How to Minimize Risk in Your Business: The 4X Method

The biggest expense you'll have as a service-based small business owner: your employees' salaries. That's why it's absolutely critical to teach your team members how to master the skills that'll make them money - so that you can not only protect your business, but your team.

During the 2008 recession, I was responsible for the careers of over 30 professionals when I was working in the staffing industry. Laying off my team wasn't an option, so instead: we pivoted, adapted and innovated.

We focused on building their sales skills that would not only keep the team profitable and fully in-tact, but we actually broke company records in spite of what was happening with the economy. Moral of the story: selling = security.

Most small businesses are only a month away from going out of business, because what they don't understand is that when their employees don't produce more than what they cost the company, any type of negative disruption is going to leave them with one of three choices: going out of business, going into debt, or laying off employees.

This is why I teach business owners inside my program how to set their employees up for success and profitability using what I call the 4X method.

The 4X method is the process of training your team to bring in 4 times the amount of revenue they cost the company, allowing the business to begin a 6 to 12-month emergency funds so that, in case of emergency, the company and employees are protected. Not only that, but it also gives your team uncapped income opportunity through commission structures. This protects the CEO, allows team members to maximize profits, and is essentially the least stressful way to run your business.

The first step in taking employees from deficit to asset is getting them to generate enough revenue to cover themselves and float the next hire during their onboarding process.

Once employees are fully onboarded and producing the minimum viable numbers, they can sustain long term growth and profitability by bringing in new revenue each month - contributing not only to the company's ability to make strategic investments, acquisitions and infrastructure changes in the business, but also supporting employees' career and income goals.

There are specifics and phases we teach inside my Legacy Leaders Mastermind for entrepreneurs who are building and growing profitable teams - if you're curious to learn more about how it works, click here to set up a strategy call with my team!