How to Build Systems So Good… Your Business Runs Itself

In this solo episode of BigDeal, Codie emphasizes the critical role of effective systems in running a successful business. She discusses common pitfalls entrepreneurs face when trying to systematize their operations and provides a structured approach to building a strong vision, defining metrics, and ensuring accountability. Want help scaling your business to $1M in monthly revenue? ⁠Click here⁠ to connect with my consulting team. CHAPTERS 00:00 The Importance of Business Systems 02:51 Common Mistakes in Systematizing Businesses 06:00 Building a Strong Vision for Your Business 08:45 Defining Your Business Metrics and Goals 12:08 Creating Effective Communication and Accountability 14:58 Implementing Systems for Long-Term Success MORE FROM BIGDEAL: 🎥 ⁠YouTube⁠ 📸 ⁠Instagram⁠ 📽️ ⁠TikTok⁠ MORE FROM CODIE SANCHEZ: 🎥 ⁠YouTube⁠ 📸 ⁠Instagram⁠ 📽️ ⁠TikTok⁠ OTHER THINGS WE DO: ⁠Our community⁠ ⁠Free newsletter⁠ ⁠Biz buying course⁠ ⁠Resibrands⁠ ⁠CT Capital⁠ ⁠Main St Hold Co⁠ Learn more about your ad choices. Visit megaphone.fm/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:00Speaker 00

  This episode is brought to you by Indeed. You're ready to level up your business, but the pressure to find the right person to make that happen is intense. Indeed sponsored jobs can help carry the load. It boosts your job post to help it reach quality talent fast. Cut through the chaos with Indeed sponsored jobs. Get a $75 sponsored job credit at indeed.com/podcast. Terms and conditions apply. Hiring now? Then this is a job for Indeed sponsored jobs.

• 0:31Speaker 01

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• 0:59Codie Sanchez?

  Most people get run by their businesses. They don't run their business. No matter where you are, you are probably one system away from a totally different business. Save yourself time, energy, money, stress. That's systems. Am I doing the things that will actually drive the business forward? If you have the big core goals and metrics set in your business, all the little pebbles don't really matter. And if you do that, you have a system that actually makes you money, not one that just makes you feel good.

• 1:28Codie Sanchez?

  Hi, I'm Codie Sanchez, and welcome back to the Big Deal Podcast. Today, here's the truth. Most people get run by their businesses. They don't run their business. So if you want to follow the advice of most people on YouTube or online about building systems within your business, here's the thing. You're going to either lose days, weeks, or months, and money, and maybe like your mind. So instead, I got tired of listening to all that, and I'm going to give you my systems that you can use to start systematizing your business inside of one hour, and I'll teach it all to you in less than 20 minutes. Now, I know this because I run a portfolio of businesses, and I've been in private equity for 15-plus years. Private equity is where we run the most profitable, systems-oriented businesses that exist. Lots of people can say they're organized and have systems, but do systems... Make them money. So I can promise you one thing.

• 2:13Codie Sanchez?

  If you implement systems in your business, the only regret you will have is waiting as long as you did to do it. I think it is the single biggest thing we teach to thousands of entrepreneurs every single year that changes their business outcome. So it's not advice, it's your system. Let's first talk before I tell you how to do it. Let's talk about how most people do it wrong. Number one. They focus on creating a process map for individual things they do inside of their business. They do what I call start small and then lose all. It's like saying. I want to build the Sistine Chapel and then you go, the first thing I'm going to do is pick out which candles I want inside of the building. Way too tiny. If you did that and reverse engineered from candles all the way to the foundation, you'd never get the thing done.

• 2:57Codie Sanchez?

  You got to start with the big parts first, or what we call your higher level vision. Then two, they obsess on perfect and super detail oriented. So every single person that they give their systems to can understand it, recreate it. And then the real problem, they make themselves do all the work as opposed to their team doing the work. So what are we going to do instead? We're going to follow my process explicitly and we're going to make it so easy. That your V1 can have a VA, a virtual assistant do it. Okay, so at my company, we think you need five things to run a successful company. We call this your clarity, certainty roadmap. And the five things are, you need a vision to see further.

• 3:39Codie Sanchez?

