After carefully reading this book,
I must say it’s highly intriguing for anyone to wants to start a business or wants
to grow their current business. This author’s purpose was to provide us with business
strategies that will help our companies excel. Mike provides many business tips
that will make a huge difference. He goes into great detail about clients and
how they should be treated. Mostly importantly, systematize processes in
business. Also, developing a strategy that will be beneficial for those around
you and for yourself. He speaks about different things we could to attract more
clients and create more revenue. The author gives you tips on asking many
questions such as where do you want to be and what do you want to change.
He assures that these questions
will find you solutions. Mike Michalowicz does an amazing job at using real
life examples related with the strategies he teaches. Not only did he get
professional advice but he made it easy to relate to. He mentions many
scenarios and different situations and teaches something useful towards
business about each one. I learned many key lessons by reading this book. To
state a few, one that made me open my eyes the most is how he speaks about
focusing on your favorite clients. They are the ones that make you happy and
continue to make you love what you’re doing.
These top clients are the ones that
make most of your revenue. If you focus on mostly them and get rid of the
little clients that are a headache, you are much more likely to exceed and
continue to grow top clients. I also enjoyed how he suggests treating our key
clients like VIP. This type of customer service will help you to continue
growing a high-quality clientele. Another key lesson I learned is to be one
second faster than everyone else. Finally, my favorite lesson I learned was
that it’s okay to seek advice from other people. There is nothing wrong with
wanting to learn more.
It is extremely important to systematize
processes in business. Setting up a system will keep everything in your
business very organized and in check. Systematizing processes in business can
include teaching others how to operate day by day and accustoming them to a
routine. Or, just teaching them to be aware of the duties that need to be
performed. For example, I currently work at this engineering firm and I got
trained for a few weeks when I started working. During this training time, they
showed me how to preform my daily duties and how to use certain software’s.
This is an example of systematizing processes in business because it was a
great system set up for all the employees to follow.
Michalowicz states in the book, “Eric believes his knowledge and skill set isn’t teachable,
and if you can’t teach it, you can’t systematize it. And if you can’t
systematize it, you can’t grow it” (31). He could not have said it any better.
You cannot teach someone something unless you know it like the back of your
hand. If you try to teach other people how to do something when you don’t know
how to do it entirely yourself, you are going to set them up to fail. People have
to have real life advice and proof to support what they’re teaching.
Systematization is what
will give you freedom. If you have properly set up a system for your business,
it could perfectly run without you for days at a time. For example, I used to work
in a hair salon. This hair salon has been opened and extremely successful for
12 years. After it being opened for five years, the owner decided that the hair
stylists and receptionist are capable of running the salon themselves. He
decided he was not going to show up to day-to-day operations anymore. How was
it able to get to this point? It was able to get to this point because the
owner had set up and practiced such a good system with time and patience. He
taught everyone what they should know and set up the perfect plan in place. I
worked there for two years and a half and I only saw him one time. We did a
great job at running the salon for him because he taught us exactly how to
maintain and work everything.
The author also states
that your giant seed is “the place where your favorite customers are able to
derive maximum benefit from the systematized, core process that drives your
business” (Michalowicz 53). In order to get to this place, you have to
systematize every aspect of your business (56). That shows another reason why
systematization is important. AOI is defined as area of innovation. This term
means that the thing your company is the best at doing or is best known for, is
your area of innovation. I’m going to provide a few examples in the following
sentences. Walmart is known for the best prices. Google is known for finding
information for anything you need. Apple is known for having extremely fast
working mac laptops. Bill Gates is known for creating Windows. AOI is extremely
important for businesses because this is what makes them stand out.
When a company stands
out for something, they will attract many more clients and become more
successful. This will increase their revenue without a doubt. For example, Knaus
Berry Farm in Homestead is well known for their fresh, hot cinnamon rolls.
Since they are so famous for this, they receive lines up to three hours of
people that come to purchase the cinnamon rolls. Since this business has such a
successful area of innovation, it adds value to the company. It brings so many
clients. This is key for businesses because it’s what makes people attracted to
your specific product or service, not someone else’s. “Your AOI is only one
component of your unique offering; an- other is your number-one strength, that
thing you do really, really well. It’s the thing that just comes naturally to
you; it’s so easy to execute, it doesn’t feel like work. Your number-one
strength is also the thing you love most, that makes you feel all happy inside”
After doing my
research, I have thought of two real world companies that could use the
Author’s strategies. First, I have chosen to speak about L2Drones. This is a
new small business located in Miami, Florida. The company provides drone video
services to other companies that want to market their brand. For example, if
you are a realtor and want to create an aerial video of a house you want to
sell, you can contact and hire L2 Drones to do a great video for you. I can see
this business owner becoming more successful with Michael’s strategies.
Especially with the area of innovation strategy. L2Drones needs to come up with
something that makes their company different from other drone companies. This
will attract more clients and will have steady money coming in. Also, if this
owner systematized his business he could outsource and hire people to do some
work for them such as editing. Unfortunately, he still does most of the jobs
himself. If he reached out to other people that are also good at this, he could
learn a few things and grow because of the extra help. If there was a proper
system set up that did not include mostly him and no one else, there is more
chances of higher revenue and recognition.
explains the 80/20 principle by relating it to clients and revenue. He uses
this following example: “Look at your short list of top clients and determine
which few clients (top 20 percent) bring in the most revenue (80 percent)”
(Michalowicz 190). He values his top clients and believes that these clients
are the main source of income. He believes it’s important to have this type of
clients so he can keep getting new top clients. He mentioned that by having
these top clients, he has access to the other vendors that they know by being
referred to Mike. The way I interpreted this principle is to focus mainly on my
top clients. They are the ones that bring in the most revenue.
personally have a few immutable laws. My main one is that I must keep my
customer service as a priority. This consists of keeping my clients happy no
matter what. Part of this law is to be attentive to any questions they have in
a timely manner. My goal is to fix problems spot on and not have them wait.
There is a solution for everything. I would never want them to feel like I
don’t care about their specific needs in doing business with them. I believe
strong customer service is what creates a good reputation for a company. Another
law I would like to mention is that if I feel like a client of mine or employee
has negative energy and does not want to see me succeed, I will remove them as
a part of my team. I do not have the time to be dealing with envious people. I
believe it’s best to surround yourself with the best people possible to create
a successful, healthy team.
creating a new “label” can bring many new opportunities. A new label is
basically making your current title sound more interesting and more attractive.
Mike uses this interesting new label for a dog walker. Instead of being known
as a dog walker, you can provide a high-end dog walking service and call
yourself “canine care giver” instead. Just by this new name alone it will cause
many people to be interested in your service. Creating a new label is also a
part of knowing what your customers like and want. You listen to what they want
and you better your product or service and make it a new label. This will bring
almost Mike’s entire philosophy makes perfect sense to me. I see him as a motivated,
modern individual that is very well experienced. He knows what he’s doing. I
can see the potential in his business advice and how it can help me and many
other people starting a business. The only flaw that I see in his book is how
one of his immutable laws are “no dicks allowed”. He believes that life is too
short for rude people. Realistically, the number of rude people outweigh the
number of nice people we deal with daily. Rude people are something that each
and every one of us deal with on a daily basis. It’s something that we have to
put up with when we are having conversations with people or anything related to
human interaction. Now on the other hand, a business owner has the option to
not hire any rude employees or have any rude clients. But when it comes to no
rude people allowed entirely, I don’t think that’s a realistic way to think.