Episode 423
The ROI of Systems: The Real Value of Setting Up Great Systems
In this episode of the System Saved Me® podcast, Mary Gonzalez, Systems Lane explains why systems are not just extras but the foundation of a successful business. Many people think they aren’t necessary, but businesses grow and run better when they have strong systems in place. She shares real facts showing how small businesses save time, reduce mistakes, and improve teamwork with the right systems. Without them, things get messy, and work becomes stressful, but with good systems, everything runs more smoothly. This episode is a must-listen for business owners who may need a little nudge or two to prioritize systems in their business!
MORE ABOUT MARY GONZALEZ:
Mary, founder of Systems Lane, helps businesses streamline systems, optimise workflows, and scale operations with ease through automation. With a passion for simplifying processes, she empowers entrepreneurs to reclaim their time and achieve scalable, sustainable success.
TIMESTAMPS:
00:02 - Understanding the Real ROI of Systems Improvements
01:56 - The ROI of Systems Improvement
07:31 - Calculating the ROI of Your System
13:23 - The Importance of Automation in Business Systems
18:00 - The Myth of the Rockstar Team Member
Transcript
Welcome to the System Sammy podcast.
Speaker A:I'm your usual host, Joanne Gill, and today we are getting into the topic that could change the way your business runs, and that is actually looking at the real ROI of systems improvements.
Speaker A:And if you've ever felt like systems are just some sort of like fluffy business advice or you feel like it's just such a broad term that you don't even really know how to grasp it, like today's episode is going to be good.
Speaker A:So to help us break it all down, I've got Mary from Systems Lane on the podcast and she is an ex digital nomad turned systems queen, helping business owners streamline their operations, optimize their workflows and reclaim their time.
Speaker A:Amen.
Speaker A:Because let's be real, time is the most valuable currency.
Speaker A:And Mary is going to be walking us through why systems aren't just nice to have, but a profit driving, stress reducing, business scaling necessity.
Speaker A:All right, so we're talking about how the right systems can save you hours every week, week, boost team efficiency and even increase your revenue without having to add more people to your payroll.
Speaker A:So if you've ever found yourself drowning admin work, chasing your team for updates, or just feeling like your business is running you instead of the other way around, grab a notebook.
Speaker A:This one is going to be packed with insights.
Speaker A:Let's dive in.
Speaker B:Hello, legends.
Speaker B:Welcome to another episode of System Save Me, where we talk all things business systems, strategy and scaling up without distractions.
Speaker B:Trust and Mary and founder of Systems Lane and today guest ex digital nomad turned into a system queen.
Speaker B:I help businesses streamline their operations, optimize their workflows and reclaim their time.
Speaker B:Which, let's face it, it's the most valuable currency, isn't it?
Speaker B:Now today's episode is all about something that sounds kind of technical, but it's actually the secret sauce to a business that runs like a dream.
Speaker B:The ROI of systems improvements.
Speaker B:That's right.
Speaker B:We're going to talk about why investing in systems or better systems isn't just some fluffy business advice, but something that can literally put time, energy and even cash back into your pocket.
Speaker B:ROI is often thought as of just dollars, but let me tell you, it's so much bigger than that.
Speaker B:We're talking about time, resources, team efficiency, tools and even stress management.
Speaker B:Did you know that according to a recent report by small business trends, 76 of small businesses say the right systems help them scale without adding to their team size?
Speaker B:That's right.
Speaker B:Growing smarter, not harder, my friends.
Speaker B:And also to make it even juicier, a software study revealed that 63 of small businesses owners credit automation for helping them save at least 20 hours per week.
Speaker B:That's almost a whole day back in your pocket to focus on high impact tasks.
Speaker B:That's fantastic.
Speaker B:So let's dive in and figure out if your systems are giving you a bang for your buck or just making noise in the background.
Speaker B:Let's start with a question.
Speaker B:What's the cost of not having the right systems in place?
Speaker B:Imagine this.
Speaker B:You're running a business without clear workflows or automations.
