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The Benefits Of Outsourcing - Case Study #1

If you've ever considered outsourcing to a VA, you might have tried to reconcile why you would pay a higher p/hour rate than that of an employee (either part-time or full-time). Well, here’s a little case study that can help put the benefits into perspective. It's about one of our clients who has been with us for coming up 5 years and here's why...

  • They are a business coaching company (2 coaches who own the business)
  • They previously had a full-time admin/office person paying around $40k per annum as an office manager plus KiwiSaver, ACC, annual leave, sick leave, bereavement leave, stationery, copy paper, laptop, software, desk, chair, power (let’s say the real annual cost was conservatively $50k)
  • She left so they engaged our services
  • They switched their landline to divert to a mobile phone that they provided to us
  • They moved all their files into cloud storage
  • We streamlined the role and introduced them to tools and apps that improve efficiency across the company
  • They have full-time access to their VA so it feels like they still have a full-time person but they are only paying for the hours that she works on their tasks
  • All time spent on their tasks is 100% productive
  • As a bonus they now have access to a TEAM with various skills including bookkeeping, graphic design, photography and videography. All at the same hourly rate
  • We train and manage the VA (so they don’t have to), as well as a backup VA (if the VA is sick or on annual leave another of the team step in to ensure uninterrupted service)
  • They never have to recruit again because if their VA leaves, we train and put another one in place
  • They have a VA assigned that completes all of the 40-hour role in (generally)10 hours
  • They also used to pay for Graphic Design and Marketing services of approx.. $10k per annum which they now get under their service plan hours
  • Their annual cost was around $60k (Marketing & Employee costs), but now sits at around half that (10 hours x $57+gst x 12 months = $29,640+gst)

If they hired a part-timer they would still incur the employee additional expenses and they would be restricted to the days and hours that the part-timer works - hiring a VA means full-time access without having to pay for full-time hours.

If you're keen to chat about how you could benefit from outsourcing, feel free to get in touch.



 

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