Listener Favorites: Mike Michalowicz | Designing a Business that Runs Itself
The Unmistakable Creative Podcast
Srinivas Rao
4.8 • 1K Ratings
🗓️ 9 April 2021
⏱️ 51 minutes
🧾️ Download transcript
Summary
Mike Michalowicz is an author, entrepreneur and lecturer. By the age of just 35, Mike had founded and sold two multi-million dollar companies. After becoming an angel investor and then losing his entire fortune, Mike started all over again. Through this trying experience, he became driven to discover the recipe for a truly successful business. In our discussion we learn how Mike created the ‘Profit First Formula’. Join us and discover the secret to designing a business so healthy, that it runs itself.
To find more on Mike’s books, The Profit First Podcast, his blog and much more, simply visit MikeMotorbike.com
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Transcript
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| 0:00.0 | FedEx's big promise to their customer base is that we will deliver your packages on time. |
| 0:04.6 | They have that famed commercial of it absolutely positively needs to be delivered by tomorrow. |
| 0:10.4 | We'll make it happen. |
| 0:11.8 | Well, that's the promise they make. |
| 0:14.4 | Then we say, what's the one function, the one activity, the one doing activity that is |
| 0:19.4 | most important in making that promise a reality? |
| 0:22.4 | Therefore, what's the one function that supports our survivability and thrife ability? |
| 0:26.5 | We've determined that delivering packages on time is what we want to be known for, what we want |
| 0:30.7 | to thrive on. Well, the one activity behind that that's most important to FedEx is logistics, |
| 0:37.0 | the movement of packages. Therefore, they need to invest in and protect logistics more than |
| 0:43.4 | anything else. It is the number one activity to the point where if it's getting threatened, |
| 0:48.8 | they have to reallocate resources to get it up and running again. |
| 0:51.2 | And it's funny, it gets threatened every single year, usually around the winter holidays. |
| 0:58.2 | When we're recording this, we're starting to approach them very rapidly. |
| 1:01.6 | And what happens is shipping demand increases. |
| 1:04.8 | More packages get shipped during the final quarter than any other quarter by a long shot. |
| 1:10.2 | What FedEx does is they don't say, hey, drivers drive faster, drive better. |
| 1:13.9 | No, the management team gets their butts from behind those desks and out into the trucks themselves. |
| 1:18.6 | They hire additional staff. They make sure the QBR logistics for them keeps humming along. |
| 1:23.8 | So in the step two, as small business owners, we need to figure out what's the promise we're |
| 1:29.4 | making to our customer? What's the one thing we want to know be known for? What's our thrive factor? |
| 1:34.9 | Then rewind from this thrive factor that one thing you want to be known for, say what's the most |
... |
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