Mike Michalowicz's Blog, page 9

The Secret to Keeping Your Best Employees? Celebrate Them Like They Just Won an Oscar.

Look, I know what you’re thinking. “Mike, I’m already paying my employees. Isn’t that celebration enough?” And to that, my friend, I say, have you met a human before? Because spoiler alert: people like to feel appreciated. And if you want to keep your best employees from running for the nearest exit (or worse, taking their talents to your competitor), you need to celebrate them. Loudly. Enthusiastically. Preferably with confetti cannons.

I’m not saying you need to throw a parade every time Jim from accounting files an expense report on time (though honestly, Jim deserves some love for that). But I am saying that if you’re not actively recognizing and rewarding your team’s contributions, you’re missing a golden opportunity, not just to keep them around, but to make your business a place where people actually want to work.

The cost of a revolving door

We tend to forget. Employee turnover is expensive. Like, “buying a yacht and setting it on fire” expensive. Recruiting, hiring, and training a new employee can cost up to twice their annual salary. And that’s not even factoring in the loss of institutional knowledge, the dip in morale, and the fact that now you have to train another person on how the coffee machine works (seriously, why is that thing so complicated?).

Retention, on the other hand, is a game-changer. When employees feel valued, they stay. They work harder. They actually care about what they’re doing. And this is a wild concept, they become advocates for your business. The kind of people who tell their friends, “Yeah, I actually love my job,” instead of, “I spend most of my day questioning my life choices.”

How to celebrate employees without feeling like a cringe-worthy motivational poster

We’ve all seen those office posters: “Teamwork makes the dream work!” (Insert image of three people in business suits high-fiving in a conference room.) While the sentiment is great, actual employee appreciation needs to go beyond generic pep talks and pizza parties. Here’s how to do it right:

1. Make it personal

If your idea of employee recognition is sending a mass email that says, “Great job, team!” …you’re doing it wrong. People want to be recognized as individuals, not as part of a nameless, faceless “team.”

Instead, make it personal. Call out specific achievements. “Lisa, that presentation you gave knocked everyone’s socks off. I mean, if Bob had been wearing socks, they would’ve been gone.”

2. Surprise, don’t standardize

A once-a-year awards banquet is fine, but spontaneous, unexpected celebrations are way more impactful. Think about it, what’s more exciting? Knowing you’ll get a generic “Employee of the Month” plaque in December? Or walking into work on a random Tuesday to find your desk covered in balloons and a note that says, “You absolutely crushed that client project, and we couldn’t have done it without you.”

People remember surprises. They talk about them. And most importantly, they feel them.

3. Public praise, private raise

Publicly recognizing employees, whether in meetings, company-wide emails, or via interpretive dance (okay, maybe not that last one), reinforces their value. But when it comes to financial rewards, do it privately. Nobody wants to be in an all-hands meeting when you announce, “Hey, Mark got a huge bonus, and the rest of you… well, better luck next year!”

4. Invest in their growth

The best employees don’t just want a paycheck; they want a future. Celebrating them means investing in their skills, offering mentorship, and providing growth opportunities. Send them to that industry conference. Give them time for professional development. Show them you care about their long-term success, not just what they can do for you right now.

5. Have fun with it

Celebrating employees doesn’t have to be a stiff, corporate ordeal. Make it fun. Create a goofy award system. Give out a “Most Likely to Fix the Printer Without Crying” trophy. Bring in a food truck just because. The more genuine joy you bring to the workplace, the more employees will stick around, not just because they have to, but because they want to.

The bottom line

If you want employees who are engaged, loyal, and not secretly updating their LinkedIn profiles during lunch breaks, you have to celebrate them. Make them feel seen, valued, and genuinely appreciated. Because when you do? They’ll do the same for your business.

And hey, if all else fails… there are always confetti cannons.

Wishing you health and wealth always.

-Mike

PS – Want more intel on creating and maintaining an unstoppable team?

Get support from the All In Company here.

Grab your copy of All In here.

 

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Simplified Weekly | Are You Profitable?

My commitment is to make the entrepreneurial journey simpler for you, week by week.

This week’s focus: How to break free from unexamined spending loops. Check out The Weekly Wake Up here.

The core concept: Profit isn’t a maybe. It’s a must.

Do this: Run the Profit First Instant Assessment to see where your money is actually going. Small shifts in allocation today will change your business forever.

Not that: Don’t assume profit will “just happen” one day. If you’re waiting to be profitable, you’ll never get there. Profit is a habit, not an accident.

Dig Deeper:

Profit First Run the numbers. Assess where your revenue is going.Compare to TAPs. See if you’re over- or under-allocating in key areas.Start small. Even shifting 1% to profit builds financial discipline.Trim expenses. Find and cut unnecessary costs.Pay yourself first. Stop sacrificing your income for the business.

My final thought: If you’re not taking profit first, your business is running you and not the other way around. The Profit First Instant Assessment gives you clarity, control, and actual profitability.

Run your numbers. Make adjustments. Start keeping more of what you earn.

