In business, there is a similar rule, it's called the Business Success Rule, and it goes: Implement, Measure, Adjust, Repeat. It is the process you absolutely must master if you are to know what actions to take to steer your business in the right direction. It's all about taking action, testing that action, then adjusting based on the results.
Tracy and Pamela talk more in-depth about The Business Success Rule in our latest episode. Follow this rule and it will also guide you in the right direction for your goals. And if you don't know what your goals are yet, then check out our Productivity & Goal Setting episode.
After you've watched this, leave us a comment below about your success rules. Do you follow the "wash, rinse, repeat" method? How has it worked in your business? We'd love to hear from you! And don't forget to subscribe!
Pamela: Hello everybody this is Pamela
Tracy: And this is Tracy
Pamela: And we are here to discuss how business really works.
Tracy: Today we're going to discuss The Business Success Rule and when you know it’s okay quit.
Pamela: You know there are rules to doing virtually anything in life and washing your hair, you know, the old saying is wash, rinse, repeat, right? That's the process you do to wash your hair. So it's the same in business you have to measure your results and you have to know what results you're looking to go after in order to succeed.
And the process is that you implement, you measure, you adjust, and you repeat. That’s The Business Success Rule.
And if you don't do that, well, how are you going to know if you succeeded? And if you're thinking about quitting because you've got less than optimal results the first time around, how do you know that you got less than optimal results if you're not measuring them? And how do you know that you can get better result by just making some minor adjustment?
[Time – 1:00]
Tracy: Well you know business is a science. So just like in a scientific experiment, you have to create your hypothesis. You have to know what to measure, what results you are expecting, and if you don't determine these things ahead of time, you know, it's a little difficult to measure after the fact.
Pamela: So it doesn't matter whether you are launching a new product or service, implementing a marketing plan or bringing an existing product to a new market, you have to set up the system in place to measure your results. This is the way you maximize your chances of success.
Tracy: So once you launch, you're going to know your expected results, you’re going to know your optimal results, and then you’re going to look at your metrics to see where you fall. And if you get less than optimal results then you look at the details, you find out kind of why you think you didn't get the results you were expecting.
And let’s say you come up with three things that you can do to adjust and improve a little bit that you think will get you your optimal results. Now don't do them all at one time. Do them one at a time. If you do all three things at one time, you will have no idea which one created the optimal results.
And it might just be one of them. So now going forward you’re going to be doing these three things when you really only had to do one.
[Time – 2:20]
Pamela: Even worse, what if you took these three actions with the intention of creating optimal results right? But the reality is that one of these actions created results that actually far exceeded your expectations and another of those actions actually pushed your results down, created a negative impact on your results. But since you haven’t measured each one individually you don’t really know that. All that you know is that your net result was positive.
You don't know though that there's like this weird balance going on where something actually could have created much more positive results if you haven't been dragging it down with the other action that negatively impacted you. So you really need to again measure these individually so that you can take that one action that really helped you out and not bother with the action really hurt you. And you don't know that it’s hurting you because you haven’t measured.
[Time – 3:12]
So, take this business for example, How Business Really Works. We have determined what to measure and how to measure it so that we can chart our success along the way.
Tracy: Well, that is true. So this is actually very young business. This is only our seventh episode. So how we determined this is we actually looked at other shows that were doing something similar in format and similar to audience and we look at how they grew and how their success happened along the way. And we kind of used that to help set our parameters of what we wanted to expect.
Now don't worry this is usually very easy information to get. People have a tendency to discuss their successes they become more successful in order to help others along. And even if you can't find out there somewhere, ask, business people are incredibly eager to help other people out.
Pamela: It’s true.
[Time – 4:05]
Tracy: So basically like we setup our metrics which are like in the first 30 days we expect an episode to get between 700 and 1,000 views. Now a “view” could be watching the video on YouTube; listening to the podcast on either iTunes, Stitcher or SoundCloud; or actually coming to How Business Really Works and viewing it there.
Pamela: The website you mean?
Tracy: Yeah, or we also take the transcript and we turn it into blog posts and we put it out, syndicate it out. So a “view” can come in different formats. I’m just using the word “view”.
So we expect 700 to 1,000 consumptions basically I guess is what I should say.
And of that we expect ten to twenty percent of the viewers to take a benign action. Benign meaning it doesn't take a lot of effort. So they’re going to like it or they're going to share it on social media.
[Time – 5:07]
And we expect eight to ten percent to take a little bit more self-involved action which will be like subscribing or watching a previous episode. And then we're expecting two to three percent to actually come to How Business Really Works dot com and sign up for additional information.
And then we are expecting only a half to one percent to actually take a very involved action such as writing a review or leaving a comment.
Now as long as one of the episodes falls within those metrics are pretty good and we don't worry about it too hard. We still you look at the reviews, look at the comments, look at anything written with a social share to learn from it. But when we see our metrics go above that or we see our metrics go below that then we seriously study that information to determine, see if we can determine, see if the audience will tell us why we perform better or worse. And we take that information and use it to improve in the future.
[Time – 6:08]
Now sometimes it doesn't always give you the answer. Sometimes just you know, we were flat and didn’t perform well that day, we didn’t choose our words correctly, or we could have just totally missed the mark with the content for that day. It just didn’t resonate with enough people. But usually you're going to find that information out if people will leave comments.
So The Business Success Rule is all about measuring and repeating. You implement, you measure, you make adjustments one at a time and you repeat. And you do this over and over again until you get the results you expect.
Now somehow you don't get the results you expect. The changes you feel you need me just don't yield the results. But until you tested, and tested and tested you can't make the decision to quit. That it's not going to work. You have to know that before you give up.
[Time – 7:08]
So I hope this episode has helped you out, made you realize, you know, business isn't all lollipops and rainbows. Sometimes we have to do real work.
Pamela: Right and you have to measure the real results.
Tracy: You have to measure the real results and you have to make real hypothesis.
Pamela: Yeah like a scientific experiment.
Tracy: It is. It is a science. It truly is. Business is a science.
So I hope this episode has helped you out. If you have any questions, if you're watching on YouTube leave us a comment. If you're listening on one of the podcast, head on over to How Business Really Works dot com and leave us a comment there.
We will like to hear from you. Ask us any question. Help us come up content for the next episode.
Pamela: Yes definitely, and don't forget to like this video and share if you found it useful. And please subscribe. We will see you on the next one.