  It's like your windshield, clean windshield wipers. We need your dashboard to go faster. That's like speed limit, gas gauge, etc. We need goals to go further. That's your GPS to see where you want to get to and at what time. We need communication so that you can have a smoother ride along the way. That's how you follow the map. It gives alerts, tells you where police cars are. And then we need people to flow the business together. So you're not doing it by yourself. The people being maybe the people who work on your car and keep it up and running the music in the stereo. Now I call when we put all five of these together, our scaling operating system. And we think that if you have this, this GPS. For your business, then you will go further. So the GPS starts with game plan.

• 4:24Codie Sanchez?

  We help you set up your vision, what we call your game plan for your company, your life and your team. If you don't have a destination set, harder to get there. Then the P stands for people. We help you surround yourself with operators, deal scouts, capital partners and advisors who've actually bought and scaled businesses, not just talked about it. And then we help you build your team to your plan. Then system, this is where you integrate. How do we from, let's say, hire to continue to train to sell? How do you implement an SOP for everything? And we steal ours from 15 years of operating businesses. And so I want to walk you through a couple of things that we think about in this regard. So number one, I want to talk to you guys about PEIC systems.

• 5:08Codie Sanchez?

  How do you decide if a system is good or bad? Well, we spell PEIC like this, P-E-I-C. And what it means is that you need proven, battle-tested frameworks. So those are things that have existed for a long time. You need explicit processes. That means like, I like a cup of coffee that is black with a teaspoon of coconut oil in it, and I like it warmed up in the microwaves for a minute and 30 seconds. As opposed to, I'd like a coffee. We need implementation. So if I want to send coffee every single time from my team, how do I make sure that they know that that's how I like my coffee? Well, you have a system, then you have a checkpoint, then you have continual communication. We'll talk about that. And then number four, maybe you realize eventually you want a little cinnamon in this bad boy, and it's better if you have cinnamon in it. And so what's your continuous improvement plan? How often do you check in on your systems to update them?

• 5:54Codie Sanchez?

  So I think there are seven things in every business that you need to add your systems to. You need to have a vision, you need to have models, you need to have tempo, you need to have people, you need to have ops, you need to have marketing and sales and finance. So today I want to talk to you just about the number one system that is your foundation. Not the candles on the Sistine Chapel, but the foundation. It starts with your vision. I believe your revenue is a reflection of your vision dashboard. So if you don't have a one, three, 10-year vision dashboard, then your business will not know where to go. And let me show you an example of ours. This one's actually live. You can see me scrolling through it as we go. Every single business that I run, and these are mini businesses, now starts out with a vision plan.

• 6:38Codie Sanchez?

  Let's walk through what's in them. It starts with I am A. This is your company motto. So here for us at Contrarian Thinking, it tells me, who is a contrarian? Who is the type of person that's going to come and work for me? And I have a little saying like, I am a contrarian. I ask for no one's money. I expect no one's praise. I've never walked the easy paths. I don't want cubicles and small lives. I'm a builder. I am an owner. I do not do what I am told. I do what is required. These are the type of crazy people I'm looking for at my company. Next, you're going to have your North Star metrics. I believe every single business needs a left and a right North Star, or what I call a quantitative and a qualitative North Star. I'll talk about those.

• 7:19Codie Sanchez?

  So at Contrarian Thinking, our two North Stars are revenue and followers. We want to grow our audience base and we want to grow our revenue. Now, think about it this way. If you only had one North Star, and that was revenue, well, I could really increase the revenue of this business if I nonstop was spamming everybody all the time to buy our products. But what would happen? My audience would go way down because people would get annoyed. So when I have revenue, but I have a caller around it, like a dog, that is followers, well, I can't just totally kill revenue because I'll kill my followers. I need to balance out the two. The next is I want to have a five and 10-year target. So when you're bringing on new hires in your business, you need to tell them not where you're at today, where are you going? It's the number one question I get asked by our new hires.

• 8:04Codie Sanchez?

  It's not what are we doing today, but why am I choosing to come with you today? So my life is better in one, three, five years. Am I going to make more money? Am I going to be happier? Am I going to like the team? Then I want you to talk about your end goal. Like, when will you say as a company, man, we've made it? For us here at Contrarian Thinking, there's a couple of big things. We have to create 1 million financially free small business owners. I want that on my tombstone. I want to be able to see a face of every single person we have helped create so much wealth that it changed the trajectory of their family. That's like my egotistical goal. And then second, I want this business to be A multi-billion dollar media and investment firm.

