The Right and Wrong Ways to Outsource

There are always right ways and wrong ways to do things in business. And before you dive into anything for the first time, you should have a pretty clear understanding about how you can get things right, as well as the ways in which people often get things wrong. This definitely applies to outsourcing, which is the practice of hiring external companies to carry out specific tasks for your business.

It can be very tempting to make use of outsourced services when you read about the benefits, but there are still things that can go wrong if you approach outsourcing in the wrong way. It’s up to you to make sure that you get this right because you’ll be left with huge regrets later if you allow yourself to make mistakes. We’re going to look at some of the wrong reasons for getting involved in outsourcing, as well as some of the ways to make it work for you.

So read on now and make the most of all the information that’s on offer here. After all, this could be the difference between success and failure for your business’s outsourcing aims.

 

The Wrong Reasons Companies Outsource

Through Sheer Laziness

If the main thing making you want to outsource to other companies is a sense of laziness, then you should probably think again. Sure, it can be difficult running a business and working hard all day. But if you don’t really need to outsource and you just want to be a little more lazy in the office, you’re probably going into this for all the wrong reasons. There are plenty of good reasons to want to use outsourced services, but this certainly isn’t one of them.

A Lack of Interest in New Trends

New trends and innovations can sometimes leave some business owners perplexed. If you’re set in your ways and you’re not sure how to deal with the new trends in your sector or industry, the answer is not outsourcing. You need to confront these changes and deal with them head on because if you don’t, you will simply delay the inevitable point at which this clash becomes apparent. Outsourcing would do nothing more than shift the problem when you should be solving it.

Overconfidence Regarding the Company Finances

Another thing that business owners sometimes do is outsource too much to other companies because they feel like they can afford to do so. Sure, things might look good in the company accounts right now. But if you’re hiring people to do work that your company can already easily do in-house, you will basically just be throwing money away. Outsourcing just because you can is never a good thing, so don’t let your overconfidence get the better of you on this issue/

Listening Too Closely to Others

If someone else has told you all the great things about outsourcing but hasn’t offered any words of caution or reasons why outsourcing is not always the answer, you probably shouldn’t listen to them. This is your business so only you can make the decision that’s right for you. If you listen too closely to other people, your judgement will be clouded, and that’s not what you want at all. Sure, take advice, but don’t be led by people who don’t know your business anywhere near as well as you do.

Falling for a Slick Sales Pitch

When a company comes to you and says you should outsource some of your tasks to them, you should always tread carefully. They might genuinely be able to do something positive for your business, but you certainly shouldn’t fall into the trap of believing everything you hear from them. After all, they’re trying to sell to you so you shouldn’t fall for the sales pitch hook, line and sinker. That rarely ever ends well.

 

Some Good Examples of Ways to Outsource

Carry Out Plenty of Research and Meetings First

Before you go any further, you should research the companies that you are considering outsourcing to. You can’t simply assume the best and hope things go according to plan. Unless you have a strong idea of what the company can do and what it’s done for other similar companies in the past, you can’t really make an informed decision regarding whether or not you should outsource to these companies and use their services or not. Never go into this kind of business arrangement blindfolded.

Gain Skills That Your Team Lacks

If your team is clearly lacking in certain areas, there’s nothing at all wrong with outsourcing in order to plug those gaps. That’s something that can be really productive because no matter how strong your team seems, there will always be areas in which you don’t have what you need. For high tech issues, software companies will be able to come to the rescue for you. It’s during times like these that you’ll be very glad for outsourcing. It’ll help your team through tough times.

Get the Small But Necessary Things Off Your Plate

There are so many small things that you have to deal with when running a business. But just because those small things are annoying and time-consuming, that doesn’t mean they’re not also very important. Once example is data entry. You need to keep things organised in that department, but the work itself can be tedious, downright boring and it takes a long time too. This is the kind of thing that it makes sense for your business to outsource to another company instead.