Speaker B:Every month you spend hours manually tracking for payments, responding to emails, chasing your team for updates and fixing mistakes that could have been avoided.
Speaker B:That sounds quite exhausting already, doesn't it?
Speaker B:And here's the thing.
Speaker B:A lack of systems doesn't just waste your time, right?
Speaker B:It drains your energy, increases your stress, leaves money on the table.
Speaker B:And we no one wants that.
Speaker B:Don't we?
Speaker B:Now let's flip the script.
Speaker B:What happens when you implement strong system and you can see your time being freed up?
Speaker B:Imagine shaving hours off your week because repetitive tasks are now automated.
Speaker B:Also, your team becomes more efficient.
Speaker B:Everyone knows what they're doing, when they're doing it and how it ties into the bigger picture.
Speaker B:And last but not least, avoid costly mistakes.
Speaker B:A miscommunication or drop task can cost you a client or delays in a project.
Speaker B:And systems ensure nothing falls through the cracks.
Speaker B:And here's a fun thought experiment for you.
Speaker B:What would your business look like if you got back 10 hours a week?
Speaker B:What could you do with that time?
Speaker B:Focus on growth.
Speaker B:Spend time with your family.
Speaker B:Finally take that holiday.
Speaker B:I'm pretty sure you already have an idea on what to spend it on how to spend it, right?
Speaker B:We all do.
Speaker B:All right, now let's break it down.
Speaker B:Or this real ROI of systems improvement.
Speaker B:And spoiler alert, as we said, it's not all about dollars.
Speaker B:It's about time.
Speaker B:It's about resources, energy, or even your peace of mind.
Speaker B:As we already discussed, let's say you spent about 10 hours a week on admin tasks that could be automated or in some other cases could be outsourced.
Speaker B:That's 40 hours a month, a full work week.
Speaker B:Now imagine those hours were spent on revenue generating activities like client work or sales.
Speaker B:Fantastic.
Speaker B:Even better.
Speaker B:Now what's the monetary value of your time?
Speaker B:If you charge say $100 an hour, that's $4,000 a month.
Speaker B:That could be making instead of fiddling with spreadsheets and slack.
Speaker B:Also, have you ever had team members ask the same questions over and over?
Speaker B:Because the Processes weren't clear or worse, had tasks fall through the cracks.
Speaker B:Strong systems give you the team clarity, which saves you time and frustration.
Speaker B:And when your team is happier, they're more productive, which means better results for your business.
Speaker B:And then the tools.
Speaker B:Are the tools you're paying for helping your bottom line or are they just shiny distractions?
Speaker B:Systems help you use the right tools effectively.
Speaker B:For example, automating your client onboarding might cost you around $50 a month, but could save you hours and make a killer first impression.
Speaker B:So this is much more than the $50 investment, isn't it?
Speaker B:And last but not least is stress management.
Speaker B:Yes, that counts too, because systems aren't just about efficiency, they're about sanity.
Speaker B:They stop you from waking up at 3am wondering if you forgot something, which often happens to me at least.
Speaker B:And that's a big value for of peace of mind, right?
Speaker B:What's your value of peace of mind?
Speaker B:I would argue it's priceless.
Speaker B:Now that we know the benefits, let's get into the nitty gritty.
Speaker B:How do you calculate the ROI of your system?
Speaker B:And here's a simple formula to get started.
Speaker B:Return of investment or ROI is calculated by subtracting the cost of the investment from the gains generated by Namebase.
Speaker B:Return of investment or ROI is calculated by subtracting the cost of investment from the gains generated by the investment.
Speaker B:Then you divide the result by the cost of investment and finally multiply the outcome by 100 to express it as a percentage.
Speaker B:Let's first break it down into real terms and make it a little bit more podcast friendly.
Speaker B:So first, number one, gains from the investment.
Speaker B:Start by identifying what your systems are saving you or helping you earn, for example, time saved.
Speaker B:To calculate the monetary value of your time, increased value or increased revenue from better clients, retention or faster delivery and reduce costs, for example fewer mistakes or less wasted time.
Speaker B:Number two, what are you spending on your systems?
