Investing in your business systems is one of the most important steps you can take to shrink payroll costs and increase profit. Profit is what’s left over after you’ve paid your expenses each month, and if your systems aren’t built to handle your growth, more income won’t necessarily mean more profit. 

If your revenue is increasing, but your profit is not, it could be because you don’t have systems in place to help you scale. In episode one of my podcast, The Operations Fix, I’ll share 3 ways systems can increase your profitability by reducing monthly expenses.

Here’s what I discuss: 

• Building systems that maximize efficiency for your team 
• Reducing business operations costs by 30% through the power of automation
• Creating systems to keep you from overspending on tasks

Links mentioned in this episode

• Mickinsey & Company Research
• Book Our Done-For-You Systems Service 

Welcome to the Day to Day Assist podcast.

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I'm your host, Jennifer, here to give

you bite sized tips on how to transform

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your workday with strategic processes,

technology, and human resources.

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My goal is to help you run your

side hustle, six figure, or multi

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million dollar business chaos free.

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More income does not

automatically equal more profit.

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Profit is what's left over after you've

paid all of your expenses for the month.

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So that $10,000 payment that

hit from your client minus all

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the software, all the team, all.

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All the materials, all the owners pay.

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All the marketing.

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Et cetera.

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If you want to increase your

profitability, focusing on your systems

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is one way that you can do that.

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An investment in your systems is

honestly one of the only investments

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that will help you save money

and make money at the same time.

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In this episode, I will share three ways

systems can increase your profitability

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by reducing your monthly expenses.

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Okay.

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So number one is systems help your team

work more efficiently throughout the day.

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Which will help you save on payroll.

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About three years ago, I worked for

the government doing human resource

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work for soldiers who were retiring.

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The job had absolutely nothing documented.

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And, if any of you listening to

this episode, have ever worked

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for the government, you know

it's a whole different world.

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They have clearance processes and

softwares that are just exclusive to them.

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I had to ask my manager how

to do every little thing...

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almost every day.

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And if I forgot to take a note of

what he was saying, or if I had a

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soldier who had, you know, some type

of unique situation, which they all

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have some type of unique situation,

then I had to wait for him to help me.

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And not only was this annoying,

but it took me so long to do

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what I needed to do, which.

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Which meant that my company was not

getting the most out of my working hours.

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Maybe in your business, you have an

employee or a contractor who constantly

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has to ask you questions about how

to deliver services to your clients

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or how to do certain everyday tasks.

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And that's costing you hours

because that team member is

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adding all of that time to their.

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Our time sheet that they're sending

you at the end of every month.

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When you have things documented correctly

and your process for delivering services

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is essentially the same for every

client, your team is able to work without

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constantly having to ask you questions.

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Or waste time.

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You won't have to wonder why it

took them so long to do something

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that takes you 20 or 30 minutes.

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And.

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When they are more efficient,

you can save money on payroll.

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Number two.

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Automated systems could help you

reduce operational costs by up to 30%.

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There's a company called McKinsey

and Company, and they are

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a popular consulting firm.

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Who released a study in 2019

with that exact statement.

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I will link it in.

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The podcast description below in case you

want to go and read it for yourself, but.

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I meet business owners all the

time who are just really hesitant

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about investing in tech tools and

automation and it always surprises me.

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I'm talking about companies making.

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one to $5 million per year.

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Okay.

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And.

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While I do understand that

it can seem expensive.

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I know that some tools.

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Are are, can go upwards of a

thousand dollars per month.

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And.

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Those fees can just add up with more

team members, but most of the tools

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we help our clients use will do

the work that you would pay a team

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member way more money to do manually.

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Let's say that right now You are paying an

admin to send out your invoice reminders

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or your receipts to your clients manually.

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Maybe it's only taking them a couple

of hours a week to do that at.

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At $30 an hour or so.

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You think that it's not that bad.

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But $60 per week times four weeks

in a month is $240 to send out

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invoice reminders and receipts.

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And.

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There's just so much room for human

error and forgetfulness and sending out

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reminders and things like that manually.

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With an automated client follow-up

system in your CRM tool for maybe $50 a

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month, you could do the same exact thing

with less error and even more volume.

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Now you cut that monthly

expense down by almost $200.

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And if you applied that same

example to multiple repetitive

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tasks in your business.

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You would be saving so much time.

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You could be automating.

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Mundane, repetitive, cumbersome tasks and

using your payroll budget to have people

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on your team who can focus on higher

level work, like improving the client

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experience, business growth, strategy,

service fulfillment, things like that.

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When you start to see technology and

automation as an asset or an investment,

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and not just another monthly subscription,

then you can really start to save

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money in the long run by using it.

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And last but not least number three.

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Systems help you remain in your CEO role.

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And avoid overspending on tasks.

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I'm working with a real estate agent

right now who told me when we first

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started working together, "you know,

Jennifer, I spend my entire day telling

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my team to 'do this' and to 'do that'."

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Those were literally her exact words.

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Because she has to explain everything

over and over and over again, she's

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spending more money paying her team

member for that learning curve.

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And she spending her hourly rate on it.

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Plus.

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She's paying them to correct whatever

mistakes they make, because she doesn't

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have any steps written out anywhere

for them to reference and do the work

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correctly the first time, which is why

we're helping her with that right now.

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But when you don't have systems,

you're forced to step out of your CEO

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position and pay yourself to do tasks

that you just have no business doing.

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If your CEO, hourly rate is $200

an hour and the hourly rate of

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the person sending out reminder

emails is $35 an hour, then you're

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spending $200 doing a task that

you originally allocated $35 for.

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Systems just help everyone get paid for

the type of work that they're doing,

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which keeps you from overspending.

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Okay.

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So today you heard me talk about how

systems are going to help your team be

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more efficient to reduce your payroll.

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Reduce operations costs by up to 30%.

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And they're going to help you

step back into your CEO role.

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Now you can take what you learned

from this episode and, you know,

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go and see how your systems

could be impacting your expenses.

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I know you're probably already having

conversations with your CPA about

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how to increase your profit in 2025.

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With more profit, you can

just do so many things.

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You can pay yourself more, you can

purchase or start another company.

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You can hire more team members.

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You can invest in the

development of your business.

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Or you can even pay off debt.

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Investing in your systems will

increase your profitability by

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reducing your expenses and freeing

up time for you and your team to

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work with more clients next year.

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If you're a service provider in the real

estate, consulting, or creative industry,

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and you want this for your business.

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Then we have the perfect service for you.

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All of those nagging operations

problems your business has been

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experiencing can finally be eliminated

in two months or less with our

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Done-for-You Systems Service.

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Your processes will be simplified.

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Your tech tools will be set up.

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And.

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And all of the procedures will

be documented so that your

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team can follow them easily.

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You will increase your profit margin

and be able to remove yourself from

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day to day work if that's your desire.

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As always, you can find more

information about this service by

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clicking the link in the show notes.