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How to Save Your Company $1.5 Million in 3 Minutes

million

People often say that “time is money.”

They are wrong.

Time is not money.

Time is worth way more than money is.

In fact, via compounding interest, time is the one thing that takes money and effortlessly turns money into more money.

Money that is lost, can be earned back. But time that is lost is gone forever.

Which is why our team at Southwestern Consulting believes that the next generation of cost savings scrutiny in organizations will not be as focused on saving money as it will be on saving time.

Think about this… almost every organization in the world has an entire team of people whose job is solely dedicated to counting the financial costs of a business. This is the accounting department of course.

Yet almost no organizations have even a single person who monitors, tracks, and manages all of the different ways that people throughout the organization lose time every day.

Not even one person whose full effort is dedicated to figuring out detailed ways to save everyone time.

Why is that?

Especially given the fact that one of the most expensive financial costs to any business is human capital and the money we spend on our labor force in wages.

The Money Value of Time (MVOT) from Procrastinate on Purpose teaches us that regardless of how we derive income, we all have a calculable hourly rate of pay. And that we are always either paying someone else at their rate of pay or we are paying ourselves at ours.

Which means that every single task and every single moment costs money. And anything that wastes even a second of your time is a waste of your money.

So that means there is opportunity throughout the organization to save massive amounts of money by saving massive amounts of time.

But where might we find these massive time savings?

Is it in cutting insignificant projects and unnecessary meetings? Sure.

But an overlooked area – with perhaps even more opportunity – is cutting mere minutes or even seconds spent on repetitive tasks that recur on a frequent basis.

For example let’s say you have a task that a team of 50 people each do 10x a day that takes them 180 seconds each time. This could be something like copying and pasting and then sending an email to a prospect or client with an attachment or something.

That’s 1500 minutes total for the team each day x 250 working days in a year for a grand total of 375,000 minutes each year spent on that one recurring 3-minute task.

If the average person on the team makes $50k a year then that person has an MVOT  of $24.04 per hour or $0.40 per minute.

Which means that a recurring task that takes 50 people (who make $50k) just 3 minutes a few times a day could be costing an organization $150,000 a year!

Plus, keep in mind those are hard dollars being paid to real people which means there is a legitimate opportunity cost of using that money.

If a company could save that time, and instead invest that money then (using a simple investment calculator) we know that $150,000 invested one time at an 8% rate of return for 30 years would be worth $1,509,398.53!

Think about that…

A task taking people 3 minutes could be worth over $1.5 million in the long run.

Now think about this…

If you have a team bigger than 50 people…

Or

If you have regular recurring tasks that take longer than 3 minutes…

Or

If you have more than 1 recurring task a day that everyone does…

Or

If you have people in the organization that make more than $50k per year…

Or

If you could do better than an 8% return on your money…

Or

If you invested that money for longer than 30 years…

Or any combination of these factors…

Then losing that time could cost you even much much more than $1.5 million of opportunity cost over the course of time.

So, what’s the point?

The point is that we should place as much value on saving time as we do on making more money.

The point is that we are potentially missing out on millions of dollars in cost savings by looking at things differently.

The point is that we should potentially apply even a higher level of scrutiny to how we spend our time than we do with how we spend our money.

But most companies don’t.

Most companies track every single penny spent on paper clips and pens and completely ignore the question of “what recurring tasks are sucking up our people’s time?”

It’s a massive opportunity for profit growth in the future of business.

We believe that the future of cost savings is going to be more focused on saving time then it will be on saving money.

Which is one reason why we believe that there is going to be a continued boom in the world of workflow automation.

We believe, as mentioned in my Ted talk, that “automation is to your time exactly what compounding interest is to your money.”

Saving salespeople time by training them on the best communication strategies and interpersonal skills has always been a space that Southwestern Consulting has been known to specialize in.

But when it comes to saving salespeople time by coupling it with automating things like lead generation, lead tracking, workflow, pipeline management, customer follow up, CRM and content marketing, that’s also a service we provide for small and medium sized businesses.

If you’re interested in more on that, you can check out our free 1 hour training on turning your business into an Automated Revenue Machine.

But no matter who you are or what type of company you have, what we all need to know and understand is that time is not money.

