“Fix This Next” by Mike Michalowicz presents a unique framework, the Business Hierarchy of Needs (BHN), which adapts Maslow’s Hierarchy of Needs to the context of business. The book emphasizes the importance of addressing the core needs of a business in a systematic and prioritized manner.

The BHN consists of five levels: sales, profit, order, impact, and legacy. Each level represents a different set of needs that must be met before progressing to the next level. The book guides entrepreneurs and business owners through the process of identifying and addressing these core needs, ensuring a solid foundation for long-term success.

At the sales level, the focus is on generating cash flow through effective sales strategies. The profit level shifts the focus to creating stability and profitability by addressing debt eradication, margin health, transaction frequency, profitable leverage, and cash reserves. The order level emphasizes creating efficiency and smooth operations within the business. The impact and legacy levels highlight the importance of making a positive impact and leaving a lasting legacy beyond financial success.

Throughout the book, Michalowicz emphasizes the significance of building a community of heart-based fans and promoters. By creating a unique brand identity and fostering a sense of belonging, businesses can cultivate loyal customers who actively promote and support the brand.

“Fix This Next” provides practical and actionable advice, supported by real-life examples and case studies, to help entrepreneurs prioritize and address the core needs of their businesses. By following the principles and strategies outlined in the book, readers can build a solid foundation, achieve financial stability, and make a lasting impact in their industries and communities.

 

About the Author:

Mike Michalowicz is an entrepreneur, speaker, and author known for his practical and innovative approach to business. With a mission to eradicate entrepreneurial poverty, he has written several books that provide actionable strategies for small business owners and entrepreneurs.

Michalowicz has founded and sold multiple companies, experiencing both successes and failures throughout his entrepreneurial journey. This firsthand experience has shaped his expertise and insights into the challenges and opportunities faced by business owners.

Some of his other notable works include:

1. “Profit First” (2014): In this book, Michalowicz introduces a cash management system that helps businesses prioritize profit and achieve financial stability. It offers a step-by-step guide to implementing the Profit First method.

2. “Clockwork” (2018): Focusing on the concept of creating a business that can run without the owner’s constant involvement, this book provides strategies for achieving efficiency, delegation, and automation within a business.

3. “The Pumpkin Plan” (2012): Drawing inspiration from pumpkin farmers, Michalowicz presents a framework for growing a remarkable business by focusing on the most valuable clients and eliminating the “weeds” that hinder growth.

4. “Surge” (2016): This book explores strategies for tapping into the power of momentum to drive business growth. Michalowicz shares insights on how to identify and leverage surges in demand to propel a business forward.

Michalowicz is a sought-after speaker and has been featured in various media outlets, including CNBC, MSNBC, and Entrepreneur magazine. His practical and relatable approach to entrepreneurship has resonated with business owners worldwide, making him a trusted resource in the field.

 

Publication Details:

Title: Fix This Next: Make the Vital Change That Will Level Up Your Business
Author: Mike Michalowicz
Year of Publication: 2020
Publisher: Portfolio
ISBN: 978-0593083846

The book “Fix This Next: Make the Vital Change That Will Level Up Your Business” by Mike Michalowicz was published in 2020 by Portfolio, an imprint of Penguin Random House. The book is available in various formats, including hardcover, paperback, and e-book. The ISBN for the hardcover edition is 978-0593083846.

 

Book’s Genre Overview:

The book “Fix This Next: Make the Vital Change That Will Level Up Your Business” by Mike Michalowicz falls under the genre/category of business and entrepreneurship. It provides practical advice and strategies for business owners and entrepreneurs to address the core needs of their businesses and achieve long-term success.

 

Purpose and Thesis: What is the main argument or purpose of the book?

The main purpose of the book “Fix This Next: Make the Vital Change That Will Level Up Your Business” by Mike Michalowicz is to provide entrepreneurs and business owners with a framework, the Business Hierarchy of Needs (BHN), to identify and address the core needs of their businesses. The book argues that by prioritizing and fully satisfying these needs, businesses can build a solid foundation for long-term success and growth.

