An insider tip for selling your video production business. EP #218 - David Jenyns

G', day, guys. Dan here with episode 218 of the how to Scale Video Business podcast. And today we are talking systems with David Jennings, the founder of Systemology and the author of the book of the same name. Now, I've done quite a bit of work with Dave over the years, both inside the VBA and privately, because I think that having a systemized business is the single best investment you can make. It makes it more sustainable. It means the business owner can step back from day to day operations. And I really firmly believe in Dave's mission of wanting to free business owners worldwide from the day to day operations of the business. So it's been a while since we've had Dave on the show. A lot's been happening on the back end of his world. And today I wanted to ask him about, you know, why he felt systemizing his video business was so important. And he's going to share some really good insights for you and give you some tips and advice on which systems to create first. So I think you're going to get a huge amount of value out of this. So enjoy the show.

David Jennings, nice to have you back on the show.

Pleasure. I always love chatting about systems and that goes double.

As do I.

And we've done a number of things together over the years, including a few podcasts. But I wanted to start really driving home the power of systems for video businesses because video production is actually a heavily systemized business anyway. And as we discussed in your book, Systemology, you know, you can systemize creativity. But what I'd love to start with today, David, to really give the audience a sense of value is.

From your perspective as someone who built and sold a video production company, how important were the systems to enable you to do that? And maybe talk to me a little bit about the process you went through to pull that off?

For me, they were the most important component of that business. And there is a reason for that and why it was felt extra, extra important. For me, it's because I'm not a video person. I'm not a videographer. I didn't know how to edit. I was great at marketing and getting clients in the door, but I didn't know anything to do with the delivery. So the systems became so critically important because I needed to make sure that things were getting done consistently and that the business could operate without me. And I could plug in a project manager or the studio manager that we had, which would oversee our productions and work with the videographer and the editor and would line things up. But it just so happened that my project manager, that studio manager, she wasn't a video person either. So we created the systems, I worked with the videographer, we got that into place. My.

Studio manager was a customer service person. She was amazing with customer service. So she'd oversee everything, follow the systems and the process, and then organize things with the team and the client. So for me it was critical. And then I didn't realize it at the time, but it became infinitely more important when it came to selling the business as well. Because that was one of those things that I could really lean on and say, I, I never worked in this business. This is not, you know, I'm not a video person. The reason it works is because of the systems and then getting the right team members in those seats. And then the person who bought that business instantly saw that value.

I think one of the areas that I think as creatives, we, as myself speaking here, we struggle with is we, we're so attached to the hands on of the creative process that we, we sometimes mislead ourselves into thinking that if we're not handling every part of the process that somehow the client's not going to get value. And I loved your point there about you hired a customer service person because the biggest bottleneck, there are two bottlenecks in production for a video production company. One is editing. And if the business owner can get rid of the editing, then they free up an enormous amount of their time. But then what happens is they get caught up in project management and production management. And almost every business I work with and that I've ever come into contact with says if I could just find an amazing production manager. But no one can ever seem to find a production manager. So what I'm hearing from you is that if you systemize the production management process, you could find someone who has the skills in project management or customer service and they can simply follow the process. Is it really that easy or am I missing something?

It always sounds easy when we just say it in a sentence or two. And it took a bit to get there. Once we got there, it was that easy. The initial days it was working closely with the videographer and the editor to find out what they were doing and to try and create a process. And to a certain extent, I was overseeing and doing a little bit of the project managing at the start. That's how we developed it. That was something though, that when we started working together, it became immediately clear to me you'd already done all of that thinking. I found you after I sold Melbourne Video production. I wish I found you prior to selling it and building it. Because you've got all of that blueprint that can just be installed in a business. And once you've got that in place, the hardest bit is the creation. Once that's done, it is that easy to, to then find a customer service person and you're looking for someone like for me it was a return to work mum. I'm sure return to work dad would be perfect as well. Someone who had a bit of experience with customer service, very good attention to detail, done a little bit of project management. They didn't need video work. I just wanted someone who knew how to follow a process, cross the T's, dot the I's and could think so. So if there's something like, oh, this feels like it's falling outside of the system, well, I need to go chat with Dave or the videographer to figure out what do I need to do here. But once we got that in that the systems in place, then yes, it was that easy.