Time is, and will always be, worth way more than money.

Make sure you’re valuing it accordingly.

How to Perform a Business Comeback

business-comeback

We love watching comebacks.

Whether it’s movies or sports or real life stories of people overcoming seemingly insurmountable odds, we love seeing “the comeback.”

So how do you perform a business comeback?

What do you do if your business is struggling?

What do you do if you’re facing personal financial struggle?

How do you respond if you’re losing customers, accounts, profits, or marketshare?

There may be many potential answers to those questions depending on your business model or industry, but there is one answer that is nearly universal for all businesses.

In fact, in many ways it’s the epicenter of all business.

You can even argue that it’s how business began.

It’s simple.

Powerful.

And energizing to any and every business.

It is…to sell.

To generate sales.

Sales is the genesis of any business.

And it is also therefore the key to performing any individual or business turnaround.

You sell.

You sell, sell, sell.

You sell your way out of trouble.

You sell your way out of any hole.

You sell your way out of any self doubt.

Increased sales cures 95% of all business problems.

The beauty about sales is that anyone can sell.

And it doesn’t matter who you were yesterday or what you’ve done in the past.

Today you can start to sell.

You can start a turnaround by focusing on sales.

You can even start a business from scratch if you know how to sell.

Nothing happens until there is a sale.

And if you can learn how to sell…

If you can learn to love to sell…

And if you can serve people while you sell…

Then you can sell your way out of any hole.

You can sell your way through any precarious situation.

You can sell your way past any seemingly insurmountable challenge.

Increasing sales can change your personal situation and it can be the comeback of any great business.

So if you need a business comeback, then get excited, get focused and go out and sell something today.

The 10 Most Important Books to Teach You About Money

money

Not counting the Bible, which has a tremendously specific amount of information written about developing a healthy relationship with money, here are the first 10 books I think anyone who wants to learn about money should have to read, the order I’d suggest reading them in, and why…

  1. Total Money Makeover by Dave Ramsey – The first step to getting rich is to get debt-free and no one in the world knows how to do that as well as Dave Ramsey. This book has changed my life and the lives of millions of others It’s a simple plan that works, start here.

 

  1. Secrets of the Millionaire Mind by T Harv Eker – Believe it or not, but our ability to acquire money has everything to do with what we think to be true about it. The 17 wealth files presented here are absolutely foundational. I still read my “millionaire mind” affirmations every day and it’s been almost 10 years.

 

  1. The Richest Man in Babylon by George Clason – A delightful and inspiring fable, this quick and easy read shares some of the most powerful lessons you’ll have to know to become wealthy.

 

  1. The Millionaire Next Door by Stanley Danko – We all think that it’s the people who look rich that are rich…wrong! This book shows the data on the habits and spending patterns of the world’s millionaires. It will help you realize that being frugal, rather than flamboyant, with your money is really how you get rich.

 

  1. The Go-Giver by Bob Burg and John David Mann – Abundance is a mindset that starts with learning how to A radical flip on everything you might initially assume to be true about how you create wealth and income, this has become one of my absolute favorite books of all-time.

 

  1. The Compound Effect by Darren Hardy – Many of the books on this list talk about the power of compound interest, which is something you’ll want to become intimately familiar with. This book however, shows you the compounding power of hard work, good choices, and disciplined effort. A must read.

 

  1. How Rich People Think by Steve Siebold – This is a rapid-fire checklist of the differences between how rich people think compared to everyone else. It’s very straight forward, hard-hitting, and accurate. Perhaps the most distilled information available on how you need to change your thinking about money.

 

  1. Thou Shall Prosper by Daniel Lapin – A fascinating read about why statistically so many people of the Jewish faith are of above average wealth. Rabbi Daniel Lapin shows how the deep rooted beliefs you carry will ultimately determine how much wealth you accumulate and overflow into the lives of others.

 

  1. Why You’re Dumb Sick and Broke by Randy Gage – Prepare yourself for somewhat of a “slap in the face” when you read this one. But Randy Gage does it the way that only he can and he does it out of love with a sobering and honest presentation about some changes you’re going to have to make in your mental paradigm if you’re ever going to accumulate a lot of money.

