How to Run a Successful Operation with Less
One does not accumulate, but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity.
—BRUCE LEE
When I was first starting out as an entrepreneur, I joined the local chamber of commerce (for networking purposes and opportunities to book paid speaking engagements), and I forked out money to be part of two “mastermind” groups (expensive, but worth it). The dollars I’ve made thanks to the connections at these events more than paid for the fees, but perhaps the most helpful souvenir has been a brilliant piece of advice I heard several times but that took some time to resonate with me: Watch your expenses as you scale and watch your overhead.
It’s common for entrepreneurs to follow a certain “entrepreneurial life cycle.” When first starting a business, you are doing almost everything yourself. You’re most likely using your own money to finance your company—money you may not even be sure you have—and you’re working all the time. As your business starts to grow, you’re able to hire an employee or two to lighten the load. Now that you have more hands on deck, things can really take off. Orders fly in, the phone keeps ringing, and your customer base grows. Before you know it, your team of one or two expands to a dozen, plus a brand-new space.
All of this seems crucial to your company’s survival, but it is also expensive. As your business continues to thrive and the money rolls in, some major headaches are coming your way. And these headaches are growing pains that indicate you’ve reached the part of the entrepreneurial life cycle where things get tough. The staff, office space, resources—all of it equals major overhead. Suddenly, you find yourself thinking about getting bigger just to be able to support how big you’ve already grown (there’s a paradox for you). Meanwhile, your biggest challenges have shifted. No longer are you worried about finding a customer or figuring out how to produce a new product—you’re stressed with decisions about employee benefits and warehouse repairs. This isn’t the lifestyle you’ve envisioned. You want the income minus the headaches and problems.
I’m writing this book from my office in my home. My commute takes about ten seconds, and if I’m not appearing on TV or speaking at a conference, I’m not going to bother putting on a suit and tie. My wife and kids are right upstairs. It’s a good life. I’ve also managed to make millions of dollars selling safety and survival items, books, and courses online—all things I believe in passionately. But the real winner for me is that I have cracked the code for doing all of this in as stress-free and efficient a manner as possible. I took stock of how the company was running and actually slashed $40,000 in expenses per month.
As Spy Escape & Evasion moved through its life cycle, I didn’t just hire employees and rent a warehouse where we were packing and shipping all of the products—I bought an office building. In no time at all, my business became unnecessarily expensive to run. As things moved forward, my team grew. Eventually it became clear that while most of my employees were stellar, there were a few who weren’t up to par and had to go. Instead of brainstorming about new products or pitching television shows to develop more business, I was dealing with workers’ compensation and repairs on that office building. None of this was overwhelmingly huge, but my company was being weighed down by excess. When a spy is out on a mission, it’s crucial he has everything he needs to accomplish his mission—whether that’s a high-powered telescope or an armored vehicle disguised as a typical minivan. There are certain things he’ll have in ample supply—water, matches, ammunition. Everything else is a burden. Every other item is something that has to be carried, watched out for, or left behind if he has to flee. Spies slash through the extras and get down to the most essential basics. Why was I doing the opposite with my own company? I realized I needed to take a long hard look at what I actually needed for my operation . . . and slash out the rest. When making choices about what I needed to maximize the chances of finishing my mission (in this case, running a successful, profitable company), I looked at the following:
Who are the core team members for this operation? There are some crucial members of my team who are the backbone of the operation. This is my customer service team, my marketing team, and my IT nerds. I appreciate all their hard work and I like making it clear they play a crucial role in the operation.
How can I utilize the freelance network? An amazing aspect of the technological age is that skilled work—from copywriting to packing and shipping—is a click or two away. I started contracting out projects. This has slashed my expenses but has also enabled me to connect with some fantastic freelancers whose skill I have truly come to value. If you’re already using a freelancer but your workload is growing, or you need to connect with someone who has a specific area of expertise, use other freelancers to help you get to the next level.
What kind of base do I really need? Putting my office building on the market and selling it has made life significantly easier all around. Now all our orders are processed out of a fulfillment center. I no longer have to deal with the headaches of a warehouse. If I need a meeting room for an event or company meeting, I can easily rent one.
When all was said and done, I realized that I had managed to slash $40,000 in monthly expenses. That’s not just money—it’s my time and it’s my quality of life. As you’re building your business, think about what you really need. I’m not suggesting that you take on the entire load yourself, but be honest about what’s essential to make your operation run smoothly and in a profitable manner. When spies are out on a mission, extra items aren’t viewed as luxuries but as burdens. It can be tough to tell the difference between the two at times: Is this element of my business crucial, or do I just believe it’s making my life easier? That great Bruce Lee quote that launched this chapter? I keep that message right on my desk as a constant reminder that less is more. Less means fewer expenses, fewer complications—but more time to spend with the people who mean the most to me. And, as you know, those people are right upstairs.