fbpx

The following video transcript is generated automatically by a computer algorithm that learns and gets better on a daily basis. Please accept our apologies if some content below doesn’t make sense:

Hi, guys. Welcome to the Daily Dose podcast. This is the podcast where we discuss things from the news on social media that’s interesting to us as business nerds, as entrepreneurs. I’m James and I’m joined by my co-host, Marcella. Hey, what’s up, man?

Very good, thank you. We have got three, as per usual. We’ve got three Twitter topics for you today that we’ve picked out. These are slightly more advisee mindset discussion things rather than something that’s particularly newsworthy. Well, I think there are important things to keep in mind.

What you’ll often find is when you’re working away on a business, you can it’s very easy to get stuck in the weeds of the business. So it’s important to make sure that you’re sort of approaching your business in the right way.

On that basis, there’s a tweet here from a guy called Patrick David. And this is a way of trying to get over. You can feel overwhelmed many times when you’re doing business. There’s so much stuff to do. There’s so many tasks that need to be doing and younger enough time in the day. So this this is a bit of a motivational one, but I think it’s quite good. So he says stop trying to win the focus on the day. If you win the day, you win the week. If you win the week, you win the month. If you win the month, you win the court. If you win the quarter, you’ll win the year. But it all starts with the day. I, I tend I do tend towards overwhelmed. Like, I will have a lot of stuff flying around in my head and I will always think I am. The way I operate is that I try and sort of build my model of the world of how things work and then try and make decisions based upon that, which is good in some ways. But the bad side of that is, is. I get very. Overwhelmed by what I don’t know about the world. And so I will I will tend to like over research stuff and I will go away and try and fill those gaps as much as possible before taking action on something. And so I will have a tendency to do that. A sort of not move quickly enough and not take decisions quickly enough or wait too long on taking decisions. And oftentimes, as well, the overwhelm can be, you know, this all this stuff is sort of flying around can lead to sort of, you know, no action at all because you’re so you’re in the mode of researching and going out and finding this information, doing all this kind of stuff that you don’t actually.

So get to the point where it’s like, OK, well, let’s let’s take action on this thing and actively move it forwards, even if you don’t know everything that’s going on.

And so for a person like me or someone who’s got sort of my kind of mindset is important to remind yourself that thing of, like. Okay. You don’t know. His thing is good. If you focus on the diet and the weight is going to take care of itself in the months to take care of itself and et cetera, et cetera.

And that you can actually make good progress without sort of full information. And the mere act of taking progress on something or taking a decision or taking action will often reveal some of that information that you’re wishing you had in the first place. So even if it turns out that, you know, you know, there’s some action that you want to take. But you’ll sort of there’s a question mark in your head about this thing. If you if you go ahead and do that, take the action and then it turns out you were wrong. That’s not necessarily a bad thing. It’s because you learn. Right. You know, you filled in that blank by actually taking the action in the first place. So rather than over researching, rather than worrying about the sort of longer term time horizons of stuff, it’s okay.

You can only act in the now. Right. You can only take action here and now. So it’s like, what do I need to do now to move this myself or my business forward in whatever shape that might take? So is it, you know, getting on the podcast with Marcello and putting out a book? Is it. You know, doing programming a specific thing so we can get it out there on the Web site so that customers can start to interact with it. Is it making a phone call to a customer, you know, to see what their opinion is on your sort of latest feature or whatever it might be that you’re trying to do as part of your SAS products? All of those things taking action actually leads to increased information, which can help, you know, if you’ve got a mindset like myself. And having having that bias towards action is really, really important, particularly in sort of entrepreneurship and building your business, because there is no one else. There’s no boss who’s going to shout at you if you don’t do work or there’s no you know, there’s no outside kind of pressure forcing you into doing that kind of work. So you need to be your own sort of motivator in your own kind of boss. I feel that one way in which you and I are sort of quite different is that sort of you’re far more of a doer. I would say, than I am in terms of like you, you have a bias towards taking action, as in the Marsella way as like. Right. Let’s go. Let’s get this done. Bloche, which is called because it is literally the opposite of me in many ways. How do you feel about this kind of advice?

