Double Your Profit Day #30 How We Doubled Profits By Slashing Overhead!

Welcome back to Double Your Profit. This is our final video in this series. If you enjoyed this series, make sure you comment below other things that you'd like a series on. I had a ton of fun doing this and just sort of continuing to share the tools and the thoughts that have helped drive us from a small business to now a larger one. Today's topic is cut overhead like a maniac. Overhead as a whole could be considered non-strategic costs should be ruthlessly eradicated from your business in order for you to scale to whatever your aspirations are. Every dollar needs to go to its highest impact. Its highest impact is very rarely found inside overhead. So when we're thinking about overhead as a whole, the goal is lean. Here's some philosophies that have helped us over the years maintain a lean overhead while still growing 30% a year. Overhead's typically not going to drive revenue. You have to be really cautious. A lot of tools tell you they will, but marketing is really the only part of that that's going to drive revenue. Overinvesting in your facility is a great example of bloated overhead. You can have too much facility. It can be too nice. You should be able to offer your team a great and safe and clean place to work, but it does not need to be bougie. Combine roles, automate back office, and outsource Non-strategic. We want to make the most of the investments that we have already made. If we have these people, if we have this software, if we have this stuff, how do we use that to its highest potential? Cut consultants. That one's super easy. You probably have consultants. You probably don't need them. You can cut that out. You can add a bunch of money. Move fast. The sentence here is cut first, ask questions later. Force an approval process. What that means is we're not going to give open credit card limits. We're not going to say yes to everything. We want approval for new costs to be kind of Painful. We want to say no a lot. Track overhead percentage and set strict targets. What's been really fun about having the pro group and having peer groups is understanding what other people can do. I have friends driving businesses my size with less overhead. Find out how they're saving, find out what your target is, and how can you get the delta. Finally, drive cost savings as a culture. How do we continue to find efficiency? How do we continue to find automation? How do we continue to cut out complexity? How do you continue to drive this through so that it's not just you as the owner or the leader of that team, but it's the whole team? If someone is running a profitable department and continuing to focus on outperformance while simultaneously cutting costs, they should be rewarded for that energy. Overhead is one of the secret killers because it can balloon really fast and it's hard to cut, but evaluate it constantly and set hard targets and get your team involved so that it's not just you, but it's the whole team. Focusing on that double-digit profit. Thanks for following along on this Double Your Profit series. I hope over the next 6 months that you can double your profit. We've used all of these lessons over the past 10 years to not just grow our profit but also grow our business as a whole, all focused on running a profitable enterprise so that we can reinvest into the strategic costs that matter. Thanks for following. Make sure you like and sub.