do not already know this is that it is | | | | see if you did not have to wait on your staff to |
| nearly impossible for a business owner to do | | | | finish the project that day before you continue |
| everything alone. There are just too many tasks | | | | doing your work on it? |
| that must be done in order to keep the business | | | | Given the fact that you can get work done twice |
| running, and there are not enough hours in the | | | | as fast and for well less than half the price, it |
| day for the business owners to do them all. | | | | sounds pretty compelling to consider. However, |
| Thus, strive to delegate anything and everything | | | | that little American voice inside of you feels guilty |
| that you reasonably can, so you can free your | | | | for thinking that it sounds really good. That is |
| time to focus on the big picture for the business. | | | | because we as American entrepreneurs have a |
| Consider Using Contractors | | | | great pride in our country and do not want to be |
| Especially while your business is new, you should | | | | dis-loyal in any way. |
| consider utilizing contractors to get the work | | | | But consider this scenario for a moment, and tell |
| done. | | | | me which is better for the U.S. Suppose that you |
| The benefit to using contractors is that you can | | | | have a business that does not require a physical |
| hire them without a long term commitment, like | | | | walk-in presence. |
| an employee would require. This gives you the | | | | Scenario A: You hire a full-time U.S. assistant for |
| flexibility to change directions without having the | | | | $12 per hour. She has a high school education and |
| stress of having to let employees go, and all of | | | | 2 children in school. Your assistant works from |
| the hassles that go along with that. | | | | home every day, because you do not have a |
| Another benefit to using contractors is that you | | | | physical office. You give her tasks in the morning, |
| can hire the right person for the project. Some | | | | and she sends them to you in completed form at |
| projects you may need done will require one skill, | | | | the end of the day. You then review them the |
| while other projects may need another skill. | | | | following morning and send them back to her to |
| Great sources for finding contractors include | | | | revise appropriately. The cycle repeats - until she |
| elance and CraigsList. You can place descriptions | | | | is out sick for a week. You then have to do all |
| of the project you are looking for someone to | | | | the work yourself until she gets better. |
| complete, and then have people respond to your | | | | Productivity suffers. (Total monthly cost: $1,920, |
| bids. Or you can search for specific job roles such | | | | not counting down-time from when your assistant |
| as "virtual assistants" or "executive assistants". | | | | was sick, which caused you to lose 50% |
| Use the Right Agreements with Contractors | | | | productivity.) |
| When hiring contractors, it is absolutely critical that | | | | Scenario B: You hire a full-time virtual assistant in |
| you get written agreements that outline the | | | | India for $6 per hour. She has a bachelor's degree |
| terms and conditions of your arrangement. | | | | and is very bright. At the end of each day, you |
| What is most critical about the written agreement | | | | send her the tasks to work on, and when you |
| is that it outline who will own the intellectual | | | | return to the office in the morning, she has |
| property that is produced by the contractor. This | | | | already finished them while you were sleeping. |
| may sound odd, but under the U.S. copyright laws, | | | | With the extra money you saved, you hire a |
| the contractor will own the copyrights to the | | | | part-time virtual assistant for $12 per hour in the |
| work he produces for you unless there is a | | | | U.S. who is a high school graduate and a |
| written agreement to the contrary (except for | | | | stay-at-home mom who just wants some extra |
| certain exceptions beyond the scope to discuss | | | | spending money. You send the U.S. assistant |
| here). | | | | some additional revisions that you need made |
| This makes it absolutely critical that your | | | | during the day, and she works on them for 4 |
| agreement with the contractor state that your | | | | hours per day. The cycle repeats. When your |
| company owns all intellectual property rights that | | | | Indian virtual assistant gets sick, her company |
| result from the work produced for your company | | | | gives you another assistant to work with, so you |
| by contractor. Or, if the contractor wants to | | | | do not lose any time. (Total monthly cost: $1,920 |
| retain some of these rights, that needs to be | | | | - the exact same price as Scenario A. You have |
| made part of the negotiated bargain where the | | | | a 24x7 operation, and get 50% more work done |
| price or other terms change since the contractor | | | | each day because of the fast turnaround. Your |
| has retained certain rights. | | | | company grows faster, and spends more money |
| You can find some examples of contractor | | | | in U.S. income taxes, sales taxes, and other |
| agreements on the search engines. You can also | | | | taxes.) Which of these is truly better for our |
| purchase some sample contractor agreements | | | | country? You be the judge of that. |