I think you put it very well. Yeah, I think it goes beyond just patience or timeframes. I think it’s just a habit of of winning, not something. So you kind of blatant sports, but I don’t think so. So if you going to run a marathon, you need to start somewhere and you need to build. It’s all about building the habit of succeeding or we need not something or so. Just get get something done successfully and then move forward. And then more often you get to do that. And the quicker the more it will compound the results. And that’s how you get to the end game that you are probably aspiring or visualising rather than just go into that. Taking shortcuts or going straight to trying to get to the finish line without, you know, climbing the mountain. So it’s going to be super hard. But given it’s going to be super hard, you should aim to get some rewards. And the more you need to celebrate, you know that the smaller, smaller winnings, you know, some accomplishments you get along the way. And you. You should try to put your specific objectives or specific. Yeah. Go slow on timeframes and shorter time, smaller things and get them done successfully. Gather feedback, as you said, move to the next one, next one. And over the year it will build up nicely. And then over the years it should provide you the ability to reach like big things. Yeah, absolutely. But it all starts with small tasks at execution day to day, week to week on days. Important with the habit for sure.

So another way in which entrepreneurship and sort of running your own business differs from working for someone else or having like a salaried career or a salary position. Is relevant to the next tweet. So there’s a fairly sort of lengthy tweet thread by a guy called Nat Eliason or Alison and I’m. Here it’s fairly lengthy. But I think it’s got some really good, like nuggets of information in there. And it’s particularly interesting for people. Yeah. As I said, who who come at it from a just illustrates how the entrepreneurship mindset is quite different to the sort of career job based mindset. And he writes one common thread. Amongst all the really successful and productive people I know is that they have a systems mindset as soon as they do the same thing more than a few times. And that thing is not a thousand dollars per hour work. They start to think about ways to automate or systematise or delegated so they can focus on something else. Sometimes it’s manifest in small ways. I type in my email all the time, so I set up a hockey to type my email and three characters instead of 20, and it often manifests in big ways. Hiring is the classic example. Assuming you have the revenues to support it, you should hire someone else to do anything that you could do 80 percent as well as you can. One big difference I see in systems mindset awareness is whether or not someone has a salary. Subsisting entirely on a salary puts you in a fixed money mindset. You only get X dollars per year. So anything that detracts from that which you could do yourself is bad. People who make money on their own tend to intuitively get the systems mindset better because they know if they can free up some hours that are going to be ten dollars work, they’ll have more time for the hundred dollars work. But if more time doesn’t equal more money and there’s less incentive to think this way.

And I think that’s really interesting because, you know, I have been done mainly entrepreneurial stuff in my career, but I have had a couple of jobs along the way. And I know you know, obviously I know plenty of friends and people that who have had to have jobs and have jobs that aren’t so particularly entrepreneurial minded, not that’s not a bad thing, that justice is just different and. If you are coming from that kind of background, you need to sort of keep an eye on how things are different. And one of those key ways is how things are different is I think he hits the nail on the head really well, which is there’s kind of like this zero sum mindset if you’ve got a job, which is. I get you know, I’ve got X hours and the day that I have to do this. I get paid X amount of money, it’s fixed. Okay. I might get a bonus or I might get a pay rise or whatever that might be. But anything, any expenditure which I make is taking away from this finite pile of money. And the net you know, the net benefit of that to me is not reflected in the amount of money that comes back to me. So in other words, that feedback loop of spending money to make money doesn’t really fit, particularly in a sort of a job basis.

So, for example, let’s say you have some sort of job where you are being a little bit sneaky and there’s some kind of task which, you know, you hear about these people who outsource their entire job to someone else in the Ukraine to do it for a third of the price. Well, they sort of sit there until their thumbs.

But all you’re really doing there is, you know, you’re arbitraging if you to do that, you are charging the difference in salary between what it is that you make versus what it is.

You can get someone else to do that job for you. Whereas in entrepreneurship, it’s kind of it’s very much like the investment mindset, which is okay.