I wish you health and wealth.
-Mike
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Upcoming events:

New! Weekly Advisory Hours with Danielle Mulvey (plus, occasional surprise guest hosts!): Got questions? Need insights? Want to connect with fellow entrepreneurs? Join our new weekly advisory hours – a casual drop-in session to discuss this week’s topic hosted by Danielle Mulvey (The ALL IN Company). Stop by, ask anything, and network with like-minded business owners.
When: Weekly, Saturday mornings 9am eastern (6am pacific)
How: Virtually. Sign up here: https://calendly.com/entrepreneurship-simplified/registration

The Writer’s Lab is coming up! Join me March 10-11 for a two-day event with top publishing pros to master self-publishing, traditional, and hybrid methods, plus learn how to create a winning proposal. Register now for an exclusive discount!
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More resources for you:

Run Like Clockwork Profit First Professionals PumpkinPlanYourBiz All In Company Fix This Next Advisors

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Simplified Weekly | How to Make Your New Hire a High Flyer

Read This On: MikeMichalowicz.com | Monday, March 3, 2025

My commitment is to make the entrepreneurial journey simpler for you, week by week.

This Week’s Focus: Set the stage for new hire success in 30 days.

The Core Concept: A great onboarding plan does three things:

SHOW THEM THEY BELONG – Make it about your office community first, not the job (yet).EQUIP THEM FOR THE JOB – Give them the best tools to get the job done. It shows you care about their success… because you do.THEIR VISION & YOUR VISION– Share your vision and learn theirs. When you value their dreams, they will value yours.

Do This: Map out a 30-day success plan. Day 1 is a celebration to show they belong. Week 1-3 is helping them get comfortable with the tools of your trade. Week 4 is understanding their personal vision, and collectively setting the vision for success with you.

Not That: Don’t throw new hires into the deep end and expect them to “figure it out.” Confusion kills engagement.

Dig Deeper:

Clockwork : Read Chapter 7, pages 116-128, on designing repeatable systems that support employees. All In : Flip to Chapter 7, pages 124-147, to master retention from Day One. The Pumpkin Plan : See Chapter 9 on empowering employees to take ownership.

The Final Thought: Richard Branson once said, “Train people well enough so they can leave, treat them well enough so they don’t want to.”

Speaking Events:
(Fetched from Mike’s Events Page)

Mar 12, 2025 – Profit First Workshop: Master your business finances (Virtual) – Register HereApr 7, 2025 – Clockwork Keynote: Design a business that runs itself (In Person | Denver, CO) – Register HereMay 15, 2025 – All In Team Leadership Summit: Build Unstoppable Teams (Virtual) – Register HereJun 20, 2025 – The Pumpkin Plan Intensive: Focus your business, fuel your growth (In Person | New York, NY) – Register HereJul 10, 2025 – Fix This Next Live: Identify your next vital business fix (Virtual) – Register Here

Other Events:

The Writer’s Lab is coming up! Join me March 10-11 for a two-day event with top publishing pros to master self-publishing, traditional, and hybrid methods, plus learn how to create a winning proposal. Register now for an exclusive discount! The Don’t Write That Book podcast with my co-writer AJ Harper and me – We’ll help you avoid common mistakes and craft something that truly connects. LISTEN HERE Weekly Advisory Hours with Danielle Mulvey (The ALL IN Company). When: Weekly, Saturday mornings 9am eastern (6am Pacific). How: Virtually. Sign up here: https://calendly.com/entrepreneurship-simplified/registration

More Resources:

Run Like Clockwork – We systematize your business so you work less and scale more. Profit First Professionals – We make your profit a habit, not a hope. The All In Company – We build rock-star teams for businesses of any size. The Pumpkin Plan – We grow your business into an industry authority. Fix This Next Advisors – We ensure your business focuses on what matters The Profit First App – The app that automates your profitability.

Thank you for being an entrepreneur. You deserve a lifetime of profit.

Know someone who can benefit from my newsletters? Share this email so they can subscribe too.

Wishing you health and wealth.
-Mike

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A Roadmap to Onboarding: How to Make New Hires Thrive from Day One

“Train people well enough so they can leave, treat them well enough so they don’t want to.” – Richard Branson

Once you’ve hired the right person, it’s time to set them up for success. This is more than just showing them where the coffee machine is. It’s about immersing them in your company culture, aligning them with your mission, and ensuring they hit the ground running.

An effective onboarding process is key to making new hires feel valued and confident. It’s crucial for retention, productivity, and long-term success. Here’s how you can set up an onboarding process that works:

Week 1: Orientation and immersion

In the first week, focus on immersing the new hire in your company’s values, mission, and culture. During the interview process, you should have helped them learn who you are, what you stand for, and how they fit into the big picture. Now is your time to show them.

During week 1, focus on:

Orientation sessions: Provide an overview of your company’s history, values, and mission.Meet team members: Introduce them to colleagues they’ll be working closely with.Set expectations: Clarify job responsibilities and performance expectations.

This stage is all about building a solid foundation. Empower employees to take ownership of their roles and contribute to the overall success of the business.

Weeks 2-3: Hands-on tasks and structured feedback

Weeks 2 and 3 are about diving into real tasks and applying skills. This is when the new hire starts to get their feet wet, and it’s crucial that their tasks are clear, manageable, and aligned with their role.

