How Offshoring is Effective

When we were first building our business, we really, really hated the idea of outsourcing. Why? because we had so many failed projects. We were trying to get away with murder by hiring offshore programmers at incredibly low rates, as part of a 100- or 200-hour project, to build our first fully functioning website with an exciting ecommerce application integrated and shopping cart functionality so we could start generating some revenue and testing with real users who would actually be purchasing real product.

Several failed projects later, and with thousands of dollars (quite a bit of money for us as students who were still in college) down the drain, we finally brought on our first remote partner, Zeeshan Muhammad, who would become our CTO and would play THE integral part in launching Blank Label. Zee came on with equity, and worked as everyone else did – for free. It was the best deal we could have possibly had, realizing that our equity wasn’t worth much, and that our funds were limited, so we were more than happy to bring Zee on as a partner, which still undervalues his contributions to our business, but luckily, he loves us and the business so much that the money’s not important to him. 🙂

After doing everything in-house for the first 6 months, we started to realize how doing everything in-house was putting a ton of strain on ourselves. We tried hiring some more interns, and a few paid employees, all who never ended up working out. Instead, with lower expectations and salaries, with far more dedication, we hired a few more people to join the team off of Odesk, and found many efficiencies in working with them.

Since we weren’t giving them complicated tasks, that required review or much oversight, we were able to manage our time more effectively by not worrying about what they were doing, since we learned to trust them very quickly, and because we had passed on some simpler duties we didn’t want to do, freeing up our time to focus harder on our core competencies. The relationships worked great!

Ways for other small businesses to manage offshoring effectively and create efficiencies, is by:

– giving them simple (can a teenager do it?), repetitive tasks

– ensuring these tasks never need much amending

– making sure that if these tasks were to be done by someone else, your team could properly utilize that extra time to improve on other parts of the business

To grow, it was useful to hire offshore for several reasons including keeping costs low, and freeing up key team members’ times to really be effective in the things they do best.

At Blank Label Group, Danny Wong has worked with up to 5 offshore workers at a time, and highly advocates utilizing them for any growing business as he’s done with startups Blank Label, Thread Tradition and RE:custom. See a few of Danny’s other entrepreneurial musings at HuffingtonPost, TheNextWeb and ReadWriteWeb.

Previous Article
digital marketing

Why Community-Building Beats Team-Building Every Time

Next Article

Top 3 Ways to Avoid SEO Rip-Offs

Related Posts
virtual assistant
Read More

How Virtual Assistants Can Benefit Startup Leaders

According to venture capitalist Bill Trenchard of First Round Capital, the average startup founder "works about 300 days a year, 14 hours a day." He should know. Trenchard cofounded and led three companies and, as a VC, advises hundreds of startups. "Looking at the schedule of a typical CEO, a full 70 percent of that...
succession planning
Read More

Your Business Legacy: Why Succession Planning Is a Crucial Step in Estate Planning

Running your own business is a mammoth task and a considerable investment. Statistics have consistently shown that small business owners have to work longer and harder than the average employee. So, after dedicating so much time and energy to building up a company, it’s crucial to protect it should the worst happen. Almost all of...
supply chain
Read More

How to Keep Vendors and Clients Happy During Supply Chain Hiccups

Supply chain breakdowns are happening due to global disruptions, rising costs and increased consumer expectations. Businesses can't always stop supply chain hiccups, but they can learn from them and limit their impact on vendors and clients. How a business responds to a supply chain issue can have far-flung effects. A company that is proactive and...
implementing new systems
Read More

9 Mistakes to Avoid When Implementing New Systems

If your systems aren’t lean, efficient and precise, you’re wasting time and money while putting your business at unnecessary risk. If you’re going to build out new systems, you need to do it right. Avoid these nine mistakes when building new systems to transform how work gets done in your business. 1. Ignoring human nature...