Ask HN: How to deploy money effectively to save time and build a business?
18 comments
Choosing which tasks you delegate to others is very dependent on how much trust you have in those around you, and also how much room for error there is in the task.
If it is something critical, or something that relates strongly to your vision of the business, then more often than not you can prioritize that higher. If it is not mission critical, somebody can learn from the task, and somebody is somewhat qualified to get to the end of the task, you can probably delegate it.
All of these things change as a company moves through different stages.
On the topic of personal delegation...you really have to know yourself. If you need electrical work done, and you don't know anything about electrical work...you probably want to pass on the DIY route and just get someone who knows what they are doing and are taking the risk. If you need to do some drywall...yeah you can probably knock that out, and even make some mistakes along the way. There is always this feeling of "I can do this cheaper and better" but often there is no follow through, and you're not giving the pros enough credit.
If it is something critical, or something that relates strongly to your vision of the business, then more often than not you can prioritize that higher. If it is not mission critical, somebody can learn from the task, and somebody is somewhat qualified to get to the end of the task, you can probably delegate it.
All of these things change as a company moves through different stages.
On the topic of personal delegation...you really have to know yourself. If you need electrical work done, and you don't know anything about electrical work...you probably want to pass on the DIY route and just get someone who knows what they are doing and are taking the risk. If you need to do some drywall...yeah you can probably knock that out, and even make some mistakes along the way. There is always this feeling of "I can do this cheaper and better" but often there is no follow through, and you're not giving the pros enough credit.
My thoughts and experience with this.
Business side: for stuff like graphics design, research and data entry, building simple websites or apps, video editing or creatives, I've had good luck finding talent on freelance sites.
Finance: this is something I would be leery about outsourcing, until you grow big enough. Even though, I would outsource this to a well qualified CPA / CFA or company specialized in this, not to a random freelancer online.
Food: you can purchase food at your local restaurant or even have it delivered through Doordash, Uber Eats etc. Yes, not quite as good as home-cooked food, but you are asking about tradeoffs to save time.
Shopping: similar to food, purchase online and have it delivered to your home.
Home / car repairs: this is a tough one. You can save a lot of money on DIY here, BUT it is fraught with peril, one wrong step could mean a lot more in costs than you could have saved with an expert. As of now, I'm just letting the experts handle this.
Business side: for stuff like graphics design, research and data entry, building simple websites or apps, video editing or creatives, I've had good luck finding talent on freelance sites.
Finance: this is something I would be leery about outsourcing, until you grow big enough. Even though, I would outsource this to a well qualified CPA / CFA or company specialized in this, not to a random freelancer online.
Food: you can purchase food at your local restaurant or even have it delivered through Doordash, Uber Eats etc. Yes, not quite as good as home-cooked food, but you are asking about tradeoffs to save time.
Shopping: similar to food, purchase online and have it delivered to your home.
Home / car repairs: this is a tough one. You can save a lot of money on DIY here, BUT it is fraught with peril, one wrong step could mean a lot more in costs than you could have saved with an expert. As of now, I'm just letting the experts handle this.
I generally agree though this depends on which part of the world you're from. Some useful metrics for delegating/outsourcing
1. If it's a specialty that you don't have but is important, consider outsourcing (e.g. accounts, design etc.)
2. Like parent said, freelance is good for transactional stuff but for long term engagements, outsource to a company whose people you've met or know (Atleast via. a reliable referral).
3. Food (and exercise/health). If this gets hurt, the whole business gets hurt so it's worth spending time, energy and money here.
4. Shopping, laundry etc. - Batch these things. Do what you need once a week so that it's under control but doesn't take up too much time.
It's useful (though not fool proof) to calculate your opportunity cost when you do things yourself. If you're worth $50 an hour (consulting time etc.) and spend 2 hours to buy $25 worth groceries, it's something you need to look at outsourcing or delegating.
1. If it's a specialty that you don't have but is important, consider outsourcing (e.g. accounts, design etc.)
2. Like parent said, freelance is good for transactional stuff but for long term engagements, outsource to a company whose people you've met or know (Atleast via. a reliable referral).
3. Food (and exercise/health). If this gets hurt, the whole business gets hurt so it's worth spending time, energy and money here.
4. Shopping, laundry etc. - Batch these things. Do what you need once a week so that it's under control but doesn't take up too much time.
It's useful (though not fool proof) to calculate your opportunity cost when you do things yourself. If you're worth $50 an hour (consulting time etc.) and spend 2 hours to buy $25 worth groceries, it's something you need to look at outsourcing or delegating.
Community. You need to build community.
Many of the things you list, I've found through making friends in my community. I really really trust my dentist, my mechanic, my doctor, my dog watcher, my vet, my barista, my local small business owners. I know them personally, they trust me and I trust them.
It takes time, but if you out effort in, you get 10x out.
Many of the things you list, I've found through making friends in my community. I really really trust my dentist, my mechanic, my doctor, my dog watcher, my vet, my barista, my local small business owners. I know them personally, they trust me and I trust them.
