The process of finding and working with freelancers can be frustrating and overwhelming, but it doesn’t have to be. Here is a list of best practices to outsource your projects effectively.

Define Your Goals and Objectives

The number one thing you must do before seeking outside help is clearly identify your exact needs. In my 20+ years of experience in marketing and web design, I’m constantly amazed at how many half-baked requests for work I have received and continue to receive. Approaching someone with a vague statement like “I need a logo” or “I need a web site” is a recipe for failure, pure and simple.

Before you approach anyone, sit down with a blank Microsoft Word or Excel document, a mindmapping tool or just a pen and paper, and write down all the details of what you’re looking for, to the best of your abilities. For example, if you’re not a web programmer and you need one, of course you won’t know all the questions to ask. But put down everything you envision you will need, from a conceptual standpoint as well as any specific tasks that come to mind. At the same time, keep notes on the issues you need to clarify, such as technical specifications, content management requirements, copyright/ownership agreements, hosting and maintenance fees, etc.

If you are truly stumped about how to specify what you need, or the types of questions to ask, then talk to someone you know who’s completed a similar project. Post a query on Yahoo Answers, LinkedIn Answers or Twitter. Visit your local library or Small Business Administration office.

Take this phase seriously. Otherwise, you are going to waste your time and other people’s.

Determine Your Price

This is both easy and difficult. In one sense, it’s easy because you know in your mind what you think you might like to, or be willing to, spend on a given project. But it’s hard because what you want and what the market charges might be very different animals. And that creates a tough situation for everyone involved.

Think of it another way: for some industries, pricing guidelines are fairly concrete. If you’re in the market for a car, you know whether you can afford a used Toyota or a brand-new Ferrari. Chances are, if you have a Toyota budget, you’re not going to waste the Ferrari dealer’s time! Same thing with buying a house: you might really want a mansion in the hills, but reality dictates you can afford a small apartment.

It’s tough when you are shopping for something you don’t understand, or in an industry where prices and choices are not as clear-cut, like graphic design or web development. In cases like this, if you don’t know roughly what something should cost, they do your homework before you start getting quotes. Again, turn to friends you know, Q&A websites, industry forums, the library, trade magazines or the SBA. Describe your project and ask, “What should something like this cost?”

The benefit for doing this is three-fold:

1. You will know if your budget is in line with the marketplace
2. You can use this knowledge to avoid resources that are outside your price range (like the Ferrari dealer or custom home builder)
3. You can adjust your project parameters or expectations (like, say, you need more than a Toyota but can settle for less than a Ferrari)

Prepare a Request For Proposal (RFP)

A Request for Proposal, or RFP, is a document that outlines all the project requirements for the project you have outlined. It can be as simple as a brief introduction and a list of bullet points, or it can be a longer, formal document. In my experience, the more details you share, the better. Remember, your goal is to be very explicit and address as many “what ifs” as possible. Otherwise, you are going to invite a flood of clarifying questions the minute your start shopping for resources.

Some of the key items to include are:

• Project Title
• Project Overview (brief summary of what you need to accomplish)
• Project Background (more information about what has led to the project and what the parameters include)
• Specifications (this is where you elaborate point-by-point on your precise objectives)
• Project Constraints (state anything that must happen, such as deadlines, existing hardware/software that must be integrated, project assumptions, etc.)
• RFP Requirements (describe what you need to evaluate each response, including how they will handle the project, their line-item or per project pricing details, prior experience, legal considerations, etc.)

Find Freelancers

There are lots of ways to find good talent:

• Referrals From People You Know
• Referrals From People You Don’t Know (use LinkedIn & Yahoo Answers; visit your local library, Chamber of Commerce or SBA office; do a Google search for professional organizations related to your needs)
• General Online Marketplaces such as Guru.com or Elance.com
• Specific Online Marketplaces like Crowdspring.com, 99Designs.com or Namethis.com

Distribute or Post Your Project

If you have gotten several personal referrals from people you trust, then send your RFP to them. Better yet, do your due diligence ahead of time and send only the firms whose prior work is in line with your desired outcome. There is nothing worse than wasting multiple firms’ time just to collect more price quotes! (Smart firms can spot this a mile away and will likely avoid responding, anyway.)

For the online marketplaces, it’s wise to spend time looking through their site for awhile, before you create a profile and post your job. You’ll get a better sense of how to structure your request, and you can search for similar projects to see typical pricing and the types of firms that will respond.

Answer Questions

It is likely that you will get questions from people who are evaluating your offer. Be responsible and answer them as best you can. A good way to handle this is to ask for any questions by a specific deadline, then post or send all the Q&As to the original list or site you are using. Another way is to schedule one or more face-to-face meetings or a conference call.

Weed Out Bad Resources And Proposals

There are some obvious signs to help you weed out bad resources:

• They don’t respond with thoughtful questions
• They ask questions that were already addressed in your RFP
• You host a conference call or meeting and they don’t participate
• They submit incomplete or canned responses
• They don’t follow your instructions on what to provide and how to respond

Contact References

After you have received, reviewed and narrowed down your choices to a short list of candidates, contact their references. Listen for any hints of negative feedback. Do you own Google searches to detect any bad experiences. Look them up on Dun & Bradstreet or the Better Business Bureau.

Get An Agreement In Writing

Once you have decided on a resource, make sure you get a signed letter of agreement or legal contract. This will protect both parties and help ensure there are no surprises as you enter into a working relationship. For best results, consult with your attorney before signing anything.

To sum up, finding freelance help for your business projects shouldn’t be daunting. However, it does take work on your part upfront, and throughout the process, to make sure both you and your potential partners are clear on the objectives and expectations.

Do you have other advice on how to manage outside vendors? Please leave your comment below.

Special thanks to Kristen with Guru.com for helpful information in this article (They did not sponsor or review this article.)

Photo credit: Tommy Pariah