Mike Michalowicz's Blog, page 64
August 16, 2016
Review Partnership Agreements Every Fifteen Months
It seems to be a tradition that business partnerships and operating agreements 1. Don’t ever get reviewed, or 2.They get reviewed once a year at the same time.
Instead, review your partnership agreements every fifteen months. Why? Because it will break you away from the influences of seasonality. Your business may be different in the winter than it is in the summer. (And that means you will look at your agreements differently.)
Shake things up by design. Every fifteen months is one way.
August 15, 2016
Episode 109: Surging Towards Growth with Greg Scully
Show Summary
Today we talk with Greg Scully, who has recently discovered Surge! He believes using the Surge strategy will help him since he is in a hyper niched business in Alaska and is struggling to grow. Mike Michalowicz lays out a simple formula to grow, which Greg is aware of, but doesn’t think about one element, which may be the game changer. Could it be England? Welcome to Episode 109 of the Profit First Podcast!
Our Guest
Greg and his wife Kim have been operating Magpie Clothing Exchange as a storefront in Palmer Alaska, and online worldwide since 2014.
Their goal is to transition into full time entrepreneurship with an emphasis on eCommerce.
There are no failures, just opportunities to learn and grow.
Greg is lifelong entrepreneur with a small 25 year break between projects, and lead vocalist of Alaska’s most middle aged punk band.
Note About Surge:
“I listened to the first chapter of Surge and it immediately resonated with me. That kind of positioning is EXACTLY what we have in mind for our niche. Maybe we are a little early to the concept. We are NOT going to be doing this as a hobby….work, work, work for little financial reward. Navigating near term challenges of getting traction for the physical store is challenging, while also trying to a drive website traffic to a very small niche for long term “surge potential” can be quite a juggling act, especially with cash flow problems. Oh yeah, I want to quit my job too!”
Show Links
Website: http://www.magpieclothingexchange.com/
Facebook: https://www.facebook.com/MagpieClothingExchange821975957815873/
Instagram: https://www.instagram.com/magpieclothingexchange/
Pinterest: https://www.pinterest.com/magpieclothing/
Surge
Like what you hear about Mike’s book Surge?! You can order a copy here: http://amzn.to/2aDRl1O
Corporate Partners
Receipt-Bank – Software and service to make the gathering, storage & processing of bills, receipts and invoices as easy and as cost effective as possible for businesses.
Nextiva – VOIP phone providers for small businesses.
Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.
Fundbox – The simplest and fastest way to fix your cash flow by advancing payments for your outstanding invoices.
August 12, 2016
If The Local News Starts Reporting Good News… Get Scared
People are drawn to the unexpected, the atypical and the different. We are intrigued by the stuff that isn’t the normal fair. That is why violence, murder and death is served up daily – because you likely don’t experience it every day. Different gets our attention.
The day that the local news starts only streaming good stuff, means that violence, murder and death has become the norm. That means good news is now the atypical. That or mankind has become fascinated with the same ol’, same ol’, but that has never happened.
August 11, 2016
The Least Expensive Business to Start
Inevitably a service based business is the least expensive business to launch, because the primary asset is you. You can immediately start a car cleaning business, consulting business, or a programming business – if you do all the work.
Yes, there will be supplies, materials or equipment that you need. But you can limit them, rent them, or start with used ones. There is always a way to get started with little cost when you start a service based business.Just be aware of the one big trap.
To start the business, you will need to do the work. To grow the business, you will need others to do the work. Easily said, not easily done.
The day will come that you have done the work for so long, that it will be hard (or impossible) to get others to do it. If you can’t make the transition, your company won’t be able to either.
August 10, 2016
First in Gets The Respect
The first business in a new territory gains the respect. Take Uber for example. Uber was the first in the crowdsourced personal transportation space – the first alternative to taxis. Lyft was next in line and they didn’t inherently gain the respect and notoriety that Uber gained, due to the fact that Uber already made their mark within this territory. The first one in, by default, gets the respect of the community.
This “first in gets the respect” protocol is hardwired within all species’ psyches when it comes to claiming, or dominating, a territory. Lion-tamers psychologically control lions using this strategy. Trainers always enter the lion ring first within full sight of the lions. In doing so, they establish themselves as the owner of the domain (not the lions). This is reinforced by shouting, stomping, and cracking the whip. It causes the lion to respond with respect for the tamer; it impresses them.
If you have an opportunity to be first in the market – make it known: Crack the whip, stomp your feet! When you make your presence known, you will subconsciously gain the community’s respect over all the alternatives. A very good position to be in.
August 9, 2016
Hiring Prematurely vs. Hiring Too Fast
You probably are already familiar with the old entrepreneurial adage, “Hire slowly. Fire quickly.” Yet, entrepreneurs have the propensity to hire too quickly. They hire the first prospect they feel good about and bring them onboard, only to find out that initial wonderment is replaced by disappointment in the new hire.
