Fix This Next
by Mike Michalowicz
In “Fix This Next” by Mike Michalowicz, discusses the common struggles of small business owners. He emphasizes the importance of identifying the root cause of problems in business and provides an overview of the “Business Hierarchy of Needs,” which serves as the framework for the book.
“Fix This Next” is a guide for small business owners to identify and prioritize the most critical needs of their business. The book provides a simple framework called the “Business Hierarchy of Needs” that consists of five levels of needs:
Each level represents a specific set of needs that businesses must address in order to move up to the next level. The book includes a comprehensive assessment tool to help business owners determine which level their business is at and which needs they should focus on next.
“A business that can’t operate without its owner is a job, not a business.”
BIG IDEA 1: The Business Hierarchy of Needs
“The Business Hierarchy of Needs” is a framework presented in the book where the author outlines the five levels of needs that businesses must address in order to achieve long-term success. These levels are Survival, Profitability, Order, Impact, and Legacy, and each represents a specific set of needs that businesses must fulfill before moving up to the next level.
At the base of the hierarchy is Survival, which represents the most fundamental needs of a business. These needs include generating enough revenue to cover expenses and keeping the business afloat. Without meeting these needs, the business cannot progress to higher levels of the hierarchy.
The next level is Profitability, which represents the need to generate consistent profits. Profitability is essential to any business as it enables the business to reinvest in itself and grow. Profitability also provides a cushion that protects the business during tough times, making it less vulnerable to market fluctuations.
The third level is Order, which represents the need for a well-organized and efficient business structure. At this level, businesses must establish processes and systems that enable them to operate smoothly and effectively. By creating order in the business, business owners can free up their time to focus on higher-level needs, such as growth and impact.
The fourth level is Impact, which represents the need to create a positive impact on customers, employees, and the wider community. At this level, businesses must focus on creating value beyond their products or services. This may involve building a strong brand, creating a positive work culture, or implementing sustainable business practices.
Finally, the top level is Legacy, which represents the need to create a lasting impact that transcends the lifetime of the business. At this level, businesses must focus on creating a lasting legacy that will benefit future generations. This may involve supporting charitable causes, developing innovative products, or creating a culture of excellence that inspires others.
The Business Hierarchy of Needs provides a clear roadmap for business owners to follow, ensuring that they address the most critical needs of their business at each stage of its development. By focusing on the needs of each level, businesses can ensure long-term success and make a positive impact on the world around them.
BIG IDEA 2: The O.M.E.N. Test
Michalowicz introduces the O.M.E.N. Test as a tool to help business owners identify their most critical needs. O.M.E.N. stands for “Objective Measurement of Entrepreneurial Needs” and is a comprehensive assessment that evaluates the business in five critical areas: Sales, Profit, Order, Impact, and Legacy.
The first area evaluated in the O.M.E.N. Test is Sales, which assesses the business’s ability to generate revenue. This includes evaluating the business’s sales process, marketing strategies, and customer acquisition methods. By evaluating sales, business owners can identify areas where they need to improve and adjust their sales strategies to generate more revenue.
The second area evaluated is Profit, which assesses the business’s ability to generate consistent profits. This includes evaluating the business’s expenses, pricing strategies, and profit margins. By evaluating profit, business owners can identify areas where they need to reduce costs or adjust pricing strategies to increase profitability.
The third area evaluated is Order, which assesses the business’s systems and processes. This includes evaluating the business’s workflows, procedures, and automation. By evaluating order, business owners can identify areas where they need to streamline operations to improve efficiency and productivity.
The fourth area evaluated is Impact, which assesses the business’s impact on its customers, employees, and the wider community. This includes evaluating the business’s customer service, employee satisfaction, and social responsibility. By evaluating impact, business owners can identify areas where they can create a more positive impact and build a stronger brand.
The final area evaluated is Legacy, which assesses the business’s long-term goals and vision. This includes evaluating the business’s innovation, creativity, and commitment to making a lasting impact. By evaluating legacy, business owners can identify areas where they can create a lasting legacy and leave a positive impact on future generations.
The O.M.E.N. Test helps business owners identify their most critical needs and prioritize their actions accordingly. By evaluating the business in each of these five areas, business owners can gain a comprehensive understanding of their business’s strengths and weaknesses and develop a clear roadmap for success.
BIG IDEA 3: The Fix This Next Cycle
The Fix This Next Cycle is a tool for business owners to continually improve their businesses. The Fix This Next Cycle is a five-step process that business owners can use to identify and address their most critical needs.
The first step in the Fix This Next Cycle is to evaluate the business using the O.M.E.N. Test, which provides a comprehensive assessment of the business’s critical needs. This evaluation enables business owners to identify the area of their business that needs the most attention and focus.
The second step is to identify the specific issue that needs to be addressed within the critical need area. This involves breaking down the critical need area into smaller, more manageable issues and selecting the issue that will have the most significant impact on the business’s success.
The third step is to establish a plan to address the selected issue. This plan should be specific, measurable, and time-bound, and should outline the steps that need to be taken to address the issue effectively.
The fourth step is to take action and implement the plan. This may involve making changes to the business’s operations, processes, or strategies. It is essential to monitor progress and adjust the plan as needed to ensure that the business is on track to achieve its goals.
The final step in the Fix This Next Cycle is to repeat the process continually. As the business addresses its critical needs, new issues may arise, and the business must go through the Fix This Next Cycle again to identify and address these issues. By continually evaluating and improving the business, business owners can ensure long-term success and growth. The Fix This Next Cycle is a powerful tool for business owners to prioritize their efforts and continually improve their businesses. By following this five-step process, business owners can identify and address their most critical needs and create a roadmap for long-term success. The Fix This Next Cycle is an ongoing process that enables businesses to adapt and thrive in an ever-changing marketplace.
“The biggest danger to a business isn’t that it will fail; it’s that it will succeed at something that doesn’t matter.”
“Fix This Next” is a practical and insightful guide for business owners to identify their most critical needs and create a roadmap for long-term success. The book offers powerful tools such as the Business Hierarchy of Needs, the O.M.E.N. Test, and the Fix This Next Cycle to help business owners prioritize their efforts and continually improve their businesses. With its clear and straightforward approach, “Fix This Next” is an essential read for any business owner looking to take their business to the next level.
About the Author
Mike Michalowicz is an American entrepreneur, speaker, and author of several books, including “Profit First,” “The Pumpkin Plan,” and “Clockwork.” He is also the founder of Profit First Professionals, a membership organization of accountants, bookkeepers, and business coaches who implement his Profit First system in their practices. Michalowicz has been featured in numerous media outlets, including CNBC, Forbes, and the Wall Street Journal, and is a popular speaker at conferences and events worldwide. He is known for his practical and innovative approach to business and is dedicated to helping entrepreneurs and small business owners achieve success.