It takes time, but if you out effort in, you get 10x out.
this is the difference between a rich serial entrepreneur and an office drone moving to self employment.
you will not have the time while working 16h day to build that.
you will not have the time while working 16h day to build that.
I'm the latter...
1. Does this actually need to be done right now?
If yes,
2. Is it in my core competencies? If no,
3. Do I have access to someone whose core competency it is, do I trust them with this task enough to not postpone? (Sometimes this takes us back to #1.)
2. Is it in my core competencies? If no,
3. Do I have access to someone whose core competency it is, do I trust them with this task enough to not postpone? (Sometimes this takes us back to #1.)
and if I do postpone tasks,
ranked in a hierarchal to-do list app,
synced to myself and my partners in vital categories of my life.
What does, and doesn't make it onto today's list, or is Snoozed/set to appear as a task later, these are wildly important.
If you can't put it on "paper", it's not straight in your head, clear to you.
If these don't seem vital yet, you're either lucky your business is simple, you've already delegated it all - or you're not seeing the whole picture.
ranked in a hierarchal to-do list app,
synced to myself and my partners in vital categories of my life.
What does, and doesn't make it onto today's list, or is Snoozed/set to appear as a task later, these are wildly important.
If you can't put it on "paper", it's not straight in your head, clear to you.
If these don't seem vital yet, you're either lucky your business is simple, you've already delegated it all - or you're not seeing the whole picture.
delegating/outsourcing always comes with an overhead cost that is usually equal to the original amount of resources, although it may shift to different category of resources
but simplification and ruthless prioritization always pay off
but simplification and ruthless prioritization always pay off
So much this.
Sometimes by the time you've documented or broken down the task in sufficient detail to hand off to a third party, then reviewed and revised the work several times, you realise you could have done it yourself in the same or less time. And if you've contracted the work out, any learnings will leave when the job is completed.
Taking this time and care with employees when delegating tasks is a much better equation and will help set the standard/quality of work you want to see moving forward.
Sometimes by the time you've documented or broken down the task in sufficient detail to hand off to a third party, then reviewed and revised the work several times, you realise you could have done it yourself in the same or less time. And if you've contracted the work out, any learnings will leave when the job is completed.
Taking this time and care with employees when delegating tasks is a much better equation and will help set the standard/quality of work you want to see moving forward.
I look at this as optimizing money, time, quality & enjoyment. The "enjoyment" part is an important component.
I hate doing some tasks, and even if they cost more/save me little time, I would still outsource them. For example, I don't like cleaning the house or doing laundry. Making slides look good - I cannot do well or I don't enjoy it, so that would be in the quality/enjoyment category of outsourcing. Some tasks that I enjoy doing or I don't mind doing - and it provides me with a switch in my "work activity" - I would do. Like, I don't mind washing dishes or doing minor home repairs. So, I would do those things and use them as 'rest' from other activities that require thinking, coding, etc.
I hate doing some tasks, and even if they cost more/save me little time, I would still outsource them. For example, I don't like cleaning the house or doing laundry. Making slides look good - I cannot do well or I don't enjoy it, so that would be in the quality/enjoyment category of outsourcing. Some tasks that I enjoy doing or I don't mind doing - and it provides me with a switch in my "work activity" - I would do. Like, I don't mind washing dishes or doing minor home repairs. So, I would do those things and use them as 'rest' from other activities that require thinking, coding, etc.
Use the urgent/important matrix.
To be honest, anything specific to your business or client facing you should probably do if it’s small, or is commercial in nature, to control the quality. Anything service based can be outsourced.
To be honest, anything specific to your business or client facing you should probably do if it’s small, or is commercial in nature, to control the quality. Anything service based can be outsourced.
are your time really valuable? what makes you so sure?
what did you done with that extra time? did it matter much?
what did you done with that extra time? did it matter much?
[deleted]
Background: I'm a solo operator with a consulting business
> * What types of activities, both business and personal, have you found to be effective to pay others to do?
When I started out, I undertook all tasks myself. Not just because I was being frugal (which I was), not just because I wanted control over every aspect of the business (I did) but also I was actually interested in getting exposure to areas that were outside my wheelhouse. Even the initial design/creative work for my logo, letterheads etc. (which was not my strength at all) - I just gave myself plenty of time and tried heaps of ideas until finally hitting on something I was happy with that didn't look too amateurish. As it turns out, I haven't had a single customer come to me via my website, have still not printed a single business card and have more work than I can handle.
I also didn't have much of a background in accounting (I took a business studies course 20 years ago when I was in high school), but resolved to learn this as well before engaging a professional to run annual audits and tax filings when things got more established. When it comes to finance, being connected to what is going on in your business is essential. Understanding the relationships between accounts receivable, salaries, general expenses and taxation is crucial to understanding where your business is really at, rather than just looking at your bank balance and assuming that everything is okay because it's still >$0.
> * How do you find people you can trust?
> * How do you navigate getting high quality help versus saving money?
I will always try to get the best/highest quality help I think I can afford, and will find these people through my existing networks, or by simply asking other professionals that I have previously engaged e.g.: Does your accountant recommend any good tax consultants? Does your taxation consultant have a nice website? This is a really simple way to expand your horizons if you don't already have a diverse network to draw from.
