Free YouTube Transcribe

Video transcript

Business is hard until you focus on these 4 systems

Ross Harkness · 3,168 words · 15 min read

Want to search this transcript, jump the video from any line, or download it as TXT, SRT, or VTT?

Open in the transcript tool

Full transcript

0:00Most business owners try to focus on 100

0:02different things in their business. And

0:03that's why they find business so damn

0:05hard, have to work all day, and always

0:07feel behind. But the best entrepreneurs,

0:10well, they only focus on four systems.

0:13So, in this video, I'm going to show you

0:15what those four systems are, why they're

0:17the most important systems for moving

0:18the needle in your business, and how to

0:20use them to dial in your focus and scale

0:22faster while working less. But first, I

0:25need to show you what a system actually

0:26is. Because most people think a system

0:28is some sort of automation or SOP and

0:30it's not. A system is a group of things

0:32which work together to create a certain

0:34outcome which means it takes a form of

0:37input processes output and then a

0:39feedback loop. So something happens

0:41that's the input that then triggers

0:42other things to happen the processes

0:44which create a result the output and the

0:47efficiency of all of this provides a

0:48feedback loop which can then influence

0:50or change parts of the system. So if you

0:52take marketing, you might have the input

0:54of your target avatar as it determines

0:56your marketing. You need to talk to the

0:58right person for it to work. And in

1:00order to market, you might do a number

1:01of tasks like run ads. Therefore, ads

1:03are a process in your marketing system.

1:06And in marketing, the goal is to get

1:07leads. So leads are then the output and

1:10you can use the performance of your ads

1:12and the number of leads you generate as

1:14feedback to improve the overall system.

1:17But the problem here is that most

1:18entrepreneurs wildly over complicate

1:21business. See, every single business on

1:23the planet only needs two things. It

1:25needs something to sell and needs

1:26someone to sell it to. The more things

1:28you sell to more people, the more you

1:30will grow. And for you to optimize this

1:32process so that you can grow faster

1:34without working every hour under the

1:35sun, there's only four systems that you

1:37need to build. And if you're finding

1:38business hard and it depends entirely on

1:40you, one of the four systems either

1:43doesn't exist or has a bottleneck inside

1:45it which holds it back. So, let me show

1:47you the first system because this is one

1:49that if you master this, everything else

1:51in business will be 10 times easier. And

1:53the best way to explain this is remember

1:55when you were 16 and you're applying for

1:57one of your first jobs? Well, imagine

1:59you're lucky to get that job, but you

2:01never applied any openings. What's the

2:03chances of you getting hired? It's

2:04[ __ ] zero. Well, most businesses act

2:07the same way. They want more customers,

2:09but they don't have a consistent way of

2:11getting more leads. They don't have a

2:13marketing [music]

2:14system. So, the first system that you

2:16need to build is a marketing system,

2:18which yes, that sounds super obvious,

2:20but if you can't reliably predict how

2:22many qualified leads that you'll get

2:23this month, then you do not have a

2:25marketing system. And if you don't have

2:27one, you can't reliably grow. Because

2:29for you to sell more things to more

2:31people, you need a way for those people

2:32to find out that you exist. And that's

2:34what marketing does. It gets people

2:35interested in buying from you. And most

2:38businesses just market whenever they

2:39feel like it. Sometimes they run ads,

2:41sometimes they send emails, sometimes

2:43they post content. It is inconsistent

2:45and it's unreliable. And therefore, the

2:46amount of people interested in working

2:48with you is inconsistent [music]

2:50and unreliable. And therefore, the

2:52number of sales you get is inconsistent

2:54and unreliable. Now, how your marketing

2:56system needs to look will vary wildly

2:59depending on your business and your

3:00avatar. For example, there is no point

3:02doing email outreach to a local plumber.

3:04They're probably not checking their

3:06emails that often. It's not the right

3:07channel for that avatar. The main thing

3:09though is that you have three

3:11components. So you have attract to get

3:13attention. This could be ads, content,

3:14outreach, whatever. Obviously, what you

3:16do depends on what your avatar is going

3:18to be most receptive [music] to. You

3:19then have nurture. So this is where you

3:21warm them up, get them more interested

3:23in working with you. This again could be

3:24retargeting ads, content, emails via

3:26your newsletter if you have one. Again,

3:28depends on you and your business. And

3:30then finally, you have offer. This is

3:32your call to action. You're offering

3:33them the chance to work with you,

3:35telling them, "Hey, we sell this thing.