The thesis of the book is that many businesses struggle because they fail to address their most essential needs in a systematic and prioritized manner. By adapting Maslow’s Hierarchy of Needs to the context of business, Michalowicz presents a clear roadmap for entrepreneurs to assess and address the core needs at each level of the BHN. The book emphasizes the importance of focusing on foundational needs, such as sales, profit, and order, before advancing to higher levels of impact and legacy.

Overall, the book’s main argument is that by understanding and addressing the core needs of their businesses, entrepreneurs can create a solid foundation for success, achieve financial stability, and make a lasting impact in their industries and communities.

 

Who should read?

The book “Fix This Next: Make the Vital Change That Will Level Up Your Business” by Mike Michalowicz is primarily intended for entrepreneurs, small business owners, and individuals involved in running their own businesses. It is targeted towards professionals and general readers who are seeking practical guidance and strategies to address the core needs of their businesses and achieve long-term success.

While the book is accessible to a wide range of readers, it is particularly relevant for individuals who are actively involved in the day-to-day operations of their businesses and are looking for actionable steps to improve their business’s performance. Whether someone is just starting their entrepreneurial journey or has been running a business for years, the book provides valuable insights and frameworks that can be applied to various industries and business sizes.

The language and examples used in the book are designed to be relatable and understandable for a general audience, making it accessible to both experienced business professionals and those new to entrepreneurship.

 

Overall Summary:

“Fix This Next: Make the Vital Change That Will Level Up Your Business” by Mike Michalowicz provides a detailed framework, the Business Hierarchy of Needs (BHN), to help entrepreneurs and business owners identify and address the core needs of their businesses. The book emphasizes the importance of prioritizing and fully satisfying these needs to build a solid foundation for long-term success.

The BHN consists of five levels, each representing a different set of needs. The first level is sales, where the focus is on generating cash flow through effective sales strategies. The core needs at this level include lifestyle congruence, prospect attraction, client conversion, delivering on commitments, and collecting on commitments.

The second level is profit, where the focus shifts to creating stability and profitability. The core needs at this level include debt eradication, margin health, transaction frequency, profitable leverage, and cash reserves. The author emphasizes the importance of addressing debt and improving profit margins to ensure financial stability and growth.

The third level is order, which emphasizes creating efficiency and smooth operations within the business. The core needs at this level include minimizing wasted effort, role alignment, outcome delegation, and linchpin redundancy. By addressing these needs, businesses can streamline processes and ensure that the business can operate effectively even without the constant involvement of the owner.

The fourth level is impact, where the focus is on making a positive impact beyond financial success. The core needs at this level include defining a clear purpose, aligning the business with values, and creating a community of heart-based fans who actively promote and support the brand.

The fifth and final level is legacy, which involves leaving a lasting impact. The core needs at this level include defining a long-term vision, nurturing the next generation of leaders, and ensuring the business’s continued impact even after the owner’s involvement.

Throughout the book, Michalowicz provides practical advice, strategies, and real-life examples to guide readers in addressing the core needs of their businesses. He emphasizes the importance of fully satisfying the needs of each level before progressing to the next, and highlights the potential pitfalls of neglecting foundational needs.

Overall, “Fix This Next” offers a comprehensive and actionable framework for entrepreneurs and business owners to assess and address the core needs of their businesses, ultimately leading to long-term success, financial stability, and a positive impact in their industries and communities.

 

Key Concepts and Terminology:

1. Maslow’s Hierarchy of Needs: A psychological theory proposed by Abraham Maslow that categorizes human needs into a hierarchical structure. The hierarchy consists of five levels: physiological needs, safety needs, love and belonging needs, esteem needs, and self-actualization needs.

2. Business Hierarchy of Needs (BHN): A model developed by the author, Mike Michalowicz, that adapts Maslow’s Hierarchy of Needs to the context of business. The BHN identifies five levels of needs that a business must address in order to achieve success: sales, profit, order, impact, and legacy.

3. Core Needs: The specific needs within each level of the Business Hierarchy of Needs that must be met in order to progress to the next level. These core needs are essential for the overall health and growth of the business.

4. Sales Level: The foundational level of the Business Hierarchy of Needs, where the focus is on generating cash flow through sales. The core needs at this level include lifestyle congruence, prospect attraction, client conversion, delivering on commitments, and collecting on commitments.