You know, I have as we’re talking about before, I have far more times than I can possibly do. All of this stuff would be good to get done. Sure. I’ve got a priority list. But all of those things on that list are actually important. Just some are more important than others. And if I can pay someone else or automate pay to automate a chunk of that work, that which frees up more time for me to concentrate on the higher leverage, higher value tasks, then even if that thing over there is not making money directly for me, it actually frees me up to make better decisions or to do work. That does make my money. Which brings a greater pile of money in to the OP. And I’m able to invest that and it becomes that growing pot over time. And so your is the non-zero sum mindset of how do I invest my time, resources, money now to.

Best set myself up to grow. All of those parts of things so that, you know, you can grow the business and grow the money and grow the time and grow the resources and grow the people to become bigger and bigger and bigger and to reach the goals that you want to reach.

Also, as a programmer, you know, I, I, I have a very sort of systematic kind of view on doing all of these kind of things anyway, because, you know, essentially those who aren’t programmers, that’s what you do. You’re just inventing systems out of thin air. Right. So you’re kind of mine gets trained into that kind of thought pattern. You can’t go too far that direction, of course. But yes, I like things like setting up hockeys and stuff like that might be a little bit too fringe and a little bit too you know, you’re not really getting that much time back by typing in three characters rather than 20. But, you know, is having that kind of mindset is is what’s important here. What are your thoughts on, like, a systems mindset versus kind of a job or careerist mindset?

Well, I think you compared them already very well. But yeah, I would say probably talking something about from a different angle that it’s definitely it’s like leveraging your time, money and resources by allocating other people to help you on that. So then to Peanut’s buddy, this system mindset that although it’s coming into partnership unnecessary, it’s the most probably the most difficult to transition into it, because when you start the company, you are like a solo partner or a freelancer. That’s the way you should like 90 percent of the cases or even if it could be 100 percent. So you usually start by yourself or with just one or two business partners. You start very small. So then basically you are is it you are providing a service or creating a product. So but a switch in the service industry is it’s really hard to then transition.

So as a concept is attractive, you know, delegates and grow as much as you can, but in practise is hard because so many things, because of if you acquire the wrong people, because you may you know, I have a very stable source of income when you are starting. So then if you know your mainlines drop for a reason, then you need to fire people and start over or what are you going to do? Or maybe, you know, it could happen that some people are earning more money than you in the company. And that looks upside down. So. So then. Yes. So, so. So what’s that what’s Prolia practical advice to nurses that just do that and try it out? It never looks like very intuitive to hire someone so you can start doing something else, but you will develop skills. So even if even if you fail in that experiment, next time you’re more likely to do it better. You hire better or hire people at the right time or have processes, you know. So sought to mitigate risks or you delegated the right things. Not too much. Not too little, just the right things. And then you will discover as well. Where were your main skill sets? Maybe you wanted to delegate and be, you know, the manager CIO. But maybe that’s not what you should be. And then you eventually you should hire that role and you should be something else. So I would encourage others to do that experiment even if they fail. Just delegate. Even if it’s counterintuitive and very risky. Looks like very risky because you say you have like a service agency on what they are like marketing and then your clients ask you for certain things. And you know exactly how to treat them. Well, you know, it could be like a language barrier, our technical barrier, whatever. But you are doing a great job and they pay for you the moment you delegate that they or the service could be compromised. And it’s not necessarily very easy for you to guard or more customers. So then you are gonna take a cut of your income that will impact your lifetime. Maybe you have gates or other responsibilities. So you you say, oh, I cannot afford it. I need to get to double of my revenue so I can then hire someone. But that’s then unlikely to happen because of time constraints or whatever.

So. So you shouldn’t think on case by case basis or like you were saying, like a zero sum. And you should think on what other you should think bigger. So then if if you were doing just a service then your you can hire someone to do that. Then what’s next. Not necessarily, you know, keep doing the same service to more people and keep hiring people. But how can you build systems that will improve your profit margins? For example, maybe you can make alternation or a marketplace. Or maybe you can build. Yeah, some. Some say.

