What's the one system that if it was up and running would make the most difference to your business today?

All right, welcome to Easter Monday here in Australia.

And it is a wet and rainy day pretty miserable.

But I've just had coffee or in my case, chai tea with a friend of mine and got to hang out and realize that, hey, life is pretty good.

What I wanted to share with you today is an experience that I had around a particular book.

That book is called Profit First, and it's by Mike and I can't get his last name, but it's like Malka, Malka live.

It's something like that, for-profit first, and Mike, it'll come up.

But my experience of this was very interesting.

I can't really remember why I ordered it, first of all, so this book shows up from Amazon, presumably, it had shown up in some searches or some research, and I'm like, You know what, this sounds like an interesting idea.

This sounds like an interesting concept, what's going on in this book.

And so I get the book, and I devour it, because it's got an interesting idea that I can make profit a priority, and it will occur.

And He was like, Look, most businesses are not profitable, that if you just do standard accounting, what will happen is that expenses will consume all of the available resources, and you'll have no profit.

And out of this, I got a really cool insight.

It's like, what's the difference between a salary for an owner and profit, and he's very clear in this book is like, look, the salaries the bit that you get for doing the work, whatever you're doing the work, if you're, if you're not in the business very much, then you are not doing much work.

And so you might only get paid a very small salary, if you're a startup, you're doing all the work.

So you should get paid more of a salary.

But the other bit that's leftover is the benefit for the risk that you are taking, by setting up this business by setting up this enterprise, that there has to be some leftover in order for it to be profitable.

And it strikes me as very odd that in our current society, that businesses are allowed to be valued so highly with no profit.

And what was really interesting to me was, oh, wow, I wonder if these nonprofitable companies like Twitter or Uber actually implemented Profit First, whether they would become profitable.

And it might require some quite difficult decisions, like, Okay, well, if we're going to find 5% of profit, then where's that 5% got to come out of it's got to come out of operating expenses.

And that might mean firing people.

And that might mean getting rid of stuff.

But at the end of the day, businesses are designed to be profitable, that there has to be some benefit, in terms of setting up the enterprise more than just providing a job will look, okay.

Look, if you just want a job, that's fine, set up your own small business, and you're the owner and fine, you mix up your profit with the salary.

But if you're aiming for more than that, like you'd actually like to have a team then this is an extraordinarily good book.

What I wanted to share with you though, is I got the feeling that He was somewhat skeptical that people would actually do this, like multiple times through the book, it's like, did you do it? Did you do it? Did you do it? Did you do it? Did you do it? And there were two essential steps one is setting up the bank accounts.

And the second is then having the discipline or the reminders in place to actually do the system do the Profit First system.

And I imagine what would happen for most people is that they would read the book, even if they set up the accounts, then it's got to be like, Okay, hang on, how often am I meant to do this other thing, and every two weeks, I'm meant to do this other thing.

And there's a risk.

There's the human factor, particularly if you're an entrepreneur, and you've got 15 things going on, the chances of you remembering to do this on those times suddenly decreases NetBoot goes back on the shelf.

And the insight and the revelation that comes from it don’t go anywhere.

So there's a question on this Facebook Live, it's like, well, what's the one system that you know you need in order to make the biggest difference in your business? What area businesses is it in? First of all, is it in marketing? Is it in sales? Isn't it in advertising? Is it in fulfillment? Is it in optics? Is it in people? Is it accounting? Is it legal? Is it in taxes isn't it in cash? Like, it's funny that this book called to me because cash is not something that I had been paying attention to.

But to get this in place? Suddenly, I'm like, You know what, getting my businesses profitable became a priority because I can see that as they grow.

This is beautifully shot in this book.

And it's like, Oh, wow.

If you're running a million-dollar business, then the percentages of how much profit and how much owners salary and how much operating expenses change.

And if you're running a $20 million business, then they change again.

And if you're running a less than $250,000, business, they change.

And so knowing those, and he's like, look, this was taken across 1000 businesses, suddenly, you can just plug it in.

And look, what was going on, what was really interesting for me was, first of all, profit was zero, like, oh, out kicking, kicking the balls there, no profit at all.

Secondly, was that my salary was low, and my operating expenses were high.

So the operating expenses were meant to be 50%, my words 67%.

So that immediately showed me that I needed to cut down on 67%, operating expenses, and target it down to 50.

Now, what was extraordinarily cool was how similar his advice was compared to Garrett J, whites.

Now, both these guys clearly know what to do in business.

And they're like, Look, if you try and do a shock, 67 to 50%, you are going to kill your business, you are not going to be able to do that.

Their advice was what? So Mike's advice was dropped down by one go from 67 to 66, you can definitely find a 1% improvement.

And then next time, drop it down again, and drop it down again, and bring that profit up and the operating expenses down.

And basically, He was like, Look, you gotta have to be creative, you're going to have to find a better way to extract more effectiveness out of business.

And that effectiveness could mean getting more out of your team get more done in the same amount of time.

And one particular solution to that is getting your systems and processes on point, like knowing that this is almost one packet system and process.

What's the system a system is like the wind should have been used, and what's its purpose, and what processes are in there to get the desired result.

And the processes are that sort of A to B, A to B, A to B, A to B.

So you put a bunch of processes, and it could be one process, it could be 10 processes that make up a system, and perhaps there are decisions in there, all that sort of stuff, but they fit together.

Like having a system without processes.

It's like well, how's that going to work and to have processes without a system? It's like, you're going to end up deploying randomly, like, why are we doing this now? Oh, and you just had your team or yourself, do something that did not create the desired outcome.

So if this is the problem that you're facing, first of all, comment below.

What is the one system that you know is like if I had this on point, this is going to make a massive difference to my business?

I'm interested in that.

Secondly, if you're like, you know what. You seem to know something about this and you'd like to find out more, then head over to System IO dot dev put in your name and put in your email address and grab the training there that looks at the problem that could be underlying a lot of symptoms in your business.

Alright, that's all I got for you today.

I'm going to go and hang out with my family and hope you haven't listened I look forward to catching you again on another Facebook live very soon.