You know, I've been systemizing my own business. Obviously. I work with all of my video business accelerator clients and we together, you and I, we did a systemology for Videographers Day and that's part of the training inside the vba. And everyone I know who's implemented that has just had these massive aha moments of like, oh my God. In fact, I. Andrew, one of my clients, was on the podcast just recently and he's been working with us just about over a year now in the coaching program. And he said the biggest implementation has been in the systems. He systemized himself out of editing and project management and now has been able to take time off with his family. I think last Thursday he said, oh, he was going to. In fact, before we recorded the podcast, he said, oh, then do you mind if we move the podcast? My wife's asked if I can take the day off tomorrow so we can spend it together. And so he just was able to leave the business. And his other big win was he had one core client, very valuable client when he started working with us and he felt vulnerable, that, you know, only one client was, was, was challenging. So he systemized the work he was doing for that client and then found another client who's become as big and he's now en route to a third client. And what we started out as a, well, we just need to systemize and have a few more jobs coming in has become they've doubled their business and he hands over 90% of the success to Following a systemized process. So he's an example of how it can work. But let's say you're a smaller business. Because one of the questions I often get asked people is, oh, I don't think I'm big enough to systemize. I don't think I'm big enough to start using software like System Hub. I'll just, I'll just do it myself. What, what is there? Is that a point at which people should be systemizing? And what is that point and can it be done in stages?

The biggest part about systemizing your business is actually creating the systems culture. And that's actually the hardest thing to do because you can have systems documented. It's another thing to get your team to actually follow it. So it's important that the business owner leads this from day one. So at the very least you need to get it and understand it. That doesn't mean that you have to be the person who does the documentation, but you do have to reach the point where you go, oh, I can see the systemized approach to building this business is the only way. And this is how we're going to build this business. And then you can, if it's just you to start with and you bring in contractors whenever you've got a shoot on or something like that, just start off simply. And it might be simple basic checklists. It might not be the detailed process of how to set up an after effects template and how to get your final cut pro projects ready to go and screen stepped and screenshotted at every single thing and exactly where to click. Don't go down to that level of detail just yet, but you could go higher level. Like what are the phases of the delivery? You know, the pre production, the production, the post production. Think about where things go off track. Well, when someone goes out on a shoot, if they forget to bring a spare battery or a charger or that extra lens, that's a deal breaker. Okay, well create a basic checklist that next time we you go out on a shoot, you've got a checklist to remind you what to bring. I would just start higher level, the smaller you are. Just keep the systems really simple. Don't over document. As a videographer, one of the things that you're already well set up to do is to record. So sometimes a great way to start, and this is one thing that we did early on in the video business was we had a junior join us and then I said, follow Adrian along for a couple of shoots and record him.

Doing his recording. And his shooting. So it was like we had a behind the scenes person who was recording it. And that was version one of our systems. They were just these ghetto behind the scenes videos of Adrian teaching Max what he was doing and how he'd set up the camera. We didn't do any documentation, none of that. It was just a collection of videos that we categorized and organized and captured while we were doing the task. So that's a great way to start as well.

I am having studied your content and have known you for a few years and we've done stuff together. One thing that strikes me, that struck me very early on is that initially before I'd come into a systemization mindset, I was terrified that it would involve me having to just write a lot of stuff. But what I learned from you very early on is a system can be as simple as simply screen recording what you're doing. And I'll never forget this, but I actually put a label on my old computer screen that said.