Speaker B:And this could include tools and software subscriptions, consultant fees, like hiring someone to set up your systems or update your systems for you, wink, wink.
Speaker B:And team training to implement new processes.
Speaker B:And number three, let's just plug all this information into a formula, right?
Speaker B:Let's say your new system saves you around $5,000 a month in time and revenue and it costs $1,000 to implement.
Speaker B:So we will do take this $5,000 and subtract $1,000 and then divide the result by 1,000.
Speaker B:Finally multiply that by 100 to express it at a percentage.
Speaker B:And do you know what the result is?
Speaker B:It's 400%.
Speaker B:That's 400% return of your investment.
Speaker B:Not too shabby, right?
Speaker B:And, well, what are the key metrics you want to improve with your systems?
Speaker B:And of course this will depend on your business type, but here are some common ones.
Speaker B:Some common types you want to take advantage of and you want to take note.
Speaker B:Please save time per week or per month, increase in revenue or client retention rates, reduction in errors or missed deadlines and faster onboarding, offboarding or delivery times for clients to make a better customer experience.
Speaker B:Think about this.
Speaker B:What's the one thing you wish was easier, faster or less stressful in your business?
Speaker B:And that's where systems can deliver this roi.
Speaker B:All right, let's talk about how to make sure the systems you're putting in place actually work for you.
Speaker B:Because let's be real, if it's not saving your time, money or sanity, what's the point, right?
Speaker B:And that's what we want.
Speaker B:And first up, track your before and after data.
Speaker B:And I get it.
Speaker B:Tracking data might sound boring and be honest time consuming, but trust me, it's absolutely necessary.
Speaker B:You can't measure improvement if you don't know where you started.
Speaker B:So before you roll out and fancy new system, take a look a hard look at your current situation and ask yourself how does it take you or your team to complete certain tasks manually?
Speaker B:How many clients or projects can you realistically manage at one time without feeling completely burnt out?
Speaker B:And how often do errors or delays pop up that threw off your flow?
Speaker B:Write these numbers down and if you have more, please do.
Speaker B:And seriously, get all these documented.
Speaker B:It's like the before picture in your system's glow up.
Speaker B:Then once your systems are up and running, track those same metrics again.
Speaker B:Compare the before and after and that's your tangible proof of improvement.
Speaker B:And who doesn't love seeing progress right now?
Speaker B:The next one is don't skip training.
Speaker B:And this is huge because I don't care how fancy or expensive your tool is, if your team doesn't know how to use it, it's basically just a shiny paperweight.
Speaker B:Make sure everyone is trained up.
Speaker B:Watch tutorials, read the documentation, or better yet, hire an expert to walk everyone through it.
Speaker B:And the time you invest in training will pay off tenfold, I promise.
Speaker B:Then test the water first.
Speaker B:Not 100% sure about a new system?
Speaker B:Well, no problem.
Speaker B:You can start small, test out if maybe you can test it out with a single client or a project before rolling it out across the entire business.
Speaker B:This way you can spot any potential issues without causing chaos everywhere else.
Speaker B:Think of it of dipping your toes in the pool before jumping in.
Speaker B:So we can then just make some tweaks before you roll out to the entire business.
Speaker B:Now let's talk about one of my favorite topics which is automation.
Speaker B:Automations are likely the quiet heroes of our systems and your business.
Speaker B:They save you time and eliminate these repetitive tasks that no one wants to do and of course errors.
Speaker B:Whether it's client onboarding, payment reminders or follow up emails, automating these rise and repeat tasks frees you up to focus on the big picture and what you love doing.
Speaker B:Then remember to regularly review your systems.
Speaker B:Here's the thing.
Speaker B:Systems aren't really a set and forget kind of thing.
Speaker B:That's a myth.
Speaker B:As your business grows, your systems will need to grow too.
Speaker B:What worked when you had fat clients might not work when you got 50.
Speaker B:So schedule regular check ins, maybe quarterly or annually to audit your workflows, tools, and also team efficiency.