5. Profit Level: The second level of the Business Hierarchy of Needs, where the focus is on creating stability and profitability in the business. The core needs at this level include debt eradication, margin health, transaction frequency, profitable leverage, and cash reserves.

6. Order Level: The third level of the Business Hierarchy of Needs, where the focus is on creating efficiency and ensuring smooth operations within the business. The core needs at this level include minimized wasted effort, role alignment, outcome delegation, and linchpin redundancy.

7. Heart-based Fans: Loyal customers or followers who feel a strong emotional connection to a brand or business. These fans are passionate about the company’s mission and values and actively promote and support the brand.

8. Heart-based Promoters: Customers or followers who not only feel a strong emotional connection to a brand but also actively promote and spread the word about the brand on their own accord. These promoters become evangelists for the brand and help to build a community of loyal supporters.

 

Case Studies or Examples:

1. Layoffs and Salary Cuts: The author shares a personal example of a difficult decision he had to make in his own business. He had to lay off twelve employees and then cut the salaries of the remaining staff by 10 percent. However, this decision backfired as the remaining employees became fearful for their job security and started looking for new opportunities. Despite landing a major project and reinstating full salaries, the damage had already been done, and key employees left the company.

2. Debt Eradication: The author reflects on his own experience of being heavily in debt before implementing a system of taking profit first in his business. He had accumulated $75,000 in credit card debt, owed money to a friend, and had a maxed-out SBA loan. By prioritizing debt eradication and focusing on profitability, he was able to turn his financial situation around and build a healthier business.

3. Heart-based Fans and Promoters: The author discusses various well-known brands that have successfully built communities of heart-based fans and promoters. Examples include Disney, Starbucks, Harley-Davidson, Jimmy Buffett, CrossFit, Saturday Night Live, and Southwest Airlines. These brands have created unique communities through their actions, values, and symbols, which have led to loyal customers who actively promote and spread the word about the brand.

4. Museum of Oddities and Peculiarities: The author presents a hypothetical case study of a museum that focuses on oddities and peculiarities, with each exhibit representing a triumph. The objective of the museum is to make the message of triumph its legacy and empower the community to spread the word. The measurement and evaluation of this objective are uncertain, but the plan involves engaging the community as “Triumph Curators” and giving them attribution for their contributions. The result is expected to be increased community involvement and a stronger sense of belonging.

 

Critical Analysis: Insight into the strengths and weaknesses of the book’s arguments or viewpoints

Strengths:

1. Integration of Maslow’s Hierarchy of Needs: The author’s adaptation of Maslow’s hierarchy to the context of business provides a clear and relatable framework for understanding the needs of a business at different stages of growth. This integration helps entrepreneurs prioritize their efforts and focus on the most essential needs of their business.

2. Practical and Actionable Advice: The book offers specific core needs and corresponding questions for each level of the Business Hierarchy of Needs. This practical approach allows readers to assess their own businesses and identify areas that need improvement. The author also provides strategies and solutions for addressing these needs, making it easier for entrepreneurs to take action.

3. Real-Life Examples: The inclusion of case studies and personal anecdotes adds depth and relatability to the concepts discussed in the book. These examples help readers understand how the principles can be applied in real-world situations and provide valuable insights into the challenges and successes of running a business.

Weaknesses:

1. Lack of Industry-Specific Considerations: While the book provides a general framework for addressing the needs of a business, it may not fully account for industry-specific challenges and nuances. Different industries may have unique needs and requirements that are not adequately addressed in the book. Entrepreneurs should consider their specific industry context when applying the concepts presented.

2. Limited Discussion on Impact and Legacy Levels: The book dedicates less attention to the last two levels of the Business Hierarchy of Needs, impact, and legacy. These levels, which focus on making a difference and leaving a lasting impact, are briefly mentioned but not explored in depth. Readers seeking guidance on these higher-level needs may find the book lacking in detailed strategies and insights.

3. Overemphasis on Profit: While profitability is undoubtedly important for the success of a business, the book’s heavy emphasis on profit as a foundational need may overlook other important aspects, such as social responsibility, employee well-being, and ethical considerations. A more holistic approach that considers a broader range of factors could provide a more comprehensive understanding of business success.

