When to DIY and When to Outsource: Smart Resource Management

Every entrepreneur faces the DIY-or-delegate dilemma. With limited time and resources, you constantly decide: Should I do this myself or pay someone else to handle it?

Making intentional decisions about where to invest your time versus money prevents both wasteful spending and the false economy of doing everything yourself at the expense of growth.

The High Cost of Doing Everything Yourself

Many entrepreneurs pride themselves on handling everything in their business. This approach often stems from:

• Budget concerns and cash flow limitations.

• Belief that no one can do tasks as well as you.

• Enjoyment of learning new skills.

• Uncertainty about which tasks to outsource first.

• Lack of systems to make delegation effective.

However, the true cost of the DIY approach goes beyond your hourly rate:

• Opportunity cost: Time spent on low-value tasks means lost time for high-value work.

• Growth limitation: Your business can only grow as large as your personal capacity.

• Quality compromise: Tasks outside your expertise often yield subpar results.

• Burnout risk: Wearing too many hats leads to exhaustion and poor decisions.

• Slower progress: Learning curves for new skills delay business development.

The Strategic Outsourcing Decision Framework

Use this framework to make smart decisions about which tasks to handle yourself and which to delegate:

1. Evaluate Tasks Based on Impact and Skill Match

Plot your business activities on this matrix:

	Low Skill Match	High Skill Match
High Revenue Impact	OUTSOURCE FIRST	KEEP DOING YOURSELF
Low Revenue Impact	OUTSOURCE OR AUTOMATE	DIY WITH SYSTEMS

Examples:

• Outsource First: Technical website issues (if you're not tech-savvy).

• Keep Doing Yourself: Client strategy sessions where your expertise shines.

• Outsource or Automate: Bookkeeping and administrative tasks.

• DIY with Systems: Basic social media posting with templates.

2. Calculate the True Cost of DIY

For tasks you're considering outsourcing, calculate:

1. How many hours per month does the task require?

2. Your target hourly rate for revenue-generating work.

3. The opportunity cost (hours × your rate).

4. The market rate for outsourcing this function.

5. The quality differential (better, same, or worse results).

Example calculation:

• Bookkeeping: 10 hours/month × $100/hour potential revenue rate = $1,000 opportunity cost.

• Bookkeeper cost: $300/month.

• Net benefit: $700/month + potentially better financial records.

3. Identify Your Highest-Leverage Activities

These activities should rarely be outsourced as they represent your unique value:

• Direct client work utilising your core expertise.

• Relationship building with key clients and partners.

• Strategic business planning and vision development.

• Specialised creative work that defines your brand.

• Sales conversations for high-value offerings.

Protect time for these activities by outsourcing other functions.

4. Find Budget-Friendly Outsourcing Options

Even with limited resources, you can begin delegating:

• Project-based freelancers for one-time or occasional needs.

• Virtual assistants for 5-10 hours monthly to start.

• Service trades with complementary businesses.

• Template purchases to reduce creation time.

• Automation tools for repetitive processes.

Where to find affordable help:

• Upwork or Fiverr for project-based work.

• Industry-specific Facebook groups.

• Local college students seeking experience.

• Retired professionals working part-time.

• Specialised agencies offering small starter packages.

5. Create Systems That Make Delegation Effective

Successful outsourcing requires proper preparation:

• Document processes before outsourcing them.

• Create clear guidelines and expectations.

• Develop quality check protocols.

• Establish communication frameworks.

• Build feedback loops for continuous improvement.

Pro tip: Start by documenting a process while doing it yourself. Record a screencast or create a simple checklist that can later become your delegation blueprint.

Task Evaluation Matrix: What to Outsource First

Business Function	When to DIY	When to Outsource
Website Development	Simple template customisation	Custom functionality, advanced design
Content Creation	Core thought leadership pieces	Editing, formatting, research
Bookkeeping	Initial setup, basic tracking	Monthly reconciliation, tax prep
Administrative	Strategic planning	Email management, scheduling
Marketing	Strategy, relationship building	Implementation, technical ads
Social Media	Key client interactions	Content scheduling, graphics
Customer Service	Complex problem resolution	Routine inquiries, initial responses

Start Small: The 5-5-5 Outsourcing Plan

If you're new to delegation, try this approach:

1. Identify 5 tasks that drain your energy or fall outside your expertise.

2. Outsource 5 hours per week of your lowest-value activities.

3. Start with a 5-week trial period before evaluating results.

This minimal investment (typically $75-150/week) lets you experience the benefits while managing risk.

Common Outsourcing Pitfalls to Avoid

• Delegating without direction: Providing insufficient guidance and expecting mind-reading.

• Micromanaging: Spending more time managing the work than doing it would take.

• Choosing solely on price: Getting subpar results that require redoing.

• Outsourcing core value work: Diluting what makes your business special.

• Abdicating rather than delegating: Not maintaining appropriate oversight.

Real-World Impact Examples

Solo Consultant:

• Outsourced: Admin, booking, basic research (10 hours/week).

• Freed up time for: Two additional client sessions weekly.

• ROI: $600 spent monthly, $3,200 additional revenue generated.

Online Store Owner:

• Outsourced: Customer service emails, order processing (15 hours/week).

• Freed up time for: New product development, partnership outreach.

• ROI: $800 spent monthly, product line expanded 40% in six months.

Evaluate either option and always have the false economy talk when making your decision.