The Business Hierarchy of Needs
Download MP3Do you struggle to prioritize your business tasks and processes? Do you often feel like you let the urgent get in the way of the important? Perhaps the Business Hierarchy of Needs is just what you need to kick your business into high gear by segmenting your business operations and making sure to take care of the most basic needs first.
On this episode of The Friday Habit, Ben summarizes the main points of one of his favorite books: “Fix This Next” by Mike Michalowicz. As we all learned in that one college psychology class, humans have needs in life that fall into 5 basic categories as defined by Maslow, from most basic to most complex: physiological, safety, love and belonging, esteem, and self-actualization. Maslow explained that certain needs must take priority over others as we go through life and it is important to prioritize the most basic before moving up the hierarchy.
Michalowicz believes that a similar concept can be applied to businesses, and while two hierarchies might seem like a lot to place into the already-full hands of entrepreneurs, hopefully you will find that understanding the different levels will simplify things for you. He defines the business hierarchy of needs, from most basic to most complex as: sales – creation of cash, profit – creation of stability, order – creation of efficiency, impact – creation of transformation, and legacy – creation of permanence. In “Fix This Next”, Michalowicz outlines 5 questions for entrepreneurs to ask themselves about their businesses pertaining to each level of the hierarchy, providing a framework for areas to focus on before moving on to the next level. By asking yourself these 25 questions, you should be able to easily identify gaps and problems that need to be addressed and establish principles that will guide your actions moving forward. This is a great read for anyone who has built their own business or brand and anyone who wants to in the future, but this book does not fully serve its purpose if you don’t take action after reading it.
Links:
“Fix This Next” book: https://www.amazon.com/Fix-This-Next-Change-Business/dp/0593084411
“Fix This Next” Book Website: https://fixthisnext.com/
Free Resources mentioned: https://s3.amazonaws.com/MikeMichalowicz/FTN/FTN-Graphics-Charts.pdf
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