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The Hidden Cost of Burnout: How Emotional Fatigue Impacts Profitability · Profit Points Podcast

• 0:00
  SPEAKER_00: Hey, glad you're here.
• 0:01
  SPEAKER_00: This is Profit Points, and I'm Megan Schwant, your accounting sidekick and certified Profit First Professional in Fix this Next Advisor.
• 0:09
  SPEAKER_00: If you're a small business owner who wants to actually understand what is happening in your business financially, not just survive it, but genuinely get it, you're in the right place.
• 0:20
  SPEAKER_00: Every episode covers one concept, uses real numbers, and ends with something you can actually do.
• 0:26
  SPEAKER_00: That's the deal.
• 0:27
  SPEAKER_00: Let's talk about today's topic.
• 0:31
  SPEAKER_00: Happy New Year! Let's start the year with an honest truth that most CEOs don't want to admit.
• 0:40
  SPEAKER_00: Burnout doesn't just affect your mindset, it shows up in your numbers.
• 0:45
  SPEAKER_00: If you've ever looked at your bank account and thought, why does this feel harder than it should?
• 0:50
  SPEAKER_00: There's a good chance the issue isn't strategy, it's energy.
• 0:56
  SPEAKER_00: Today we're gonna talk about emotional fatigue and how it quietly leads to poor decisions and how those decisions create very real consequences because we want to start the year off strong and know what to look for and what to pay attention so that this year is your best year yet.
• 1:16
  SPEAKER_00: I'm Megan Schwine, your accounting sidekick, CEO and founder of Sidekick Accounting, and this is the Profit Points Podcast, where we connect the dots between leadership, decisions, and numbers and the numbers they create.
• 1:30
  SPEAKER_00: So let's talk a little bit about this connection.
• 1:34
  SPEAKER_00: Most CEOs think burnout looks like exhaustion or irritability or lack of motivation, but in business, burnout often looks a lot less obvious.
• 1:46
  SPEAKER_00: It can show up in things like saying yes when you should say no, avoiding decisions because they feel heavy, letting things slide because you just don't have the energy to fix them.
• 2:00
  SPEAKER_00: If this is resonating with you, drop me a like or a comment or a emoji or something because I know I can't be the only one that has felt this way in the journey.
• 2:11
  SPEAKER_00: And this week, actually, first week of the year has been tough for us uh as an organization as well.
• 2:18
  SPEAKER_00: I I have choices I have to make, and I can decide do I allow burnout to creep in, or do I make sure that I'm giving myself space to make sure that these little sparks that have popped up, because there's always inevitably going to be sparks that pop up, right?
• 2:34
  SPEAKER_00: We're humans, we live in a very busy, demanding world, we're dealing with people, and we all know people aren't perfect either.
• 2:42
  SPEAKER_00: So I have a choice.
• 2:43
  SPEAKER_00: Do I make sure these little sparks don't turn into raging fires or do I let them do that?
• 2:50
  SPEAKER_00: And the truth is that every single one of these decisions impacts your money.
• 2:55
  SPEAKER_00: Your numbers, our numbers, don't just reflect strategy, they reflect your capacity, my capacity.
• 3:04
  SPEAKER_00: So let's dig a little deeper into that.
• 3:07
  SPEAKER_00: How does burnout impact pricing, boundaries, and cash flow, right?
• 3:12
  SPEAKER_00: Because those are the big things.
• 3:14
  SPEAKER_00: Those are the things that make our businesses profitable, that make them sustainable.
• 3:19
  SPEAKER_00: So, how does burnout impact this stuff?
• 3:22
  SPEAKER_00: Pricing.
• 3:23
  SPEAKER_00: When you're burnt out, you underprice.
• 3:26
  SPEAKER_00: Not because you don't know better, but because you don't have the energy to have the hard conversations.
• 3:33
  SPEAKER_00: You're you don't have the capacity to take that risk.
• 3:38
  SPEAKER_00: You keep prices where they are to avoid pushback.
• 3:42
  SPEAKER_00: That's emotional fatigue turning into profit loss.
• 3:46
  SPEAKER_00: You see how that works?
• 3:47
  SPEAKER_00: Because if you raise your prices, you're gonna have a higher profit, right?
• 3:50
  SPEAKER_00: And it's if it's been a while, or if you've never raised prices, you are already setting yourself, or you are already behind, right?
• 3:58
  SPEAKER_00: The behind the ball, behind on it.
• 4:03
  SPEAKER_00: Another thing is boundaries.
• 4:05
  SPEAKER_00: Burnout leads to scope creep.
• 4:08
  SPEAKER_00: Have you ever had scope creep?
• 4:09
  SPEAKER_00: I certainly have, which really just translates into extra work, late nights, and free quick favors.
• 4:17
  SPEAKER_00: And suddenly your time is maxed out and your margins shrink.
• 4:21
  SPEAKER_00: It's just a whole thing.
