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This blog is provided by Mitch Russo. It is the first half of Chapter 1 from his book Invisible Organization: How Ingenious CEOs Are Creating Thriving Virtual Companies ©2015 and used with permission. In his book, Mitch shares how leaders can begin the process and enjoy the benefits of a successful Invisible Organization, which is one that embraces the work from home atmosphere. If you would like to find out more, you can purchase his book here. This blog is a companion to his interview on Innovating Leadership, Co-creating Our Future, Building a Community Around Products and Services which aired on May 5th, 2020.

The whole world is moving in this direction. Your competitors may already be working virtually at some level. Some companies have tried and failed, others are succeeding and winning. You may already have a few people who work from home. That’s great, but it’s just a start. Transitioning to an Invisible Organization requires much more, and the rewards are much greater than you are aware of.

Why is it worth the effort to build an Invisible Organization? You can create more free time, higher profits, greater business success, and probably best of all, greater fulfillment for you and your staff. You might not realize it, yet the future of your very business may depend on it.

It’s not hard, but it does take determination and the willingness to rethink the way your company operates. The steps I provide are simple and direct regardless of what type of company you have or what industry you are in. I’ve done it myself, and I’ve helped others do it—with tremendous results. Now it’s your turn.

The goal of this book:

To get you into action quickly so that you can begin the process and enjoy the benefits of a successful Invisible Organization sooner rather than later.

The process will require you to master several new skills and strategies which will be the keys to unlimited business success. You’ll be challenged to find ways to become “invisible” in all areas of your company.

You’re going to evaluate every department, each staff member and every system you’re using now from a different perspective. You’ll discover ways to work more efficiently, and as a direct result, expand your business.

This process will take some time, but the cumulative results will be undeniable. You will create maximum results with minimum effort and cost.

Inevitably, this will enable you to increase your income.

When asked how they run their sales organization, some business owners might say, “We just pick up the phone, call a prospect and ask for the order.” That answer is no longer good enough. You need to break down exactly what it is you do into a series of steps that you follow with every single client or customer.

When you know exactly what it is your company is doing, you can tell a person exactly what it is you do with confidence. This leads to more business because people like systems. If they’re looking for someone to help them with a specific problem or service, they feel comfortable knowing that there’s a tried-and-tested series of techniques in place to get that job done.

Besides selling with confidence, good systems will make expansion easier and training more precise. They will let you build in and repeat successful processes. You can set up the training for your staff and track their results and improve them. You’ll know how long it takes to accomplish each action.

Once clearly defined systems are in place, you’ll then be able to easily discover ways to maximize your exposure with more effective marketing.

Your marketing system is a crucial piece of your business that will ultimately be generating income for you on its own. It will become a major component of your Invisible Organization.

The following chapters will share marketing techniques that go beyond the now-common Facebook and Google ads. These techniques will become huge profit generation systems when used in an Invisible Organization. If you already have great marketing systems in place and want to expand sales while cutting expenses, you are in the right place, too. I’ll show you how you can increase productivity and profits while improving the lifestyle of the CEO, the management team, and your staff.

How do I know this for sure? I did it myself. Now I want to help you do it as well.

As the CEO of Business Breakthroughs International, I built a multi-hundred-person organization spanning seven countries and with over 10,000 clients. We doubled our business three years in a row and managed twelve divisions, seven of which had their own Profit and Loss Statement and were profitable. At its peak we generated over $25 million in revenue per year with over five hundred clients every month. On average we had more than fifty working coaches and nearly 100 salespeople, all of them working from the comfort of their own homes. We didn’t own a single copy machine, and yet anyone who dealt with us thought we occupied a huge facility with a lot of parking spaces.

The company started as Chet Holmes International and evolved into Business Breakthroughs when Tony Robbins became our joint venture partner.

We collectively assisted thousands of companies with high-level consulting services, coaching and education. I created several new divisions, all profitable almost from day one.

I ran the entire organization as President and CEO from a home office, my spare bedroom converted to a workspace. It was comfortable, easy to work from, and it saved me countless hours and dollars I would have spent maintaining a professional, outside facility. Even though my personal assistant was 2,000 miles away, we functioned as a great team.

Before that, I was a CEO consultant and a venture investor. In that role, I saw hundreds of business models and directly participated in several as an operating executive.

Back in 1985, I built, ran, and sold the most popular time accounting software company ever built called Timeslips Corporation. At one point, Timeslips Corp had over 250,000 clients. We sold that business for over $10M.

