I’ve met business owners who had a million or two in revenues, but little to no profit.
It would be pretty frustrating to bring in that much money, and not be able to take any home with you.
Part of the problem is how you’ve grown your business.
You can hire someone to do the work every time you need to increase your capacity, or you could hire someone to build a system that does the work.
You have to keep hiring to keep up with the work when you don’t have systems in place. Every new employee is a big recurring expense. Good systems can reduce your hiring needs, and therefore your expenses.
A simple customer service application, for example, can enable a single person to do the work of two or three. When your people have to go searching for information to answer a question, that’s time you’re paying for and getting no value in return.
A good system makes that information available immediately. Type in the customer’s name, and all their information is right there on the screen. Why pay someone to sort through paperwork?
Your people need to be doing work that matters. If they’re searching through paperwork, or spending hours managing spreadsheets, or trying to figure out the status of a project, that’s your profits disappearing.
Build systems that handle the monotonous, time-consuming work, and have your people focused on income-generating activities instead.
You will need a smaller staff, with less training (because the system does the hard work), that are building your business more efficiently.
It takes time to do. It’s an investment.
Most people don’t see the end result, they just see the dollar signs up front, and that stops them. They’d rather hire a new employee because it’s the familiar path.
You can build a system and pay for it once, or hire more people and pay them over and over.
There is always maintenance work to do on your system, and it will need to be upgraded as your business grows, but those costs are far less than paying the extra employees you’d need otherwise.