I’m not trying to flex, but I could easily double my firm’s margins this quarter.

My P&L would look incredible - but it would also be the beginning of the end.

Some expenses that look wasteful on paper are the very things that make business work. These line items are non-negotiable (despite lower margins) because they buy me time with my family, keep my team aligned, and strengthen client relationships.

They also buy me the mental bandwidth I need to think both strategically and creatively so that I can grow the firm.

Here are six ways I knowingly, happily, and unapologetically sacrifice margin for other, more important investments.

#1. An Executive Assistant

The first G&A expense that stays off the chopping block is an Executive Assistant (or Administrative Assistant, or Operational Assistant, or whatever you want to call this person). Really, really important. If I had to start my firm over today—in fact, if I had to start any business today—an executive assistant is the first hire I would make. Hands down.

The assistant’s job includes:

- Uploading podcasts
- Managing the calendar
- Managing the email inbox
- Booking travel arrangements
- Answering routine client questions

But a good assistant will do much more for you. In my opinion, the biggest unlock from an executive assistant is that they’ll help you get your life together. The right assistant will help you with organization and prioritization, so you can get the right things done with less friction. 

A good EA should free up quite a few hours of your time. 

And yes, you could use that time for extra client work or prospecting.

But you could also spend some of that time with your family.

Isn’t that why you started a firm in the first place?

#2. A Spacious Office

I cannot work from home. 

I learned this during the pandemic, when my wife and I were both forced to work from home.

I tend to be super loud when I’m recording videos or handling sales calls. It turns out, this annoys other people who are trying to work from the next bedroom over. This results in them telling me to keep it down all the time, which annoys me.

Not a good work environment.

I’ve also found that, for me, having an office makes it easier for me to keep work at work and home at home. Because of that, I actually tend to be more present in both environments.

Is having an office important to you? Rent is a major expense that drags down your net margin. At my firm, I’m willing to accept lower margins because having an office space that’s separate from my home is important to me.

I also can’t work in a closet. I spent 11 years on submarines, in a tight space underwater. Now I need lots of room to compensate. So our office is airy and spacious and open. Could we cram everyone into cubicles and save half the rent? Probably. But our productivity would suffer (not to mention our wellbeing). So we pay rent on an office with large rooms and big open spaces. 

For me: Worth it.

#3. Travel Expenses for Client Onboarding

In early 2024, my firm began testing in-person onboarding for new clients. 

One of our CFOs was brave enough to be our guinea pig… by flying to Hawaii to onboard a new roofing client. 

The all-in investment for him to spend 1.5 days onboarding the client was over $8,000. 

When he returned, I asked him, “Was it worth the cost?” 

He replied, “Michael, I don’t think we want to onboard a client virtually ever again. I learned so much in just a day and a half. We had breakfast together, we visited their offices together, we walked through a job site together. The depth of discussions we’re having now—it typically takes us four or five months to get to that point. I know they’re going to be a better client, and a longer-term client, because we did onboarding in person.”

Over the past decade, I’ve learned time and time again this key lesson:
As goes onboarding, so goes the entire client relationship. 

So I gladly sacrifice some margin for travel expenses in exchange for more trust and a faster, better onboarding experience with our clients.

#4. Travel Expenses for My Team

Our team meets in Dallas every single quarter.

Between airfare, hotel, food, and Uber, it’s EXPENSIVE.

But the investment is totally worth it because we get so much done plus it’s great for the culture. 

We spend two days each quarter together in the office, reflecting on what worked (and what didn’t) in the past 90 days and setting goals for the next 90 days. We work to resolve issues together. 

Additionally, each CFO on the team gives a one-hour presentation on each of their clients. We go over the clients’ financials, pain points, goals, and strategies. This helps familiarize the entire team with each client but it also gives a chance for the entire team to weigh in and help solve problems together. 

These in-person meetings are not cheap and my net margins would jump handsomely if we skipped these meetings. 

But we don’t, and we won’t because I’ve seen firsthand how much value we get out of them. 

We’re better for it and so are our clients.

#5. MacBooks

I’m an unapologetic Apple snob.

I won't buy a Dell (do they even make those anymore?). 

I don’t like PCs, I won’t work with them myself, and so I don’t want to inflict that on my team either. 

So I buy MacBooks for the team.

Years ago I worked at a small software company where our desks were flimsy folding tables, our chairs were cheap plastic, and everybody got a Chromebook.  We balanced our external monitors on cardboard boxes, hoping they wouldn’t fall over. 

Leadership said that they did all that to keep the startup vibe. 

Most people ended up just bringing their Macs to work.

Be the change you want to see in the world.

What’s on Your List?

Profit allows you to build the kind of business you want to run (and the kind of life you want to live). Nevertheless, a healthy profit margin is not an end in itself. I could dramatically boost my firm’s net margins tomorrow by taking a hacksaw to the five areas I just mentioned, but I won’t. I accept thinner margins in exchange for stronger culture, deeper relationships, and increased mental clarity (and sanity). 

Taking a little less profit is worth the trade.

Plus Macs are way cooler.