 

  1. Financial Peace by Dave Ramsey – In some ways, this is a bit of a repeat of Total Money Makeover but by this point you’ll want and need the refresher again anyways! This book also talks about the specifics of things like different types of insurance and why rich investors are often boring investors.

 

Admittedly, I haven’t read every book out there on money, but I have read a lot and these ones are all certified winners. Growing up in and around lower-middle income people, we had a lot of love but I had to really work to change my thinking about money. The books on this list will both inspire you and teach you the critical concepts that you will need to be able to accumulate wealth and bless the world all around you.

The Myth of the “Lifestyle Entrepreneur”

entspannter-geschftsmann-sitzt-im-bro-mit-fen-auf-dem-schreibtisch-54936109

There is a false dream being overly sold today. 

It’s is the facade of The Lifestyle Entrepreneur. 

It typically includes messages like work from anywhere, set your own schedule, be your own boss, drive a Bentley, and make passive income without doing anything. 

It’s a damaging dream because it’s a lie. 

My problem is not with the promotion of all the things you can have, such as some of those listed above. 

All of those things can become true…eventually. And there are lots of different types of pay for performance business models that can yield them over time. 

My problem isn’t with the dream they are selling, my problem is the dishonesty about what it takes to get there. 

Because the reality is that anyone who has built a successful business has worked their freaking butt off with really long hours, for a really long time. 

They have sacrificed and saved, they have hustled and worked, and they have been beaten down over and over and over again long before they ever had any of those things. 

Real achievers have tried and failed. They started over and got slammed. They kept at it when it never looked like they would make it. But they stayed committed, they fought, they bounced back and went through piles and piles of muck and mounds of setbacks. 

They’ve had a thousand opportunities to embrace any number of justifiable excuses that would have been accepted by any other reasonable person – yet they turned their back on those “outs.”

Every “Lifestyle Entrepreneur” I know that has actually made it is someone who has worked relentlessly to get where they are and they make no mistake about what it’s taken to get there.  

The people who have successfully built businesses are easy to spot because they are the ones who are talking about the truth. 

They are talking about how hard you have to work to get there. They are talking about all of the rejection you have to endure. They are talking about how many times they failed. 

Successful people have unmistakably learned that you do what you have to do until you’ve earned the right do what you want to do. 

So while they may have some shiny toys, big brands, and large followings, they would never promote how easy it is to get there because they know full well that it’s a lie. 

Robert Herjavec from the Shark Tank said it pretty well when he said, “If you are under the illusion that you can start a business and run it at your life’s schedule, you are mistaken. The business is like a starving puppy-when it needs to eat, then it needs to eat regardless of what you have going on personally.”

Gary Vaynerchuk also captured it nicely when he dropped this truth bomb, “people leave companies to start their own business thinking that it will somehow be easier. They are badly mistaken. What they will quickly realize is that if you thought your old boss was bad, in order for your own business to succeed, your new boss had better be a slave driver.”

So if you’re allowing yourself to be convinced that there is some easy path that you’ve missed out on – don’t be. 

If you’re scrolling through social media looking at the manicured versions of other people’s lives thinking they’ve figured out something that you haven’t – quit that. 

If you’re selling yourself that if you’re being asked to work hard you’re in the wrong business – stop it. 

Because chances are that if you’re doing anything that is hard, then it probably also has integrated into it a path to many of the great things you want. 

But it won’t come easy. 

And it won’t come fast. 

And it sure isn’t going to come from jaunting gleefully around the world working only 20 hours a week. 

Quit buying into the lies. 

Quit allowing yourself to be deceived. 

And instead, put your head down and go back to work. 

When you get tired, suck it up and go back to work. 

Then, when you’re ready to quit, go back to work. 

After you’re sure you can’t take anymore go back to work. 

Once you’re completely empty, keep going back to work. 

And one day, after you’ve done that, in one direction, for a really long time, you’ll look up and realize that the “Lifestyle” you thought you missed out on became your actual reality.  