Overall, “Fix This Next” offers a valuable framework for entrepreneurs to assess and address the needs of their businesses. However, readers should be mindful of the book’s limitations and consider their specific industry context and values when applying the concepts presented.

 

FAQ Section:

1. Q: How do I determine which level of the Business Hierarchy of Needs my business is currently at?
A: Assess your business’s current state by evaluating whether you have adequately met the core needs of each level. Start with the foundational level of sales and work your way up.

2. Q: What if my business is struggling with sales? How can I address this core need?
A: Focus on prospect attraction and client conversion. Evaluate your marketing and sales strategies, identify target prospects, and improve your conversion rates through effective sales techniques.

3. Q: How can I improve profitability in my business?
A: Address the core needs of debt eradication, margin health, transaction frequency, profitable leverage, and cash reserves. Reduce debt, increase profit margins, encourage repeat purchases, use debt strategically, and build cash reserves for financial stability.

4. Q: What steps can I take to create efficiency and order in my business?
A: Minimize wasted effort, align roles and responsibilities with employees’ talents, empower employees to resolve problems, and design your business to operate smoothly even when key employees are unavailable.

5. Q: How can I build a community of heart-based fans for my brand?
A: Focus on creating a unique brand identity, values, and symbols that resonate with your target audience. Engage with your customers, provide exceptional experiences, and encourage them to become promoters by spreading the word about your brand.

6. Q: How do I measure the success of building a heart-based community?
A: Look for indicators such as increased customer engagement, positive word-of-mouth referrals, higher customer retention rates, and the growth of your brand’s online presence and following.

7. Q: What if my business has industry-specific needs not mentioned in the book?
A: While the book provides a general framework, adapt the concepts to your specific industry context. Consider the unique challenges and requirements of your industry and apply the principles accordingly.

8. Q: Can I skip levels in the Business Hierarchy of Needs and focus on higher-level needs?
A: It is crucial to fully satisfy the core needs of each level before moving on to the next. Skipping levels may lead to instability and hinder long-term success.

9. Q: How long does it take to progress through the Business Hierarchy of Needs?
A: The timeline for progressing through the levels varies for each business. It depends on factors such as the current state of your business, the resources available, and the effectiveness of your strategies. Focus on steady progress rather than rushing through the levels.

10. Q: What if my business is already profitable? Should I still focus on the Profit level?
A: Even if your business is profitable, it is essential to address the core needs of the Profit level to ensure stability, build cash reserves, and strategically manage debt. Profitability alone does not guarantee long-term success.

11. Q: How can I ensure that my business has a positive impact on society?
A: Once you have addressed the core needs of the previous levels, focus on creating a positive impact by aligning your business practices with social and environmental responsibility. Consider sustainable practices, ethical sourcing, and community involvement.

12. Q: How can I leave a lasting legacy through my business?
A: Once you have achieved the core needs of the previous levels, focus on creating a legacy by defining your business’s purpose and long-term vision. Consider how your business can make a lasting impact beyond financial success.

13. Q: What if I’m overwhelmed by addressing all the core needs at once?
A: Avoid trying to fix everything at once. Prioritize the core needs within each level and tackle them one at a time. Focus on fully satisfying the needs of the current level before moving on to the next.

14. Q: Can I revisit and reassess the core needs of each level multiple times?
A: Yes, it is recommended to periodically revisit the Business Hierarchy of Needs and reassess your business’s progress. As your business evolves, new challenges and opportunities may arise, requiring you to address different core needs.

15. Q: How can I ensure that my business remains adaptable to changing circumstances?
A: By regularly evaluating and addressing the core needs of each level, you can build a resilient and adaptable business. Stay informed about industry trends, customer preferences, and emerging technologies to make necessary adjustments.

16. Q: What if I don’t have enough resources to address all the core needs?
A: Start with the most critical core needs and allocate resources accordingly. Look for creative solutions, seek external support or partnerships, and prioritize actions that will have the most significant impact on your business’s overall health.

17. Q: How can I involve my employees in addressing the core needs of the Business Hierarchy?
A: Engage your employees in the process by communicating the importance of each level and the role they play in achieving the business’s goals. Encourage their input, empower them to contribute ideas, and recognize their efforts in meeting core needs.

