Outsourcing Aspects of Your Business For the First Time - Tips to Avoid the Pitfalls

So - you're a business owner who wants tostages of posting your project online, you still
outsource some aspect of your business day andneed to decide how you are going to pay your
don't know exactly what's required to post yourfreelancer once your project is completed - best
project online? You may have heard stories ofto figure this out now and save any unnecessary
business people who have been burnt byhassles later on. The safest way is to use an
outsourcing and have ended up with somethingonline escrow service. With these online services
very different than what they were expecting.your money is kept 'in escrow' until you have
Well fear no more as this article will outline thereceived all of your deliverables. Once approved,
steps you need to take to help you on the roadthe money is released to the freelancer. This
to ensuring that what you get IS what you wereprocess also ensures that the freelancer knows
expecting. What you don't hear about thosethat they will be paid for the project as they
stories is that in most of those cases, thereceive confirmation that the payment is being
business owner didn't provide enough detail to theheld awaiting release upon completion of the
freelancer about what they were expecting. It isproject. As some freelancers have delivered work
imperative when dealing with freelancers whofor projects in the past and not received
may live across town, across state or across thepayment for it, the escrow process alleviates the
world, that you strictly define what theworry involved in for all parties concerned.
outsourced work (henceforth called a 'project')Ownership of the final project deliverable:
you require doing is all about. This can not onlyIssues of ownership of the work completed can
give a freelancer a better chance of correctlybe a major concern for business owners. You
quoting a price for your project (thus insuringneed to make it clear in your project document
misunderstandings can be kept to a minimum),that the project is a work that is 'made-for-hire',
but it can also iron out any kinks in your projector include a clause in the contract transferring all
idea that you may not have previous thoughtrights relative to the project from the creator
about. Also, you have to remember that(freelancer) to the requestor (you).
freelancers aren't mind-readers - you may have itCommunication preferences:You might want to
all perfectly worked out in your head, but if itsinclude which form of communication you will
not written down concisely thenprefer to use throughout the project process
misunderstandings between you and yourwith the successful freelancer. You may prefer to
freelancer can occur.communicate via e-mail, telephone, skype, instant
When you have decided on what aspect of yourmessaging, and its good to let people know from
business you want to outsource and you arethe beginning the best way to contact you if they
ready to place your project onto a freelance sitewin the project bid.
it is always a good idea if you create a projectA few more things to consider...
document that you can include along (with theContracts:
brief synopsis of the overall project) so thatOnce you have chosen your freelancer from the
prospective freelancers can know exactly whatbids you have received, it is important that you
they are quoting for.have a contract drawn up (or use an independent
The detail included in your project document iscontractor contract template available online) that
not limited but should include the following things:ooutlines what is expected from both you and
The Scope of your projecto Payment termsyour freelancer.
(payment up front, installment payments orConfidentiality or NDA agreements:
payment at the end of the project)o OwnershipIf your project or business process that you are
of the final producto Communication preferencesooutsourcing is particular sensitive or confidential (or
Contract terminationyou simply don't want anyone knowing about
Project scope:your revolutionary idea) then you should have
Include a detailed description of the services youyour freelancers sign a confidentiality or
want performed. For example if you want a webnon-disclosure agreement (NDA). You can either
site designing, you need to go into some detailhave your lawyer draft one, or find a general
about the type of features you want included,template for one on the internet. If you require a
the number of pages etc. Simply stating 'Need aconfidentiality or NDA agreement for your
website about horses creating' doesn't give aproject, then you will obviously need to keep
prospective freelancer a lot to go on, and couldcertain information out of your project document
mean that you don't end up getting what youso that no one else runs away with your idea. It
wanted for the price you were willing to pay. Themay be that you have to walk a fine line
details should convey the objective of the job andbetween detailing your project document with
the information that may be required to receiveenough information and keeping the juicy bits
an accurate and appropriate bid from a freelancer.back until you get your winning freelancer to sign
The more thought out this description is, thean agreement. As long as you are aware that
better quality of bid you are likely to receive. Thisprospective freelancers still need to know the
is will also help alleviate any misunderstandingsextent of the work involved, so it may be that
between you and your prospective freelancer,you outline it enough for them to be able to
right from the beginning. Using the horse websiteadequately bid for the project, but not give away
design idea as an example, you would state howexact details.
many pages you want your website to haveAlternatively you could look at splitting your
(home page, general info about horses, tips forproject into different sections and outsourcing
looking after your horse, contact us page tothem separately. That way no one person has
name but a few), whether it requires a shoppingthe full view of what the project entails. However,
cart to sell horse related items, a newsletter optthis avenue for the outsourcing beginner is fraught
in section for interested horse owners, etc etc.with issues as depending on the complexity of the
Already you can see that from the original idea ofproject this may be a nigh on impossible
'wanting a website creating about horses' you arealternative without using the services of a Project
already progressing to provide a better idea ofManager to tie the project together. (You can
what you want as you add more and moreeven find your Project Manager via the freelance
information. With this example you can drill downwebsite as well, if you don't have one within your
further if you wish and note any special featurescompany to handle this process for you).
you may want to add to the site such as pop-upsContract Termination:
or flash animation. This process also helps youYour project document should include contract
visualize your project and make note of anythingtermination details which briefly outlining what may
you hadn't thought of before.constitute as termination of the project. This can
Within the project scope you may wish to includeinclude such issues as:o Late delivery of project
the deliverables expected at all stages of thedeliverableso Poor workmanshipo Lack of
project, with milestone dates set out quite clearly.communication
It may be that your project is relatively small andAlthough the full details of contract termination
only one deliverable date and milestone is requiredwould be discussed further with the freelancer
for the finished product. However, it is more thanwho successfully bids on your project, it is
likely however that you would want to setimportant to briefly make the freelancers bidding
several deliverable dates for the variouson your project aware of your stance from the
milestones associated to your project.outset. This may also help to weed out the
Payment Terms:serious freelancers from the 'tire-kickers' if they
It is important that your project document statesknow that from the beginning.
your schedule of payment - whether you want toConclusion:
pay in installments upon receipt of deliverablesAll in all, to successfully navigate the world of
along the length of the project, or whether tooutsourcing, information is the key. As long as
pay the full amount upon completion and sign offeveryone involved in the process is well informed
of the project. Also whether you simply want tothen the way forward for your project is going
pay an hourly rate, if your project is ongoingto be a lot clearer than that of the un-informed
work such as data entry or internet researchbusiness owner who has a vague description and
work.no clear defined agenda of the project they have
Although at this stage you are still in the initialto outsource.