Mike Michalowicz explains the three-part sweet spot: a unique offering, strong client demand, and automated systems. Without all three, you hit the Time-For-Money trap, price wars, or zero demand. Assess where your business sits and adjust to survive recession.
As the demand on our businesses shift, some businesses obviously are having to change everything about their business. Other businesses are actually seeing an amplification in their work. Regardless of your circumstances, you need to get the right mix in place to ensure your business's health and that you can be of service. I want to introduce you to a model called the sweet spot. This is something I introduced in my book called The Pumpkin Plan, but there's 3 key elements you need to discover and there's 3 consequences if if you don't nail the elements. First of all, what you're doing, is it unique in the market? Meaning, is it a distinct value above and beyond your competition? Secondly, where does that intersect with top client demand? Meaning, do you have clients that want to buy that because of its uniqueness, that you are their go-to source? And the final element is the instruction of systemization. Can you deliver that on automatic? If you only have top client demand for your unique offering, You're experiencing TFM, which is the time for money trap. It requires you as a business owner or your business to work harder and harder in order to deliver on this. But since it's not systematized, it's dependent upon the people's raw effort. Another scenario is we have top client demand and systems, but it's not unique. Well, you're starting— you're gonna experience downward price pressure. The only thing in a unique market is where there's demand and there's undersupply. You don't have to be unique. Toilet paper or masks right now. They don't have to be unique, they just need to be available, and that will bridge you for now. But at a certain point, if it's simply clients demand it and you can deliver on automatic but it's not unique, then you are simply a commodity, causes downward price pressure. The last element is where you're unique and you have systems but there's no demand for it. I couldn't think of an acronym, so I just put the word screwed here. You're totally screwed if you have a unique offering It's systematized, but no one wants it. And therefore you need to adjust your offering. Some businesses sadly are in this position now because of law and how things have changed. And you need to no longer deliver your offering because there can't be any more client demand. Well, that means you need to adjust very quickly to unique, new unique offerings. Just consider this template of the sweet spot as you consider new offerings, amplify what you're doing, or adjust anything. And this is true in crisis or at any time, but particularly now, just consider these 3 elements, get right in that dead center, that's where we wanna be, and your business will be much better off. For more tips like this, go to recessionresponse.com, or you can go to my website. My name is Mike Michalowicz, but no one can spell Michalowicz, so you can go to mikemotorbike.com.