18. Q: Can I apply the Business Hierarchy of Needs to non-profit organizations or social enterprises?
A: Yes, the principles of the Business Hierarchy of Needs can be adapted to non-profit organizations and social enterprises. The core needs may differ slightly, but the overall framework of addressing foundational needs before advancing to higher levels still applies.

19. Q: How can I ensure that my business maintains a customer-centric approach throughout the Business Hierarchy of Needs?
A: Prioritize customer satisfaction and engagement at each level. Continuously seek feedback, adapt your offerings to meet customer needs, and provide exceptional customer experiences. Customer-centricity should be a guiding principle throughout the hierarchy.

20. Q: What if my business is struggling to meet the core needs of a particular level?
A: Seek guidance from experts, mentors, or business coaches who can provide insights and strategies specific to your challenges. Consider investing in professional development or training to acquire the necessary skills to address the core needs effectively.

 

Thought-Provoking Questions: Navigate Your Reading Journey with Precision

1. How does the Business Hierarchy of Needs framework presented in the book align with your own experiences as an entrepreneur or business owner?

2. Which level of the Business Hierarchy of Needs do you think is the most challenging to address in your own business? Why?

3. Share an example from your own business or industry where addressing a specific core need within the Business Hierarchy of Needs led to significant improvements or growth.

4. How do you prioritize the core needs within each level of the Business Hierarchy of Needs in your business? What factors do you consider when determining which needs to address first?

5. Discuss the importance of profitability in a business. How does a focus on profit impact other aspects of the business, such as employee satisfaction, customer experience, and long-term sustainability?

6. How can businesses balance the need for profitability with social and environmental responsibility? Share examples of companies that have successfully achieved this balance.

7. Reflect on the concept of heart-based fans and promoters. How can businesses cultivate a community of loyal supporters who actively promote and advocate for the brand? Share strategies or examples from your own industry.

8. Consider the challenges and opportunities of addressing the higher levels of the Business Hierarchy of Needs, such as impact and legacy. How can businesses go beyond financial success and create a lasting impact in their industry or community?

9. Discuss the potential risks or pitfalls of focusing solely on sales or profit without addressing the other core needs. How can businesses avoid these pitfalls and maintain a balanced approach?

10. Share your thoughts on the concept of debt eradication as a core need. How can businesses effectively manage and reduce debt to ensure long-term financial stability?

11. How can businesses create a culture of efficiency and order within their organization? What strategies or practices have you implemented in your own business to improve efficiency?

12. Reflect on the role of leadership in addressing the core needs of the Business Hierarchy. How can leaders effectively communicate the importance of each level and engage employees in meeting these needs?

13. Consider the concept of impact and legacy. How can businesses define their purpose and vision to create a lasting impact beyond financial success? Share examples of companies that have successfully achieved this.

14. Discuss the potential challenges or limitations of applying the Business Hierarchy of Needs framework to non-profit organizations or social enterprises. How might the core needs differ in these contexts?

15. Reflect on your own business journey. How has your understanding of the core needs within the Business Hierarchy evolved over time? What lessons have you learned from addressing these needs in your business?

16. Share your thoughts on the importance of adaptability and resilience in business. How can businesses stay agile and responsive to changing circumstances while addressing the core needs of the Business Hierarchy?

17. Discuss the role of customer-centricity in the Business Hierarchy of Needs. How can businesses ensure that customer satisfaction and engagement are prioritized at each level? Share examples of companies that excel in this area.

18. Reflect on the concept of progress versus perfection in addressing the core needs. How can businesses strike a balance between striving for continuous improvement and avoiding the trap of perfectionism?

19. Consider the potential impact of addressing the core needs of the Business Hierarchy on employee morale and engagement. How can businesses involve and empower employees in meeting these needs?

20. Share your overall impressions of the book and the Business Hierarchy of Needs framework. How do you plan to apply the concepts and strategies discussed in your own business?

