6 minute read
TYRONE SHUM: RECLAIM YOUR TIME WITH EFFECTIVE OUTSOURCING
from Scalable Magazine
When running a business, there are a thousand things to think about each day; customer service, accounting, marketing, troubleshooting, ordering and stock control, to name just a portion of your day-to-day. For an enterprise that was supposed to give you the ultimate in flexibility and time back to do the things you enjoy, suddenly you find yourself just as chained to a desk as you did working for someone else!
Digital entrepreneur and outsourcing expert Tyrone Shum found himself in this exact situation. He fell into online business by accident while working full time in retail. He was participating in the sport of dragon boating and was trying to order his own elite paddles instead of relying on borrowing others. There was nothing available in Australia, so he tracked down an overseas supplier, however the importing costs doubled his overall costs.
Advertisement
Tyrone asked around his fellow competitors, many of whom were also chasing elite equipment to help them get the best from their sport. He ended up importing around 20 paddles and was able to strike a deal with the supplier, so he ended up splitting the import cost and even made enough to get his paddle for free.
“I thought wow, I can do this. This is fun! So that’s where the whole idea of an internet business began.”
Tyrone’s paddle business took off to the point where he was able to quit his full-time job and ended up earning six-figures per year. While he enjoyed it, he was still working the 60-plus hours per week.
“I kept hearing people say that running your own business will give you more time back; it will allow you to have the freedom to do whatever you want. And I believed that, but I just didn’t see it happening”, he said.
It was time to outsource.
“This is where I was searching for answers to try and leverage myself, try and make things better, make more time back, make more money and so forth. And this is where I came across Tim Ferriss’ Four-Hour Work Week.”
Tyrone digested the book and immediately started implementing the strategies. One of the first things he did was reduce his reliance on email for getting information to customers. He did this by setting up an FAQ where the customer would receive an automated message. From there, if the request was urgent, their query would be sent directly to Tyrone’s mobile. This eliminated at least 80 per cent of his inquiries – and saved his massive amounts of time answering each question individually.
“By outsourcing, I was able to bring my hours down from about 60 a week to about 10-15 hours a week and it was amazing, and if it wasn’t for my virtual assistants and my team of people that helped me, I wouldn’t have been able to do that.”
Tyrone has since moved into teaching and supporting other business owners to outsource effectively, which essentially comes down to three key components; knowing what to outsource, finding the right people and supporting your team.
KNOWING WHAT TO OUTSOURCE
Before you begin looking for personnel, break down your business activities into those
which directly bring you value and income, and those that are support services. Tyrone is a big advocate for the 80/20 rule, or the ‘Pareto Principle’. In the business world, this means that 80 per cent of your revenue should come from 20 per cent of effort. The key then is to find that 20 per cent and focus your attention on those activities. These could include video production, marketing, product importing and client relationship management. The rest you can eliminate or outsource, which could include customer support, email generation, setting up blogs or social media scheduling.
“Think it through, then create a mind-map on how your business should run. Once you’ve got that, you can take the next step to hire people to fill in those roles,” Tyrone said.
FINDING THE RIGHT PEOPLE
When searching for your VA’s, Tyrone’s experience has taught him to be quite specific about which areas of the world you want your staff to come from and what skills you expect.
In the beginning, Tyrone had a few VA’s who just could not deliver. Their prices were good, but the quality and timeliness of the outputs were far below par. He ended up going with a company from the Philippines on the chance that these people would prove more productive, and thankfully, they turned out great.
“From that instance onward, I have stayed with that company and the reasons why are that their service is absolutely topnotch. They understand what I need and communicate and are accountable to you
Once you have an applicant who looks good on paper, set up a video call for an interview. This allows you to test their communication and technical skills, as well as get to know them a little better before proceeding with the work.
“If their English is good and they can communicate with you, then that has already overcome at least 60 per cent of the hurdle. The other 40 per cent is the technical stuff, which they have or they haven’t, but they are willing to learn that, it is easy to train them up with videos,” he said.
Tyrone also recommends you ask to see a portfolio of previous work, and ask them to specify which sections of recent projects they worked on themselves. For example, if they
list a website build as something they have done, find out which parts of the process they implemented.
“I usually try to find people who have a strong portfolio of work, and yes, you will be paying a little bit more for them, but it is well worth it for the experience,” he said.
SUPPORTING YOUR TEAM
With the right people on board, it is time to let them into your business and train them to get the work done to your expected standard.
“Training them is often the hardest part, but if you have got a good project management system in place, managing your team is not too hard. Have daily accountabilities in place, have targets and goals set.”
“Ultimately, once you have trained them, they are going to be an asset to your business. With the right support, your customers will feel it, you will feel it, and your VA will be there for the long-term.”
It may take time to get the right people and processes in place, but don’t be disheartened. Once you have your outsourcing set up, your business can grow exponentially and you will finally have that time and flexibility you sought out at the beginning of your entrepreneurial journey.
“Don’t give up. If you haven’t been able to find the right virtual assistants, don’t give up. I tried three times before I could find the right assistant. Keep searching and I guarantee you will find someone.”
tyroneshum.com
