Fix This Next

Fix This Next Plot Summary

Introduction

Every entrepreneur faces a common dilemma: with countless problems demanding attention, which one should you tackle first? You're surrounded by urgent issues - sales are stagnating, profits are inconsistent, operations are chaotic, and your grand vision seems increasingly distant. The constant firefighting leaves little room for strategic growth, creating a cycle where you work harder but your business doesn't necessarily get healthier. This perpetual state of overwhelm isn't caused by lack of effort or talent. Rather, it stems from a fundamental challenge: not knowing which problem, when solved, would create the greatest forward momentum. The entrepreneurs who break through plateaus aren't necessarily working harder than you - they're simply focusing their energy on fixing the right things in the right sequence. By learning to identify your business's most vital need at any given moment, you can transform scattered efforts into precise actions that build a sustainable, thriving enterprise that serves both your lifestyle goals and your deeper purpose.

Chapter 1: Identify Your Business's Vital Need First

At the heart of entrepreneurial success lies a counterintuitive truth: the biggest problem business owners face isn't any single issue in their company - it's not knowing which problem is most important to fix right now. Most entrepreneurs respond instinctively to whatever seems most urgent, jumping from fire to fire without a strategic compass. This reactive approach keeps the business alive day-to-day but rarely creates meaningful growth. Dave Rinn, a coaching and cash-management professional, experienced this firsthand. When short-staffed during a crucial period, he found himself buried under an avalanche of tasks - handling intakes, bookkeeping, scheduling, and client calls simultaneously. In the past, Dave would have entered "fire-extinguisher mode," responding to whoever screamed loudest. But this time, he had a tool taped to his wall - a simple framework that helped him identify his business's vital need. Rather than spreading himself thin across all issues, Dave used this framework to discover his most pressing problem: adjusting client commitments and workflow systems. "Just thinking through it was a calming process," he shared. "I was no longer spinning out of control. I thought, 'I can handle this. Now I have a pathway.'" Within minutes, he had clarity on what to address first. The solution is built around a revolutionary concept called the Business Hierarchy of Needs (BHN). Inspired by Maslow's hierarchy of human needs, this framework organizes business challenges into five levels: Sales, Profit, Order, Impact, and Legacy. Just as humans must satisfy basic physiological needs before pursuing self-actualization, businesses must establish solid foundations in sales, profit, and operational efficiency before effectively pursuing higher-level goals like impact and legacy. To implement this approach, follow these four steps: First, identify where your business stands by checking off the needs you're adequately meeting at each level. Second, pinpoint the lowest level that has unmet needs - this is where you must focus. Third, develop a specific, measurable solution for your vital need. Finally, repeat the process once that need is adequately addressed. Dave's experience demonstrates why this method works so effectively. Rather than trying to solve everything at once, he concentrated his energy on his vital need, creating a realignment that helped both immediately and long-term. "When I find myself questioning what to do," he explained, "I pause momentarily, evaluate what to address, and then find myself back in control and my business moving forward." The power of this approach lies in its precision. By finding the critical issue you need to resolve next, you stop wasting precious resources on problems that, while important, aren't the highest leverage point for your business right now. Your business grows faster and more sustainably when you fix the right things in the right sequence.