Avoid Spiralling Hiring Costs

Spiralling costs are never much fun to deal with, especially when those costs are linked to the people you hire. Sometimes, your small business simply can’t afford to hire all of the people it needs in order to stay competitive. That’s when outsourcing can be useful to you. It allows you to make use of the best people without actually having to commit to hiring them on a permanent basis. In other words, you can get the rewards without all the costs.

Stop Spreading Yourself Too Thin

If you and the other people in your team are currently taking on far too much work, then it does make sense to take some of the load off your shoulders by outsourcing some tasks. Spreading yourself thin is never good for your company because it usually means that you’re able to achieve less in pretty much every area of your business. And then there are the stresses and pressures that come with having to take on too much by yourself.

Always Assess the Results Being Produced by the Companies You Outsource To

One thing you can’t do is simply outsource something to a company and then just forget about it. That’s when you start to really experience problems because you’re not paying attention to the results that are being produced. If you find that the company you outsourced to is producing results that are worse than the results you’re able to produce in-house, it doesn’t make much sense to carry on with the partnership, does it? However, you will only know about that if you’re monitoring things closely.
Just like with anything else in the world of business, there are good ways and bad ways to go about the task of outsourcing. There should also be limits on what and how much you decide to outsource because it is always possible for your business to have too much of a good thing, and you can’t let that happen.

Easy Entry Points Into The Property Investment Maze

The real estate industry is a lot like a maze. Like the most complex mazes, there are a lot of routes in and often only one truly correct path. Other paths will either take too long or lead to dead ends, and that’s exactly what will happen if you start off at the wrong point investing in property. You’ll get lost, trapped and confused before it’s out. What makes things even more complicated is that with this maze, the paths through are constantly in flux. One minute your best option is to buy apartments and the next, well, the maze has shifted.

This can make it difficult for new real estate investors with money to spend but no knowledge of how to make a property investment work for them. Today, we’re going to look at some of the easiest ways into the maze and ensure that you don’t make a massive mistake as you’re just starting out. There are a few choices to consider here.

Focus On Your Own Home

The first option and perhaps the best is to just focus on your home. A lot of people make a killing simply by selling their own property, and yes, this does count as a property investment. Let’s explain how this works and what you’ll need to do to see an ROI.

Okay, you might buy your home for around 100K. That’s great because it means, assuming you have a solid income, it won’t take that long to pay off. For that price, the mortgage repayments should also be under control as well, hopefully giving you spare savings each month. This means that you can put money towards renovations.

Before you buy the home, you should consider the roof. Certain roofs are very easy to renovate into a third floor. So, make sure you check this out, looking at how much headroom you have in your home. Hopefully, there’s quite a lot, and if that’s the case, you just need to upgrade the side roofing. This can be accomplished by a expert contractor and often you don’t even need planning permission.

You can also think about making changes to the kitchen and bathroom. Statistically, renovativations in this area will add the most money to the value of your home. Essentially, you just need to work on keeping it modern, fresh and exactly what new home buyers are looking for. Do this, and you can add around twenty percent to the initial asking value of the home, earning a nice little profit. It’s solid, but it’s not a massive investment so let’s explore another possibility.

Buy The Holiday Home

The holiday home option is ideally suited for people who have a nice little nest egg and aren’t doing much with it at all. For 200K you can buy a great holiday home in a variety of different places around the world. In fact, some holiday destinations have homes that sell for a lot less. Even if you don’t have the nest egg, you can still consider this possibility because you can borrow and then buy. Now, if you have a mortgage, you’re probably wondering how you’re going to afford the cost of that holiday home.

There’s good news on that front. You just need to start renting it out right away. If you buy the home in a holiday hotspot, market it will keep excellent standards, you’re going to make a fortune through the summer months on this property. Within a few years, if you don’t spend it, you can use the money you make to completely pay off the property.