 

Check your knowledge about the book

1. Which of the following is NOT one of the levels in the Business Hierarchy of Needs?

a) Sales
b) Profit
c) Order
d) Growth

Answer: d) Growth

2. What is the first level of the Business Hierarchy of Needs?

a) Profit
b) Order
c) Sales
d) Impact

Answer: c) Sales

3. What are the core needs at the Profit level?

a) Debt Eradication, Margin Health, Transaction Frequency, Profitable Leverage, Cash Reserves
b) Minimized Wasted Effort, Role Alignment, Outcome Delegation, Linchpin Redundancy
c) Lifestyle Congruence, Prospect Attraction, Client Conversion, Delivering on Commitments, Collecting on Commitments
d) None of the above

Answer: a) Debt Eradication, Margin Health, Transaction Frequency, Profitable Leverage, Cash Reserves

4. What is the focus of the Order level in the Business Hierarchy of Needs?

a) Creating stability and profitability
b) Generating cash flow through sales
c) Building a community of heart-based fans
d) Creating efficiency and ensuring smooth operations

Answer: d) Creating efficiency and ensuring smooth operations

5. What are heart-based fans?

a) Loyal customers who feel a strong emotional connection to a brand
b) Customers who prioritize profitability in their purchasing decisions
c) Customers who are focused on sales and revenue growth
d) Customers who are interested in the legacy and impact of a business

Answer: a) Loyal customers who feel a strong emotional connection to a brand

6. How can businesses address the core need of Debt Eradication?

a) By consistently removing debt rather than accumulating it
b) By increasing profit margins within each offering
c) By attracting enough quality prospects to support needed sales
d) By minimizing wasted effort and reducing inefficiencies

Answer: a) By consistently removing debt rather than accumulating it

7. What is the importance of profitability in a business?

a) It ensures a positive impact on society
b) It allows for the creation of a community of heart-based fans
c) It provides financial stability and resources for growth
d) It enables businesses to focus on efficiency and order

Answer: c) It provides financial stability and resources for growth

8. How can businesses create a lasting impact and legacy?

a) By focusing on sales and profit
b) By building a community of heart-based promoters
c) By addressing the core needs of the Business Hierarchy
d) By prioritizing social and environmental responsibility

Answer: d) By prioritizing social and environmental responsibility

9. What is the recommended approach for addressing the core needs of the Business Hierarchy of Needs?

a) Tackle all the needs simultaneously
b) Skip levels and focus on higher-level needs
c) Prioritize and fully satisfy the needs of each level before moving on
d) Address the needs in a random order based on urgency

Answer: c) Prioritize and fully satisfy the needs of each level before moving on

10. How can businesses ensure a customer-centric approach throughout the Business Hierarchy of Needs?

a) By focusing solely on profitability
b) By aligning roles and responsibilities with employees’ talents
c) By continuously seeking customer feedback and adapting offerings
d) By accumulating cash reserves for emergencies

Answer: c) By continuously seeking customer feedback and adapting offerings

 

Comparison With Other Works:

“Fix This Next” stands out in the field of business and entrepreneurship literature due to its unique adaptation of Maslow’s Hierarchy of Needs to the context of business. While there are other books that discuss the importance of addressing foundational needs in business, such as “The Lean Startup” by Eric Ries and “Good to Great” by Jim Collins, “Fix This Next” provides a comprehensive framework, the Business Hierarchy of Needs (BHN), that guides entrepreneurs in prioritizing and addressing the core needs of their businesses.

In comparison to other works by Mike Michalowicz, such as “Profit First” and “Clockwork,” “Fix This Next” builds upon the principles and strategies presented in those books. While “Profit First” focuses specifically on financial management and cash flow, and “Clockwork” delves into creating a business that can run without the owner’s constant involvement, “Fix This Next” takes a broader perspective by addressing the overall needs of a business at different levels of growth.

What sets “Fix This Next” apart from other works by the same author is its emphasis on the hierarchy of needs and the step-by-step approach to addressing each level. It provides a clear roadmap for entrepreneurs to identify and prioritize the most critical needs in their businesses, ensuring a solid foundation for growth and success.

Overall, “Fix This Next” offers a unique perspective and framework that complements other works in the field of business and entrepreneurship. It provides a practical and actionable guide for entrepreneurs to assess and address the core needs of their businesses, making it a valuable addition to the literature in this field.