Any any funnel or process that will automate some stream of. Information on our interaction with your customers may be a CRM or or this or that, so that’s by having more time also will imply that you you should be looking to develop further skills towards systems and automation and efficiency, let’s say, and be shown on word. Now, it’s not us or NA or are they gonna do three company play? So what’s next for a 10 combinability? What’s next for a 20 Kombai employee? How do you get. So what’s the end game. So it it will force you to think differently. So it’s not S.O.S. I’m on a per case basis. I’m not it’s not always the case. I’m not saying you cannot do it that way, but yeah, it’s it’s a great experiment. I would encourage people to do it. It’s hard. So be prepared for that. So take it like a skill to do. Well, OK. So it’s not like and bs c same mindset. So you need to learn how to do that until you don’t do it. Is about a super hard. Yeah.

Yeah. Try to try to do it all yourself is a recipe for madness. Yeah. You give a little bit careful with that. And so finally we come to the final tweet and this is in as kind of a similar vein to the last one in many ways. So there’s a guy called Yannick Vaisse and he tweeted out, quote, A general tweet. What’s the best advice you’ve received to grow your business? And then another guy whose tweets we’ve had on here, the focus of it call, he replies, A sellable business is a good business. A good business is sellable. Run your business as if you wanted to sell it next month. That way, it will always be the best version of itself. Then don’t sell it until you’re ready. This is something that I very much agree with, and I think it also is very. Dependent upon building systems within the company, right? So a sellable company is a company which has good systems and good prices and that there are many other parts of this. But that’s an important sort of like chunk of that. So I what what sort of parts or what things do you think have to be in place in order to have to have a company be described as like sellable? What’s what’s the what are the important parts, in your opinion?

I agree. You hit them. The core point is to cut systems, definitely. But also I think is so someone buying a company would like to carb low man risk so that which is linked to systems.

But even beyond that, it means that not only are systems in place to keep the company running, but that the company can run without you or without the founders, or that if something happened to one funder, to a CTO, to a CEO, to anyone, the company will be sold. So in good shape. So a way to mitigate that keyman risk is to have proper documentation for somebody. So if you have well-documented your I.T., so your technology or your processes or your are aware how to do stuff or. Yes.

So if you have that not only documented, but you have more than one people that’s knowledgeable on any topic. There’s like at least two people then.

Not only is easier to delegate. It’s easier to hire and train more efficiently, but it’s also scalable and then transferable. Then if you’re selling a business where it’s that it’s well documented what to do, that it can run without the founders, that’s siloed business.

Yeah, I and there’s a very good book that I would recommend on this topic, which is built to sell by a guy called John Warrilow. And he also she has a podcast, The Bill to sell podcasts. The podcast itself is. The key learnings are really in the book, like the podcast sort of illustrates some parts of it. But I would say definitely, definitely the book is a very short book. It’s not you know, it’s not hard read or difficult raders. There’s a formal signal and there is noise, which isn’t always the case with business books. You know, you feel like they’re still putting out two or three key points to like 300 pages. But this book is very much not like I can thoroughly recommend it. And yeah, it’s that you hit some two really important points. There is one and these things are important in growing and running your business anyway. Right.