During these weeks:

Provide clear, actionable tasks: Assign meaningful tasks that directly align with their role.Offer regular feedback: Give constructive feedback that helps them grow and stay on track.Encourage open communication: Create an environment where they feel comfortable asking questions and seeking clarification.

As I mentioned in All In, employee retention begins from the very first day. When new hires get the right feedback, they feel valued and confident, helping them grow into their role.

Week 4: Independent work with confidence

By the fourth week, your new hire should be performing tasks with more independence. They should feel comfortable in their role, have a clear understanding of expectations, and be ready for more responsibility.

Focus on:

Delegating more complex tasks: As they gain confidence, delegate tasks that require more responsibility.Encouraging problem-solving: Allow them to make decisions and tackle challenges on their own.Reinforcing company culture: Continue to emphasize how their role supports the company’s mission and values.

This phase is all about fostering independence. Let them prove their competence while providing support if necessary. It’s about letting them shine.

The core concept: Why onboarding matters

An effective onboarding process serves three key purposes:

Support: Provides new hires with the tools and guidance they need.Alignment: Ensures they understand and align with your company’s mission and values.Confidence: Clarifies their role so they can contribute quickly and confidently.

Great onboarding doesn’t happen by chance. It’s a deliberate, structured process that can drastically affect the success of new hires and, by extension, the success of your business.

Step 5: Retain the right people

Building a great team doesn’t stop at hiring. To retain top talent, offer opportunities for growth, recognize employees who align with your mission, and create an environment where they can thrive. 

Mistakes to avoid in onboarding

Don’t make the mistake of throwing new hires into the deep end without proper support. I remember my first day at a large company. I was expected to hit the ground running without any real guidance, and it was a disaster. It still goes down as my least favorite job. Ever. To avoid this, make sure you:

Provide clarity: New hires should understand exactly what’s expected of them.Offer regular support: Be available for questions, and provide feedback consistently.Avoid overwhelm: Don’t dump too much information on them at once. Give them time to absorb and process what they’re learning.

Remember, as Richard Branson wisely said, “Train people well enough so they can leave, treat them well enough so they don’t want to.” By investing in a strong onboarding plan, you show your new hires that you care about their success, and they’ll be more likely to stay with you for the long run.

How to Create Your Onboarding Success Plan

Now that you understand the importance of onboarding, it’s time to create a plan. Here’s a simple breakdown:

Week 1: Orientation and Immersion
Introduce your new hire to the company, its mission, and its culture. Set clear expectations and get them excited about their role.Weeks 2-3: Hands-On Tasks and Feedback
Give your new hire meaningful tasks that align with their role. Provide structured feedback and encourage open communication.Week 4: Independent Work with Confidence
Delegate more complex tasks and encourage problem-solving. Ensure they feel empowered and aligned with the company culture.

By structuring onboarding this way, new hires will feel confident in their roles and equipped to contribute quickly. This is how you set the stage for long-term success.

Final Thoughts: Investing in Your Team’s Success

Onboarding isn’t a one-time event. It’s an ongoing investment in your employees’ success. When you create a thoughtful, structured onboarding process, you build a team that’s engaged, productive, and aligned with your mission. This investment will pay off in the form of loyalty, performance, and long-term success.

If you want to dive deeper into employee retention and master onboarding from Day One, I recommend checking out All In, especially Chapter 7. This chapter provides strategies for building a strong team, retaining top talent, and creating a culture of support from the start.

Remember, your team is the backbone of your business. When you invest in their success early on, you’re positioning your business for sustainable growth.

By prioritizing onboarding, you create a culture of success that extends beyond the first 30 days and into the long-term growth of your business.

Wishing you health and wealth.

-Mike

PS – The All In Company helps clients hire the right team members by focusing on core values, cultural fit, and a clear hiring process to build a high-performing, aligned workforce that drives business success. You may contact them here: https://theallincompany.com/

Grab a copy of All In HERE. Kiss old-school recruiting goodbye and say hello to a team that creates more profit than ever.

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Hiring That Works: How to Build a Team That Fuels Your Business

