{"id":100269,"date":"2017-01-09T09:00:34","date_gmt":"2017-01-09T15:00:34","guid":{"rendered":"https:\/\/www.bluehost.com\/blog\/when-to-delegate-small-business-tasks\/"},"modified":"2017-01-09T09:00:34","modified_gmt":"2017-01-09T15:00:34","slug":"when-to-delegate-small-business-tasks","status":"publish","type":"post","link":"https:\/\/www.bluehost.com\/blog\/en-in\/when-to-delegate-small-business-tasks\/","title":{"rendered":"When to DIY and When to Delegate Small-Business Tasks"},"content":{"rendered":"\n
At Bluehost, we love small-business success stories, whether the business revolves around<\/span><\/i> pies<\/span><\/i><\/a>,<\/span><\/i> food trucks<\/span><\/i><\/a>,<\/span><\/i> minimalism<\/span><\/i><\/a>,<\/span><\/i> life coaching<\/span><\/i><\/a>, or<\/span><\/i> graphic design<\/span><\/i><\/a>. If you run a small business or are considering starting one, we want to help you make your business a success story too. For our \u201c<\/span><\/i>New Year, New Business\u201d series<\/span><\/i><\/a>, we\u2019ll be providing insights, methods, and resources for building and growing a small business.<\/span><\/i><\/h6>\n\n\n\n

The bootstrapping entrepreneur is admired in the business world and American culture at large: a scrappy, can-do person builds a successful business against the odds, with minimal resources or outside help. <\/span> But as many experienced entrepreneurs know, bootstrapping has its limits \u2014 because so do people. (This is especially true if you\u2019re trying to start a small business while working a day job.) Even the most determined among us have limited time, energy, and resources.<\/span><\/p>\n\n\n\n

If you burn out, your business will suffer. A wise approach, then, is to be careful and creative with your resources \u2014 but recognize that it can also be efficient to delegate some tasks. First, we\u2019ll help you figure out how to decide whether to DIY or delegate. Then, we\u2019ll offer tips for DIYing or delegating three common management tasks.<\/span><\/p>\n\n\n\n

Questions to Help You Decide: DIY or Delegate?<\/h2>\n\n\n\n

You\u2019ll find that each choice comes with its own unique considerations, but in the DIY vs. Delegate debate, it really boils down to two questions:<\/span><\/p>\n\n\n\n

Question 1: Do you already have the expertise to handle this task?<\/h4>\n\n\n\n

This is the simplest one \u2014 it\u2019s yes or no. If no, go on to Question 2. If yes, skip to Question 3.<\/span><\/p>\n\n\n\n

Question 2: Can you gain sufficient expertise through your own research?<\/h4>\n\n\n\n

In the spirit of bootstrapping, you can always gain a bit more expertise by browsing the guides on <\/span>SBA.gov<\/span><\/a>, scouring the Internet for answers to your questions, and researching at the business section of your local library. But research takes time, and doing the task yourself will also take time. Which brings us to question 3.<\/span><\/p>\n\n\n\n

Question 3: What are the trade-offs and opportunity costs?<\/h4>\n\n\n\n

A trade-off is what you give up vs. what you get. An opportunity cost is the cost of what you give up. Most often, the opportunity cost is time or money. Making trade-offs is intrinsic to life and business, and it sure isn\u2019t easy. To help your decision-making, here\u2019s a framework to consider:<\/span><\/p>\n\n\n\n

Trade-offs for DIYing<\/h5>\n\n\n\n

You give up the time and energy of doing the task, and the time and energy of learning how to do the task if it isn\u2019t your area of expertise. Plus your risk of error is higher if it isn\u2019t your area of expertise. In exchange, you get to keep the money you would have spent paying an expert, and you have complete control over that task.<\/span><\/p>\n\n\n\n

Trade-offs for Delegating<\/h5>\n\n\n\n

You give up money to pay an expert, and cede some control over the task. In exchange, you get to save time and energy and reduce the risk of error.<\/span><\/p>\n\n\n\n

Opportunity Cost for DIYing<\/h5>\n\n\n\n

Let\u2019s say it will take you three hours each month to complete a particular task. Now, think about alternative ways you might spend those hypothetical three hours. <\/span> <\/p>\n\n\n\n

Make a list of three to five tasks that are crucial to your business\u2019s success. That might include collaborating with developers to strengthen your product or attending industry conferences to heighten your brand\u2019s visibility. And because you\u2019re a business asset too, include on that list an item that is important to your personal well-being, like having dinner with your family or getting to the gym once a week. <\/span><\/p>\n\n\n\n

Then ask yourself: Are you spending enough time on these top-priority tasks, or would your business benefit if you spent three more hours each month on them? If you have enough time for these tasks, DIY may be right for you. If these tasks are being neglected, delegating may be right for you. <\/span>
(Note: This thought exercise is adapted from <\/span>Pricing Design<\/span><\/i><\/a> by Dan Mall.)<\/span><\/p>\n\n\n\n

Opportunity Cost for Delegating<\/h5>\n\n\n\n

Let\u2019s say it will cost you $150 each month to outsource that task that takes three hours per month. Now, think about alternative ways you might spend that hypothetical $150 (or $50 per hour).<\/span><\/p>\n\n\n\n

Make a list of three to five expenses that are crucial to your business\u2019s success. For example, paying employees a decent wage (that includes yourself), paying for advertising, or purchasing equipment or software. <\/span><\/p>\n\n\n\n

Then ask yourself: Are you spending enough money on these top-priority expenses? If you are, go ahead and delegate. If you aren\u2019t, perhaps delegating simply isn\u2019t in your budget \u2014 unless you decide that this particular task is urgent or important enough to take precedence over other tasks until you can afford to pay for all of them.<\/span><\/p>\n\n\n\n

Follow Your Priorities<\/h4>\n\n\n\n

We all need somebody to lean on \u2014 even gritty bootstrappers can benefit from the occasional delegating. Whether you choose to DIY or delegate, the exercise of weighing the options provides an opportunity to reflect on your business priorities, and then act on those priorities.<\/span><\/p>\n\n\n\n

Task 1: Choosing Your Business Structure<\/h2>\n\n\n\n

Know Before You Decide<\/h4>\n\n\n\n

In the U.S., there are several types of legal business structures, including a sole proprietorship, partnership, corporation, and limited liability company (LLC). <\/span> The most common business structure is the sole proprietorship. It\u2019s the simplest and easiest option; you don\u2019t need to fill out any forms or pay any fees (of course, you do have to pay taxes, but that applies to any business structure). <\/span> However, another structure may better fit your needs. For example, if your venture entails high risk, the protection granted by an LLC may be worth the cost and effort.<\/span><\/p>\n\n\n\n

How to DIY<\/h4>\n\n\n\n

First, do your research, starting with these articles:<\/span><\/p>\n\n\n\n