• 4:23
  SPEAKER_00: So you really have to make sure that you're staying on top of things, that you're not allowing yourself to get burnt out, so that you can make sure that you have good boundaries in place to nip scope creep or avoid scope creep all in one.
• 4:39
  SPEAKER_00: And then finally, cash flow.
• 4:41
  SPEAKER_00: When you're exhausted, right?
• 4:43
  SPEAKER_00: You're just you're surviving, you delay invoicing, you avoid the collections conversations, and ignore follow-ups.
• 4:52
  SPEAKER_00: Not because you're bad at business, because decision fatigue is real.
• 4:56
  SPEAKER_00: And coming from a single mom and business owner, I am the first person, one of the biggest persons to know what decision fatigue feels like.
• 5:06
  SPEAKER_00: So you gotta make sure you're setting yourself up for success.
• 5:10
  SPEAKER_00: So let's look at what the let's talk about what those early signs, warning signs are and how they're showing up in your numbers.
• 5:16
  SPEAKER_00: So quiet red flags that we often see when it comes to this with business owners, things that I've seen with myself, um, is that your revenue is steady, but your profit is declining.
• 5:28
  SPEAKER_00: This is the perfect time of year to take a look at last year, right?
• 5:32
  SPEAKER_00: Look at what your financials were last year, take a look at the year, compare it to the year before.
• 5:38
  SPEAKER_00: Look at what happened.
• 5:40
  SPEAKER_00: Is your revenue and profit increasing?
• 5:43
  SPEAKER_00: Did it decrease?
• 5:44
  SPEAKER_00: Last year was really weird for a lot of people.
• 5:47
  SPEAKER_00: So it can be really, really helpful to look at it.
• 5:49
  SPEAKER_00: And if you don't know where to start, please reach out to me.
• 5:52
  SPEAKER_00: We can have a consultation and talk about one thing.
• 5:56
  SPEAKER_00: I have a sustainability snapshot that you can take to kind of help us have that conversation.
• 6:02
  SPEAKER_00: Reach out, I'll put you in the right direction, and we can have a talk about it.
• 6:07
  SPEAKER_00: Um, accounts receivable.
• 6:09
  SPEAKER_00: Is it growing because follow-ups feel draining?
• 6:12
  SPEAKER_00: Thinking about that.
• 6:13
  SPEAKER_00: You're relying on volume instead of margin.
• 6:17
  SPEAKER_00: So, you know, if you've been in business long enough, if you really have elevated your expertise, or if you've been in the industry a long time, you want to make sure that that's showing up in your value.
• 6:27
  SPEAKER_00: Like your pricing should reflect the value that you actually provide, which doesn't just come down to how much time you spend, it comes down to your expertise, you know, what what you know, what you instinctively know, the scenarios that you've seen.
• 6:42
  SPEAKER_00: You can't negate that part from being reflective in your pricing.
• 6:46
  SPEAKER_00: Because if you do, then you're gonna have to have more volume, which is a lot of times already draining, especially if you're a smaller business or a solo practitioner, you want to make sure that you're having these conversations with yourself and really evaluating discounts increase because it's easier.
• 7:06
  SPEAKER_00: Take a look.
• 7:07
  SPEAKER_00: How much did you discount this past year?
• 7:10
  SPEAKER_00: Was it more than the year before?
• 7:12
  SPEAKER_00: Are you discounting?
• 7:14
  SPEAKER_00: Are you are you allowing things to have scope crebe and then just writing it off?
• 7:19
  SPEAKER_00: And then another red flag that you can kind of self-assess with is resentment.
• 7:24
  SPEAKER_00: You feel resentment toward clients you once enjoyed or towards products or services that you once provided.
• 7:31
  SPEAKER_00: That can be a good indication that you're burnt out.
• 7:35
  SPEAKER_00: These aren't financial problems first, they're energy problems that become financial problems.
• 7:42
  SPEAKER_00: So, how do you reset?
• 7:44
  SPEAKER_00: Let's talk about resetting our CEO energy before it costs you profit.
• 7:50
  SPEAKER_00: Here's how to shift.
• 7:51
  SPEAKER_00: Your job as CEO isn't just to run your company.
• 7:56
  SPEAKER_00: That's of course is it.
• 7:57
  SPEAKER_00: But what does that look like?
• 7:58
  SPEAKER_00: Your job is really to protect your energy, just like you protect your cash.
• 8:03
  SPEAKER_00: And if you're struggling on the cash side, we can talk about that too.
• 8:06
  SPEAKER_00: So, some simple resets that you can make starting now is identify one energy drain that that's hurting your profit.
• 8:16
  SPEAKER_00: Is it a client?
• 8:18
  SPEAKER_00: Is it an offer?
• 8:19
  SPEAKER_00: Is it a team member?
• 8:20
  SPEAKER_00: Is it a process?
• 8:21
  SPEAKER_00: Is it a boundary?
• 8:22
  SPEAKER_00: Think about that.