Do it once, record it, create a system. And so I started years ago, literally. I've got a folder full of Loom videos and for anyone who doesn't know what Loom is, it's an online cloud based recording app that allows you to screen record and screen capture. And so I have a folder called Systems and I just started recording everything I was doing more than once. And then when I started to build my team, I gave them the Systemology for teams training that comes with System Hub. Their initial onboarding was two weeks of watch this training, learn it and build systems. And then I had this folder full of system videos that they started to document. And I don't know if that's the right way to do it, but it really worked for me. Is that something you recommend? Is that, is that one of the processes that. Am I doing it right?

Well, the, the dirty little secret of Dave and Systemology is that even though I'm the systems guy, I don't really like writing systems and processes. I. I can't remember the last time I documented a system in a process. I'll record stuff and I'll record me doing it. We've built out a system now for documenting videos and turning them into systems. So I capture the video and then I pass it off to the team. I actually think that's the best way for a business owner to be creating them. Nine times out of 10, there is other things that the business owner's time is best spent on. It's not getting into a system and making sure it's correctly formatted and doing all the writing. It's better off that another team member does that and then you circle back around and then you review it. That's where you're adding more value. So I think the way that you're tackling it is perfect, particularly for someone who doesn't see themselves as a systems person or doesn't really enjoy documentation. It's. It's funny, I find with systems, a lot of people have this baggage in their head around what they think a system is or how a system needs to be created. And they've reached those conclusions and never really tested those assumptions. A lot of what systemology is about is to say, hang on, maybe there's another way to do this. Maybe a loom video will suffice. Maybe a basic checklist that someone else writes after they've watched your loom video is a great first step. It doesn't have to be fancy flow charts that are detailed down to super micro level. Just keep it simple.

To start, I think it's. It's back to that 8020 principle, isn't it? And I think it's our mutual friend Mike Rhodes. I think he's the owner of this statement. And you can correct me if I'm wrong. I think Mike said, you want to spend 10% of your time giving the instruction. Let the team do 80% of the work and then spend 10% at the end offering correction and guidance. I think. Is that Mike that came up with that? Yes, yes.

That was Mike's take on the 8020 rule. He did quite a lot of stuff with. Why can't I think of the name of the. Is it Kosh, The. The guy who came up with 80 20? There's a guy who did quite a lot of work on it, and Mike went to a lot of his stuff and then. Yeah, his extra distinction is the 10, 80, 10.

Yeah. But I think. I think the other thing is another mutual friend of ours, Charlie Valor, I think Charlie told me the story, and you'll be able to correct me, but when he first discovered you in systems, I think the story goes something like, I used to look at Dave, and whenever I tried to get a hold of Dave, he was out kiteboarding. And I'm thinking, how is he out kite surfing on a Wednesday afternoon? And I'm in my office running my business. Dave's got a couple of businesses and he's off kite surfing. Why is that? Now, I don't know if that's actually the true story, but something along those lines. Charlie's like, Dave, what are you doing that's allowing you to kite stuff? Is that, is that the true story?

That is. It makes it sound like I'm not doing anything, though. I do work quite hard. But I've figured out where the right balance is for me. And when I need to turn on the gas and I need to work really hard for a project, I can do that. But then also when it's time to unwind, like, I've rethought about the way that I approach weekends. I've got a young family and some kids and I want to be there for them and present and doing activities. I don't want to be checking my emails on the weekends and doing work. So a few little adjustments like that.

But I've met your wife and she wouldn't let you.

That's the true story. That's why we systemize.

But also, like, I want to touch on this because I, I, I've been thinking a lot about this recently from a kind of ethereal perspective. And, you know, especially in the circles we move in with entrepreneurs, it's easy to get confused that entrepreneurship is about hitting a big number and making a certain amount of money. And of course that is the measure of success in the commercial entrepreneurial world. But I actually think it's deeper than that. I've got a.

