The How of Business - How to start, run, grow and exit a small business.

How small business owners can build mission-driven companies that earn trust, create long-term value, and avoid the traps that cause good businesses to lose their way.
Show Notes Page: https://www.thehowofbusiness.com/609-eric-ries-incorruptible/
What causes good companies to go bad?
According to Eric Ries, author of The Lean Startup and his new book Incorruptible, it often begins when organizations lose sight of their true mission and start making decisions based solely on short-term financial results.
In this episode, Henry Lopez speaks with Eric Ries about how entrepreneurs can build businesses that stay true to their purpose as they grow. Eric shares why mission is much more than a statement on a wall, how trust becomes a powerful competitive advantage, and why governance structures matter even for small businesses.
They discuss real-world examples from companies like Cloudflare, Patagonia, Costco, and Taylor Guitars, exploring how organizations can make principled decisions that strengthen trust and create long-term value. Eric also explains why profit is often misunderstood and how business owners can think differently about profitability, purpose, and organizational longevity.
The conversation concludes with Eric's thoughts on how AI is accelerating entrepreneurship and why founders who move quickly, learn rapidly, and remain grounded in their mission will be best positioned for the future.
Whether you're launching a startup, leading a growing company, or planning for succession, this episode offers valuable insights on building a business that endures.
Eric Ries is an entrepreneur, author, and creator of the Lean Startup methodology. His work on innovation, entrepreneurship, governance, and long-term company building has influenced founders and business leaders around the world. He is the bestselling author of The Lean Startup, The Startup Way, and Incorruptible.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

Selling a business is far more complicated than most entrepreneurs realize and many business owners wait too long to prepare for it.
Show Notes Page: https://www.thehowofbusiness.com/608-selling-a-business-roundtable/
In this final episode of the three-part entrepreneurial roundtable series, Henry Lopez is joined again by Giuseppe Grammatico, Rocky Lalvani, and David Barnett to discuss what actually makes a business sellable and how business owners should think about exit planning from the very beginning.
The conversation explores one of the biggest misconceptions in entrepreneurship: the belief that a small business will automatically sell for a high multiple. The panel explains why buyers care about much more than just financials, including owner dependency, systems and processes, operational documentation, and whether the business can realistically continue without the founder heavily involved.
David Barnett shares insights into business valuation, buyer psychology, and deal structures, including why many sellers are surprised to learn that buyers often want seller financing, earnouts, or transition support to reduce risk. The group also discusses why most businesses listed for sale never actually sell and what separates a transferable business from a job disguised as a business.
The episode also covers:
• How systems and SOPs increase valuation
• Why franchises often have an advantage in resale value
• The hidden tax implications of selling a business
• The emotional challenges of exiting a business
• Why some owners should focus on maximizing income instead of pursuing a sale
Whether you're years away from an exit or just starting your entrepreneurial journey, this conversation will help you think differently about building a business with long-term value.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