One of the most critical decisions you’ll ever make is who you hire. But not just any hire. You need the right hire. The right employee can elevate your business, help you scale faster, and add long-term value. The wrong hire can cost you.If you’re not familiar with it already, I’ll tell you this: one of the best investments you can make as an entrepreneur is ensuring you hire employees who are the right fit for your business. Not just someone who can clock in, complete the tasks, and go home, but someone who aligns with your mission, culture, and vision. As I talk about in All In, you can’t build a thriving business without the right team by your side.Understanding the difference: Skills vs. fit When you want to hire, you may tend to focus on the job description and skills of a candidate. While skills are undoubtedly important, they’re only one part of the equation. The real question you should be asking is: Is this person going to fit in with my company’s culture, vision, and values?The skills gap can be taught. You can train someone to become better at what they do. But who they are? That’s much harder to change, if at all.I’ve seen the most success in my companies when I focus on the importance of building a business around a team that’s aligned with my core values. This doesn’t just mean hiring people who can do a job; it means hiring people who are naturally aligned with your company culture and your long-term vision. That’s how you build a team that works together, innovates together, and let’s face it, increases revenue.Step 1: Be clear on your core valuesBefore you even begin your hiring process, it’s essential to define your company’s core values. What principles guide your decisions? What are you trying to achieve in the long term? And what behaviors do you expect from the people who represent your business?Here are the core values of my company – or as we call them, immutable laws:Purpose above all.We are here to serve. It’s our top priority of priorities.We guide entrepreneurs to experience financial, emotional, personal, peace, and security.Profound simplicity.Every product we produce, every service we deliver, and every communication we have is boiled down to the essence without compromising the impact of improving the entrepreneurs’ experience.Embrace the whole human. We embrace the fullness of everyone by understanding each other personally. We respect our uniqueness and differences.Strive to understand challenges and perspectives before making assumptions.Our individual dreams are encouraged.Our collective diversity of thought and experiences strengthens the company.Kind Communication.Be a champion, cheerleader, and proponent for others. Small gestures have a big impact.Encourage each other’s strengths and have grace with our mistakes.Be kind and thoughtful when speaking to colleagues and customers.Talk about others as if they are in the room.Embrace change.We get excited about the possibilities that change and growth bring.What got us here won’t get us to the next level.No Bro Show.All entrepreneurs and teammates are supported and respected – no matter how they identify.We don’t play the “authority through power” game. We live by “be of service”.Strive for gender inclusivity and equity by avoiding stereotyping. (We have more women than men on our team and are thoughtful about that!)Be crystal clear about your company’s purpose. When your values are clear, you can hire based on alignment. That means that when you bring someone onto your team, they don’t just fit a job description, they align with your vision and dreams.Ask yourself:Does this person have the same values I want my business to represent?Do they show a passion for what we do?Can they commit to contributing to the long-term goals of the company?Step 2: Create a strong and clear hiring processOnce you’ve identified your core values, it’s time to put a process in place for finding candidates who align with them. Here’s a quick breakdown of the hiring process that has worked for my company and those I serve:Define the role clearly: Be specific about the tasks, responsibilities, and expected outcomes for the position. But don’t just focus on tasks – make sure the person knows the mission of your company and how their role contributes to that mission.Craft an effective job ad: This is a biggie. I suggest narrowing things down. The overly long descriptions to explain who you are and what you’re looking for can shy potentially great candidates away. Put your punchline at the top that includes your values and the kind of personality you want to hire. Then you can include the tasks. Be honest about the challenges, the growth opportunities, and what you expect from the person who fills the role.Interview with intention: Use behavioral interview questions that will give you insight into how they handle situations that align with your core values.Conduct a trial period: Consider giving candidates a trial period or project to ensure they’re truly the right fit for the role. This is a great way to see if they mesh well with your team and can handle the demands of the job.Step 3: Remember – hire for innate passion, not perfectionIt’s easy to get caught up in finding the “perfect” candidate. But perfection doesn’t exist. Instead, you should hire for potential. Look for candidates who demonstrate a willingness to grow, learn, and adapt.The right employees aren’t always the ones who have the most experience; they’re the ones who have the right mindset and a growth-oriented attitude. You can teach someone to become a better marketer, accountant, or project manager, but you can’t always teach someone to have the right attitude and work ethic.The bottom line: Don’t settle for “Good Enough”When it comes to hiring, don’t settle for “good enough.” As I stress in All In, the success of your business depends on building the right team. Focus on finding employees who not only have the skills but also the passion, drive, and values that align with your company’s mission.Building a great team doesn’t happen overnight, but with the right approach, the right systems, and a focus on long-term alignment, you can create a team that helps you scale, thrive, and achieve your biggest business goals.

Wishing you health and wealth.

-Mike

PS. The All In Company helps clients hire the right team members by focusing on core values, cultural fit, and a clear hiring process to build a high-performing, aligned workforce that drives business success. You may contact them here: https://theallincompany.com/

Grab a copy of All In HERE. Kiss old-school recruiting goodbye and say hello to a team that creates more profit than ever.

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How to Start Making a Profit Today

