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How We Built a $1M Consulting Biz by Outsourcing

It’s common for freelancers and solopreneurs to reach a point where their workload becomes overwhelming and help is needed. Sometimes it’s a simple matter of capacity — they’re burning out trying to meet their clients’ demands — but sometimes it’s a skill gap that calls for an extra set of hands.

This is typically the moment when freelancers take a step back and ask themselves what they really want from their business. Usually, it’s a choice between scaling back their workload or outsourcing to grow. Reaching this critical point can be scary, because it forces you to change your approach. But hiring support is also an incredible opportunity to take your business to the next level.

Figuring out where to start — and how to find the right people — can be a daunting task. That’s why we’re sharing our story. We’ll go through the steps we took to grow our boutique consulting firm using subcontractors, including how we found them, how we priced our services, and how we managed a growing team. I hope that it helps you with this next big decision in your business.

Our Story:

When my business partner and I started freelancing, we had the unique advantage of being a duo. This gave us access to a wider network of connections and bigger projects because together we offered a diverse skill set. But as our business grew, we discovered that most of the companies we worked with needed even more support than we could manage between the two of us. We were constantly helping them bring on additional freelancers or consultants to manage parts of the project, and that’s when we had our aha moment. What if we just brought on the talent our team needed to service their needs top to bottom.

We decided it was time to reassess our team structure. We worked great as a team of two, but we recognized the opportunity to diversify our clientele and grow our revenue by bringing on subcontractors. The extra help would be a value add for our clients, which meant we could charge more for each project. And having additional support would allow us to delegate the more hands-on tasks, so we could focus on strategy.

Off we went to find our first subcontractors. Shortly after putting the word out, we hired someone to manage our clients’ paid marketing programs and help with content creation. This move transformed our business and helped us scale tremendously. Bringing on just 1-2 people shifted the way we could serve our clients. We were closing bigger deals, executing faster, and truly enjoying the work we were doing.

TLDR: Bringing on subcontractors really did change our lives and helped us to take the business to a level we didn’t know was possible.

How We Hired Subcontractors

Before we began our talent search, we got really clear about the type of work we wanted our subcontractor to focus on, and the type of work we no longer wanted to do. For example: We were too bogged down by other clients’ strategic needs to manage execution tasks, like launching paid programs and writing short-form content. We knew that outsourcing these tasks would free us up to focus on the work we really loved to do. By getting specific, it helped us find the right subcontractor for the job — someone who would both enjoy and excel at that work.

We tapped into our network to find marketers who were looking to leave full-time work and try freelancing without taking a huge risk. We offered them consistent but flexible remote work and the freedom they’d been craving. It was a win-win for all of us, because we got support in tackling the tasks we didn’t enjoy, and our subcontractor got a stream of well-paid work without the responsibility of managing client comms or business operations.

Other Ways to Find Subcontractors

Don’t have an extensive network to tap into? That’s okay. There are a number of routes you can take to find the right subcontractor:

  • Put the word out anyway — Talk to your friends, family, and acquaintances about the kind of support you’re looking for. Even with a small network, you never know who will make the right recommendation. People are looking for work all the time.
  • Post on social — Twitter and LinkedIn are packed with freelancers and job-seekers who are constantly chatting with each other. Ask people to share your post or refer friends if it’s not the right fit for them.
  • Scout job boards and communities — Dedicated sites like Freelancing Females, MarketerHire, and Peak Freelance are homebase for freelancers looking for work.

How to Price Your Services When You Hire Subcontractors

One of the trickiest parts of outsourcing work is making the profit margin worth the extra effort of managing a freelancer. It basically means you have to raise your prices once you bring someone on to help you, or you’ll need to take on more clients to make it work.

We did both.

We got really good at estimating how long certain tasks would take, and then allotted 1.5-2x that time when assigning it out to a new team member. We’d account for this time and effort in our up-front project pricing to make sure we were covering our costs of labor and were going to make a margin. We paid our subcontractors up to $100 per hour and still made a profit because we were providing so much value.

You might not get pricing right the first time, so it’s smart to reflect on each project and assess where you’re making margin and where you’re not. You can shift your prices and packaging as you go. Don’t be afraid to raise rates as the value you provide increases.

We did this a number of times and most client’s didn’t bat an eye at the price because we were providing so much value. A few months into this new team structure, we were bringing on 3 month $60k deals.

How to Manage Your Subcontractors

When you first start freelancing, you’re often managing your biz a little chaotically — scribbling on sticky notes, logging tasks in your phone, and keeping a running list of ideas in the back of your mind. This approach can get you by while flying solo, but you’ll definitely need a centralized business management tool once you bring on subcontractors, virtual assistants, and/or collaborators.

Using a comprehensive tool like Harlow can help you streamline your business operations as you grow by keeping all of your client info, project details, proposals, contracts, and invoices in one place. You can invite your subcontractors and collaborators too, and assign out tasks as needed. By having this single, centralized dashboard, everyone’s job gets easier, and you can keep your business movin’ and groovin’.

Outside of just having the right tool to manage your biz, make sure you’re being a good boss and collaborator. Make sure your subcontractors have the information they need to do their job well, make expectations clear, and make sure you give them flexibility and room on deadlines. If the job starts feeling too corporate and rigid, you’re likely to lose those people looking for the perks of freelancing. Treat them how you want to be treated by your clients, it’s as simple as that.

 

Outsourcing can be a powerful strategy for solopreneurs looking to grow their businesses. By leveraging subcontractors, you can delegate tasks, streamline processes, and focus on your core strengths.

Remember, the key is to first understand exactly what kind of support you need. What do you dread doing every week? How much more could you accomplish if you were freed up to focus on the work that brings you joy and adds to your energy? Outsourcing can not only take your business to the next level, but it can help you fall in love with your work again.

Plus, having another person to brainstorm and collaborate with can be refreshing, especially if you’re used to working solo. Freelancers tend to bring a wealth of skills and experience with them, and a fresh perspective that can aid you in all sorts of ways you never imagined.

Taking the leap can be scary. But it was well worth the risk for us and countless others. With a little bit of prep and the right talent, you could transform your business. Are you looking to grow your business by bringing on subcontractors? I’m here for you as a resource, don’t hesitate to reach out.

About the Author
Samantha is co-founder of Harlow. Previously she was a marketing and demand gen freelancer. She enjoys traveling, connecting with new people, spending time with her dog Karl, and throwing back an extra dirty martini every now and then.

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