C Is For Cookie! – Zig Zag Principle #43

October 1st, 2011 by Rich Christiansen

Other Resources to Add

Your organization will need resources other than more people.  Resources can include more capital or a new piece of equipment that will simplify your processes.  For example, if I were to create a cookie company, once I made enough money selling my first batches of cookies, I would consider using that money to purchase a machine that kneads the dough and then another one that cuts the cookies—after looking carefully at their cost and the potential return on my investment. 

Outsourcing is another way to add resources.  I started a company a year ago with my son.  My son created a website, and we then outsourced the building of five or six more websites.  We gave the developer our website template and told her exactly how we wanted our sites to be built.  Then we focused on other more lucrative parts of the venture.  One good thing about outsourcing is that you don’t have to worry as much about the value system.  The high production or the end result is what matters when you outsource.  The key to outsourcing is that you only want to outsource those things that can be thrown over the wall to someone who can do them independently.  Do not try to outsource those things that require your full involvement.  For example, I would not want to outsource my company’s financial books.  There are so many moving parts in my books that my executive assistant and I must go through them daily.  I want to know when bills go out, when we will be paid, and when our bills are due. 

One time I tried to outsource one of my companies’ bookkeeping to someone I knew in town.  It ended up being a nightmare because I was no longer able to know at a moment’s notice exactly where I stood financially.  On the other hand, I do outsource my payroll.  We send the payroll agency the hours each of my employees work, and they take care of all the required forms and paperwork.  I also outsource my taxes to my accountant.  We just send him a copy of our QuickBooks and the year-end papers, and he can take care of our taxes without taking any of my time.

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