Shownotes
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 you’ll learn:
- How to build systems that maximize efficiency for your team
- How to reduce business operations costs by 30% through the power of automation
- How systems can help you stop overspending on tasks
Links mentioned in this episode
Transcripts
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.