| from Socrates Media or LegalZoom. You can also | | | | Consider Employees |
| consult an attorney for your specific situation. | | | | Some ways to find good employees are from |
| Here is a short checklist of some terms to look | | | | referrals of others, and from newspaper |
| out for (this list is not exhaustive, just for | | | | advertising. On the internet, you can use electronic |
| illustration):o ____ Names of partieso ____ | | | | job boards such as Monster to post your |
| Project descriptiono ____ Priceo ____ | | | | positions. |
| Intellectual property ownership clauseo ____ | | | | Once you narrow down your choices to a few |
| Timeline for completiono ____ Termination | | | | candidates, you then then perform background |
| clause to indicate how either party can get out of | | | | checks before making an offer. |
| the agreement | | | | You should also see if the prospect has a |
| Outsourcing Resources | | | | Facebook or MySpace page, and if so, go read |
| There are various companies abroad where you | | | | their profile. It is truly amazing what you can learn |
| can hire staff just for specific projects, or for | | | | about someone and what type of employee they |
| longer terms. Most offer backup support if your | | | | will likely be from reading their personal pages that |
| dedicated assistant is out sick. | | | | they share with their friends. For example, you |
| Some examples of such companies include | | | | may see them brag about certain undesirable |
| TasksEveryDay, BrickWork, and YourManInIndia. | | | | behavior, or talk about their community |
| The rates range from $7 per hour on up, for | | | | involvement. |
| people usually with bachelor's degrees. | | | | Use Proper Employment Agreements |
| Consider Outsourcing Abroad | | | | Just as with contractors, you also want to have |
| Outsourcing is a sore subject for some people, | | | | written agreements in place for your employees. |
| but this blueprint would not be an accurate | | | | You will automatically own the copyrights to any |
| reflection of today's business world if the concept | | | | work produced by your employees, but you do |
| was left out. | | | | not automatically own their patentable inventions. |
| The reality is that the flat world we live in today | | | | Thus, your employment agreements should |
| has made it very easy and common for | | | | contain provisions that state that your company |
| companies to utilize staff in other countries to get | | | | owns all of the intellectual property in the work |
| work done faster and cheaper. | | | | they produce for your company. You can also |
| Whether you plan to use outsourcing in your | | | | consider adding a clause that states that you also |
| business or not, read this section so you will | | | | own their patentable ideas that are related to the |
| better understand what your competitors are | | | | nature of the business they do for the company, |
| doing. You will need to be aware of how this | | | | even if they develop it on their own time., or that |
| works today so that you can compete, even if | | | | are related to the business they do for the |
| you choose not to do the outsourcing yourself. | | | | company. |
| So how does outsourcing work? You can now | | | | Another provision you should consider adding is a |
| outsource just about any task, as long as | | | | non-compete clause. |
| "physical presence" of the person is not required. | | | | You can purchase some employment agreements |
| For example, you can hire a virtual assistant | | | | from Socrates Media or LegalZoom. You can also |
| abroad to make phone calls for you to schedule | | | | consult an attorney for your specific situation, or |
| meetings, to order flowers for your spouse, to | | | | use the search engines to search for others. |
| research a gift to give to your child, and so on. | | | | Utilize Payroll Companies |
| Many companies choose to outsource abroad for | | | | If you have employees, it is wise to use a Payroll |
| the following reasons: | | | | company like PayChex or ADP to handle the |
| (1) Labor in other countries is a lot cheaper than in | | | | payroll processing for you. They will take care of |
| the U.S. because their standard of living is | | | | the employee pay checks, plus the reporting to |
| different. You can hire a person with a bachelor's | | | | various government agencies. It is well worth the |
| degree in some countries for as little as $7 per | | | | fees they charge. Try doing it yourself one time |
| hour. In the U.S., that same person might cost | | | | and you will see why. |
| you $25+ per hour. You can often hire advanced | | | | Obtain Workers Compensation Insurance |
| degreed people, such as computer engineers and | | | | If you have employees, you will be required to |
| research scientists for as little as $15 per hour, | | | | purchase workers compensation insurance. Most |
| when those same people would cost $45+ per | | | | payroll companies can handle this for you through |
| hour in the U.S. | | | | their affiliate arrangements so you just deal with |
| (2) Your business can operate 24 hours a day, 7 | | | | them on the issue. |
| days a week if you so desire. Due to the time | | | | Delegate Some More |
| differences, you can give an assignment to | | | | Remember, delegate every chance you get. You |
| someone abroad when you leave at the end of | | | | will be glad you did. |
| the day, and then when you arrive at the office | | | | |