Chapter 2: Establish Predictable Sales for Sustainable Growth

Creating predictable sales isn't just about closing more deals or generating higher revenue numbers - it's about establishing a complete, reliable system that ensures consistent cash flow. Many entrepreneurs mistakenly believe that an arbitrary revenue target like "$1 million" will solve their problems, but without understanding what truly drives sustainable sales, these goals remain disconnected from what the business actually needs. Jacob Limmer, owner of Cottonwood Coffee, discovered this after thirteen years in business. When he applied the Business Hierarchy of Needs analysis, Jacob realized his vital need was "lifestyle congruence" - understanding exactly what sales performance his business needed to support his personal comfort. He had never clearly defined how much he needed to take home each month for what he calls "Midwest comfort" - enough to live on without worrying about putting food on the table. "I felt proud. My ego told me I don't need to be at the very beginning of the BHN tool," Jacob admitted. "I have been in business for thirteen years. I wanted to resist the truth that the BHN revealed." The revelation that he'd spent over a decade without taking home even $4,000 monthly was a wake-up call. Once Jacob got clarity on his actual financial needs, setting appropriate sales goals became straightforward. Beyond personal income requirements, establishing predictable sales requires addressing five core needs. First, you must ensure lifestyle congruence by aligning business performance with personal financial needs. Second, you need consistent prospect attraction, bringing in quality potential customers who value what you offer. Third, you must convert the right prospects into clients efficiently. Fourth, your business must deliver on commitments to clients as promised. Finally, you must ensure clients fulfill their commitments to you, particularly payment obligations. Tersh Blissett of IceBound HVAC & Refrigeration demonstrated this approach when he discovered his vital need was prospect attraction. He and his wife Julie spent just fifteen minutes analyzing their business and realized they needed to define their ideal customer. They determined their best clients were professionals in their late forties to early sixties who were empty nesters and valued quality over price when replacing air conditioning systems. With this clarity, they targeted their marketing specifically to this avatar and implemented strict qualification criteria, declining price shoppers and referring them to competitors. The results were remarkable - within four weeks, their average job price increased from $7,300 to $12,500, breaking industry records for summer pricing. This dramatic improvement came from fifteen minutes of analysis followed by focused implementation. To establish your own predictable sales, begin by calculating your personal comfort number - what you need to take home monthly. Then reverse-engineer the sales required to support that income. Next, create detailed profiles of your ideal clients and identify where they congregate. Set up systems to qualify prospects based on these profiles and ensure you deliver consistently on your promises. Finally, implement clear payment processes that maintain healthy cash flow. When you approach sales as a complete system rather than just "more revenue," you create the foundation for sustainable business growth.

Chapter 3: Create Permanent Profit through Strategic Actions

Profit isn't about making money for your business - it's about taking money from your business. True profit is cold hard cash that shareholders can use however they want without negatively impacting business operations. Unfortunately, most entrepreneurs misunderstand this fundamental concept, believing that profit will magically appear when sales increase enough, or worse, reinvesting all earnings back into the business and calling it "profit" when it's actually an expense. Mike Michalowicz learned this lesson the hard way. Despite growing his forensic business to $3 million in annual revenue in just two years, he struggled to cover payroll each month. His ego pushed him to hire too many people at excessive salaries without ensuring the foundation could support them. The inevitable day came when he had to lay off nearly half his staff - a devastating experience that revealed his ignorance about financial fundamentals. "I screwed up. Royally," he confessed to his remaining team. "We don't have enough money to stay in business as we are. My lack of leadership put us in this position." This painful experience taught him that profit must be prioritized, not treated as an afterthought. Businesses don't become profitable by selling more; they become profitable by taking profit first and forcing the business to adapt to what remains. To create permanent profit, businesses must address five core needs. First, they must focus on debt eradication, consistently reducing rather than accumulating debt. Second, they need healthy margins on all offerings. Third, they should increase transaction frequency, encouraging clients to buy repeatedly. Fourth, they must use debt only when it generates predictable increased profitability. Finally, they need adequate cash reserves to cover at least three months of expenses. Paul Scheiter's company, Hedgehog Leatherworks, demonstrates the power of improving margin health. Paul was selling his handcrafted knife sheaths for just $75, despite using $25 in materials and investing five hours of skilled labor. This pricing didn't account for equipment, rent, utilities, or part-time help. When advised to raise his prices to $349, Paul was terrified his loyal customers would revolt. Instead, demand quadrupled, as customers had been judging his product's quality based on its low price. The higher price positioned his sheaths as premium products, and this simple change created permanent profitability. To implement permanent profit in your business, start by establishing a profit account where you deposit a predetermined percentage from every sale before paying expenses. Use Dave Ramsey's "debt snowball" method to eradicate debt - make minimum payments on all debts while focusing extra funds on the smallest debt first to build momentum. Analyze your offerings to ensure healthy margins, raising prices where necessary. Create systems to increase repeat purchases from existing clients. Establish a cash reserve in a separate "vault" account, aiming for 3-6 months of operating expenses. By prioritizing these strategic actions, you transform your business from constantly struggling to permanently profitable.

