How To Be Moderately Successful.

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This is not the place where you'll hear about how to build a billion-dollar business, win an ironman event, or find spiritual enlightenment. What I can share is my experience around how to build, lead and exit a business of maybe a few million dollars, how to place in the top 10 in a mountain bike stage race or how to implement systems to continually work and improve on your mental and physical health.In short...I might be able to offer a little help on how to be moderately successful. To be really clear, nothing that I share is financial advice or advice of any kind for that matter but rather my own experience shared. It’s critical that you do your own research on anything that I share in this podcast and that you take responsibility for your own decisions.I want to challenge you to be more than just a passenger. If you hear anything in any of the episodes that resonate with you and that you want to implement in your own life, take action by teaching that thing to someone within the next 24 hours and then ask them to hold you accountable for doing the thing that you said you were going to do. Teaching is often the best way to learn and accountability is usually the thing between talk and meaningful, consistent action.
I hope you find some value...
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- Mike

Find out more about working with me. [email protected] or https://www.linkedin.com/in/mikeadamscott/

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Building a business is hard.
Maintaining healthy relationships with those that you care about is hard.
Staying fit and healthy in your body, your mind and your emotions is hard.
This podcast is about finding and sharing tools, strategies and experiences that may help you to achieve and maintain moderate success in your life, whatever that means to you.
There is a ton of content created by the billionaires, the ultra successful athletes, and by people that are at a level that the vast majority of us will just never get to. And if you're anything like me, you're totally okay with that.
This is a place where we talk about how to build a great business, but not necessarily a massive one. A place to talk about how we build a life that is balanced and integrated, but not necessarily optimised to levels that are not realistic for most of us.
In short, it's a place where we explore how to be moderately successful.
The work will always remain yours, and for the most part, it's simple, but not easy.
I sincerely hope it's valuable to you.
-Mike

Find out more about working with me. [email protected] or https://www.linkedin.com/in/mikeadamscott/

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In this conversation, Mike interviews Chris Wheldon, an investor and entrepreneur, about the importance of understanding and analyzing numbers in small and mid-sized businesses.
Chris shares his experience in acquiring and investing in businesses and highlights the key metrics he looks at, including cash flow, profit, margin, cost structure, and return on capital. He emphasizes the need for business owners to have a strong grasp of their numbers to make informed decisions and ensure the sustainability of their businesses.
The conversation also touches on the value of data transparency and the benefits it brings during the acquisition process. Understanding and analyzing financial metrics is crucial for business owners and managers. It is important to measure the inputs that contribute to revenue and profit on a weekly basis, such as sales, marketing, and customer retention metrics. Monthly measurements should focus on understanding sales trends, cost structures, and budgeting for future expenses. Quarterly analysis should provide a full picture of financial performance, including working capital changes and cash flow generation. Annual reviews allow for a deeper understanding of the balance sheet and the true financial profile of the business.
The key takeaway is that while the numbers are important, they are a reflection of the decisions and actions taken by the business in serving its customers and stakeholders.

Takeaways.

• Understanding and analyzing numbers is crucial for small and mid-sized business owners to make informed decisions and ensure the sustainability of their businesses.
• Key metrics to consider include cash flow, profit, margin, cost structure, and return on capital.
• Having a strong grasp of numbers allows business owners to negotiate better deals and demand higher prices when selling their businesses.
• Data transparency and access to high-quality information are indicators of a well-run business and can attract potential investors.
• Focusing on both input metrics (e.g., lead generation, customer activity) and output metrics (e.g., financial performance) is important for monitoring business performance.
• Regularly reviewing and analyzing numbers on a weekly, monthly, quarterly, and annual basis provides a comprehensive view of the business's health and progress. Measure the inputs that contribute to revenue and profit on a weekly basis
• Monthly measurements should focus on sales trends, cost structures, and budgeting
• Quarterly analysis provides a full picture of financial performance
• Annual reviews allow for a deeper understanding of the balance sheet and financial profile
• The numbers are a reflection of the decisions and actions taken by the business

Chapters

00:00
Introduction of Chris Weldon

03:04
Chris's Background and Current Venture

07:37
The Problem: Lack of Understanding of Numbers

13:08
The Importance of Knowing the Numbers

15:56
Key Metrics for Assessing a Business

22:21
The Owner's Understanding of Numbers

24:58
Metrics to Monitor Weekly

27:10
Metrics to Monitor Quarterly

32:20
Understanding Sales Trends and Cost Structures

36:46
Analyzing Financial Performance Quarterly

44:04
Deepening Understanding of the Balance Sheet Annually

46:08
The Numbers Reflect Business Decisions and Actions

Find out more about working with me. [email protected] or https://www.linkedin.com/in/mikeadamscott/

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Find out more about working with me. [email protected] or https://www.linkedin.com/in/mikeadamscott/

Send us a text

The conversation explores the importance of systems and processes in businesses, with a focus on the book 'Systemology' by David Jenyns. The main themes include the definition of systems and processes, the ideal businesses for systemization, the role of systems in reducing dependency on individuals, and the starting point for systemization in a business. The conversation also touches on the balance between systemization and creativity, the value of capturing tasks and processes, and the role of a systems champion in larger organizations. In this conversation, Mike Scott and David Jenyns discuss the importance of having a single point of accountability for systemization in a business. They emphasize the need for someone who has the most knowledge about a particular system to be responsible for documenting it. They also discuss the challenge of getting people to follow systems and offer strategies for overcoming resistance. David explains that Systemology is different from other process improvement methodologies because it focuses on capturing and making processes repeatable, rather than improving them. He encourages business owners to fall in love with the results that systems and processes bring to the organization.

Takeaways

• Clear and timely reporting on numbers and metrics is essential for businesses.
• Strong systems and processes can solve reporting problems and reduce dependency on individuals.
• Systemology is a valuable resource for understanding and implementing effective systems.
• The definition of systems and processes can vary, but they are interchangeable for the purposes of this discussion.
• Systemization works best in small to mid-sized businesses with involved business owners.
• Building a systems-driven culture is important for long-term success.
• Systems are the most valuable asset in a business, as they are not dependent on individuals.
• Systemization should aim to create consistent outcomes and cultivate a systems-driven culture.
• Systemization is not about over-optimization, but about capturing the most probable outcomes.
• Great talent is important, but businesses should not rely solely on individuals.
• Systemization can increase the value of a business and reduce risk.
• The starting point for systemization is to record and capture tasks and processes.
• Creating a culture of recording and documenting tasks is crucial.
• In larger organizations, a systems champion can drive the systemization process.
• The role of a systems champion is to make it easier for team members to document and capture processes. Having a single point of accountability is crucial for successful systemization in a business.
• The person with the most knowledge about a system should be responsible for documenting it.
• Resistance to following systems can be overcome by celebrating wins, showcasing successes, and recruiting team members who are receptive to the systems-driven approach.
• Systemology focuses on capturing and making processes repeatable, rather than improving them.
• Business owners should fall in love with the results that systems and processes bring to the organization.

Chapters

00:00
Introduction and Common Problems in Businesses

01:33
Introduction to Systemology and Guest Introduction

03:32
Defining Systems and Processes

09:13
Reducing Dependency on Individuals through Systemization

15:04
Building a Systems-Driven Culture

19:19
Systemization: From Survival to Sellable

23:15
Star

Find out more about working with me. [email protected] or https://www.linkedin.com/in/mikeadamscott/