Ah Profit. Once a dirty word, I think by now you’re learning that profit sustains and grows businesses. Sure, you generate revenue, and on paper, the numbers might even look good. But the real question is – how much of that revenue do you actually keep?If you’re like most business owners, the answer is: not enough.Too many businesses live in a cycle of feast and famine, where revenue comes in, expenses swallow it up, and what’s left? Not much. This isn’t a sustainable way to run a business. If your business isn’t putting profit first, you’re stuck in a survival mode that keeps you from scaling, thriving, or even just breathing easy at night.That’s why I created the Profit First Instant Assessment. It’s a simple yet powerful tool that gives you a clear, no-BS look at your real profitability and what you need to do to fix it.The Problem with traditional accountingMost businesses operate under the traditional formula:Revenue – Expenses = ProfitThis makes profit an afterthought and something that might be left over after you’ve covered all your expenses. But if we’re being honest, what usually happens? The money’s gone before you get to profit. You reinvest in the business, cover unexpected costs, or just keep treading water.Profit First flips that formula on its head:Revenue – Profit = ExpensesWith this method, you take your profit first, right off the top, so you’re forced to run your business on what’s left. And trust me, it works. I know because I did it for my businesses.Step 1: Run the Profit First Instant AssessmentBefore you make any changes, you need to know where you stand. The Profit First Instant Assessment helps you determine how your business is actually allocating money.Here’s how you do it:Look at your last 12 months of revenue. Find your total revenue – that’s every dollar that came into your business.Break it down into four key percentages:Owner’s Pay (What you paid yourself)Profit (Money set aside for profit)Taxes (What you’ve saved for taxes)Operating Expenses (What it actually costs to run your business)Compare these numbers to the Profit First Target Allocation Percentages (TAPs). These benchmarks help you see if you’re over- or under-allocating funds in any category. Take your assessment here. Step 2: Analyze Your ResultsOnce you’ve got your numbers, take a good look. If your Owner’s Pay is too low, you’re underpaying yourself. If your Operating Expenses are too high, your business is likely spending beyond its means. If there’s no real profit allocation, you’re running on fumes.This is where reality sets in. Many business owners realize they’re not running a truly profitable business – they’re just getting by. But here’s the good news: once you know where you stand, you can fix it.Step 3: Adjust AccordinglyYour Profit First Instant Assessment is your wake-up call. Now, it’s time to make adjustments:Start small. You don’t have to overhaul everything overnight. Begin by reallocating 1% of revenue to your Profit account. It may seem tiny, but it’s about building the habit.Trim expenses. Look at where your business is bleeding money. Are there subscriptions you don’t need? Services you can renegotiate? Find ways to reduce costs without sacrificing value.Pay yourself first. Too many entrepreneurs underpay themselves. Adjust your Owner’s Pay to be in line with sustainable TAPs.Set up separate accounts. Have dedicated bank accounts for Profit, Owner’s Pay, Taxes, and Operating Expenses. Automate transfers to ensure you’re prioritizing correctly.Why This WorksProfit First forces discipline. It takes the mystery out of cash flow and ensures you’re building a financially healthy business. When you run a Profit test regularly, you stay ahead of financial issues instead of scrambling to fix them after the fact.Your next stepRunning a business without knowing your real profitability is like driving blindfolded. The Profit First Instant Assessment gives you clarity and control.Run your numbers. Adjust accordingly. And start keeping more of what you earn.Need help? Download the Profit First Instant Assessment worksheet and take the first step toward a truly profitable business.It’s time to stop hoping for profit and start ensuring it.You’ve got this!-MikePS – Buy the bookGet in touch with a Profit First ProfessionalBecome a Profit First Professional

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How to Discover What Will Make Your Business Fail, or Thrive

According to the Bureau of Labor Statistics, around 20% of small businesses fail within their first year of operation, meaning roughly one in five new businesses do not survive their first year. Why is that? Every business owner I’ve ever met has the same problem: they’re constantly putting out fires. The moment one crisis is handled, another pops up. You’re solving cash flow problems one week, dealing with a personnel issue the next, and trying to figure out why marketing isn’t working after that. It’s exhausting. It’s frustrating. And worst of all, it keeps you stuck.Any of this sound too familiar?You sometimes realize you’re in the survival trap, jumping from one thing to another, never really making progress.You’re trying to fix the wrong things, because you don’t know the right thing to fix.You’re treating symptoms, not problems.The Business Priority Pyramid:Just like Maslow’s Hierarchy of Needs explains human motivation, businesses also have a priority of needs. If your business is struggling, it’s because a foundational need isn’t being met. Instead of guessing what to fix next, Fix This Next gives you a roadmap. The Business Priority Pyramid has five levels:Sales (creation of cash) – Your business needs to generate consistent revenue before anything else.Profit (creation of stability) – Profitability ensures sustainability and keeps your business from constantly running on empty.Order (creation of efficiency) – Once sales and profit are in place, optimizing operations allows for scale and growth.Impact (creation of transformation) – Your business should start making a meaningful difference in the lives of customers and employees.Legacy (creation of permanence) – A truly great business outlives its owner and continues to thrive on its own.Most business owners make the mistake of trying to fix higher-level problems when there’s a fundamental issue at a lower level. For example, they might try to scale by hiring more employees (Order) when they don’t have enough revenue coming in (Sales). The result? More payroll stress and bigger headaches.Fix This Next helps you diagnose where your business really needs attention, so you stop wasting time on the wrong fixes.The Fix This Next assessmentHow do you know what to fix next? Simple: take the Fix This Next Assessment (grab your link here).  It’s designed to identify the most pressing issue in your business right now. You answer a few strategic questions, and the assessment pinpoints exactly where you should focus your efforts.This assessment might feel daunting at first. It forces you to take a real, honest look at your business. You might discover that what you thought was the problem is just a symptom of something deeper. But I promise you, once you get through it, you’ll feel empowered. No more guesswork, just clarity and direction.Why business owners get stuck (and how to get unstuck)The biggest reason business owners stay stuck is because they operate from gut instinct instead of strategy. They see a problem and react, instead of stepping back and analyzing the real issue. That’s why Fix This Next is so powerful that it replaces reactionary problem-solving with a structured approach.Here’s a real-life example: A FTN advisor worked with a business owner who was convinced she needed more marketing to grow her business. She was ready to spend thousands on advertising and social media campaigns. But when she took the assessment, it revealed that her biggest issue wasn’t marketing, it was cash flow. She had plenty of customers but wasn’t collecting payments on time. If she had dumped money into marketing, she would’ve just created a bigger cash crunch. Instead, she fixed her invoicing process, improved cash flow, and then focused on sustainable growth.Identifying the right fix at the right time can save your business.The power of small, strategic fixesI’m impatient, you? But you’ll hear me say over and over success doesn’t come from big, dramatic changes, it comes from small, strategic fixes made at the right time. (Psst – Fix This Next helps you pinpoint the one small fix that will have the biggest impact.)Think of it like tuning a car. If your engine isn’t running well, you don’t replace the whole thing. You check the fuel, spark plugs, and air filters. One small tweak can make the whole engine run smoothly. Your business is the same way. When you fix the right thing, everything else starts working better.Implementation: How to use Fix This Next in your businessOnce you’ve identified what needs fixing, the next step is to take action. Here’s how to put Fix This Next into practice:Take the assessment – Identify your business’s current biggest need.Focus on that one fix – Don’t get distracted by other problems. Solve this one first.Measure the impact – Once the fix is in place, assess how it’s working.Reassess and repeat – The next fix will reveal itself naturally as your business evolves.The beauty of this approach is that it keeps you moving forward systematically. No more random fixes. No more running in circles. Just real progress.Why Fix This Next worksMost business books give you a set of tactics and strategies to try. BUT, those strategies might not be what your business actually needs right now. Fix This Next doesn’t give you just another strategy, it gives you a diagnostic tool to determine exactly where to focus. That’s why it works.Entrepreneurs don’t need more information. We’re already drowning in business advice. What we need is clarity. We need a way to cut through the noise and know what to do next. So what’s next for you?I’m cheering you on from here!-MikePS! Take some steps right now!Get the Fix This Next assessment here .Talk to a Certified Fix This Next Advisor here .Become a Certified Fix This Next Advisor here .