Chapter 4: Build Operational Order for Business Autonomy

Achieving operational order means creating a business that doesn't depend on any single individual - including you, the owner. Most entrepreneurs mistakenly believe that working harder and longer hours will eventually lead to freedom, but this approach paradoxically chains them more tightly to their businesses. True business autonomy comes from designing systems that produce predictable outcomes regardless of who's operating them. Mike experienced this transformation firsthand when he took his first four-week vacation from his business. Before departing, he worked with his team to establish processes that would allow the company to function without him. His key employee, Kelsey Ayres, had become indispensable - managing travel itineraries, overseeing major projects, handling human resources, and more. Recognizing this dependency as dangerous, Mike insisted that Kelsey also take an extended sabbatical, forcing the team to create redundancy throughout the organization. "We need to let you go. Go and do something that you dream of in life," Mike told Kelsey. "You need to go so that we can build redundancy throughout our company for all the work you are doing." In the six months before her departure, Kelsey trained team members on her responsibilities and recorded videos capturing her routine tasks. By the time she left for her two-month trip through Asia, the organization was stronger than ever, and Kelsey had elevated to a new role: managing the company rather than doing the work. Building operational order requires addressing five core needs. First, minimize wasted effort by identifying and eliminating bottlenecks and inefficiencies. Second, ensure role alignment by matching people's responsibilities to their talents. Third, implement outcome delegation by empowering those closest to problems to resolve them. Fourth, create linchpin redundancy so no person's absence disrupts operations. Finally, establish a mastery reputation by being known as the best at what you do. Jeff McManus, head groundskeeper at Ole Miss, exemplifies outcome delegation. When tasked with beautifying the campus, he empowered his frontline staff rather than issuing top-down directives. He gave them new uniforms and asked for their ideas. The crew identified that low-hanging tree limbs were forcing them to make frequent stops while mowing, significantly slowing maintenance. Their solution - trimming trees at least ten feet off the ground and replacing square mulch patches with round ones - cut maintenance time in half, allowing for more frequent upkeep and additional beautification projects. To build order in your business, start by documenting current processes through screen recordings or written procedures. Identify bottlenecks where work slows down and develop solutions to eliminate them. Match employees to roles that leverage their natural talents and passions. Train multiple people on critical functions so no single absence creates chaos. Declare a four-week vacation for yourself and key employees to force the creation of systems that don't depend on individuals. By focusing on these actions, you transform your business from one that traps you into one that serves you, allowing you to step away without everything falling apart.

