Is Your Business Failing?

Top Tips From

Mike Michalowicz

Chris Michael Harris, Executive Producer

7/28/2020

How to Establish the Vital Needs in Your Business? Entrepreneurs don’t know what their challenges are. 

The thesis of this book is that the biggest challenge business owners have is knowing what their biggest challenge is. That is why entrepreneurs need to find the vital need.

The OMEN Process and How/Why it Works

Mike set up a “survival trap”—the concept that he setup in his book. Let me help you illustrate this by following these 3 steps:

  1. Draw the letter A in the center of a piece of paper and that represents is where your businesses is in the moment. It can be crisis or challenged, maybe an opportunity, but for many businesses right now as we’re recording this, it’s crisis or challenge.

2. Draw a line away from A, in any direction you choose. An arrow out from A, the arrow represents an action that you can take that gets you out of crisis. Then draw another arrow away from a button. A different direction and repeat this four or five times. And what this represents is all the different actions you could take that will get you of crisis.

3. Draw the letter B on the bottom left corner and put a circle around that. And what B represents is the vital need. The specific thing your business needs from you right now. And chances are those arrows you drew, few of them, perhaps even none of them are pointing to B, which means you are making decisions in the moment to escape panic. 

Have you heard about the priming effect? 

Well, it is a behavioral tendency to put more considerable significance in what’s happening in the long term consideration. The B is what the business needs from you at present. But you came to consider that you don’t even know how to get there because of another tendency.

Trusting your gut is dangerous, yet it is beneficial in personal survival, BUT they are not linked. 

What you need to do in your business is to evaluate your gut is saying: Does it support the need of your business or not? 

You see, Mike failed about ten businesses before. He lost all of his wealth, and it was a brutal wake-up call for him. He went into depression and tried to resolve it by just saying that he can do anything, and his gut will guide him. 

Both are not true.

We live within our core competency, and we have to match instinct to data. This data doesn’t mean you’re sitting behind the computer all day. Some of them are just yes, no validators.

How to Accept Chaos and Focus on the Main Thing?

It is a fact that in our business, you spread yourself trying to do many things at once. You dilute your ability to doing any one great thing. So to avoid that, the goal is to sequence the great things to sequence the one thing, to nail it, address it, perfect it, and go to the next.

If you’re trying to do multiple things at once, you become a juggler, and it is guaranteed that you won’t make progress. 

The OMEN Process and How/Why it Works

Once you know what B is, and there’s this concept called the business hierarchy of needs that we alluded to, that is the structure. And in business there are five levels of needs:

  1. Sales
  2. Profit 
  3. Order which is efficiency 
  4. Impact 
  5. Legacy

And with a gauge where you are, you need to resolve it the right way. 

An omen is a framework of HOW you resolve something. So once you identify the need, for example, say it is a sales need—converting clients and you don’t have enough conversion. Well, use OMEN.

O – Objective. What’s the objective? 

M – Measurements. Basing on the example that we had, how do you know it’s an improved conversion rate? If you’re aiming to convert five customers per week, but you end up with only one. But there are some other parameters as well. Measure the quality of the client on how much they can spend per week. Like the customer’s spending is going to be at least $10,000, so you’ll need five clients a week, spending $10,000. 

E- Evaluation frequency. How often are we going to evaluate the progress toward our objective? Many small businesses, in particular, set a goal, and then they abandon it. 

The evaluation frequency is the checking of the progress of your objective. Mike calls it the Goldilocks—the just right a setting. For some businesses, checking once a week is adequate. This depends on what you are measuring.

One way to measure is to make it a calendar. So it becomes a tradition of sorts. For conversions, you’re going to check every Friday, and it becomes a calendar and event. You may have accountability for a second party. 

With Mike, it is his accountant, the reason his account is excellent is not that he knows much about my sales, but he pays his accountant for their work. So he doesn’t miss that meeting. But every business is not the same. You must look at it and see when do you achieve data significance? 

So how often do we realistically expect a trigger event? And that is a date of significance, and that’s when we set it. It could be six months for prospecting other ones, and it could be true every second because Amazon measures its conversion by the second. 

For people that work in jobs, every week they submit a report, they take ownership of their specific job responsibilities. And they can see the progress that they’re having on the company. They work for a startup, and maybe they collect their cog in the wheel. Seeing measurable reports within their division gives them something to celebrate because they might not see the top of funnel stuff.

Organizational efficiency is the engagement of employees, which is so critical. A pretty significant discovery Mike feels is that the motivation for employees is not as much the corporate goals or even their responsibilities, like what their goals are as much as their achievements for most employees. So they test stuff out—they call it goal alignment. They set the corporate goal, but then they evaluated what’s every person’s individual personal goals in their lives. Someone wants to buy their first house. Another person wants to learn Spanish. 

What we did is to discover how to align the achievement of their individual goals along with the corporate goal? They measured personal achievements toward the organizational goal. And the engagement has skyrocketed. So, for a target that was hit, employees will be given a bonus. And this got the people excited because it drew them closer to their personal goal or could be that they’re in a wonderful company because they were taken care of. Those components become significant in achieving our goals. 

N – Nurture. The need for flexibility in the objective, the measurement, and the evaluation frequency. When you set parameters of what you want to achieve, and you do it based on the data that’s in front of you. 

But as time progresses, the data changes. To nurture is to go back and check what has to be changed. Is it the business objectives? And nurture is to rely on asking the front line. So if you have employees or virtual help, the people closest to the problem usually have the best solution to the problem. It’s letting them evaluate and make suggestions and even give direction on achieving the objectives that you’ve set or modifying the objectives. 

Photo by Adeolu Eleto on Unsplash

How to Make This New Process “Stick”

The easiest thing you can do in addition to getting the book is you can visit the site that evaluates you.

It takes less than five minutes. And the power is you can assess your business, pinpoint what to work on, work on it, and then you can return and do the evaluation again to pinpoint the next thing. It’s FixThisNet, and there is an evaluation button.

It has no subscription, no download, just take the test, evaluate what you need, and that’s a way to start digesting this because now it’s five-minute chunks of evaluation, pinpointing, and then taking action on your due course and coming back and evaluating again.

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