I've got a sort of philosophy around fulfillment. I want to be fulfilled in a conscious way with the work that I do. And I feel that with the work I do with my systemology clients, the work I do with my coaching clients, I'm very big on fulfillment and conscious showing up in a conscious way because I, I choose to work probably four days a week. If I really worked out how I work, I go to the gym on a Monday morning, I go to a gym on a Friday morning and a Wednesday morning.

I have certain things that I do on certain days and I have certain times that I allocate for time for me now, like you, I kind of sometimes have to kind of work a bit harder on certain projects. But I'm actually designing my business in life to fulfill me and provide an income doing work that I love. And I recognize that in order for that to be the case, I have to have team and I have to have systems.

I know this is something that is aligned with you. We've not actually spoken about this directly, but I'd love to touch on that today. Where do you sit with why you do what you do in terms of systemology.

System? Every business that I've run prior to Systemology, I've just fallen into. I started doing something. Seems like a good idea. Let's go a little bit deeper. Whether it was early days working in the stock market education space, I happened to be doing a course on the stock market and then it made sense to create a product after it and then I needed to market it. And then we built up a team and then there were changes in the Australian financial law which meant I had this team that were great at marketing. And then we thought, well, let's start a digital agency. Oh great. Well, clients are asking us about creating content. Well, let's create a video production company. All of the choices that I kind of made just were very reactionary. Systemology is the first business where it was the side project that was started as passion. And I was much more conscious in thinking about why am I doing this if it's a passion job, like what is the purpose? And early on I read a book by a guy called Cameron Herold and he discussed this thing called the Vivid Vision. And I wrote the vision for the company. And I used to think all of that stuff was really like airy fairy. You know, you find your company values, we all hold hands and we sing Kumbaya.

And this business though I connected with this idea of the. The dream for the business is to free all business owners worldwide from the day to day operations of running their business. And at the time I was like, that is a really worthy mission for me to go to work on. And I connected with it and it was the right time at the right place. I really feel for business owners, I have gone through that struggle. I know it is a bridge that most business owners get to cross. Like most of them just are still stuck in the weeds doing their work. So I thought, yeah, this is something I could really commit to. Leaned into it, wrote the vision and that's been a real guiding thing for me. So I've been fortunate for this business that I just keep coming back to that and that really keeps me inspired. It means I'm also attracting in the right team members and the right partners because they go, oh wow, Dave's working on something that's meaningful, that has impact, that I can go, yeah, I can support that. You know, that's in line with me. Let's, let's walk in the same direction. So it's a little bit different. How does someone actually find that? I don't know, especially if you've already got an existing business and maybe it wasn't founded on that. That's also a big reason why a lot of videographers get trapped in their business and why it's so challenging for them is because they start as a videographer that enjoys working with film, making short films, and they go, let's do that. I'm really going to love it. Then they get trapped on the tools. And the transition from being the technician to being the business owner is really challenging, especially when you've got really good at being a technician. It takes different skills to become a business owner, and you have to want to do that as well. Some people might just go, you know what? I prefer to be the videographer who works on projects, and it's just me. And I bring contractors in when I need them, and it's a little bit of a feast or famine, but I've got low overheads and I don't need to worry about it. And I'm just happy to, you know, constantly be on call. Like, some people just go, I like that because I don't have the stress of, you know, other things. And that's really what traps them. But then there are other people who go, hang on. I'm. I'm tired of. Of being sick and tired. That idea of constantly being on the treadmill, never being able to get off, not being able to have the choice. And those are the people that I want to speak to and say, it is possible you will need to make some changes. This has been done before. Den has codified this now down to a point where it's a science of the removal of a business owner. And that's, I think, why we've connected so well. I found my vivid vision. It's very much in alignment with the work that you're doing, and you're already on that path for yourself. And now it's kind of like the perfect mesh of. Of our two worlds and all of your knowledge in the video business overlaid with systemology. I feel like it's a very unique combination because I think the last thing I'll mention before I let you get a word in is this idea. And I see it. There's a few industries in particular that it's rare to find someone in a creative space who also gets systems, because usually if you're creative, the creative mind shuts off to the idea of systems because you think a systemized business is going to remove the creativity. And it's only once someone really has the breakthrough and recognizes that's what makes your work so rare. You are creative to the next level. Like, you have produced Some amazing videos, amazing clients who seek you out because of that creativity, yet you have such a deep admiration and understanding of the systems component. It's a very rare combination.