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How Small Business Can Navigate the Tariff Crisis

 

Tariffs? They suck. And they’re nothing new. But if you act now, you can get your business ahead of them. In fact, this could be the opportunity you’ve been waiting for.

Tariffs are nothing new

Tariffs date back to at least 2,000 BC in Mesopotamia and ancient China, where rulers taxed goods moving along trade routes. The Roman Empire also used tariffs to control trade and fund military expansion.

Fast-forward thousands of years later, and we’re still doing the same thing. The difference? Today, news travels in milliseconds, not months. The impact of tariffs hits businesses almost instantly.

What IS a tariff?

A tariff is a tax on imported goods. Raw materials (think steel and aluminum), products (think cheap stuff from China), and even services can be affected.

Here’s how it plays out:

• A T-shirt from China costs $10.

• Shipping is $5 (even if it says “free shipping,” you’re still paying for it).

• Now it’s $15.

• The U.S. slaps a 10% tariff on it—another $1.50.

• That T-shirt now costs $16.50.

Who pays that extra $1.50? Either:

1. You – the customer absorbs the cost in higher prices.

2. The manufacturer – they make the product cheaper (lower quality, worse materials, or cheaper labor).

3. The business – they eat the cost and risk going under.

The bottom line is that tariffs mess with free trade and raise prices for everyone.

Tariffs are back (again)

2025 started with President Trump imposing tariffs on imports from Mexico and Canada and a 10% tariff on Chinese goods. In response, Canada and Mexico hit U.S. products with their own 25% tariffs, though they have since paused the implementation of these tariffs for the next month. China retaliated with up to 15% tariffs on U.S. energy imports and an antitrust investigation into Google.

That means higher prices for avocados, beer, electronics, and gasoline, and that’s just the start.

What happens next?

Short-term: Prices go up. You’ll pay more for imported goods. Trade retaliation happens as other countries slap tariffs on U.S. products. Uncertainty increases as businesses delay decisions and markets react.

Long-term: The economy slows down as trade wars make industries less efficient. Job shifts happen. Some jobs get saved, but others, especially in exporting industries, disappear. Everything gets more expensive because less competition means fewer choices and higher prices. The government makes money on tariffs, but it’s an unreliable way to fund anything.

Can tariffs work?

Yes, but historically, only in very specific situations.

They can be used as a bargaining chip (that’s likely what’s happening now). Governments slap tariffs on each other, then negotiate to fix the real issue.

They can also be used to boost an industry like Japan did in the 1950s -1980s, protecting their tech and auto industries until they could compete globally. Now, Toyota, Nissan, and Honda are synonymous with quality.

Most of the time, though, tariffs slow innovation, and increase prices, and the customer pays for it all. So, this is the time to act.

What should your small business do now?

1. Diversify suppliers. Don’t rely on one country for materials. Always have backups. This is good business practice, tariffs or not.

2. Negotiate with suppliers. Your suppliers may be able to absorb some costs or offer discounts. Tariffs are country vs. country, not business vs. business. Work with your international partners.

3. Adjust pricing strategically. Don’t raise prices all at once. Step up slowly in tiers. Communicate with customers so they understand what’s happening and why. You were hit with a tariff- your customers shouldn’t be caught off guard.

4. Stock up before tariffs hit. If you can afford it, buy before prices go up. Extra supplies mean you can continue producing at pre-tariff rates, giving you a competitive advantage. While competitors are raising prices, you can hold out longer and win their customers.

