Get Ahead of the Pack by Systemizing Your Business

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- by Todd Jensen

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All businesses have systems. They make the wheels of
your business machine turn. Some systems are formal and
many are informal. Systems that are informal can keep
your wheels from turning smoothly when it comes to day-
to-day operations, closing sales and ultimately selling
or passing down your business when you are ready to
retire. You can avoid major accidents and breakdowns by
creating and maintaining formal, written systems that
will grow and distinguish your business.

A System is a Series of Processes.

Too many small businesses are too busy running the
business and fending off daily emergencies, that
systems go completely ignored and chaos often prevails.

A system is nothing but a series of processes. These
processes are comprised of one or more activities that
will involve one or more of the following inputs:
- Labor
- Equipment/machines
- Materials (including energy)
- Facility space
- Vendors

Efficient Systems Create a Better Experience for
Customers.

The business that will take the lead in the race for
customers is the business that has all its systems
integrated and working smoothly together. A business
that has an infallible billing system, acceptable
customer service but has too much inventory is not
going to win the race. Ideally your systems create an
experience for the customer that makes him or her want
to come back for more. And your team should be well
informed and easily adept at implementing the processes
you have identified

Think of it like this:
- Managers set the company’s vision and keep their eyes
   toward what will best serve customer needs and how to
   get there.
- Team members energize customer-sensitive systems that
   grease daily operations.
- Customers race for your products and services at a rate
   that grows your business.

Successful Businesses Virtually Operate on Their Own.

Imagine if you were in the market to buy a business.
Would you buy a business that can run on its own or
would you buy one that could not run without the owner?

When a business can virtually operate on its own
because its systems are so clearly documented and
thought out, it is more likely to weather changes in
business climate, transition to new ownership, maintain
its value and sell off at a much higher price.

How to Improve Your Systems.

Here are some tips to make sure your systems are up
and running at a winning pace:
1. Make sure you have a schedule for reviewing your
   systems and processes. Consider reviewing them annually
   or monthly. Make note of any bumps in the road and
   identify ways to smooth them out.
2. Lead the pack. Do not follow. Just because a system
   worked for one company does not mean it will work for
   yours. Always consider your business’s and your
   customers’ needs first when looking at other businesses
   for model systems.
3. Take care that your systems have a back up and do
   not rely on one person to make them work. People get
   sick, make mistakes and have emergencies. Whether it
   is sending the mail, ordering inventory or packaging
   your products, make sure that all systems have back up
   plans for day-to-day operations, technical failures and
   unexpected crises.
4. Think about and hear your team. Your team members
   may have more insight into your customers than you
   think. After all they are the ones most likely working
   with them day in and day out. Their judgment, insight
   and input into system development can be an invaluable
   resource. And it motivates them.
5. Write, write, write all processes and systems down.
   This cannot be expressed enough. Documenting how you do
   business safeguards your business in emergencies,
   alleviates confusion on the part of your team members
   and can ultimately protect you in potential legal
   matters. Think how much more appealing your business
   would be to potential investor, lender or buyer if you
   were able to present a how-we-do-it-here manual.

This article brought to you by Todd Jensen, a member of the
Principa Alliance.

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Todd Jensen, “The Profit Engineer”, has helped hundreds of
business owners make their business more successful and
profitable. For tips and strategies on how to boost your
business success as well as increase your profits, visit
http://www.theprofitengineer.com or http://www.maxqtc.com
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