So the fundamental underlying point is, is that if you structure your company to be good and easy to sell, then what you’ve actually done is you’ve structured a very good, well running company. So by by going through that process, you’re giving yourself great optionality, because not only have you got now an asset, which was is an easy or better sell than it was previously, but you’ve actually come out with a better operating company and something that’s likely to be able to grow more easily and is more investable and or any of those kind of outcomes that you’re looking for. And, yeah, I, I completely agree with what you’re saying there. So it’s, you know. Systems and delegation having team, you know, having teams which actually carry out the day to day business of the company, having a management team and a management processes in place that doesn’t need a heavy handed sort of top down decision making from you as the sort of CEO or whatever you want to call yourself, that. In actual fact, there is like a management team in place which can take those more strategic decisions correctly and in the right sort of direction for you as a business so that you are you are fundamentally overtime becoming more and more of an owner rather than an operator. And that, you know, again, I’m not sure there’s another classic sort of entrepreneurial aphorism. I’m not sure you said at first, but it’s like make sure you try and work on the business rather than in the business so that, you know, you are you are building the thing. The business is a machine and you’re the one with the spanner building the machine that is the business. And then the business cranks away and generates the product or service or whatever it is which generates the profit. And you don’t want to be a Cogan’s internal inside that machine. You want to be the engineer on the outside sort. So tinkering away and doing whatever. Now, you can’t start like that. You have to you have to be at the coalface. You have to be doing operations in the early days, but you want to always be looking to see you. Okay. Well, how how do I systemise? How do I automate? How do I take myself out and above this and get this to work? How do I get other people to do that? And exactly as you said. So that’s the key man risk. You know, if you’re sitting there and it really doesn’t matter whether you turn up like week to week in the office, then you’re in a perfect position because you’re you’re able to hand over to whoever the purchaser is, a really nicely tied up little package or something, which they can just we’ll just sit and run. And once they pay for it, then it’s theirs and it’s up to them whether they want to integrate it or whether they into their current business or whether they want to leave it sitting and working away. And also, that’s more valuable, like the less hassle that a company has when they purchase something, the more the higher valuation you are likely to get to get out from it. But from you personally, you’ve got this nicely sort of pairing wiring machine that’s going away in the background. And yet, like automation, delegation systems, documentation. So not only like standard operating procedures, like how various business functions happen within the business, but also good financial documentation. So you’re having a history of your finances. You know, you’re going to be out. That’s what people who are gonna buy your business are going to be interested in. It’s like accurate accounts for the last three years. That said, that’s something that you should want to need anyway, because that’s important for your strategic decision making within the business. Right. You don’t want to be like how much money we got the bank can’t buy today. Let’s go and crack open the piggy bank. See how many coins sold out that you can’t be sort of taking good business decisions on that basis. So, yeah, I would I would thoroughly recommend that book. I mean, it’s it does go over some sort of it’s all common sense. I like good advice, tends to be common sense, but it helps to have it packaged up and presented to you in a nice easy to digest way just so you can sort of keep on top of this of thing. So I recommend that.

So some just to be also clear on wrap it up. So some, like Silicon Valley gurus, will say, oh, don’t build a business or selling it, just focus on creating value, not making money. So I think that’s bullshit. Are usually the people, the guys saying that it is worth a billion dollar plus already. So, yeah, I’ve never seen someone like maybe someone repeating that. But yeah, that doesn’t know what he’s talking about. So in real life, businesses are for profit. So and think about it on the other way. So if you don’t build a business that’s for that could be sold.

Then if you want to sell it one day to do something, let’s say it’s taking you full time. I knew you’d reached like a maximum capacity on how we structure and really been. And Don, you say it’s not saleable, so then but you want to do something else. So then what do you do with that business? You’re gonna sell it. It has value, definitely. But you’re gonna sell it. You have to extract that value that you have built over the years. So you may maybe you need to close it and you’re destroying value or are you are not yet. You’re not yielding on the value that you built or ideas or you would need to descale it, which is these wars you will take your time to to earn less. So you will you put you in a position where you will be on a complicated position. So you will be just to match you will be priest owner of that company, basically. Which happens to a lot of people as well. So, yeah, it’s classic on family businesses. But then you want to grow it, but you can’t have because you’re stuck on that. Yeah. Strategy and you’re really bending on that income. You reach to that point.

Yeah. You’ve you’ve built yourself a job, not a business.

Exactly. That’s a good way to put it. So but then you can present that and then maybe that’s and maybe you are not having fun or or you want to earn more, but you have no time and then you’re really stuck. Yeah. That’s why you’re thinking on how to build it for two reasons for selling it.

It’s important it will reach you will force you to go into other directions which are which are more professional. I would say. And where eventually you’re going to earn more money down the road. So, yeah, that will be my final conclusion. So don’t be fooled.

Now, don’t be a fool. So Mr. Tay’s advice here. Cool. All right. Thank you very much for listening. We’re back. Every Tuesday and Thursday, please cheque out our YouTube channel, which is where we post this podcast. And our other videos, you can search for net workers, which is two words, or you can find the link in the show notes. So this podcast, if you’re interested in help, mentorship and courses for Internet entrepreneurship and starting businesses, please cheque out our Web site at networkers DOT Co. See you all next on. Thank you. Bye.

Share This