5. Optimize operations. Cut waste, improve logistics, and automate where possible. Let tariffs be the force that pushes you to improve your business. Leverage AI, streamline operations, and eliminate inefficiencies.

6. Apply for tariff exemptions. Research ways to legally bypass tariffs and gain a competitive advantage. If you get an exemption and your competition doesn’t, tariffs could become your greatest ally.

7. Stay informed and advocate. Join industry groups and make your voice heard. Think Chamber of Commerce and industry associations—a lot of loud voices can persuade even the most stubborn government to act.

Maybe today’s tariffs go away tomorrow. But tariffs as a whole aren’t disappearing anytime soon. So prepare accordingly. Don’t be a victim. Let your competitors do that part for you.

I wish you health and wealth.

-Mike

 

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Love it UP! Focus on the Customers Who Help Your Business Thrive

Valentine’s Day is here, and while you’re busy picking out a little something for your special someone, I’ve got a different kind of love story for you – one that can transform your business. It’s time to love UP on your favorites – the clients who are the heartbeat of your business. These are the customers who bring in the most revenue, rave about you to everyone they know, and keep coming back for more. They’re your ideal customers, and this Valentine’s Day, I want you to show them some serious appreciation by focusing 80% of your efforts on serving them.Why your business needs a customer bestieNot all customers are created equal. Some drain your energy, demand discounts, and complain no matter what you do. Others are an absolute dream to work with. They love what you offer, value your expertise, and are willing to pay a premium for it. These ideal customers are the ones who can fuel your business growth and profitability – if you choose to focus on them.This is the core principle behind The Pumpkin Plan , one of the most powerful business growth strategies out there. Just like a pumpkin farmer prunes the weak vines so the strongest pumpkins can grow to their full potential, you need to identify your best customers and dedicate your time, energy, and resources to them.Step 1: Identify your most profitable customersBefore you can start showing love, you need to know who deserves it the most. Here’s how to identify your VIPs:Look at the numbers. Analyze your financials to determine which customers generate the most revenue and profit. Revenue alone isn’t enough and profitability matters. Some high-spending customers also require the most resources, making them less ideal.Assess the relationship. Who are the customers that genuinely appreciate your work? Who do you love working with? Who respects your expertise, follows your process, and pays on time?Consider referrals and loyalty. Your best customers don’t just buy from you once; they keep coming back and bring others with them. If a customer actively refers you, they’re signaling that they truly value your work.Step 2: Shift 80% of your efforts to serving them betterOnce you’ve identified your favorites, the next step is doubling down on them. Instead of trying to please everyone, focus 80% of your time and energy on these top-tier customers. Here’s how:Enhance their experience. Think about what would make their journey with you even better. Is there a VIP-level service you can offer? A personalized experience? Faster response times?Build deeper relationships. Send a handwritten note, a surprise discount, or an exclusive perk. Make them feel like they’re part of an elite club, because they are.Communicate more often. Keep them engaged with valuable insights, early access to new offerings, or personalized recommendations that make their lives easier.Create offers tailored to them. The more you cater to your best customers, the more loyal they become. Design products, services, and experiences that specifically meet their needs.Step 3: Prune the customers who aren’t a fitLoving up on your best customers also means letting go of the ones who aren’t right for your business. I know it sounds harsh, but not every customer is meant to be yours forever. If a customer consistently undervalues your work, takes up too much time, or causes you stress, it’s okay to let them go. Doing so frees up space to focus on the ones who truly matter.A well-pruned business is a healthy business. And when you commit to serving the right customers, you create an environment where your business can thrive, your profits can grow, and your work becomes more enjoyable.The love you give comes back tenfoldWhen you pour your energy into your best customers, something magical happens – they reciprocate. They buy more, they stay longer, and they bring their friends. They become raving fans, and suddenly, your business starts growing without you having to hustle for every new customer.So, this Valentine’s Day, instead of spreading yourself thin trying to make everyone happy, love up on the customers who already love you. Give them more value, more attention, and more reasons to stick around. Because when you focus on the right people, your business (and your profits) will flourish.Ready to show some love?Take a moment today to identify your favorites. Reach out with a heartfelt thank-you, a small token of appreciation, or an upgrade to their experience. Let them know they matter. Because when you build a business that truly serves its best customers, you’re not just growing profits, you’re creating a company that people love.Happy Valentine’s Day! Here’s to showing the love to your best customers every day of the year!Wishing you health, wealth, and lots of love!
-MikePS – I mentioned The Pumpkin Plan . To get a copy of the book, you can visit your favorite bookseller or order it here. Want more help? Reach out to Pumpkin Plan Your Biz to learn how to implement the Pumpkin Plan strategies.