 

Quotes from the Book:

1. “The key to climbing the hierarchy is simple: fully satisfy your business’s current level of needs, not by rushing to the apparent daily demands, not by addressing advanced needs before basic needs, and certainly not by trying to fix everything at once.”

2. “Profit is a necessary foundation for any healthy business. It is also a reward for taking on risk.”

3. “Heart-based fans carry on the message by wearing the symbol, and those of other Disney characters. The congregation points are the theme parks.”

4. “Successful brands create a unique community for their clients. These companies, through their actions and what they stand for, are showering their customers with love and affection and belonging.”

5. “In his human hierarchy of needs, [Maslow] pointed out the importance of belonging. The third level of his hierarchy is the need to be in a community, to be part of something.”

6. “Need #1: Debt Eradication. Question: Do you consistently remove debt rather than accumulate it?”

7. “Need #2: Margin Health. Question: Do you have healthy profit margins within each of your offerings and do you continually seek ways to improve them?”

8. “Need #3: Minimized Wasted Effort. Question: Do you have an ongoing and working model to reduce bottlenecks, slowdowns, and inefficiencies?”

9. “Need #4: Lifestyle Congruence. Question: Do you know what the company’s sales performance must be to support your personal comfort?”

10. “Need #5: Impact. Question: Are you making a difference in the world, beyond just making money?”

11. “The Business Hierarchy of Needs is a compass that will guide you to the next vital need to address in your business. It will help you identify the most critical areas that require your attention and ensure that you are building a solid foundation for long-term success.”

12. “By addressing the core needs within each level of the Business Hierarchy of Needs, you can create a business that is financially stable, efficient, and impactful, ultimately leaving a lasting legacy.”

 

Do’s and Don’ts:

Do’s:

1. Do fully satisfy your business’s current level of needs before moving on to higher levels.
2. Do prioritize sales and focus on generating cash flow to ensure the survival and growth of your business.
3. Do address the core needs of profitability, including debt eradication, margin health, transaction frequency, profitable leverage, and cash reserves.
4. Do create efficiency and order within your business by minimizing wasted effort, aligning roles and responsibilities, empowering employees, and ensuring linchpin redundancy.
5. Do build a community of heart-based fans by creating a unique brand identity, values, and symbols that resonate with your target audience.
6. Do focus on making a positive impact and leaving a lasting legacy beyond financial success.
7. Do regularly reassess and evaluate your business’s progress in meeting the core needs of the Business Hierarchy of Needs.

Don’ts:

1. Don’t rush to address advanced needs before fully satisfying basic needs.
2. Don’t neglect the importance of profitability in your business. Profit is a necessary foundation for long-term success.
3. Don’t accumulate debt. Consistently work towards debt eradication to ensure financial stability.
4. Don’t overlook the importance of efficiency and order in your business. Address bottlenecks, inefficiencies, and role alignment to ensure smooth operations.
5. Don’t underestimate the power of building a community of heart-based fans. Cultivate a loyal customer base that actively promotes and supports your brand.
6. Don’t focus solely on sales and profit. Consider the broader impact and legacy your business can create.
7. Don’t forget to regularly revisit and reassess the core needs of your business. The Business Hierarchy of Needs is an ongoing process of improvement and growth.

 

In-the-Field Applications: Examples of how the book’s content is being applied in practical, real-world settings

1. A small retail business owner reads “Fix This Next” and realizes that they have been focusing too much on sales and neglecting the profitability of their business. They implement the core needs of the Profit level, such as debt eradication and margin health, by renegotiating supplier contracts, reducing unnecessary expenses, and adjusting pricing strategies. As a result, they see an increase in profit margins and improved financial stability.

2. A startup founder attends a workshop based on the principles of “Fix This Next” and learns about the importance of creating efficiency and order within their business. They identify bottlenecks and inefficiencies in their operations and implement strategies to minimize wasted effort and improve role alignment. This leads to smoother processes, increased productivity, and better utilization of resources.

3. A nonprofit organization applies the concepts of the Business Hierarchy of Needs to their operations. They focus on addressing the core needs of sales and profit by diversifying their funding sources, improving donor acquisition strategies, and implementing cost-saving measures. This allows them to generate more revenue and allocate resources more effectively to fulfill their mission.

