Get Offshore Leverage
Like all painkillers, they provide you the opportunity to focus on the root cause. For many financially stressed organizations, the root cause of stress is an imbalance between revenue earned and expenses incurred. The No. 1 expenses incurred is:
Here is what we’ll cover this week:
- Outsourcing is a Painkiller to financial stress in your business.
- Case Study – Zero-based Budgeting analysis for prospecting options.
- CX Friday’s from Manila, Philippines.
Outsourcing is a Painkiller to financial stress in your business
You know it. I know it. When payroll is sent out, it can sometimes feel surreal. I remember in 2018 at Sales for Life when we had >$250,000 a month leaving the bank account in payroll. That was more than I was paying myself that YEAR! I used to feel like I was feeding everyone, except myself. I hated feeling like that.
Most employees don’t understand this. They don’t know how we actually think. But it’s a reality.
Employees are expensive.
Employees are why your EBITA is < 10%, or why your Gross Margins are < 60%.
This doesn’t have to be.
You can have a 33% – 50% EBITA business. You just have to change.
You have to be willing to forgo:
- The pride of employee headcount as a barometer of success.
- The value of fun office lunches / after work beers as to why you keep certain employees
- The misconception that “if they’re not in our office, work won’t get done”.
- The fear that key stakeholders internally or externally will judge you.
You have to decide what is more important:
Case Study – Zero-based Budgeting analysis for prospecting options
My company Pipeline Signals has just gone through our quarterly Zero-based Budgeting (ZBB) exercise, and I thought I would walk you through the mindset and decision-making process. This analysis is based on the People, Process and Technology needed for cold outbound prospecting to net new accounts.
Step 1 – take all expenses related to net new customer acquisition in Quickbooks (expenses are within the Ledgers we call “Growth People” and “Growth Technology”) – and $0 scratch them out. They no longer exist.
Step 2 – we involved our Demand Generation team on a call to first review the Growth Technology.
- Usage and utilization of ZoomInfo vs. Get Prospect vs. Apollo.
- Apollo provided everything needed for list building, contact mapping/emails, and cadence/sequence design.
Step 3 – cut ZoomInfo and Get Prospect. Savings of $150/month. (that $1,800 per year savings at 25% EBITA = $7,200 LESS in sales required to generate the same profit.
Step 4 – we reviewed the Growth People. We had a player/coach in Demand Generation + 1 fractional SDR. The player/coach had designed so many systems over 2 years + their monthly contractor salary had increased over the years, so we could make changes.
Step 5 – we swapped talent from Philippines to Bangladesh (savings of $1,000/mo) in the player/coach role, and moved the Philippines talent to another hole in the business. That savings of $1,000/month ($12,000 per year) is equivalent to $48,000 LESS in sales required to generate the same profit.
SUMMARY – we ended up saving:
$13,800 per year
$55,200 per year in LESS sales requirements
Pipeline Signals AVG customer pays $24,000/year, so that’s 2 LESS customers we need to win this year… JUST FROM MAKING THESE SMALL QUARTERLY ADJUSTMENTS!
CX Fridays from Manila, Philippines
Every Friday, Every Friday – in my company Pipeline Signals, we personally communicate with each customer. We build a series of video best practices, next steps, insights, etc. to keep our customer relationships flowing.
But these insights don’t come from Toronto, they come from Manila, Philippines.
Joy, our Head of CX, will make either an “all encompassing video” for all customers, and/or personalized videos for specific customers to help support their journey:
Input from the Founders = 0.
Ability for Founders to sleep well on Friday nights =
This is not rocket science. This is just a mindset shift and a talent acquisition strategy coming to life. This can be you!
Don’t Forget – Benchmark your team against offshore talent.
- What is the profit increase you could expect?
- What is the sales relief/reprieve you could expect to generate the same profit?
Get ready to be shocked!