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Cut One Wasteful Business Expense and Break the Cycle with Profit First

Do you ever feel like it’s Groundhog Day, stuck in a loop where things never really change? Every month, you review your business expenses, and it feels like you’re doing the same thing over and over again: paying for subscriptions, services, or products you no longer use, or maybe never really needed in the first place. You tell yourself, “It’s just how it’s always been,” and keep going through the motions. Sound familiar?If this is hitting a little too close to home, it’s time to break free from the cycle. Just like the famous groundhog, you can stop predicting the same outcome and take action to create real change in your financial habits. The first step? Cutting just one wasteful expense.Now, I know what you’re thinking. “But I’ve always done it this way!” Yep, I hear you. Been there, done it, and done it again. Humans thrive in routines, and it can feel risky to challenge the status quo. Profit First teaches us that it’s not just about growing your income; it’s about behavior changes that make you spend smarter. It’s about cutting the fat so you can focus on what really fuels your business growth.Time to stop wasteful spending and set your business up for more sustainable growth.The cost of sticking with the way it’s always beenIf you’re like most entrepreneurs, you’ve probably been spending money on things that felt necessary in the past but don’t contribute much to your current business goals. Maybe you’ve been paying for a software subscription that seemed essential when you started your business, but now you only use it once a month. Or perhaps you’ve been holding on to an office rental, even though you’ve long since transitioned to a remote team.In Profit First, the idea is simple: pay yourself first, then allocate money to expenses, taxes, and other needs based on predetermined percentages. This way, profit isn’t just an afterthought, it’s built into your financial structure from the get-go. But beyond that, it also encourages you to be hyper-focused on your expenses. If something isn’t adding to your growth, it’s time to let it go. This isn’t just about cutting costs; it’s about cutting unnecessary expenses that don’t align with your business’s current goals.Step 1: Review your expenses with fresh eyesThe first step in breaking free from the cycle is to take a real, hard look at your expenses. Yes, I’m talking about that dreaded task of reviewing your bank statements or pulling up your accounting software. I know, it’s not fun. It can be easier to ignore or keep pushing it down the list. But if you want to make real change, you’ve got to confront the data head-on.Start by looking at your expenses from last month. What did you spend money on that isn’t vital to your business growth today? Here’s a checklist to help:Subscriptions and memberships: Do you have any that you haven’t used in months? Maybe you signed up for an email marketing tool but haven’t sent a campaign in weeks. Or maybe there’s a monthly membership that’s been “just in case,” but hasn’t added tangible value recently.Software: Are you paying for a project management system you no longer use? Or perhaps you’ve been doubling up on tools, paying for two different services that do the same thing.Outdated services: Think about any third-party services you’re outsourcing that no longer serve your business. Maybe you’ve moved to a different software solution, but you’ve been keeping the old one active “just in case.” That’s money down the drain.Miscellaneous overhead: Office space, supplies, or other costs that were important in the early stages of your business but have since become unnecessary or redundant.Once you’ve identified these, take a good look at them. If you’re not actively using these services to grow your business, they’re just sinking your profitability.Step 2: Apply the Profit First mindsetNow that you’ve reviewed your expenses, it’s time to apply the Profit First mindset. According to Profit First, you should allocate funds into distinct categories: Profit, Owner’s Pay, Taxes, and Operating Expenses, right from the start. This ensures that you’re not just spending your business income without a clear plan. Instead, you’re making sure that profit comes first, and your operating expenses are managed within a healthy framework.Here’s where it gets interesting. By following this model, you can identify which expenses should actually be moved to a lower priority and which need to be cut altogether. When you’re working with clear categories and percentages, it’s much easier to see where you’re overspending.Here’s how you can apply this:Set a percentage for operating expenses: You can’t just keep spending recklessly, so allocate a fixed percentage to operating expenses based on your revenue. This percentage might shift over time, but the point is to work within your means.Use the ‘Profit First’ principle: You should always be taking a portion off the top for profit before anything else. Once that’s set, allocate the remaining money into the other categories. If your operating expenses are bleeding you dry, that’s a red flag.Revisit every month: Make it a monthly ritual to review your expenses and adjust your allocations. Cutting one wasteful expense this month is just the beginning. Each month, you should be reevaluating your spending and making sure your cash is being spent wisely.Step 3: Cut one wasteful expenseNow, here’s the hard part: cut something. I know, it feels like you’re throwing away money, but remember: this is about cutting out the dead weight. You’re not just trimming expenses, you’re making room for your business to grow.Pick one thing from that list of expenses you reviewed that isn’t critical to your current growth. Maybe it’s a tool you’ve been paying for but barely use, or a service you’ve outgrown. Cancel it. Yes, it’s that simple.The trick is, by cutting out just one non-essential expense, you’ll free up cash that can be reinvested in something that will move your business forward. Maybe it’s a marketing initiative that you’ve been putting off, or perhaps you could pay off a debt, or even increase your profit allocation.Step 4: Reinforce the change with a growth mindsetThe key here is to reinforce the new habit of scrutinizing your expenses with a growth mindset. Each time you take action to cut wasteful spending, you’ll create more space for profit, more energy for innovation, and more momentum toward building a business that thrives. The more you get used to reviewing your expenses and cutting out the fluff, the easier it becomes.Take one step today, review your expenses, cut one wasteful expense, and start building a stronger, more profitable business. And remember, just like the groundhog, you don’t have to repeat the same mistakes year after year. With a little focus and a lot of intentional action, you can break the cycle for good.You’ve got this!-MikePS – Grab your instant assessment HERE. Don’t be scared, it’s empowering!For guidance applying Profit First to your business, get in touch with a Profit First Professional HERE. Your business will thank you!

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