• 8:43Codie Sanchez?

  I want it to be like the Bloomberg plus CNBC plus like the trusted investment firm of our generation. Then you gotta have your personal vision. You can see that right here. Your personal vision is how you make sure that you don't hate your business. Have you ever accidentally built something that you really hated? Like, you know, maybe you set up a business and all of a sudden you realize you have a job that you wouldn't even take if somebody offered it to you. This personal vision is where you lay out that. So it tells you what success looks like for you. For me, I don't like remote businesses. I really like running a business in person. I think that like intensity of team is so much cooler than endless Zoom meetings. So for me, my vision was in person, in a big office.

• 9:26Codie Sanchez?

  You can see some of it behind us, building with a bunch of people that I actually fucking like and that I don't have to have one person at my company I don't like. That was really important for me.

• 9:34Speaker 00

  This episode is brought to you by Indeed. You're ready to level up your business, but the pressure to find the right person to make that happen is intense. Indeed sponsored jobs can help carry the load. It boosts your job post to help it reach quality talent fast. Cut through the chaos with Indeed sponsored jobs. Get a $75 sponsored job credit at indeed.com/podcast. Terms and conditions apply. Hiring now? Then this is a job for Indeed sponsored jobs.

• 10:04Speaker 03

  Low energy, unfocused, foggy? You might be dehydrated. Gatorade Zero powders have been scientifically designed to help improve hydration balance in the body with a clinically proven electrolyte blend and no artificial colors or flavors. Great tasting hydration, no matter where you're going. Shop now online or at retailers nationwide. Gatorade hydrates better than water. Is it in you? Symptoms noted are signs of mild to moderate dehydration. Consult a healthcare professional if symptoms persist.

• 10:34Codie Sanchez?

  The next, you're gonna have your values. So what does your company stand for? Contrarian Thinking, we have 13 core values. Why 13? Because I find when you work harder, it tends to make you luckier. So we're making our own luck over here. Then we have a motto. What do we live by? This and ours is dominium, which is the Latin word for ownership. We believe that people should be owners of their life and decisions. Purpose? What are we doing here? Helping more people become financially free. What's your purpose? And then you saw the portion about, "I am a contrarian." Now finally, in here, we get to our three-part strategy and framework. Now, this part's really important, you guys. It'll take a lot of time. When we do our workshops, I think what we spend more time on anything is our avatars. So who are you selling to?

• 11:19Codie Sanchez?

  And your flywheel. What is your unfair advantage? You can see ours here. Why do I get on the internet and do YouTube videos? You know, like, sometimes people be like, "Cody, if you're really so rich and you own all these businesses, why are you on YouTube?" And it's a totally fair question, actually, because a lot of people don't do the thing they say they do and they try to make all their money on the internet. And like, there's nothing wrong with that. I think if you're making money and helping people, all good. Do you? But the reason that I get on the internet and do all of this is because it's part of our business model. If I come on the internet and help other people win, one, that is core to my business. My business's goal is I want to create 1 million financially free people. That's the entire reason this whole thing exists. So that's that. But two, if I help a bunch of people buy businesses, guess what they do? They come to me for investment in those businesses. That's a huge win.

• 12:03Codie Sanchez?

  When they come to me in my scaling workshops, that means that they already have businesses that they need more money to, that maybe I can invest in. And then also, I'm talking about this all the time, so we get investors. We have Contrarian Thinking Capital, our venture capital firm, where we let some large institutional investors come in and invest alongside us. So from the content, I get deal flow, I get investors, and I get to fulfill our mission. That's our flywheel. Then, we get into our avatars. This is really, really important. We could do a whole video on this. Let me know if you guys want a video on avatars. Just drop it in the comments or write it in the reviews, wherever you're listening to this platform. But your avatar is the difference between you serving somebody that makes you no money and you don't like, or you're serving somebody that gives you so much money, it almost makes you uncomfortable. And if you outline your avatar correctly,

• 12:47Codie Sanchez?

  it should be the latter and not the former. We helped one of our members, for instance, in a landscaping business. He had a residential landscaping business. That was like 80% of his revenue was houses, right? And he had 20% of his revenue that was commercial. So it would be like coming to my office and cleaning out the landscaping and cleaning out the grass and trimming it and watering the trees and plants and planting, et cetera. This commercial one was only 20% of his revenue, so he was going to get rid of it, focus on the 80%, narrow down. That's what people tell you to do on the internet, right? Well, the thing is, that commercial business had like double the profit margin and they were way stickier. They stayed with him forever. So he could spend more on getting more commercial