4. A service-based business owner uses the principles of “Fix This Next” to build a community of heart-based fans. They create a strong brand identity, engage with customers through social media and events, and provide exceptional customer experiences. This leads to increased customer loyalty, positive word-of-mouth referrals, and a growing base of heart-based promoters who actively advocate for the business.

5. A business consultant incorporates the Business Hierarchy of Needs framework into their client engagements. They guide their clients through a systematic assessment of their businesses, helping them identify and prioritize the core needs at each level. By addressing these needs, the clients experience improved financial performance, streamlined operations, and a stronger sense of purpose and impact.

These examples demonstrate how the content of “Fix This Next” is being applied in various real-world settings to address specific challenges and improve the overall health and success of businesses. The practical strategies and principles outlined in the book provide entrepreneurs and business owners with actionable steps to achieve their goals and overcome obstacles.

 

Conclusion

In conclusion, “Fix This Next” by Mike Michalowicz offers a valuable framework for entrepreneurs and business owners to assess and address the core needs of their businesses. By adapting Maslow’s Hierarchy of Needs to the context of business, the book provides a clear roadmap for achieving success and growth.

The Business Hierarchy of Needs (BHN) presented in the book outlines five levels, including sales, profit, order, impact, and legacy. Each level has specific core needs that must be met before progressing to the next level. By prioritizing and fully satisfying these needs, businesses can build a solid foundation for long-term success.

The book’s practical and actionable advice, supported by real-life examples and case studies, helps readers understand the importance of addressing each level of the BHN. From focusing on generating cash flow through sales to creating efficiency and order within the business, the book provides strategies and insights to overcome challenges and achieve desired outcomes.

“Fix This Next” also emphasizes the significance of building a community of heart-based fans and promoters. By creating a unique brand identity and fostering a sense of belonging, businesses can cultivate loyal customers who actively promote and support the brand.

While the book has its strengths, such as its integration of Maslow’s theory and its practical approach, it may have limitations in addressing industry-specific needs and providing in-depth guidance on the higher levels of impact and legacy.

Overall, “Fix This Next” serves as a valuable resource for entrepreneurs and business owners seeking to identify and address the core needs of their businesses. By following the principles and strategies outlined in the book, readers can build a solid foundation, achieve financial stability, and make a lasting impact in their industries and communities.

 

What to read next?

If you enjoyed reading “Fix This Next” and are looking for similar books to further enhance your understanding of business and entrepreneurship, here are a few recommendations:

1. “The Lean Startup” by Eric Ries: This book explores the concept of lean startup methodology, which focuses on iterative product development, validated learning, and continuous improvement. It provides practical strategies for building and scaling successful businesses.

2. “Good to Great” by Jim Collins: In this book, Collins examines what sets great companies apart from their competitors. He identifies key principles and strategies that can help businesses transition from being good to becoming truly great.

3. “Profit First” by Mike Michalowicz: If you haven’t already read it, “Profit First” by the same author is a great next step. It offers a unique cash management system that helps businesses prioritize profit and achieve financial stability.

4. “The E-Myth Revisited” by Michael E. Gerber: This book explores the myth of entrepreneurial expertise and provides insights into building successful businesses. It emphasizes the importance of systems and processes in creating a scalable and sustainable business.

5. “Scaling Up” by Verne Harnish: This book offers practical advice and strategies for scaling businesses and achieving rapid growth. It covers topics such as people, strategy, execution, and cash, providing a comprehensive framework for scaling up successfully.

6. “The Innovator’s Dilemma” by Clayton M. Christensen: This book explores the challenges faced by established companies in the face of disruptive innovation. It offers insights into how businesses can navigate these challenges and stay ahead in a rapidly changing market.

7. “The Four Steps to the Epiphany” by Steve Blank: This book focuses on the customer development process and provides a step-by-step guide for entrepreneurs to validate their business ideas, build customer-centric products, and achieve market success.

These books offer valuable insights and strategies for entrepreneurs and business owners looking to further expand their knowledge and skills in the field of business and entrepreneurship. Choose the one that aligns with your specific interests and goals, and continue your journey of learning and growth.