Mike Andes advises a small business owner to formalize handoffs between departments, review finances monthly, and put any cash above $35,000 toward credit card debt. Once paid off, give the employee Dahlin a raise and an extra $1,000 a month if the owner stops working weekends.
$30,000
$35,000
$1,000 per month
When the credit-card balance hits zero
How it usually works is like, sales gets the job, hands the admin to kind of set things up and then hand it off to operations. Operations does the work and then hands it back to admin, says, go build them. All those handoffs right now is happening between the two of you. And there's so much inherent knowledge, it needs to be systematized. If there are things that are happening that only you can handle, we need get rid of it. And the reason I'm okay with that is because they'll free you up. Once he takes over to go do sales the right way, does he currently know about the business much? Or is he basically a field worker on steroids?
Right now, we feel. Worker on steroids.
Cool. We're gonna bring him in.
We actually haven't done it this month, but we do. Like, the P and L monthly.
P and L? Just him? Yeah.
With the team.
With the team. Okay.
Yeah.
But we haven't done.
It for this month.
Or we didn't do it last month when we lost $30,000.
Which probably should have been a month that we brought it up.
Okay, so what we're going to do is we're gonna tell Dahlin at the end of each month, we're gonna look at the P and L, we're gonna look at the balance sheet. We're gonna see how much money is in the bank account. Anything over $35,000 goes directly to that credit card balance. When that credit card balance hit zero, your base pay goes from what it is now to this and then make that sizable.
Okay.
That's his big win. The other win, $1,000 extra per month if I do not have to work on Friday, Saturday and Sunday.