With an Invisible Organization you won’t need the physical infrastructure you are currently using. Just imagine how much money you could save if you no longer had to pay for rent and utilities. Your first response may be, “That won’t work for our company.” But think about it. Wouldn’t it be a great way to boost profits and create leverage for your business if it were possible?

How much money could you really save? Let’s take a look.

A small architect’s office in Ashland Massachusetts has 12 employees. One is the CEO, another the bookkeeper, another is receptionist, and there is one tech to support the infrastructure. The remaining eight are engineers and draftsman. They have a 4,000-square-foot office space with a conference room, a reception area, and ten individual offices. After understanding their concerns about maintaining their “presence” in the area, I recommended the following, as their lease was up for renewal:

Current Monthly Costs:

Rent at $32/SqFt:                                 $10,666

Electricity                                               $816

Gas for Heat                                           $437

Leased Servers Onsite                          $2,850

Custodial                                                 $300

Coffee Service                                         $195

Snacks                                                      $150

Phone System Lease                             $532

Internet                                                    $450

Phone Service                                         $295

Property and Facilities Insurance       $310

Total:                                                        $17,001 per month

After the CEO decided it was time to become “invisible,” most of these costs were eliminated. The company downsized to an 850-sqare-foot office, which allowed the CEO to maintain his presence with the receptionist. This included a full conference room and two guest workstations with the equipment the company already owned.

The CEO returned his leased server to the leasing company and signed a contract for a cloud-based server, eliminating 3/4 of the company’s monthly expenses (and that included new equipment at his hosting company every two years with 24/7 tech support and backup). He sent his entire engineering staff home and gave them each $75 a month to pay for their Internet fees. They were delighted to save money on fuel and lunches, plus they were happy that they didn’t have to commute an average of 80 minutes anymore.

After going invisible, the company’s monthly costs were:

Rent at $36/SqFt                            $2,550

Electricity                                          $327

Gas for Heat                                      $196

Coffee Service                                   $48

Snacks                                                $54

Internet                                             $250

Phone Service                                   $96

Property Insurance                         $144

Remote Server Lease                      $650

Added Internet for Staff                 $750

Total:                                                 $5,065 per month

That’s an $11,936-per-month savings—about $143,232 per year— because they converted from a physical location to a virtual organization. Besides the savings, everyone loved working from home, except one engineer who didn’t have the self-discipline and had to be let go. As a result productivity soared, the quality of work increased dramatically, and people were logged into their servers from home at all hours of the day and night, willing to work extra if needed without complaint.

Just imagine how much you would save on office furniture, partitions, phone sets, phone systems, and in most cases, even the cost of computers. Since you won’t maintain any of your own hardware anymore, you will no longer need a tech support person. Instead you’ll rely on your cloud system’s provider for help.

In the above example, profits soared and staff became more productive even before we started implementing the really cool stuff: interconnecting all their systems, building their document vault, and creating their automated training environment. That’s the next step, and that’s where your world will change when it comes to scalability.

Today’s cutting-edge systems will open doors you didn’t even know existed. Even if you own a manufacturing plant, or operate a medical center, or need manual labor, there are still certain departments that could operate virtually. When you have the proper training systems in place with clear policies and procedures, you can send your sales and administrative team home while watching their productivity increase. They will be happier and will keep more of their net pay.

It’s best to transition gradually. Start with just a few people to get used to how it works. Then begin to migrate, and watch the magic happen. Everything I’ve discussed in this book can be done without physical infrastructure.

The Invisible Organization by Mitch Russo © 2015

To purchase The Invisible Organization, click here.

To become a more innovative leader, you can begin by taking our free leadership assessments and then enrolling in our online leadership development program.

Check out the companion interview and past episodes of Innovating Leadership, Co-creating Our Future, via iTunes, Google Play, TuneIn, Stitcher, Spotify and iHeartRADIO. Stay up-to-date on new shows airing by following the Innovative Leadership Institute LinkedIn.

About the Author

Mitch is the author of the bestseller The Invisible Organization: How Ingenious CEOs are Creating Thriving, Virtual Companies, which is the CEOs guide to transitioning a traditional brick and mortar company into a fully virtual organization. It became an instant bestseller on Amazon across several categories. He cofounded Timeslips Corp, which grew to become the largest time tracking software company in the world before it was sold in 1998. Then, Mitch went on to join longtime friend Chet Holmes as President, later to join forces with Tony Robbins and together created Business Breakthroughs, International with nearly 300 people and about 25 million in sales. Mitch says, Make it Happen and he’s doing that with yet another great company he founded, called PowerTribes. His websites are MitchRusso.com and PowerTribes.net.

To connect with Mitch Russo, email: mitch@mitchrusso.com


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