3:37Click here if you want it." The thing

3:38about marketing is that all forms of

3:40marketing work, right? Otherwise, they

3:42wouldn't exist. Content works, ads work,

3:44outreach works, [music] it all works.

3:46The main thing is twofold. Firstly, that

3:47you have a process to attract, a process

3:49to nurture, and consistently put CTAs in

3:51your marketing to get them to take that

3:53[music] next step. And secondly, that

3:54you choose a channel that your avatar is

3:57actually going to use. Which brings us

3:59to the second system. And without this,

4:00well, your business is never going to

4:02grow. And I mean never. So, [ __ ] it.

4:04Let's just, you know, let's stick with

4:06the job hunting analogy. Imagine as

4:07business owners, it's a bit funny, but

4:09anyway, it it works. Okay, imagine you

4:11applied for jobs and you started getting

4:12loads of replies and you were offered

4:14tons of interviews, but then you turn up

4:16to the interview and you're clueless as

4:18to how it works. So, you wing it, you

4:19didn't prep, you didn't do anything, you

4:20just sort of panicked and you rambled

4:22about how your worst quality is that

4:23you're too patient or too hardworking.

4:25Well, obviously, you're not going to get

4:27the job. And that's exactly what it's

4:29like when you don't have a sales system

4:31in place because you might get tons of

4:33leads, but you're letting them slip

4:35right out the door. So, of course,

4:36business feels hard. So, once you once

4:39people know about you, you need to get

4:41them to buy, which is where your sales

4:43system comes in. And if you want to know

4:44if you need a sales system, ask yourself

4:46that if you stop selling, because often

4:48the business owner is the best seller,

4:49so they keep selling. But if you hired

4:51someone, a competent salesperson to sell

4:53for you, would they know exactly how to

4:54sell for your business? If not, then you

4:57do not have a sales system. Now again,

5:00how this looks will depend on you and

5:01your business and what you sell because

5:03your sales system might just involve a

5:05landing page on a website or maybe it's

5:07a sales rep in your store or a sales

5:09call or an offer dock or proposals.

5:11Typically, higher ticket, more expensive

5:13stuff [music] involves some level of

5:15persontoerson selling with a sales rep,

5:17while less expensive things don't. But

5:19either way, whether you sell via person

5:21or via a website, you need five

5:22components. You need to capture their

5:24attention. [music] This is typically via

5:26a hook on your landing page. If it's

5:28crap, they don't read the rest of it.

5:30So, the hook needs to be good. If it's

5:31on a call, well, you've already got

5:33their attention and instead, this

5:34[music] could be your show up process to

5:36make sure they actually show up to the

5:37sales meeting. You then want to qualify.

5:39So, make sure that they're the right fit

5:41for the thing that you sell. Then you

5:43diagnose. So, pinpoint their specific

5:45problems and pains. Make them make them

5:47know that you understand them and can

5:48help them. Then you offer. So, make the

5:50offer to them. Say, "Hey, this is what

5:52we sell. This is what you get." Then you

5:54close and you get them to buy. Now,

5:55depending on how you sell, those five

5:57steps might happen across your sales

5:58page, via your copy or via the

6:00conversation you have in your sales

6:02meeting. And if you have all of this

6:04built out for your business and the

6:06things that you sell, you'll be able to

6:07give this system to anybody, train them

6:09on it, and get conversions and sales

6:11without you having to do it. But

6:13something you have to be careful with

6:14when it comes to sales problems is that

6:16sales problems aren't always sales

6:18problems. [music] Maybe your marketing

6:19is [ __ ] so it brings in the wrong

6:21people who are not qualified for what

6:22you sell. Or maybe it's a terrible offer

6:25which nobody wants to buy. It could also

6:27though be a [ __ ] salesperson which is a

6:29sales problem and they need trained up.

6:30Either way, you need a sales system. But

6:32just be aware that sales problems can

6:34come from other areas of the business.

