Do you think outsourcing marketing services at too expensive for small businesses to avail of? Well, this post will challenge this perception.
Work out your hourly rate
If you’re a small business owner, it’s essential that you this workout. It’s important so that you know how much its costing you to market your business. This was something I realised in 2008 when I read a book called ‘Harmonic Wealth’ by James Arthur Ray.
In his book, Ray used the following example to highlight how you can make more money by understanding the cost and value of your time.
He says if you work 251 days per year (which is 365 days less 14 days’ holidays and 100 days’ weekends) and you want to make €60k per year, then you need to earn €240 per day. To achieve your earning goal, you need to earn €30 per hour, every day for eight hours, every day for 251 days.
Now, if you can pay someone to complete something that you have to do for less than you can earn, then it makes financial sense to outsource that task. When you look at it like this, you can see that it makes sense to work out how much your hourly rate is.
DIY is Not Free
So, if you’re spending five hours a week managing your businesses social media accounts and website, it’s costing you €150 per week or €600 per month to complete this activity.
But ask yourself honestly, is that the best use of your time and money? Are you achieving the results from your marketing that you know you need to in order to grow your business? The answer is probably no.
The Gift Of Time
What if you had those five hours each week back? You could spend that time on actually running your business. You could be earning more each hour than you could pay someone to complete the work. Can you see how this makes financial sense for your business?
Naturally, because I’m a marketer, you can see why I would make the argument for you to outsource your marketing activity. However, the same argument could be made for any number activities that you need to complete in order to run a successful business.
After all, if you take into account the amount of time it takes to learn a new task, like social media management for example, then your 20 hours per month likely isn’t been spent actually producing results. What you are likely doing is spending about two hours per week reading about or thinking what needs to be done, and then another hour or so figuring out how to do it and then the rest of the time doing it.
Think about it. By paying a professional who knows what they are doing, to carry out your marketing activity, you’re not only saving the difference between what you could be earning but you’re also actually getting the work done. And when marketing is done right, your business grows.
What we do when we manage a client’s social media activity is to first understand what they do, what they want to achieve, and who they want to reach. From this, we work out a social media strategy. We then develop content that specifically addresses the business objectives. We measure how well the activity is actually performing against how we expect it to perform and make changes to the strategy based on the results.
And because we are experienced in this area, it takes us a lot less time to complete this type of work, which saves you money.
Seriously, work out your hourly rate right now. Think about how much it is actually costing you to complete the things you do to run your business. If you can use your time to earn money by paying someone else to do what needs to be done, probably better than you can do it yourself, then doesn’t that make sense to you?