Speaker B:A little maintenance goes a long way.
Speaker B:And lastly, focus on high impact areas.
Speaker B:First, you don't need to overhaul your entire business overnight.
Speaker B:And honestly, you shouldn't start with areas where you're losing most of your valuable time, money and resources.
Speaker B:Fix Just one bottleneck can create a massive ripple effect across your operations.
Speaker B:Think of it as pulling the biggest weed in the garden and that frees up space and energy for everything else to thrive.
Speaker B:Now here's a question for you.
Speaker B:When was the last time you calculated the ROI of your business system?
Speaker B:And if the answer is never, it's time to start, my friend.
Speaker B:Here's a golden rule I have.
Speaker B:If your systems are saving you more than they cost, whether it's in time, in money or stress, they're worth the investment.
Speaker B:But if you're not seeing a return, it's time to reassess.
Speaker B:Because they should.
Speaker B:And ask yourself, is it systems addressing my biggest bottlenecks?
Speaker B:Is it being used effectively by my team?
Speaker B:Am I actually tracking improvements it's making?
Speaker B:Am I tracking if it's actually better than before?
Speaker B:So here's the big takeaway.
Speaker B:Systems aren't just a nice to have.
Speaker B:They're the foundations of successful, scalable and sustainable business.
Speaker B:Period.
Speaker B:They aren't just about saving money.
Speaker B:They're about creating space.
Speaker B:Space to grow your business.
Speaker B:Space to focus on what you love.
Speaker B:Space to enjoy life outside work.
Speaker B:When you invest in systems, you're not just buying software or templates.
Speaker B:You're buying back your time, your energy and your peace of mind.
Speaker B:You're giving your team the tools they need to thrive and make you thrive and make your business thrive and you're setting your business up to grow without the burnout for you and for everyone else on the team.
Speaker B:How does that sound to you?
Speaker B:Is this something you feel you might be worth the investment?
Speaker B:And if you're there sitting or walking while listening to this podcast and thinking, okay, Mary, this sounds great, but I don't even know where to start with my own systems.
Speaker B:Or I do have my systems, but how do I even start to seeing if they're working or not?
Speaker B:And you're not alone because that's where I come in.
Speaker B:I offer systems audits where I'll dive in into your current operations, identify what's working, what's not, and giving you a tailored roadmap to streamline and scale your business without the overwhelm.
Speaker B:You can visit me and say hi.
Speaker B:Come say HI.
Speaker B:And to systemslane.com that's systemslane.com and let's book your audit together.
Speaker B:We'll make sure that your business is running like a well oiled machine and you're seeing real ROI from your efforts.
Speaker B:Now, before we wrap up, let me give you a sneak peek into what's coming next because I'm really excited about this topic.
Speaker B:We're taking a deep dive into a topic that might ruffle a few feathers, but it's so crucial to scaling your business.
Speaker B:It's all about why a players aren't scalable.
Speaker B:That's right.
Speaker B:We're going to unpack the common myth of hiring a Rockstar team member will magically solve all your business problems.
Speaker B:And well, spoiler alert, it won't.
Speaker B:Well, we'll talk about why relying on superstar talent alone can actually hold your business back.
Speaker B:And more importantly, how can you build these systems that make your business scalable no matter who's on your team?
Speaker B:Because the truth is, even a players need a framework to thrive.
Speaker B:And let's face it, systems are the framework.
Speaker B:So if you ever wondered how to create a business that runs smoothly without being overly dependent on finding the perfect hire, you definitely want to miss this.
Speaker B:Well, that's all for now.
Speaker B:This is Mary from systemslane and thank you for timing in.
Speaker B:Until next time, bye.
Speaker A:So good, right?
Speaker A:Thank you so much for listening to this episode of the System Save Me podcast.
Speaker A:If you loved this episode, I would so, so appreciate a review on whatever platform you're listening on.
Speaker A:But also go love on the guest host.
Speaker A:Connect with them on Instagram, LinkedIn or wherever they suggested to reach out.
Speaker A:I hope you're having a great day and I will see you on the next episode.
