When it comes to building up your wealth, every little penny counts and every little detail as well, which is why you’ll have the richest of the rich grilling their accounting staff about every last penny that may appear to be missing or unaccounted for. Why do you think financial institutions make a killing in the manner which they do, by simply extracting mere pennies out of every few pounds and why do you think brokers who do the same also make the killing that they do?
It isn’t just a focus on every penny that does the trick however – the process of collecting these tiny or arbitrary margins needs to be as automated as possible. If you cast your mind to the streets of Sao Paulo for instance, the street vendor selling hot dogs who has a portable credit card machine saves a periodic trip to the bank over the street vendor a few yards from him who is also perhaps selling the exact same hot dogs, except they accept cash only. The money they earn from their sales goes straight into their bank accounts and in addition to that they’ll probably pull more customers because for all one knows a customer could be put off buying a hot dog they’d otherwise wanted by the fact that they’d perhaps first have to go to the ATM, stand in a queue, draw money and then come back to buy the hot dog.
So automation doesn’t only make the process of collecting and storing cash easier and safer, but also in many instances gives you an advantage which in itself translates to more sales and more money. Away from a place like Sao Paulo seeing credit card machines on the streets may raise suspicions, but imagine if you perhaps run something like a backpacker’s hostel – whipping out a credit card machine will add eons of legitimacy to your business and will offer convenience for both you and your guests.
Identifying Automation Areas
The fundamentals of automation point to identifying a process or a set of processes which is repetitive in its nature and then introducing a solution that can complete that process without the constant need for yours or an employee’s constant input. Sometimes it’s not as obvious as seeking to automate the main task itself, like perhaps installing some software in place of someone who would have had to complete a specific repetitive task. Sometimes automation requires the introduction of an automation mechanism in another area of the business, which goes back to the www.MerchantAccountSilutions.com portable credit card machine example. In this case there’d perhaps still need to be an employee manning the pay-point, but the automation kicks into gear when you consider that someone would have also subsequently had to make frequent visits to the bank in order to deposit some of the surplus petty cash you’d have otherwise have to keep physically.
Automation is indeed the key to building wealth, even though we explored it here through a very basic example of a scenario that would probably play out around someone working for themselves as a street vendor.