The cycle of bringing someone in, and then losing them (and having to go through this cycle again and again) can be devastating to a business. But the trend persists since entrepreneurs are often in panic-mode: “We need to hire someone now!” Panic prohibits good hiring practices. Hiring too fast is a bad thing.
Hiring prematurely, though, may be the best decision. Hiring someone prematurely occurs when you find that “A-Player”- a rockstar that is good at what they do and what you need. And while their role may not be clearly defined in your organization yet, getting that person in the door may be more beneficial than having them slip through your fingers.
So here’s the approach you should take: Always build-up your bench of A-Players, and always keep your eyes open. Of course, you should be hiring for available positions. But even when you have nothing available, keep circulating because timing in this industry is everything. Hire prematurely, but don’t hire fast.
August 8, 2016
Episode 108 : Rolling In The Dough With Paul Finney and Marcie Hanhart
Show Summary
This episode with Paul Finney, we learn on how a food business can be profitable! After discovering Profit First, Paul brought on a Profit First Professional to implement our strategies, and now, his profitability is 300% greater than it was in the past. He is now on a track to make it 500% better, and is paying himself amounts he had never payed himself before. He was even able to reserve money for taxes! All of these things happened because of how he implemented Profit First! Discover his exact method and strategy and the person who helped coach him along. Hint…it’s Marcie Hanhart! Welcome to Episode 108 of the Profit First Podcast!
Our Guests
Chef Paul Finney is the owner and creator of the October Kitchen Chef Service.
Specializing in delivering healthy home style nourish meals to boomer, seniors, and anyone too busy to cook.
Formed in 2000 October Kitchen in Connecticut’s Premier meal delivery service serving central Connecticut.
Expanded to a 1,800 sq ft commercial production kitchen in 2010 to a full service CHEF SERVICE prepared meal service offering weekly delivery and retail take away.
They deliver to over 200 families in the Greater Hartford area every week and prepare healthy home-style meals with less salt, fat and sugar and great taste.
A 1992 Johnson and Wales culinary graduate and NY TIMES “Excellent” chef, chef Finney has grown October Kitchen from a one man personal chef operation to a cutting edge meal delivery service.
Along with his beautiful wife Alison, they have grown their Mom and Pop operation to be the main food service meal provider for thousands of clients, nourishing and improving their health with great food, prepared with love.
LINKS:
Recently featured in the Hartford Business Journal: http://m.hartfordbusiness.com/article/20160627/PRINTEDITION/306249932/1002
Marcie Hanhart has been a business coach, consultant and advisor to companies for over 35 years.
Her clients have ranged from Fortune 100 companies, to startups. She has owned and run 3 businesses of her own and in 2002 became a certified business coach with Action Coach, formerly ACTION INTERNATIONAL.
Marcie’s focus has long been driven by bottom line profit. She says she has used this focus to help companies drive more efficient production and development processes, increase systemization and motivate effective and happy Teams.
Marcie told us that she has found Profit First an incredible tool in helping inspire business owners because, to quote her: “they can now see that the best companies do manage to run great businesses, pay themselves well, and still take a healthy profit” They want to do the same.
LINKS: www.actioncoach.com/marciehanhart
Corporate Partners
Receipt-Bank – Software and service to make the gathering, storage & processing of bills, receipts and invoices as easy and as cost effective as possible for businesses.
Nextiva – VOIP phone providers for small businesses.
Fundera – Single source online funding for entrepreneurs. Also offers an adviser program for CPAs, bookkeepers and business coaches.
Fundbox – The simplest and fastest way to fix your cash flow by advancing payments for your outstanding invoices.
August 5, 2016
Don’t Compare
Don’t compare yourself against others. They have their own path and you have yours.
Your path may be that of a glacier – a relentless, unstoppable force.
Their path may be that or a meteorite – extreme speed.
If you compare on speed, you will negate your strength. If you compare on relentlessness, you will negate their strength.
Don’t compare. It’s a fool’s folly.
August 4, 2016
Misfit to Magnificent
The biggest compliment that you will ever get is that you are a misfit. It means that you don’t fit in with everyone else. It means you have a real shot at being exceptional. It means you are one step away from magnificent.
August 3, 2016
Embrace Mistakes
I texted my wife years back with “I love you” but accidently typed “I live you.” We embraced it and it has been what we say to each other ever since.
My sister wrote me a letter and signed it “Your Big Sid” instead of “Your Big Sis.” I embraced it and her nickname ever since has been Sid.
My first book was supposed to be titled Launch, but a college student thought the lead story about toilet paper was in fact the title of the book. Hence The Toilet Paper Entrepreneur came to being.
Embrace mistakes. It’s fun and sometimes it makes some serious coin too.