Chapter 5: Transform Transactions into Impact and Legacy

The highest levels of business achievement transcend mere financial success, focusing instead on transformation and permanence. While establishing solid foundations in sales, profit, and operational order is essential, truly remarkable businesses evolve from simply getting (making money) to giving (making a difference). This shift represents the most fulfilling stage of entrepreneurship - when your business becomes a platform for meaningful impact and lasting legacy. Philip Wilson, founder of Ecofiltro in Guatemala, exemplifies this transformation. Once obsessed with accumulating wealth and watching stock prices on CNBC, Philip's perspective changed dramatically when he learned that 80% of families in Guatemala lacked clean water. His sister had started a nonprofit to address the issue but couldn't raise enough donations to make a meaningful difference. Philip realized the problem's scope required a sustainable business model, not charity. "I always thought business was about accumulating money," Philip reflected. "I thought that one day in the distant future, I might become a philanthropist. At that point I would stop trying to get money and start giving money. But Ecofiltro taught me a new truth: business is about both the getting and the giving, in synchronicity." Philip transformed Ecofiltro into a social enterprise where urban sales of water filters financed affordable distribution to rural areas. With a clear objective to provide clean water to one million Guatemalan families by 2020, the company established the foundational levels of sales, profit, and order while simultaneously pursuing impact. "I can't even explain the amount of joy this business brings me," Philip shared. "I think I will be doing this for the rest of my life." Creating impact requires addressing five core needs. First, adopt a transformation orientation where your business benefits clients beyond the transaction. Second, establish mission motivation so all employees are driven by purpose more than individual roles. Third, align people's personal dreams with the company's vision. Fourth, create feedback integrity where stakeholders can provide honest input. Finally, build a complementary network of collaborations that improve customer experience. Jesse Cole, owner of the Savannah Bananas baseball team, demonstrates how to leverage a complementary network for greater impact. Already successful with over $3.5 million in revenue and consistent sellout games, Jesse realized his team's ability to impact people inside the stadium had reached its limit. To extend their reach, he looked beyond traditional boundaries, partnering with a brewing company to create Savannah Banana Beer and exploring television opportunities. This openness to collaboration led to a potential sitcom deal with Imagine Entertainment, creating an opportunity to share the team's unique culture with millions. To transform your own business into a vehicle for impact and legacy, first ensure your foundational levels are solid. Then identify how your offering can create transformation beyond transactions. Articulate a compelling mission that motivates your team beyond their individual roles. Help employees align their personal dreams with company goals. Establish feedback systems that welcome honest input from all stakeholders. Finally, seek partnerships that extend your reach and impact. By evolving from transactions to transformation, you create a business that not only makes money but makes a difference.

Chapter 6: Measure Progress with the OMEN Framework

To successfully resolve your business's vital needs, you need more than just identification - you need a structured approach to track progress and make adjustments. This is where the OMEN framework becomes invaluable, providing the scaffolding that supports effective problem-solving and sustainable business growth. OMEN stands for Objective, Measurement, Evaluation, and Nurture - four components that work together to ensure you're moving in the right direction. During his college years, Mike learned this lesson the hard way when tasked with hosting his fraternity's Wednesday night party. Without a clear objective or measurements, he made minimal preparations - a garbage can filled with punch and no plan for music, food, or invitations. Unsurprisingly, the party was a disaster, going down in fraternity folklore as the second-worst event ever. This experience taught him that without specific goals and metrics, even the best intentions lead nowhere. "I wish I knew then what I know now about how to measure outcomes," Mike reflected. "First, know what outcome you want to have. Then determine the best ways to achieve the outcome and pursue the easiest, most impactful solution(s). Next, determine how you will know if you have achieved the outcome. This is the measurement that must both show that you achieved it and indicate the progress you are making toward your desired outcome." The OMEN framework transforms vague aspirations into clear, actionable plans. The Objective component defines precisely what you intend to achieve, creating a specific target rather than a general goal like "have an epic party" or "increase sales." The Measurement element establishes concrete metrics to track progress, ensuring you can objectively determine if you're moving toward your objective. The Evaluation component sets a frequency for reviewing your measurements, allowing you to monitor progress at appropriate intervals. Finally, the Nurture element acknowledges the need for flexibility, giving you permission to adjust your approach based on what the measurements reveal. Tersh Blissett applied this framework when addressing his vital need of prospect attraction. His objective was to get three new executive prospects weekly for his HVAC business. His measurement was simple: track the number of qualified prospects from his target market. His evaluation occurred weekly, allowing him to see if his marketing efforts were working. For nurture, he adjusted his approach by setting up a referral system with real estate agents and providing them with impossible-to-get tickets to local events as thanks for introductions. To implement OMEN in your business, start by defining a clear, specific objective for your vital need. Create simple metrics that directly measure progress toward that objective, avoiding the temptation to track too many things. Establish a regular cadence for evaluation that matches your business rhythm - daily for fast-moving operations, weekly or monthly for slower-changing metrics. Finally, be willing to adjust your approach based on what the data tells you, making changes to your objective, measurements, or strategies as needed. By following this framework, you transform vague goals into measurable progress, ensuring your vital need gets resolved efficiently and effectively.

