Are you trying to develop organizational efficiency in your business? Are you trying to find a way to take a step back and become an owner and strategist—NOT an operator? Effective leadership as a business owner begins with some tactical decision making. Mike Michalowicz, a renowned entrepreneur and author, is my guest today. Listen if you want to learn more about building an organization that can function independently of you.
Mike has been an entrepreneur for over 25 years and thought he knew it all. After running successful businesses—and making a lot of money—he ran an angel investing firm. After investing in businesses that drained his bank account, Mike had to declare bankruptcy. His story is all about overcoming his pride, and rebuilding his life and business from zero to the entrepreneurial success he is today. Mike’s goal as he’s writing his books is to eradicate entrepreneurial poverty. Don’t miss this episode of Franchise Secrets!
According to Mike, 83% of entrepreneurs are struggling to survive check-to-check. Sometimes we can’t face the truth that we’re struggling. We tell ourselves “I’ve been doing this for years, I know what I’m doing” as our business circles the drain. The truth is, you need to admit that you have a problem.
Don’t wait until your business is failing to have your “aha” moment.
Mike recommends taking a good hard look at your patterns of the past. Dig deep into your repeating patterns—are they helping or hurting your business? Return to the basics of fundamental business health and focus on what you can change so it has a future.
The topic of Mike’s latest book is designing your business to be able to run itself. Every entrepreneur seems to believe they have to grind and hustle and work harder longer. That doesn’t need to be your baseline. He argues that for your business to be successful at all, you need to learn how to separate yourself from the business. Why?
It will have zero resale value if the business cannot operate with you.
So how do you know if you’ve built your business to the point it can survive without you? Take a 4-week vacation. If your business can run without you and is still succeeding, you’ve successfully shifted from operator to owner. Mike offers a solution—which he outlines in his book—where you can fully transition out of your business in only 2 years. Keep listening for details!
There are only two things you need to focus your attention on for your business to run successfully:
Do not compromise your #1 promise to your customer. You need to identify this and focus all of your attention on that. Then, hire the right person to handle that promise. Choreograph the resources around you. Position your team—by taking advantage of their individual talents—in a way that they complement each other.
It is powerful when your entire team is moving towards that collective goal.
You need to make a mindset shift as you’re transitioning out of the everyday operation of your business. Make a cognitive decision—you are either the linchpin that will handle this piece, or you will delegate it out. The majority of people don’t handle it correctly. When you delegate a task to someone, you delegate whatever outcome may come.
You have to approve and accept all of the decisions made by your employees.
If they’re constantly coming back to you to ask questions or receive approval, you’re still the one making decisions. That isn’t delegation. So hire people who are free-thinking problem-solvers. Without a doubt, mistakes will be made—but they will learn from it in a way they couldn’t if you were hovering. Mike and I talk about hiring the key players to run your business—so listen to the rest of the episode!