When is DIY Cost Effective?

Ah, the power of being able to say "I Did it Myself!" and the feeling that somehow you have saved untold amounts of money is very seductive and empowering. Yet, doing it yourself is not always the most overall cost effective path both in terms of time, money, and opportunity cost. So, how can you best decide when to DIY and when to hire an expert?

Recently my partner and I tackled a small (in theory!) DIY project on our deck. We had 3 boards in a little sunken step that enters the house that were rotted and warped. If that wasn't bad enough, a small colony of bumble bees had taken up residence beneath the boards. So, whenever you wanted to sit on the deck or go in or out of the house, you would be buzzed by bees (no pun intended). The pest control wanted $140 to eliminate the bees (been there, done that several years ago). We figured -- now that we're feeling all high and mighty and educated from participating in a Habitat for Humanity Women Build we can do this project. How hard could it be?? (famous last words).

Long story short we did succeed in both replacing all the boards, improving the step, and eliminating the bees. It feels great. Yet, what I thought would take about two hours stretched into many hours over the course of several days due to improperly cut boards (Lowes cut it their way, not to our measurements), stubborn returning bees, and the stupidity of the way the rest of the deck (and that step) were built once upon a time. In the end I feel great about our accomplishment and we learned alot. If I had to do it again, I'd probably still DIY, but it got me to thinking -- how cost effective is this really, when I factor in all the time spent doing it?

Nina at Queercents tackled this very question recently in "DIY vs. Hiring out: When is it worth the time and cost of doing it yourself?". She and her partner recently spent two weekends

So what exactly did we do? We applied floor coating, installed shelves and made two trips to the Goodwill. I’m not sure why we thought the floor and shelves were going to be too challenging to make this a do-it-yourself venture. But it stalled us for years and never got around to doing this project. We’ve had garage envy many a times when we’d see a friend’s garage with high-end epoxy floor coating. To have this professionally done, it will set you back about $1,500.

I try to follow the same rules as Madame X at MyOpenWallet when it comes to DIY projects:

* Don’t pay someone else to do what you can easily do yourself
* Pay others to do anything that you might really f**k up!
* If you can really make better use of the time, pay someone to do things that take up time

Nina made out well as the project cost them only $800 and two weekends of work saving them several thousand over hiring an expert.

The DIY approach to home projects is not a hard and fast calculation. Would you rather spend your time on the project or doing something fun and relaxing? How much time and energy do you have to invest in the project? After all, you are dealing with your "free time" and not trading off billable hours for administrivia as you might in business decisions that tackle the DIY question.

If you own your own business, the number of things you could possible DIY is astounding. For many in the startup phase, it is all about bootstrapping. Yet when does it make sense to do something yourself versus hire an expert?

As I see it there are two main categories to hire out for - the time wasters and the "I don't have the proper skill set" types of tasks. For the time wasters, many small and solo businesses hire a Virtual Assistant (VA) to handle administrative stuff. Time Saver VA shares in "8 Questions VA’s Hear All The Time":

Contract a VA and you’ll have more time to develop your organization, spend with your family, or to just relax. Our virtual assistant services help you reclaim the time you lose each day on administrative tasks. You free up your valuable time to focus on more important things - like running your business!

and

The real question is, can you afford not to have a virtual assistant? Time is a valuable commodity, and in short supply. When you hire a VA to handle time-consuming tasks, you’re literally buying back your own time. Think of what you could accomplish if you had just a few more hours in your day!

If you think about it -- let's say your billable rate is $90 an hour. If you are spending several hours a week or month on administrative tasks and can hire someone at a fraction of your rate, you are in good shape. Sure you COULD do it yourself, but do you really want to work 24/7?

In the "I don't have the skills category" falls services like web design and development, financial planning, accounting, tax preparation, legal issues, and the like. You can definitely find a world of DIY resources on the web. From simple web templates (that often don't work acceptably cross-browser I might add) to DIY legal forms you can definitely find it or buy a kit super cheap. Sometimes it makes sense. Other times, I am a firm believer that you get what you pay for. We would NEVER sit at home with a toothache and lament that "we really should know more about dentistry and be able to fill our own cavities" yet we adopt that very mindset when it comes to financial planning and other similar professional services.

I wrote about this very topic in "But I Feel So Bad I’m Not Good with Technology" and gave 7 compelling reasons not to DIY when it comes to your business' website. Number 6 applies to ANY business:

6) Your current and future customers are counting on you to be a master at what you are offering them. Unless that offering is web design and consulting, you are shortchanging your most precious commodity by dabbling in the website business. Your time IS money and wouldn’t you rather spend it generating more revenue for your business doing what you do best?

Not everyone sees the need to let go of the do it all yourself mentality even in the long run when you have plenty of cash. at Belmont University Forum sported this post:

Second, bootstrapping increases the income that the business can generate for its owners over the long-term. It also helps them to build more wealth from the venture. Cash flow is what allows the entrepreneur to take income out of the business, and successful use of bootstrapping helps to generate more net cash flow. This is just as true in a mature business as it is in a start-up. The value of a business is based primarily on its ability to generate cash flow into the future. The stronger the cash flow the higher the value of a private business. Bootstrapping, therefore, helps build wealth for the entrepreneur by increasing the value of the venture by increasing its new cash flow over time.

It most definitely is one viewpoint, but I come from the camp that says - hire out to experts where you can. Not doing so is akin to being a micromanager. You create the illusion of control and effectiveness, but it is often an illusion.

I believe outsourcing will make your life and business easier and more productive in the long run. Do a great deal of due diligence before outsourcing and then free yourself up for more high value tasks and perhaps even more free time.

Paula Gregorowicz, owner of The Paula G. Company, works with women who are ready to create their lives and businesses the way the want rather than how they were told they "should". Get the free 12 part eCourse "How to Be Comfortable in Your Own Skin" http://www.coaching4lesbians.com and start taking charge of your own success.

To get the latest word on personal finances from an LGBT perspective and Paula's practical coach approach to the topic check out Queercents http://www.queercents.com.

Are you a small or solo business owner who wants to be comfortable in their own skin online via a website that is a true reflection of who you are and what your business is about? Paula's signature down to earth and "plain English" approach to website design and consulting can help. Visit http://www.paulagwebdesign.com to download the free successful website planner which will make your web project a breeze.