This week, I have the pleasure of talking to Danielle Mulvey of the All In Company.
Partial Transcript:
Danielle: So what’s interesting and Mike Michalowicz and I (Mike is the author of Profit First.) we’re business partners, and sort of partners in crime and things. he’ll do his keynote on Profit First, and then I’ll follow behind him doing the workshop, actually teaching how to implement Profit First. And his books, have been sort of an evolution of the entrepreneur as their business grows and scales and such. And the next book that is coming out, is called All In how to Get Your Employees to Act Like Owners. And that is an evolution, really, from profit first, and seeing businesses become profitable, scale their business, but then sort of start struggling with their profitability at the point of, about ten employees and a million dollars or more in real revenue, then what happens is their biggest expense is payroll. And, that big expense, if it’s not efficient, if it’s loaded with one, two and three star employees, is starting to put a drain on the business and start to negatively impact the profitability of the business, because one, two and three star employees their average hom or worth. But the funny thing is, it takes two or three one, two, or three star employees to do the job of one five star employee. But you pay the five star employee the same that you pay a one, two or three star employee. So that is where you just start this spiral down in terms of losing some ground on profitability when your business has one, two and three star employees. The other thing about kind of that tipping point of ten or more employees, a million dollars or more in real revenue is that that business is scaling. That business started out with maybe, you know, two or three employees. And the interesting thing is, is maybe some of those employees that started with you, they were five stars when you were doing $300,000 a year. But as you grow the business, and as you get into new markets or require a new level of sophistication that five star employee who may be someone who started with you and was great, hasn’t necessarily scaled with your operations of the business. So that person could become a one, two or three star employee as your business grows. And now they’re sort of a liability, in terms of your profitability instead of an asset. And so it’s really important for owners to continually be evaluating their employees. We like to use the five star employee rating system to keep levelling up the organization as it grows. And it’s okay if someone isn’t necessarily a fit for the organization after it reaches a certain point. I know for me, I was the bookkeeper I was the bookkeeper in our construction materials supply firm in 2010 when we started the company. That position quickly outgrew my skills and abilities, after about two years and such, so I moved on. I didn’t hang on to doing that role, if that makes sense. And that happens in business. and so it’s really important that as your companies grow as they scale, you’ve got the right people in the right role. Or as Jim Collins would say, on the right bus, in the right seat, and going in the right direction.
Find Danielle on Linkedin HERE
and on the website discussed: https://theallincompany.com/neversettle/ where you can also download the How to Hire 5 Star Employees Guide.
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