Chapter 7: Implement Your Fix This Next Action Plan

Implementing the Fix This Next approach isn't about tackling everything at once or following someone else's formula for success. It's about identifying the specific vital need that, when addressed, will create the greatest forward momentum for your unique business. This personalized approach is what makes the system so powerful - it meets you exactly where you are and points you precisely where you need to go next. Tomas Gorny, founder of Nextiva, demonstrates how this approach works in practice. Born in Poland, Tomas moved to the United States in his twenties with limited English skills and no money. People often underestimated him due to his thick accent, assuming he was "slow." But Tomas turned this prejudice into an advantage, using competitors' assumptions to gain the upper hand in negotiations. "Just because I speak slowly does not mean I think slowly," he explained. Tomas understood that business growth isn't a linear climb but more like bicycle pedals - you push the one that will turn the gears, switching back and forth as needed. At Nextiva, he first focused on the Sales level, identifying VoIP phone systems as a product that could empower small businesses to compete with larger corporations. Once sales were sustainable, he dug into the Profit level, optimizing pricing structures to ensure permanent profitability while continuing to strengthen sales through strategic partnerships. As the company grew, Tomas addressed the Order level by introducing efficiencies throughout the organization, including real-time performance metrics that kept the sales team motivated without constant management intervention. With these foundational levels solid, Nextiva moved to the Impact level, focusing on their mission to support small businesses against larger competitors. Now, as they develop next-generation unified communication systems, they're addressing the Legacy level by ensuring the company will continue to innovate and serve clients long into the future. To implement your own Fix This Next action plan, start by downloading the evaluation tool from FixThisNext.com. Set aside fifteen minutes to honestly assess where your business stands on each of the 25 core needs across the five levels. Identify the lowest level with unchecked needs - this is where you must focus first. Of those unchecked needs, determine which one is most crucial right now - this is your vital need. Next, apply the OMEN framework to create a specific plan for addressing this need. Define a clear objective, establish measurements, set an evaluation frequency, and be prepared to nurture your approach based on results. Implement your plan with focused energy, committing resources to resolve this need while maintaining essential business operations. Once your vital need is adequately addressed or on a clear path to resolution, repeat the process to identify your next vital need. Remember that this isn't a one-time exercise but an ongoing navigation system for your business. By consistently focusing on what matters most right now, you create sustainable growth that builds on itself, floor by floor, like a well-constructed building. This disciplined approach ensures you're always making the highest-leverage moves for your unique business situation, transforming scattered efforts into precise actions that create meaningful progress.

Summary

The entrepreneurial journey need not be an endless cycle of overwhelm and uncertainty. By understanding that all businesses share common foundational needs and by learning to identify which need is most vital at any given moment, you can transform your approach from reactive firefighting to strategic growth. As Mike writes, "The biggest problem business owners have is that they don't know what their biggest problem is." The Business Hierarchy of Needs solves this dilemma, providing a clear compass for navigating the complex terrain of entrepreneurship. Your business is much closer to your goals than you think - you just need to move in the right direction. Commit today to using the Fix This Next framework to identify your vital need, implement a focused solution using the OMEN approach, and then repeat the process as your business evolves. Remember that success isn't about doing everything at once; it's about doing the right thing at the right time. As you master this approach, you'll discover that entrepreneurship becomes less about survival and more about creating the impact and legacy you've always envisioned.

About Author

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Mike Michalowicz

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