• 8:25
  SPEAKER_00: Number two is fix the smallest version of that problem first.
• 8:30
  SPEAKER_00: Raise one price, tighten one boundary, automate one task, one small thing.
• 8:38
  SPEAKER_00: Remember, we talk a lot in this podcast.
• 8:41
  SPEAKER_00: If you've heard any of my previous episodes, I'm all about taking small intentional actions because those build.
• 8:48
  SPEAKER_00: And once you get one down, you can build on top of that.
• 8:51
  SPEAKER_00: Uh doing too much at one time causes paralysis or analysis, paralysis, or cause us to not take any action, which is really where we cannot be.
• 9:00
  SPEAKER_00: And then finally, three, reconnect your decisions to your impact.
• 9:05
  SPEAKER_00: Ask yourself if I don't fix this, what will it actually cost me in six months?
• 9:14
  SPEAKER_00: Energy first leadership leads to cleaner numbers every single time.
• 9:22
  SPEAKER_00: And it doesn't mean you're failing.
• 9:25
  SPEAKER_00: If you're feeling burned out, if you're resonating with this and you're like, oh my gosh, like it's the beginning of the year, I'm already behind, I'm doing all these things wrong.
• 9:36
  SPEAKER_00: No, stop that, stop that.
• 9:39
  SPEAKER_00: We're talking about mindset.
• 9:40
  SPEAKER_00: It doesn't mean you're failing, it means that you've been caring a lot without enough sub support or structure.
• 9:48
  SPEAKER_00: And the beautiful thing about support and structure, and even mindset, is that you can change it.
• 9:54
  SPEAKER_00: You have that ability, you have that power, and you have what you need to be able to do that.
• 10:00
  SPEAKER_00: And this is an ever-evolving process and practice that if you can get into your routine, if you can get it into the lines of your brain, it's it's gonna be something that you can continually go back to.
• 10:15
  SPEAKER_00: Um, because if you've been in business any amount of time, you know that running and growing a business is not for the faint of heart.
• 10:22
  SPEAKER_00: This is some of the things that we have to do as leaders in order to be able to continue to progress.
• 10:27
  SPEAKER_00: So if owning a business, if scaling your business is something you want to do, if you have good, big, huge dreams and ambitions, that's amazing.
• 10:36
  SPEAKER_00: This part is gonna help you get there in a way more confident and uh knowledgeable and whatever you want to call it, way in a better way.
• 10:48
  SPEAKER_00: Okay, so this week, look at your last 90 days of numbers.
• 10:54
  SPEAKER_00: If you can do more, like a year, I would highly suggest doing a year look.
• 10:59
  SPEAKER_00: Look at it month to month.
• 11:00
  SPEAKER_00: If you have accounting software, you should be able to do that, and then ask where did I make decisions from exhaustion instead of clarity?
• 11:08
  SPEAKER_00: And then pick one thing that you can reset before January turns into another survival year.
• 11:15
  SPEAKER_00: We want this year to be different, and it can be 2026 can be different, but it comes down to how you lead.
• 11:24
  SPEAKER_00: And even if it's just you, even if you're a solopreneur or if you only have contractors, not employees, you are still a leader.
• 11:30
  SPEAKER_00: You lead yourself, you lead the people you touch, your clients, your customers, your your community.
• 11:38
  SPEAKER_00: You are a leader.
• 11:39
  SPEAKER_00: It starts with how you lead, not just what you do.
• 11:43
  SPEAKER_00: Okay, so if you need some more help and support, like I said, please reach out to me.
• 11:49
  SPEAKER_00: You can also join my Facebook group, which is at your accounting sidekick.
• 11:54
  SPEAKER_00: So quick.com.
• 11:56
  SPEAKER_00: You can easily get into there.
• 11:59
  SPEAKER_00: And then you can also download my profit points checklist.
• 12:03
  SPEAKER_00: I will put that in the Facebook group attached to this video.
• 12:07
  SPEAKER_00: Download that where you can kind of take an assessment where are those leaks in your business outside of this that may be affecting your numbers.
• 12:15
  SPEAKER_00: All right, this is the Profit Points Podcast.
• 12:18
  SPEAKER_00: I'm Megan Schwine, your county sidekick, helping you build a business that supports your life, not drain it.
• 12:26
  SPEAKER_00: And I will see you next week.
• 12:28
  SPEAKER_00: Bye.
• 12:29
  SPEAKER_00: All right, that's your episode this time.
• 12:31
  SPEAKER_00: Don't forget your action step.
• 12:33
  SPEAKER_00: I want you to actually do it, not just add it to the list.
• 12:36
  SPEAKER_00: If this episode was helpful, share it with a fellow business owner who needs to hear it.
• 12:40
  SPEAKER_00: And if you're ready to go deeper on your specific numbers, book a strategy call with Sidekick Accounting.
• 12:46
  SPEAKER_00: Go to chatwithmeg.com, and I'll see you next time on Profit Points.