> * How much do you value your time (e.g. I'll spend $20 to save an hour of my time)?
This is sometimes not as smart as it seems; for me, I would frame each task more in terms of "Will completing this task teach me something that may be valuable in the future or shape the way the business operates?". And honestly, sometimes tackling a job that isn't anything like the work I do every day is nice for a change.
> Personal:
> * Cooking, cleaning, laundry
> * Shopping
> * Home repairs, car repair, etc
The answer to this is simple. Work business hours, then clock off and do your personal chores on your personal time. The #Grindhustle life might have been cool 10 years ago, but burnout is real and will end up costing you a lot more.
As for simplifying your life - the clothes schtick (Steve Jobs, Elizabeth Holmes, Barack Obama) is more about reducing the number of decisions you need to make in a day. I'm not sure it's a massive time saver, but yeah, I printed some t-shirts for my one-man work-from-home consulting gig that I put on as part of my "ritual" for going to work in the next room ;)
> * What types of activities, both business and personal, have you found to be effective to pay others to do?
When I started out, I undertook all tasks myself. Not just because I was being frugal (which I was), not just because I wanted control over every aspect of the business (I did) but also I was actually interested in getting exposure to areas that were outside my wheelhouse. Even the initial design/creative work for my logo, letterheads etc. (which was not my strength at all) - I just gave myself plenty of time and tried heaps of ideas until finally hitting on something I was happy with that didn't look too amateurish. As it turns out, I haven't had a single customer come to me via my website, have still not printed a single business card and have more work than I can handle.
I also didn't have much of a background in accounting (I took a business studies course 20 years ago when I was in high school), but resolved to learn this as well before engaging a professional to run annual audits and tax filings when things got more established. When it comes to finance, being connected to what is going on in your business is essential. Understanding the relationships between accounts receivable, salaries, general expenses and taxation is crucial to understanding where your business is really at, rather than just looking at your bank balance and assuming that everything is okay because it's still >$0.
> * How do you find people you can trust?
> * How do you navigate getting high quality help versus saving money?
I will always try to get the best/highest quality help I think I can afford, and will find these people through my existing networks, or by simply asking other professionals that I have previously engaged e.g.: Does your accountant recommend any good tax consultants? Does your taxation consultant have a nice website? This is a really simple way to expand your horizons if you don't already have a diverse network to draw from.
> * How much do you value your time (e.g. I'll spend $20 to save an hour of my time)?
This is sometimes not as smart as it seems; for me, I would frame each task more in terms of "Will completing this task teach me something that may be valuable in the future or shape the way the business operates?". And honestly, sometimes tackling a job that isn't anything like the work I do every day is nice for a change.
> Personal:
> * Cooking, cleaning, laundry
> * Shopping
> * Home repairs, car repair, etc
The answer to this is simple. Work business hours, then clock off and do your personal chores on your personal time. The #Grindhustle life might have been cool 10 years ago, but burnout is real and will end up costing you a lot more.
As for simplifying your life - the clothes schtick (Steve Jobs, Elizabeth Holmes, Barack Obama) is more about reducing the number of decisions you need to make in a day. I'm not sure it's a massive time saver, but yeah, I printed some t-shirts for my one-man work-from-home consulting gig that I put on as part of my "ritual" for going to work in the next room ;)
>As it turns out, I haven't had a single customer come to me via my website, have still not printed a single business card and have more work than I can handle.
Any chance you could expand a bit on where/how you get work? Is it small jobs from multiple clients? very large jobs from few clients?
Any chance you could expand a bit on where/how you get work? Is it small jobs from multiple clients? very large jobs from few clients?
I have a very large project from one client, with another to follow when it is complete, but I also take on smaller jobs from a few clients in parallel. I find bouncing between these a good way to keep motivated and diversify my week.
All of these projects have come from referrals from clients, people I've worked with in the past or friends in the industry.
All of these projects have come from referrals from clients, people I've worked with in the past or friends in the industry.
* What types of activities, both business and personal, have you found to be effective to pay others to do?
* How do you choose what tasks to do yourself and what to delegate?
* How do you navigate getting high quality help versus saving money?
* How do you find people you can trust?
* How much do you value your time (e.g. I'll spend $20 to save an hour of my time)?
A few examples:
On the business side:
* Taking slides and making them look professional, making a website, etc
* Finances, taxes
* Filtering through emails, and doing initial outreach to candidates
Personal:
* Cooking, cleaning, laundry
* Shopping
* Home repairs, car repair, etc
For instance on home repairs, I've found it hard to get reliable contractors. Inevitably something goes wrong and it still ends up being time consuming.
I'll also note that I grew up in a family with relatively little money so I grew up with a mindset to save as much as possible by doing things yourself. But as my time has become more valuable, I'm trying to be more efficient.
Another lens to view this through is that some of the most successful entrepreneurs are relentless about simplifying their lives (e.g. wearing the same, simple clothes). That is the most visible thing that happens, but I'm sure there are lots of other things that people have done that are less talked about.