Identify what to fix next in your small business and build consistent profitability using the Profit First methodology.
Show Notes Page: https://www.thehowofbusiness.com/r322-mike-michalowicz/
Many small business owners stay trapped in survival mode because they don't know what to fix next in their business. They work long hours, constantly fight fires, grow revenue, and still struggle to achieve predictable profitability.
In this episode, Henry Lopez talks with entrepreneur and bestselling author Mike Michalowicz about how business owners can identify the right priorities, stop spinning their wheels, and build a more profitable and sustainable business.
Mike shares insights from his book Fix This Next, including his Business Hierarchy of Needs framework that helps entrepreneurs determine what their business actually needs next instead of reacting to daily crises. He also explains why many businesses mistakenly believe more sales will solve every problem when, in reality, increased sales often create more stress, obligation, and operational chaos.
Henry and Mike also dive into the core principles behind Profit First, the cash management system that challenges the traditional accounting formula of Sales – Expenses = Profit. Instead, Mike explains why business owners should prioritize profit first by allocating profit before expenses, forcing smarter operational decisions and healthier financial discipline.
During the conversation, Mike shares:
Why entrepreneurs often struggle to identify their biggest business problem.
The "A to B" exercise for determining what your business needs next.
The Business Hierarchy of Needs framework.
Why growing revenue alone often increases stress.
How Profit First changes the way owners manage cash flow.
Why most small businesses operate check-to-check.
How to begin implementing Profit First starting with just 1%.
Why profitability forces better business decisions and innovation.
The importance of validating your business model early.
Mike also shares the personal story behind creating Profit First after losing nearly everything financially following the sale of his businesses.
This episode is packed with practical insights for entrepreneurs who want to stop chasing revenue and start building a healthier, more profitable business.
Mike Michalowicz is an entrepreneur, speaker, and author. He is the bestselling author of several influential business books including Profit First, Fix This Next, The Pumpkin Plan, and Surge. Mike is also the founder of Profit First Professionals, an organization that helps accountants, bookkeepers, and financial professionals guide business owners toward greater profitability.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

Grow a healthier business by managing cash flow, using debt strategically, and building strong business relationships.
Show Notes Page: https://www.thehowofbusiness.com/607-growing-a-small-business/
Growing a business requires far more than simply increasing sales. It demands financial discipline, smart decision-making, and strong relationships.
In Part 2 of this entrepreneurial roundtable series, Henry Lopez is joined again by Giuseppe Grammatico, Rocky Lalvani, and David Barnett for a practical conversation about what it really takes to grow a small business.
The discussion begins with one of the most important topics for entrepreneurs: cash flow management. Rocky explains the principles behind the Profit First system, created by Mike Michalowicz, and why many business owners fail to recognize financial problems until it's too late. They also discuss why relying only on bank balances can create dangerous blind spots and how cash flow systems can provide early warning signs when something in the business model is broken.
The conversation then shifts into debt and leverage. The panel explores the difference between using debt strategically to fund profitable growth versus using debt to cover operational problems or poor financial management. David shares examples of how business owners can misuse lines of credit and why understanding the purpose behind borrowing is critical to long-term business health.
Finally, the group discusses the importance of relationship building and networking for business growth. Henry shares why getting out into the community, identifying referral partners, and building meaningful connections remain essential growth strategies for local and service-based businesses.
This episode is packed with practical advice for entrepreneurs who want to build a stronger and more sustainable business.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com

KPIs (Key Performance Indicators) provide an effective way to measure your business performance using both leading and lagging indicators to make better decisions and drive growth.
Show Notes Page: https://www.thehowofbusiness.com/606-kpis-measure-business-performance/
Small business owners often rely on gut feel or a quick glance at their bank balance to gauge how their business is performing, but that approach leads to reactive decision-making and missed opportunities. In this episode, Henry Lopez explains how to use Key Performance Indicators (KPIs) to measure business performance more accurately and proactively.
He breaks down the difference between lagging indicators - such as revenue, profit, and cash - and leading indicators like leads, conversions, and customer activity, which help predict future performance. By understanding and tracking both, small business owners can gain clarity and control instead of simply reacting to past results.
Henry also shares a simple framework for selecting KPIs, emphasizing that most small businesses should focus on just three to five core metrics that are measurable, aligned with business goals, and reviewed consistently. To make it practical, he walks through a sample KPI scorecard that includes revenue, profit, cash, customer flow, and customer retention, while reinforcing that these are starting points, not a one-size-fits-all solution.
"You can't improve what you don't measure, but only if you're measuring the right things," Lopez explains, highlighting the importance of choosing the right metrics for your business.
This episode is hosted by Henry Lopez. The How of Business podcast focuses on helping you start, run, grow and exit your small business. The How of Business is a top-rated podcast for small business owners and entrepreneurs. Find the best podcast, small business coaching, resources and trusted service partners for small business owners and entrepreneurs at our website https://TheHowOfBusiness.com