The $1M Decision You Did Not Expect

Did you know that recruiting new people can be a million dollar decision?

Look, this is a big claim isn’t it?

That recruiting someone new is a million dollar decision – and for a lot of business it is.

Let’s do the following mind game:

If your business is on a 12% to 15% markup, and you want to make the new person you are employing profitable for the business.
Then they need to sell 1 million dollar in products or services for your organisation.
$1m as turnover with a 15% markup gives you a 150,000 dollar profit.

Let’s say you pay that new person a 100,000 dollars wages – leaving you 50,000 dollar profit in the business.
Well minus desk equipment and some other cost.

In other words the moment you pay someone around $100K, and your business is based on a 12% to 15% markup – then employing someone new is a million dollar decision.

You want to make sure that your one million decision is the right one.

So you need to make sure that person you are employing has the right skills and knows how to operate your systems.

Maybe you need to even work on your processes before that. Because if your workflow is not up to scratch, if your systems are not scalable or your processes are convoluted then employing someone can be the wrong decision.

It blows out your budget, it blows out your system and it blows out your company.

It doesn’t sound like it employing someone on a 100,000 dollar salary being a million dollar decision, yet it is.

And if you want to see how we can systemise, structure and automate your workflow so that it’s in an optimal shape for new staff, please reach out to me and let’s have a chat about this.

I’m here to help you save money.