You might be curious about why I keep talking about having a sale ready company. It’s not because I want you to sell your company. The reason is simple, a sale ready company is more fun to run and way more profitable.
Today we’re going to go into one of the main components of having a sale ready company. That’s systematizing your business. You’ve heard me say it before and it’s worth repeating. When you systematize your company, your employees know what excellence is and your customers know what to expect. Both are important factors in getting your company in a position that someone else would want to own.
Today’s video is about having what I call a 1% improvement system. In this video you’ll learn why 1% is such a powerful number.
You might be curious about why I keep talking about having a sell-ready company. It’s not because I want you to sell your company, the reason is simple. A sell-ready company is more fun to run and way, way more profitable.
Today, we’re going to go into one of the main components of having sell-ready company. That’s systematizing your business. You’ve heard me say it before and it’s worth repeating. When you systemize your company, your employees know what excellence is and your customers know what to expect. Both are really important factors in getting your company in a position that somebody else would want to own. You know, today’s video is about what I call a 1% improvement system.
In this video, you’ll learn why 1% is such a powerful number.
You know, the 1% improvement is making small improvements every week. If you break this down to a daily improvement, it’s only .2% better per day. And I’m gonna bet that everybody watching this video can do something that’s going to improve themselves by .2% today. I like to break this down into how many seconds something can save. You know, the reason I like to look at seconds is because if you do something 25 or 30 times a day, 30 seconds adds up to 10 or 15 minutes a week. That would average about an hour a month and 12 hours per year. So, if you could improve a process in your company by 12 hours a year, wouldn’t that be something that you would want to do?
So, here are seven things you can do to develop a 1% improvement system.
- One, have a weekly meeting as a across functions with no more than five people. In other words, you might want accounting, sales, marketing and operations all in the same meaning. They have different functions, they see things from a different angle and they can tell each other what’s getting in the way of them being more productive and more effective.
- Number two, design small experiments to see what can be done to make the bottleneck become less of an issue. A bottleneck is where your business is getting stuck. Often, I see the bottleneck be the owner of the company because everything runs through that owner. So, you want to design small experiments what we can do to make the bottleneck less. And by the way, if you’re the owner, don’t be on this team. But accept the recommendations they have and let the experiment go. Again, we’re trying small experiments, most of them will fail, some of them will succeed. Don’t be the person that stops them from going forward.
- So, some of these small experiments will include your customers. You know, when we started doing financial planning, we’d take three, four, five weeks to get a financial plan down for somebody. Now it takes two and half to three hours. The reason is very simple. We kept experimenting about how we can make it more simple and easier for our clients to get what they wanted, not what we thought they should have. And by doing some back and forth, what we do is, we now do the plan together. We know the information takes about an hour to an hour and a half to do it, then we sit down together, we start moving the levers and say, “What do we need to do to get a plan work?” After three hours, the whole things is done and we don’t have to have the back and forth and the back forth and the back and forth that normally comes with doing a financial plan.
- At least every month, but hopefully more often, check back with the team to see if the results of you experiments are working and what’s going on.
- If something works, you keep it.
- If something’s not working, find out what you can do to improve it. This is called the retrospective meeting. Now, the retrospective meeting is what it is, you’ve done a certain amount of things in your group over the last two or three weeks. And then you go back and say, “What worked?” “What didn’t work?” “What can we do differently?” “How can we change things in the next three weeks “to get those bottlenecks to be done better?”
- And finally, wash, rinse and repeat. Repeat the six steps over and over and over and over again. And when you do this, you’re going to find over the course of a year or two things get so much better, that you’re going to be absolutely 100% amazed.
You know, I know how frustrating it is to keep fixing the same thing over and over. And having a 1% improvement program will help you get rid of those nagging problems that keep popping up over again.
So, when you do these seven things, you’ll be on your way to becoming operationally irrelevant. The most important thing you can do to improve your company’s value. The reason you get there is simple, you’re having your people who are the expert of the job solve their own problems, you’re not trying to solve it for them. You’re taking yourself out of the loop and the more you do that, the more valuable your company becomes.
So, here are some things I want you to do.
- I want you to download our free infographic on the sale-ready company.
- I want you to set a time to talk with me about what a sell-ready company means for your company, not that you want to sell your company but having your company ready for sale.
- Number three, decide to see if it makes sense to take the next step applying for our sale-ready program.
Hey, this is Josh Patrick, you’re at the Sustainable Business, thanks a lot for stopping by. I hope to see you back here really soon.