The Hubbard Management System

Hello everybody, it’s Matt Hines back with Hines On Air. We’ve got a different kind of presentation for you today. I want to give you some business advice and viewpoints that you can hopefully apply in your own endeavors to improve your conditions. So let’s dive right in.

The first mindset I’d like you to adopt as you explore the business world is this: When approaching a situation, we often think that things can either get better, stay the same, or get worse. We see three main options: get better, stay the same, or get worse. But think about this: what in this universe actually stays the same?

You might say, «Matt, this microphone stays the same. It’s the same right now, it’s not changing at all.» But in reality, the microphone is constantly changing. The electrons inside it are moving at fantastic speeds, and it’s on the surface of planet Earth, which is spinning at about 1,000 miles an hour. Plus, it’s part of this galaxy, so it’s changing too. The same goes for a poster on the wall or even the amount of money in your bank account, which is influenced by inflation, interest rates, and currency rates.

The point is, nothing in this physical universe stays the same. There is no such thing. Things either get better or they get worse. So, instead of three options (better, same, worse), we only have two: better or worse.

To influence outcomes and make things better, we need tools. One of the tools I want to talk about today comes from the Hubbard Management System, developed by L. Ron Hubbard. This is one management tool of many that has helped our practice and can help yours as well.

Life Cycle of a Company:

Think of the life cycle of a company and how things progress:

1. Idea: Everything starts with an idea. This idea needs to be strong because it drives all the physical actions that follow. If the idea is weak, nothing will happen. Dedication and focus make the idea strong.
2. Place to Operate: Next, you need a place to operate—an office, your car, a building, or just your bedroom with a computer set up.
3. Staff: Initially, it might just be you, but eventually, this will become your staff.
4. Marketing and Sign-Ups: You need to market your service or product and sign up clients. I remember when we first started our company, I was waking up early to place signs all over the highways. This was our way to disseminate information about our law firm when we were broke and had no marketing budget.
5. Getting Paid: After signing up clients, you get paid.
6. Delivering the Product/Service: Then you deliver the product or service that your clients paid for.
7. Quality Control: You correct any problems with your service or product. This is called quality control.
8. Promotion: Finally, you tell the world how great you are and how great your product is.

Seven Divisions of Business:

Let’s break down the seven steps into divisions:

1. Idea (Goals, Strategies, Mission Statements): This is the foundation. It includes your vision statements and the core idea driving your business.
2. Division 1 (Communications): This includes your building, reception, staff statistics, and all kinds of information. Even if it’s just you, this is where it all happens—your business, computer, telephone, etc.
3. Division 2 (Marketing and Sign-Ups): Here you start marketing your service or product, make calls, pass around business cards, and sign up clients. This is where you sell your service or product to clients.
4. Division 3 (Treasury): This is where you handle the financial aspects—getting paid, maintaining money, paying bills, and managing assets like buildings and cars.
5. Division 4 (Delivery): This is where you actually deliver your product or service—providing legal services, chiropractic adjustments, repairing things, teaching, etc.
6. Division 5 (Quality Control and Training): Here you correct any problems with your service or product and ensure ongoing training to become better at what you do.
7. Division 6 (Promotion): This is where you take your successful product or service and promote it. Use social media, optimize your website, buy pay-per-click ads if finances allow, and tell the world how great your product is.

Organize your company for expansion using these seven divisions. Every successful company has these divisions, whether they’re organized exactly like this or not. For younger businesses, you’ll start in Division 4 (Delivery) because that’s what you do. You’ll need to be active in Division 6 (Promotion) very soon, and then Division 2 (Sign-Ups).

Growth involves hiring and expanding, which can be scary. Many people fear that first level of expansion, worrying about paying rent and their own salary, let alone someone else’s. But push through that mental challenge. Trust yourself to hire the next person, work out a salary, and continue expanding.

Remember these seven divisions, set them up, and start working hard. It won’t be easy, but it will be fun and rewarding. I hope this information gives you some inspiration and tools to help grow your company. If you have any questions, please post them. Be sure to like, follow, and subscribe. See you in the next episode of Hines On Air!