Summary of "How to Build Systems So Good… Your Business Runs Itself"
Summary: How to Build Systems So Good… Your Business Runs Itself
Presenter: Cody Sanchez, private equity investor and business operator with 15+ years of experience.
Core Business Insights & Frameworks
Problem Statement
Most entrepreneurs get run by their businesses instead of running them. The missing element is one effective system that can transform the business drastically.
Common Mistakes in Building Systems
- Starting too small (focusing on minor details/processes rather than the big picture).
- Obsessing over perfect, overly detailed documentation that only the founder understands.
- Doing all the work themselves instead of empowering the team to execute.
Cody’s Five-Part Clarity, Certainty Roadmap (Scaling Operating System)
- Vision: Clear long-term direction (like a clean windshield).
- Dashboard: Key metrics and KPIs to monitor progress (like a car’s speedometer).
- Goals: Targets with timelines (like GPS navigation).
- Communication: Regular updates and alerts to stay on track.
- People: Team members executing and maintaining the system.
GPS Operating System Model (Game Plan, People, System)
- Game Plan: Define company, life, and team vision/destination.
- People: Build a team of operators, deal scouts, capital partners, and advisors with real experience.
- System: Implement SOPs covering hiring, training, selling, and other operations, using proven frameworks.
PEIC Framework for Evaluating Systems
- P: Proven, battle-tested frameworks.
- E: Explicit, detailed processes (step-by-step instructions).
- I: Implementation clarity (how to ensure consistent execution).
- C: Checkpoints and continuous communication.
- Continuous Improvement: Regularly update and improve systems based on feedback and results.
Seven Business Areas to Systematize
- Vision
- Models
- Tempo (rhythm of operations)
- People
- Operations
- Marketing & Sales
- Finance
Vision as the Foundation
Vision Dashboard
- A 1, 3, 5, 10-year vision plan with clear metrics and targets is critical.
- Example from Contrarian Thinking:
- Company Motto: Defines culture and ideal team members.
- North Star Metrics: Two complementary KPIs — quantitative (revenue) and qualitative (followers/audience). Balancing these avoids short-term revenue spikes at the expense of long-term audience trust.
- Long-term Targets: Create 1 million financially free small business owners; build a multi-billion dollar media and investment firm.
- Personal Vision: Ensures the founder’s preferences and work style are respected to avoid burnout or dissatisfaction.
- Core Values & Purpose: 13 core values emphasizing ownership and hard work; purpose to help people achieve financial freedom.
Strategy & Framework
- Focus on avatars (ideal customer profiles) to target profitable and loyal clients rather than just high-volume or easy clients.
- Case Study: A landscaping business initially focused 80% on residential clients but found commercial clients (20% revenue) had double profit margins and higher retention. Shifting focus led to $10 million revenue growth.
- Flywheel Model: Using content (YouTube) to generate deal flow, attract investors, and fulfill mission simultaneously.
Product Pillars
Clearly define what you sell (community memberships, investment vehicles, books, etc.) in one place so the team never guesses.
Execution & Operational Rhythm
Annual & Quarterly Vision Planning
- Set aspirational one-year goals (e.g., “most trusted and followed business name in the world”).
- Break down into quarterly projects aligned with the vision to prevent task creep and busywork.
Meeting Cadence & Communication
- Weekly team check-ins (~2 hours/week).
- Monthly reviews to assess quarterly goal progress.
- Quarterly sprints to evaluate and plan next steps.
- Annual planning sessions (8-12 hours per year).
Scorecard-Based Leadership
- Use traffic-light indicators (red/yellow/green) to track progress on north stars, company goals, and individual projects.
- Track completion rates and assign a DRRi (Directly Responsible Individual) for accountability.
- Enables identification of high performers and areas needing attention.
Key Metrics & KPIs Highlighted
- North Star Metrics: Revenue & Followers (audience size) for Contrarian Thinking.
- Profit Margins: Example of commercial landscaping clients having double profit margins compared to residential.
- Revenue Targets: Example business scaled to $10 million revenue by focusing on right avatar.
- Meeting Time Allocation: Weekly (2 hrs), Monthly, Quarterly, Annual planning time specified.
Actionable Recommendations
- Focus on big-picture vision and goals first before drilling down into small processes.
- Build systems that can be executed by a VA or junior team member, not just the founder.
- Develop a clear vision dashboard with quantitative and qualitative KPIs.
- Define your ideal customer avatar carefully to focus sales and marketing efforts on profitable, loyal clients.
- Implement a disciplined meeting cadence and scorecard system for ongoing accountability.
- Regularly revisit and improve systems (continuous improvement).
- Avoid busywork; focus on projects that move the business forward.
Additional Resources & Offers
- Quarterly scaling workshops to implement these systems.
- Books and consulting calls available for deeper help.
Summary
Cody Sanchez advocates a systems-first approach rooted in clear vision, disciplined execution, and team empowerment. Using frameworks like PEIC and a GPS-style operating system, businesses can build scalable, profit-driving systems that free founders from day-to-day firefighting. The emphasis is on balancing quantitative and qualitative metrics, targeting the right customers, and maintaining a rigorous planning and review rhythm to ensure consistent growth and operational clarity.
Presenter: Cody Sanchez (Big Deal Podcast)
Category
Business