I think a big mistake, and I'm going to call it a blind spot for video business owners, because a mistake sounds like they've not done something correctly. And I don't think that's true. The biggest blind spot for video business owners is the misconception that systems make you rigid, when in actual fact, systems and process frees you up to be more creative. Let me try and explain. What I mean by that is that in my experience, having documented systems for the process of how something flows means that I never forget anything. And my team can take on tasks in the business and not forget anything, which reduces stress levels. Because as soon as you go over that feeling of like, oh my God, I forgot to do that thing, I forgot to do that thing for that client or bugger, you start to get stressed and your cortisol rises and your IQ drops and you start to make dumb decisions. So by systemizing, it actually means that you can expand the creativity in the areas where creativity is required. But for example, how you set the project up on the server, how you set your files up on the timeline, and how you deliver the project, they're set in stone. What you do on the timeline is creative. And that's just something that I wanted to share with you as someone who's been through this process for some time, is that I actually feel more relaxed, more creative and more free because of systems. Is that something you hear a lot?

It's hard to get someone to get it until they experience it. Because I've seen that hundreds of times in different businesses. The business owner actually gets more creative and is able to come up with better ideas and innovate when the business is just working. When the business is able to deliver a product or a service that isn't dependent on them and the business can make money regardless of whether they're involved or not, that then reduces that stress, gives the business owner space to think. It creates time and space, and time and space is what is needed to then be creative and to come up with the innovation. So I see it quite frequently, but it's all intellectual. As someone's listening to this podcast right now, it's not until they actually get that experience, and that happens by layering multiple systems, you won't get it from, oh, I've created a shoot checklist to make sure I pack my kit correctly. And I've just created one system. I'm expecting the world to change now when you have 5, 10, 15 systems that are all saving you a little bit of time, that are all enabling a project to run more smoothly, it's the compounding effect and that's why it's so hard. Most people abandon systemisation. They might do it for a month or two, but then the videographer or the, you know, the video business owner is a creative person and they don't stick with it, they don't follow through. Two months in, they've done a handful of systems and they go, oh, this isn't working. This is painful. I'm going to give it up. Our systems don't work. So it's. That's again, why you join a program like yours, because effectively what you're doing is you're holding them accountable over a period of time till the point at which they have the breakthrough. And then they can't see anything but this new way, like it's so. So break. Like it's such a breakthrough moment that they can't go back once they see what it actually brings. But you've got to first get them there.

I agree, Dave, we're just about time on this episode, but I'd love to get you back because I think there's a. There's a really good discussion to be had around expanding the team. And I know that filmmakers struggle with the idea of hiring team, as I did, because they're like, oh, my God, how do I. How do I manage this person? I think that if you're happy to come back, I'd love to talk to you some more about how to hire a team and how systems play an important role in that.

Yeah, I've got some really good ideas on that. Coming from the fact that we had the video production business, I think we could talk about which hires should come first, what things should they be focusing on? How do we then make sure that those team members are buying into this idea and how to set it up so the business owner creates that space we're talking about.

Let's definitely get you back on next month. Dave, thank you very much.

Pleasure. Thanks for having us.

Hey, guys, thanks for watching. I hope you got a huge amount of value from that episode. If you're looking for additional support or resources to support your business journey, then head over to Denlenny.com where you can get a whole heap of other resources, free downloads and access all the other episodes in this series. Be sure to subscribe and I'll see you next time.