• 13:31Codie Sanchez?

  clients. He ended up flipping his entire business. That avatar ended up getting him to his first 10 figure, I'm sorry, not 10 figures, that'd be sweet. His first eight figures in revenue, his first $10 million. And so nailing your avatar is really important. That goes into your vision plan. Then we get into your product pillars. What do you sell? So here, if we're trying to help more people become financially free, do you know what we sell? Well, we sell our community. People joining the community grow. We sell our investment vehicles, people taking money from us. We sell our books. You've seen Main Street Millionaire. And you want them all in one place like this on your vision because you don't ever want your team to guess. Then you get down below it and it's just a breakout of your products. In one paragraph, can you really clearly iterate what you sell?

• 14:15Codie Sanchez?

  The most important part, though, is this. This is your one-year and quarterly vision. If you don't run your company according to a one-year and quarterly vision, I would assume that your company is running you. So in your one-year vision, it's like, alright, what is your one-sentence aspirational plan? Ours here is to be the most trusted and followed business name in the world. That is our goal. That's what we want to do. Now, we also have our North Stars, remember, revenue, followers. And then we have the projects that we think each of our teams need to do in order to accomplish them. Here's why this is so important. When you break this down by year and quarter, do you guys ever feel like things creep on your to-do list? Like, you know, at one point, you're

• 14:58Codie Sanchez?

  like, ah, I have like three things I need to do today, this week, this month, this quarter. All of a sudden, you've got 50. And so what do we end up doing as humans? Well, we have something in our reptilian brain that likes to check off small to-dos. And so you can waste your life through busyness. And what the quarterly plan allows you to do is only focus on the projects that are core. And you ask yourself if the team is actually following through on that. So let me show you what this looks like. If I take my annual plan plus my quarterly plan and break it down in communication over the course of the year, it looks like this. I have weekly check-ins with the team. Those weekly check-ins take about two hours per week. Then I've got monthly reviews. That's where we look at, how are we doing on those quarterly goals?

• 15:43Codie Sanchez?

  And we just pull it up every single time. Then we've got quarterly sprints where we say, alright, we're about 30 days through the quarter. What's happening? Next, next. And then one-year goals. That takes about four to eight hours for the quarter and anywhere from eight to 12 hours for the year to plan out what you're going to do for the following year. And if you do this and you do it right, then you start to have a system like this. Look at what our weekly goals look like. Every single person on the team has weekly tasks that are tied to their project and it also says when they're due. And then you can do what's called scorecard-based leadership. So you can have a scorecard that says, red, yellow, green, are we on target to hit our metrics? This is really important. Lots of people say they do it, but they don't actually do it.

• 16:27Codie Sanchez?

  And so I like a quarterly scorecard that looks like this. North stars, company goals, and then I want to be able to see every single person's project status, whether they're on track or not. I want to see their completion rate, like whoops, Mike, 0% completed, not good. I want to see who's in charge of it. That's the DRI, the directly responsible individual. And then I want to see what status they're at. Like, I'm working on it. I haven't started it. I'm done with this. And if you can do this across your entire business, then you end up being able to see in each division, who are your highest performers or for you and yourself? Am I doing the things that will actually drive the business forward? And if you do that, you have a system that actually makes you money, not one that just

• 17:12Codie Sanchez?

  makes you feel good. Forget about the fucking candles and focus on the fact that if you have your big deals done, if you have the big core goals and metrics set in your business... And you hit those, all the little pebbles don't really matter. All right, guys, if you like this first operating system video, let me know. I think this will change your business forever if you implement it. And if you guys need help with this, this is what we do. We have quarterly scaling workshops where we teach you how to implement this plan and put it in your business. We have books on the subject. We have a team that'll take a consulting call with you to see if we can help you. So if any of that is of interest, you can click the link below, talk to my team. But just know this, no matter where you are, you are probably one who,

• 17:54Codie Sanchez?

  we might be that who for you, and one system away from a totally different business. Because a system stands for save yourself, stress, time, energy, money. All right, see you next week.