Guide · Small business 3 min read
Saving money is the small win.
A cost cut gives back at most what you were spending. The step that caps how much work you take on has no such limit. Fix that one first.
Say you pay $500 a month for an app nobody opens. Cancel it and you get $500 a month back. That's the best case. A cost cut can never return more than 100% of the cost, and most costs can't go to zero without breaking something.
Income doesn't have that ceiling. If one step in your business limits how many jobs you can take, opening it up pays back every month, and it keeps paying as you grow. Plenty of small businesses are turning work away.
- $38B+
- in sales and contracts Canadian small businesses turned down or postponed in 2022 for lack of staff, per CFIB
- 27%
- of owners said they had to turn down sales or contracts, in 2023 surveys of 5,254 CFIB members
- 53%
- of those owners worked more hours themselves to cover the gap, per CFIB
Find the step that caps your income
Every business has one step that sets the pace. Answering the phone, sending quotes, booking jobs, packing orders. Everything behind it waits. Speed up any other step and nothing changes, because the work still piles up at the slow one.
Ford found its slow step in assembly. Under the old stationary method, a Model T took 12 and a half hours to put together. Ford broke the job into small tasks and moved the car past the workers. By early 1914, three moving lines turned out a finished Model T every 93 minutes, according to The Henry Ford museum. Over the car's run the price dropped from $850 to as little as $260 US, and Ford built over 15 million of them.
Chick-fil-A did the same thing with a drive-thru. The speaker box takes one order at a time. Franchise operators started sending staff down the line to take orders car by car, first on paper and phone calls, later on tablets. The company calls it Face-to-Face Ordering and says most of its restaurants sometimes serve over 100 cars an hour at peak. Neither one got there by spending less. They opened up the step that capped the work.
- Find the slow step
- Open it up
- More jobs done
- Then trim costs
Want to see this mapped to your business?
Why cutting comes second
Cutting isn't wrong. Cancel the app nobody uses. But each cut is a fixed amount, and the first ones are the easy ones. After that you're trimming things the business needs, and the owner's evenings go into finding the next few dollars.
If you're turning work away, those evenings are better spent on the step that caps your sales. Some cuts are still worth making for other reasons. Rented software you can't leave and data you can't export are two of them, and we wrote about owning your software and data.
What opening up the slow step looks like
In many small businesses, the slow step is office work that one person squeezes in between everything else. AI can take much of it.
- Answers the calls you can't pick up and books the job.
- Drafts each quote the same day, ready for you to check and send.
- Follows up on every lead and unpaid invoice on schedule, not when someone remembers.
- Books new jobs into open slots and tells the crew what's next.
Measure it in jobs per week, not hours saved. Hours saved are nice. Jobs per week is the number without a ceiling.
Start small
Pick one busy week. Write down every call you missed, every quote that went out late and every job you said no to, and why. The reason that comes up most is your slow step. Fix that one, then look again, because once it's open a different step becomes the slow one.
Turning work away?
Bring last month's missed calls, slow quotes and jobs you said no to on a free 30-minute call. We'll find the step that caps your sales and what it would take to open it up.