6:36And that brings us to the third system

6:37which in the long run is the system most

6:40likely to create the exponential results

6:42that every business owner wants. But it

6:44is often the most overlooked because I

6:46mind when I used to run my ghost writing

6:47business a few years back. I was able to

6:49get clients results myself. But as I

6:51started to scale, I would hire

6:52contractors and I would hire based on

6:54their ability to write content. But when

6:56it came to writing content for my

6:57clients, the results were they were

6:59bloody [ __ ] There's no nicer way to put

7:00it. It was as if they had never wrote

7:02content in their life. And of course, I

7:05blame them. But in reality, it was all

7:06my fault because I hadn't built out my

7:08delivery system to tell them how I want

7:10things done. And this happens so [music]

7:11many business owners because they do a

7:13lot of delivery to start. But as they

7:16grow, of course, you do less. And to

7:18you, it's incredibly simple. what needs

7:20done. It's your bread and butter. To

7:21deliver an amazing product or service in

7:23an efficient way is so natural to you,

7:25but it is never as clear to someone else

7:27as it is to you. So, as you delegate

7:30delivery, standards might slip and

7:31everything becomes inefficient, [music]

7:33which leads to you picking up the

7:34pieces, stressing out, customers get

7:36annoyed, and it ain't good. But if you

7:38can deliver an amazing experience for

7:40your customers, they'll buy again.

7:42They'll refer others which makes a

7:44delivery system in the long run the most

7:45important system you [music] can build

7:46due to how it compounds primarily of LTV

7:49to CAC. Now again this will be entirely

7:52unique to your business and what [music]

7:54you sell because two businesses selling

7:56the exact same thing will each deliver

7:58that thing slightly or maybe massively

8:00differently. And look you'll notice that

8:02I keep saying that each of these systems

8:03depends on what you do in your business

8:05which might seem annoying but it is

8:07[ __ ] true. Okay? I cannot tell you

8:09the amount, the number of clients who

8:11have come to work with me in the MOS,

8:12link is in the description, by the way,

8:13who have copied or been given some

8:16cookie cutter system only for it not to

8:18work. Well, it doesn't work because it's

8:20not based on how you do things in your

8:21business. It's why I work directly with

8:23the business owner. So, these systems

8:25that you build in your business when you

8:26work with me are entirely bespoke and

8:28unique to your business, which is why

8:30they work [music] and why you can stick

8:31to them. So, if you do want to build

8:33systems in your business that work so

8:35you can work less, go faster, stop being

8:36on the bottleneck, click the link in the

8:38description below for more information

8:39on how you can work with me. But anyway,

8:41this delivery system, well, the

8:42complexity will vary wildly based on

8:44what you sell and the demand on what you

8:46sell. But no matter what, you need it

8:48systemized so that you can streamline it

8:50and make it consistently good so you can

8:52deliver that worldclass experience and

8:54product. And to make it good, one of the

8:56most important things you need to do is

8:58define what good actually means. Because

9:00most business owners will have a vague

9:02standard like do a good job, give good

9:04customer service, get results. Like who

9:06the [ __ ] does that help? It helps

9:08nobody. Instead, what you need to do is

9:10define the outputs that you're trying to

9:11achieve through delivery. So, for

9:13example, if you run a coaching business,

9:15it could be time to first client win,

9:17implementation rate, response times,

9:19whatever. If you run a construction

9:20company, maybe the goal is to keep a

9:22maximum defect rate or customer

9:25satisfaction or keep delays below a

9:27certain percentage. For ecom brands, you

9:29could do shipping time, return rate,

9:31repeat purchase percentage, LTV,

9:33whatever. It'll depend on you and your

9:35business. But get clear on what good

9:37looks like and then systemize how to

9:38achieve it so that your team can also

9:40achieve it. But here's the thing, those

9:42three systems are all useless if you do

9:44not have this fourth system. So, let me

9:45show you. See, when you started your

9:47business, the demand for what you sold

9:49was low because you were new. Not a lot

9:51of people knew about you or your

9:53business, etc., etc. And so, the demand

9:54on your time was also low relatively.

9:57But as you grew your business, as you

9:59grew, the demand increased, which meant

10:01the time, the demand on your time also

10:02increased, which is when you'll have

10:04hired a few people. You'll have tried to

10:06delegate. What you'll probably have

10:07realized is that so much of the business

10:09still relies on you. And that's a

10:11problem because you only have so much

10:13time, which means you can't keep growing

10:15because your time can't keep up with the

10:16demand because your business still

10:18relies on you and you are the

10:19bottleneck. Well, the way you fix that,

10:21so you stop being the bottleneck and so

10:23that you can keep growing without

10:25working every hour under the sun is you

10:27build your operating system. This is how

10:29everything in the business happens so

10:32that it can happen without you doing it.