There are only a few things you need to watch out for. First, do make sure that you use a property agent to find the right home to buy. You can view LJ Hooker for more info about this and what you should be looking for when hiring an estate agent. Basically, they can help you find the ideal holiday home for you at the right price.

The other issue is downtime. There are two types of downtime in the holiday home market. First, there are the off peak holiday times through the year. You can still make profits at this time, but you need to make sure you drop the prices. Watch other homeowners in the area to find out where roughly you should be targeting for charges. You also need to watch out for a hit on the market as a whole because holidays are a luxury commodity. If the market gets hit, people no longer buy those expensive trips to stay at your beautiful villa.

Invest In Student Housing

You may also want to think about investing in student housing. Why invest in this specific type of property? Students want the bare minimum. They want a nice, fairly modern place to live that is secure, and that’s it. So, you can buy multiple apartments, invest in bulk in wholesale furniture and kit it all out on a tight budget. As long as you keep health and safety standards on point, you won’t receive any complaints.

One downside is that students move out through the summer, leaving properties empty. You do need to take this into account for your costs otherwise you’ll be in for a nasty shock. The extra benefit? Students have guarantors who essentially act as safety nets. There will always be someone legally obligated to pay the rent and the bills, even if they can’t.

Go In As A Group

Lastly, one of the biggest issues with property investments is the massive risk that is attached when you’re handling huge levels of capital. To deal with this, we strongly suggest that you think about entering the maze as a group. By doing this, the costs are fractional and the individual potential losses minimal. But, if you all put the effort in you can still see the huge profits that people speak of when boasting about their own experiences on the property market.
We hope this helps you navigate this weird, wonderful maze, practically bursting with profit potential.

How much life insurance will your family need?

It’s easy to think that just because you have life insurance, that you have enough life insurance. However that couldn’t be further from the truth, life insurance is a very dynamic thing, just like our lives it should change as our life events change.

Today I’m not going to talk about what life insurance is, Here you can read a complete post all about term life insuranceInstead, I’m going to cover how to figure out how much life insurance you will need.

Before you start looking for life insurance quotes, you should determine how much debt you have and how much debt your future self may have. Are you guys planning for kids? Are you going to be purchasing a new home? Will your kids be going to college soon? Will you be getting married? All of these factors will change the determination of how much life insurance your family needs if you pass away.

To figure out how much coverage you should purchase, you need to do a complete audit of your everyday life which will help you figure out how much coverage you need.

I always recommend that my clients purchase at least 20 times their annual income in life insurance. The reason for this is because if your family is living on a $50,000 annual income and you pass away, that’s $50,000 a year gone immediately.

The insurance industry usually recommends that you only purchased 10 times your annual income. At $50,000 a year that will put you at around $500,000 in life insurance, that sounds like a great amount of coverage. However, the issue is that it only gives your family 10 years of income. It doesn’t account for paying off a home, paying off any additional debt, final expenses, or affording your children the ability to go to college.

At 20 times your annual income you would be leaving your family $1,000,000 in coverage. That would be more than enough to cover your home, allow your family to put some money away for savings, and also assist with paying for your children’s College. It would give your spouse the time to prepare for a new type of financial situation; like will they have to start working or how to deal with one income.

Your current age is going to play a significant factor in the amount of coverage you have as well. You want to make sure that you have a substantial amount of coverage when you’re younger because you’re going to have more debt when you’re younger. It’s always best to try to go for a 30-year term option if you’re under 50 years old. if you’re over 50, go for a 20-year term because it is going to be the most extended term available for your age.

You also want to be mindful to look for the most affordable rates when purchasing life insurance. You want to get the maximum amount of coverage whenever you’re looking to purchase coverage.

Make sure that you look at multiple quotes and make sure that you’re dealing with A rated insurance carriers.

Remember, life insurance is not for you it is for those that you leave behind.

So when you’re determining the amount of coverage you need, make sure it’s enough to cover your family not just for the immediate but also for the long-term.