Scott Duffy turned a growing business expense into a profit center in 90 days by selling unused employee capacity as a service. Identify your biggest costs, figure out what services you could sell to others, then offer them with monthly recurring revenue and 12-month contracts. He learned this from studying Jeff Bezos and mentor Roland Frazier.
You know, I create a ton of content for partners, for social media, for blogs, and just all kinds of things. And to manage this expense, I kept adding people and more people and even more people and resources, and it started getting really expensive. And I got to a point where I wasn't sure how I was going to be able to really control this added expense. So I reached out to a good friend and mentor of mine, Roland Frazier, and I asked him what he thought I should do. And he told me to take a look at Amazon's Jeff Bezos and really study how he turned expenses into profits and apply what I could to my business. So I did. And I set a goal to turn my biggest or really what was my fastest growing expense into a profit center and to do it in 90 days. And here's how I made it happen. First, I went to the people that worked for me and what I learned was that their workload was inconsistent. In fact, many people on the team had extra time on their hands. So I asked how could we turn that extra time into money from our clients? And the solution was to create products that would generate monthly recurring revenue. And that's key, monthly recurring revenue. Now this meant creating content for other people and charging a monthly fee to do it. And I tried to get them all on a 12 month contract. And by doing all that in less than 90 days, the company not only paid for this expense, but this expense became a profit center. And so the question is, how can you apply this thinking to your business? Well, first, identify your biggest expenses. Make a list of all these expense line items. Second, determine what products and service you could sell. Like, look at each line item and ask, if I were to offer this service to others, would they find value? And if so, what would they be willing to pay? And third, convert these expenses to profits. Offer these new products and services to others. Just try it and see what happens. For example, if you have a development team, you could offer third party development to others. You could charge a fee, you could get equity in companies, like so many different things you could do. If you have a supplement company, you could buy in bigger bulk, which will save you money, and you could formulate the.
Business & Burgers-Sequence Collection bracelet for National Entrepreneurship Week