Love Your Life, Not Theirs and Eradicating Comparison with Rachel Cruze – Episode 161 of The Action Catalyst Podcast

Comparison

Rachel Cruze is a seasoned communicator and presenter who has been speaking to groups as large as 10,000 for nearly a decade. The daughter of Dave Ramsey, today she uses the knowledge and experiences from growing up in the Ramsey household to educate America’s students and young adults on the proper ways to handle money and stay out of debt. Rachel is a regularly featured in all genres of national and local media across the country. You can pre-order her newest book, Love Your Life, Not Theirs, at rachelcruze.com.

Show Highlights:

  • Social media has made it easier than ever to compare our lives to others. @rachelcruze
  • Comparing ourselves to others is the most damaging money habit we have. @rachelcruze
  • Comparisons not only steals your joy, but your paycheck. @rachelcruze
  • You end up spending too much money to keep up a lifestyle that you think everyone else is living and you’re missing out on. @rachelcruze
  • Social media isn’t all reality – it’s someone else’s highlight reel. @rachelcruze
  • Comparison is a battle no one ever wins. @rachelcruze
  • If you’re going to live without debt and with less stress and worry, you must form healthy money habits. @rachelcruze
  • Either you have to take control of your money, or your money takes control of you. @rachelcruze
  • The purpose of a budget is not to limit your freedom, but to give you freedom. @rachelcruze
  • It’s never too early or too late to do better with your money. @rachelcruze
  • 5 Ways to Stop Comparing Yourself to Others:
    1. Limit your intake – of materialism.
    2. Practice Daily Gratitude
    3. Be Debt Free
    4. Focus on Giving
    5. Monitor Investable Income

To pre-order your own copy of Rachel’s book, Love Your Life, Not Theirs, visit rachelcruze.com!

The Action Catalyst is a weekly podcast hosted by Rory Vaden of Southwestern Consulting™ every Wednesday. The show is regularly in the Top 25 of Business News Podcasts, has listeners from all around the world and shares “insights and inspiration to help you take action.” Each week Rory shares ideas on how to increase your self-discipline and make better use of your time to help you achieve your goals in life. He also interviews special expert guests and thought leaders. Subscribe on iTunes and please leave a rating and review!

Greed, Giving, and Making Money Matter with Cole Hatter – Episode 159 of The Action Catalyst Podcast

greed

Cole is an entrepreneur, investor, award-winning speaker and founder of Thrive. Cole started his career investing in real estate and has progressed to investing in large funds, start-ups, and angel investing. He has been on stage speaking to audiences about investing/entrepreneurship around the world collectively for over 2,000 hours. Cole’s vision behind creating Thrive: Make Money Matter is to change the way businesses are run forever, creating a new breed of “For-Purpose Entrepreneurs” directing profitable businesses that focus on a local or global initiative.

Show Highlights:

  • What you convince yourself to be true about money will largely guide your relationship with money.  @rory_vaden
  • What you think about money will affect your ability to acquire it and manage it properly.  @rory_vaden
  • Greed is largely the result of thinking that you will find security and peace from having money. @rory_vaden
  • Greed is the rooted in the belief that money comes from taking from other people. @rory_vaden
  • Find all the bible verses Rory shares that that have to do with greed, generosity and money here.
  • Generosity is powered by abundance and by thinking generously about money.  @rory_vaden
  • Ferraris are great but feeding hungry kids is better.  @colehatter
  • I decided to make what I can do for others the purpose of business, not what I can do for myself. @colehatter
  • It’s no secret that some of the wealthiest people are infatuated with giving back because it is in our DNA to want to care for others. @colehatter
  • If you make your money matter you will find more reward personally than from anything else you could spend your money on. @colehatter
  • Giving isn’t so much about what you have or don’t have but a demonstration of your power over money. @rory_vaden

Thrive: Make Money Matter is the conference for entrepreneurs and business professionals who want to discover practical income-growing business strategies, create a positive impact in the world and leave a lasting legacy. Click here to get your ticket!

The Action Catalyst is a weekly podcast hosted by Rory Vaden of Southwestern Consulting™ every Wednesday. The show is regularly in the Top 25 of Business News Podcasts, has listeners from all around the world and shares “insights and inspiration to help you take action.” Each week Rory shares ideas on how to increase your self-discipline and make better use of your time to help you achieve your goals in life. He also interviews special expert guests and thought leaders. Subscribe on iTunes and please leave a rating and review!