10:34So for your business to stop relying on

10:35you so it becomes scalable, you need to

10:37focus on five areas for your operating

10:40system. Firstly, we need to look at

10:41direction. So where are we going? This

10:43includes annual and quarterly goals,

10:45priorities, strategy, resource

10:46allocation. Again, can differ depending

10:48on the business and the scale. Secondly,

10:50ownership. So, who owns what? Meaning,

10:52[music] you have your work structure,

10:53your rules, your decision rights, your

10:55accountability all clear and all

10:57documented. Then you've got execution.

10:59So, how does work happen? You need

11:01processes, SOPs, delegation, and project

11:04management. The fourth area then is

11:05cadence. So, when do you coordinate?

11:07This includes weekly meetings, planning,

11:09reviews, oneto ones, quarterly rocks.

11:12And then finally, you have information.

11:13So, how do you know what's happening? So

11:16for this you need clear KPI, scorecards,

11:18financials, and feedback. When you're

11:20building your operating system, you

11:21essentially need to go through those

11:22five areas. And you need to document

11:25everything clearly to the point where

11:26you can essentially plug anybody into

11:28any aspect of your business and they'll

11:29have a full understanding of what they

11:31need to do, how they need to do it, and

11:33when. This way, you can hire and

11:35delegate without the business

11:36bottlenecking on you, and it becomes

11:38scalable. But here's the problem. I've

11:40just given you four big systems to

11:42build, and you need to build all four,

11:44right? But this is where most

11:45entrepreneurs go wrong. They go down one

11:46of two paths. You'll watch this video,

11:48right, and you'll think, "Great, let me

11:49go build all four." Or you'll think,

11:51"Fuck, this sounds incredibly

11:53overwhelming." Okay, especially if how

11:54much you already have going on in the

11:55business. So, let me make this really

11:57simple for you. Yes, you need to build

11:59all four of those systems. But your

12:01business will grow the fastest when you

12:04identify the system that is currently

12:05constraining it. This is essentially

12:07theory of constraints, which is there's

12:08only ever one constraint in a system,

12:10and until you fix it, nothing else

12:12matters. So, you need to identify which

12:14of the four systems is your current

12:15constraint. Which do you need the most?

12:17And then you go all in on building it

12:19until it's built. Then you repeat this

12:21way. You'll not get overwhelmed and

12:23you'll make so much more progress so

12:25much faster. Now, there's two ways to do

12:27this. The rough way to do this is ask

12:29yourself these questions. Do you have no

12:31leads? Then that's a marketing problem.

12:33So, if you've got plenty of delivery

12:35capacity, but nobody is interested in

12:36buying, focus on marketing to get more

12:39interest and more leads. But if you've

12:41got leads but not enough customers,

12:43that's a sales problem. So you don't

12:45necessarily need more leads, you just

12:47need to convert more of the leads that

12:48you already have. Or if your sales are

12:50good, but your customers are unhappy or

12:53your team is drowning, that's a delivery

12:54problem. And more marketing or sales

12:56will actually make the business worse.

12:58So fix fulfillment first. Then if

13:00marketing, sales, and delivery are all

13:02working great. But everything still

13:03requires you and you know you're

13:05stressed out and your time is stretched.

13:06That's an operating system problem. The

13:08constraint is the organization's ability

13:10to execute to fight you. Now that is the

13:12rough way and you'll likely have a good

13:14idea and be going in the right direction

13:16if you use it. But the second way and

13:18the proper way is to using the feedback

13:20loops of each system. So remember a

13:23system is an input something happens

13:25process which is more things happening

13:27typically tasks output the result and

13:29then the feedback loop. All the things

13:31you do in each system are processes.

13:33There are tasks which help you achieve

13:35an output. You can measure data for each

13:37process and the output of the entire

13:39system to see the performance of each

13:41system. Hence, you can use data or the

13:43feedback loop for each system to

13:45identify your constraint. That's the

13:46right way to do this. So, if you want to

13:48see how to track that data and how to

13:50use it to find the constraint that is

13:51holding your business back, click the

13:52video on screen now and I'll show you

13:54exactly how to do

More from Ross Harkness

Recently added transcripts

Browse the whole transcript library

This transcript was generated from the captions YouTube publishes for this video. Get the transcript of any YouTube video atfreeyoutubetranscribe.com, free, unlimited, no sign-up.