Is There a Formula That Can Help Ensure Profitability
and Grow a Service Business?
Mike Michalowicz can teach you how with his unique formula.
Find out how he made, lost, and rebuilt his fortune using this innovative strategy.
Mike Michalowicz is an author and entrepreneur. By his 35th birthday, he was a multimillionaire. He founded and sold two multimillion-dollar companies. And he was riding high.
Driven by his past success, he thought he had a winning formula. And he tried to implement his strategies as an angel investor.
And that’s where it all changed and he lost it all.
Mike had to start all over again. But this setback didn’t stop him.
He had to rethink strategies he was confident in before. And figure out a new way of doing things.
He wanted to find better ways to grow strong, healthy companies. And that’s exactly what he did.
Nowadays, he’s on his third multimillion-dollar venture.
But he may be best known as the creator of innovative strategies for growing businesses. How can Mike Michalowicz help grow a service business?
Take a look at the lessons that service business owners should learn:
Lesson #1 – Profit First
Every business needs to make a profit. That’s how you pay your bills and keep the proverbial doors open.
Yet, business owners make a fundamental flaw. And that can stand in the way of profits.
According to Michalowicz, comply with what outside experts say instead is a mistake. Instead, you should channel natural behavior.
For that, service business owners may want to try the Profit First strategy. It’s a bank-based accounting system that follows the natural way you may see money.
First, you set up a variety of accounts with different names. Name the accounts according to purpose, including a profit account.
This way, you know that you already allocated money for a specific purpose. And you’re apt to spend money more wisely.
Lesson #2 – Leverage Who You Are
Your service business is unique. According to Mike Michalowicz, you should: capture who you are and push that forward.
This has a multitude of benefits. First, if you push who you are forward, it will resonate with authenticity. And this can sustain profitability.
As a service business owner, ask yourself “What makes you different?”
Exploiting these differences can give you an infusion of cash. And if you maintain the Profit First formula, money is already off the table for you as you’ve handled your finances already.
So you’re free to make your service business stand out in a way that people flock to you. One of the last things you want to do, though, is to clone your business to be like someone else.
What works for someone else may not necessarily work for you. So, don’t merely copy someone else’s uniqueness. Find out what makes your service business stand out from the competition.
And use who you are as leverage to push your service business forward.
People want a service business that speaks to them personally. They may need a particular service. But they want to work with someone different.
So think of where you can take your personal differences and how your business can amplify it.
For example, Steve Jobs had a phobia of buttons when he was young. He could have merely felt ashamed and hid his difference. But instead, he used it as leverage.
Jobs had his engineers work around the button phobia. And they created iconic devices that were different than any others on the market at the time.
Lesson #3 – Business Owner Mindset
Your parents may have imparted lessons about money. But you need to understand that it’s from a narrow perspective.
And the majority of you may not have received money lessons that are relevant as a business owner. Or use it well in general.
(That’s not to disparage your upbringing. But parents can only teach from what they know. So if they only know about being consumers and what their accountant advises? That’s what you’re going to learn.)
Unfortunately, that may not necessarily help you as a service business owner.
One of the first things you need to remember is that it’s not just about “growing a business.” You want to grow a profitable business. And that’s an important distinction.
In addition, remember to cherish the pennies. Develop a discipline of small wins. And understand that these small wins can lead to massive ones further down the road.
Lesson #4 – Small Changes Help
In addition, you don’t need it to implement a complicated full system. Especially at first.
Start slow and you’ll see radical changes. There’s no such thing as an overnight success. Even those so-called overnight success instances may have taken a decade or more to achieve from the idea stage.
Lesson #5 – Set Realistic Financial Goals
Sure, you want to be a billionaire. But beware of pie-in-the-sky financial goals. A lot of business owners go into business expecting very high returns. However, that’s not something you’re going to see overnight.
Unrealistic goals can be a double-edged sword. It can hurt your credibility. But it can also be emotionally draining as a service business owner.
Setting SMART goals can make your “overnight success” a little more achievable. Try to keep your goals:
- Specific
- Measurable
- Accountable
- Realistic
- Time specific
This can help ensure that your business is moving toward your financial goals.
Lesson #6 – Lack Can Be an Asset
How many times have you said that you need more money for XYZ? You need it to grow your business. Or maybe you need more contacts or networks.
The common theme is a lack of resources, right?
However, that lack may be a positive thing for you. How?
The “lack” forces you to be innovative.
If you don’t have the money to throw into attracting customers, you start to think differently. You have the time to identify the market shifts. And figure out the new thing your customers want.
You also have the time to position yourself in front of the new trend before the competition.
And what’s left?
Catch the wave of momentum.
Lesson #7 – Develop a Clockwork Business
Ultimately, you want a business that runs itself. That’s the dream, right?
Well, according to Michalowicz, there are 3 levels of business:
Level 1: Cash
This is a fundamental level wherein you’re focused on making enough money to support your life. You work tirelessly to get to a place where you’re making a profit. And this is where the Profit First formula comes in.
Level 2: Recovery
When you’re free from trying to sustain your life and business, you move onto recovery. In the previous level, you may not have had much free time. You were busy trying to get enough cash.
However, once you’ve gotten to a sustainable level, it’s time to recover. And that means freedom.
At this level, it’s time to balance personal and business life. You can’t be all business all the time at the expense of your personal time. Without balance, both areas will suffer.
So, you can explore Mike Michalowicz’s Clockwork system. In it, the goal is to get your service business to run itself.
Think about it: The day you decide that you don’t have to get to the office anymore. That’s the day you take your first step to freedom.
Why? This is going to push you to delegate to other members in your team.
Additionally, most business owners only need a backpack and a laptop. Is your presence as a leader always with your team? If so, you don’t really need to be there physically.
Up until this point, you may have implemented the following steps:
- created sustainable cash with Profit First
- implemented a system that runs itself
- delegated tasks
If you did those steps already, you may finally have time to recover. And that means working when you want to and not because you need to.
Level 3: Impact and Meaning
Why do people leave high paying corporate jobs to go to startup businesses? It’s not the money.
Generally, people want to be part of a purpose. Sure, they need to pay the bills. However, a rallying point is equally important.
Some business owners make the mistake of not defining their real purpose. The real purpose of a service business can attract employees who are looking for different types of success.
However, you need to clarify the reason for your service business’ existence. And it needs to be beyond making money.
When you clarify your company’s purpose, you can start attracting people with the same vision. And a workforce of like-minded people focused on the same goal can be very powerful.
Put Your Profit First and Build Towards a Clockwork Business
Mike Michalowicz was successful at what he did. And even when he had to start over, he didn’t let that stop him.
Now, his innovative strategies can help service business owners grow their businesses. And get to a place where the business can run itself.
It may not happen overnight. But even the smallest shifts can make radical changes in your service business.
So take a look around. Find out what makes you different and leverage it for your business.
