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Welcome back to the Business of Beers podcast. Your daily dose of strategies, tools and tips to help you build an eight figure business. Today's episode is a clip from one of my YouTube lives. If you'd like to hear the whole thing, there's a link below in the description. Cheers.
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You have to have these systems in place and you have to have people that you trust. Otherwise you can get robbed blind. The first thing I would look to do is administer. So admin is going to be all your bill pay, your payroll, your hr, your insurance. It is outsourcing this to global, what I like to call global talent. Some people call it VAs, but I call it global talent. It is extremely easy to find extremely talented people across the globe that, who can handle everything in your admin. Like our office today we have like I'm not over it like in the day to day so I might be a little off in these numbers. But I think we have anywhere from. I think we have 10 people in the Philippines who really run our entire back office. We have three people here locally and 10 people in the Philippines. You know, in our company we do, you know, 50 million in revenue. We have 10 people in the Philippines. So our controller, all of our accounts payable, accounts receivable, tech support, like, you know, the average wage is probably $1200 a month, 1500amonth, something in that range for full time people. And so that would be the first place I would look to get rid of like your bookkeeping, reconciling credit cards, even customer service. In our artificial turf business we have somebody, I think she lives in Brazil or Colombia, somewhere in Latin America and she handles all the calls. So when someone calls to book an appointment which is, you know, and schedule and do that, that's, you know, that's an admin role that happens overseas. And so I would do that. And then growth, like growth is going to be your leverage, right? Growth is going to be a thing that really fires you up. And so your goal is to be able to remove that time. So now instead of doing admin work and all this stuff that's like not fun, you hire somebody for, you know, let's just call it fifteen hundred dollars a month. Who, who hopefully takes twenty hours of your time away and then now you can spend that 20 hours and focus on the growth stuff. You where you're going out and you're building relationships with, you know, if you're in the franchise business, it's other franchisees. If you're, you know, independent business owner, you know, you might be like going just like physically going and meeting other people. Maybe you're networking, maybe you run a business that, you know, does really well with like chamber of commerce and things like that. And your best advantage, highest use of your time, is finding accounts and finding relationships that can make a lot of money. So a lot of things go through the credit cards. We have, obviously, systems to be able to do checks and balances. So the biggest thing with anybody who pays bills is you want to split the person who puts the invoices in with the person who actually pays the credit card. So you want to kind of have this division of labor and responsibility for invoices and then payments. Because otherwise, if someone could create their own invoice and then that same person could make the payment on the invoice, that's where someone would have the most leverage in stealing from you. And so, I mean, ours have access to our credit cards, ours pay the bills. I mean, luckily with us, like, there's a set number of vendors, so the main thing that they could do the biggest, like the way that someone could steal the most from you in any business. And this could be an American too, by the way. The only stories that I've ever heard of people stealing from them in the back office have been American back office women. And not, not, not Filipinos, not, not Latin America, not anywhere else. But like the lady that literally comes into somebody's office and sits there. Multiple stories I've heard, that is the person that, that does the theft. So just putting that out there, the biggest way someone could steal from you, if I was going to steal from myself, would be you would make up a entity that would you call it, like, you know, Brian Services or whatever, Brian's Automotive Services. And then you would make invoices that would pay to Brian's Automotive Services llc. And you would book those as like, cost of goods or like, like we outsourced a job to another shop and then we use that credit card to run. You know, I would have a stripe account. You'd use the company card to like run on stripe and then like my, my business quote, unquote, would get paid. That is like the way someone would steal from you. And so, you know, if you, knowing that you have to put really good systems in for invoices, specifically new vendors. So anytime you would say, hey, I'm going to have a new vendor come in that you as the owner or someone that you really trust is the one that does the approval of that new vendor to set up payments in Your system that you have a credit application that you know all these facts about the person that like new vendor setup. Right. The second part is every single invoice that you that gets charged should tie to a customer. We call them repair orders. But like, you know, every single vendor invoice should tie directly to a customer invoice. And so in our system, we, we can pretty much when a service gets done in the stores at the point of sale level, we receive the, we do an accounts bill, we create a bill at the store level that says, I just bought this thing from this vendor. It was $1,000. And then in our system, we get the invoice for 1,000. It's got the same number as the PO number to our customer invoice number. And so then we can see, okay, we got this bill for $1,000. And we can see we charged a customer for something and it has our cost of $1,000. So then we know it's good to pay. That is like, you have to have that checks and balances. And you go back to like we go back to how do you build a business that runs without you? You have to have these systems in place and you have to have people that you trust. Otherwise you can get robbed blind. This is how they're going to do it. And so new vendor approval on the credit cards. I mean, otherwise you could have limits. The other way we do it is if it's over a certain amount, somebody else has to approve of it as well. So you have like the key person you trust. And so maybe they could charge it up to a certain amount. But if it's like very high, you could get it over. Everything else is view only. So they have like all your bank access that you're going to set up for them. So they reconcile all of our credit cards, they track all of our cash deposits. They, I mean, do everything. It's gonna be bank view only. And so they're gonna be able to see deposits, but they're not gonna be able to create ACHs or transfers or do anything else except one person. We have one person who is over in the Philippines who is our controller. So she does have the ability to transfer money. Now we have to approve it. So the transfer, she can set it up, but it doesn't go through unless somebody approves it. And so, yeah, huge factor to have to trust, but it's going to be the same no matter where they are overseas or Americans. And our longest tenured employee now from the Philippines is six years. She's been working for us. I hired her during COVID She helps with payroll, so she sees the most sensitive things. But she's our longest tenured person and haven't been a single issue.