Outsourcing

As an investment banker and financial executive, I learned early and often that a client with significant repeat business runs the show and can get FANTASTIC results by wisely dividing its business.  Spread the business too thin and no bank will care, too concentrated and other banks won't compete for the business, but among two or three key players and amazing what each will do to outshine the other.

For creative businesses, my underlying philosophy is this -- the value is in the art (i.e., the design) not in the production of the art.  Unless you are vertically integrated and specialized in production (i.e., Todd Events and Celebrations), I would argue that you would do better supervising those who are focused on production than actually doing it yourself.  It should only take you a moment or two to realize that, in most cases, YOU are the big fish -- if you would only let yourself be.  I hear all the time from creative business owners (i.e., planners, caterers, florists, event designers, interior designers, graphic designers, etc.) that if they outsource the production of their art , they will lose control and risk their entire business.  To which, I have two responses.  The first is that most creative businesses are not in a position to outsource.  They do not have the capacity to supply the information necessary to ensure effective production of their design, nor the capacity to properly supervise the production.  Think about what an interior designer has to supply to a client to produce its design for a hotel -- a spec book about six inches thick.  Next, most creative businesses see those focused on production as competition, not as a potential supplier.  My guess is that if you thought of your business as a client and concentrated on what would make the relationhip valuable to BOTH of you, you would come up with a powerful way to "wholesale" the producer's business as part of your own.

A creative business will actually have MORE control if it outsources well.  There is a limit to what you can do by yourself and only so far you can extend into daring design if your neck is truly on the line.  However, if you can make it that your business represents a SIGNIFICANT portion of a producer's business, then their willingness to risk that business by underperforming is negligable -- even more so if you are taking all of the guesswork out of production by providing extensive design information and supervision.

If you are in the position to outsource, be the artist that you are and give the rest to someone else.  Then let your art go whereever it can go.

Comments

[Alissa]

Ah, just what I needed to hear this morning. I just hired an assistant to help with production and have been struggling with delegating. I am realizing that in order to see growth I will need to let go a bit.

[Bernadette Smith]

Great post as always, Sean. Just as I'm getting better at letting go, delegating and using assistants, I am starting to think more about expansion into other states - but that seems to be a much harder thing to delegate. And therein is my current struggle!