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In a previous article we looked at what really chokes business growth. If you missed it, you can click here to read.
In short, not having business systems is not only stopping you from growing your business, it’s also costing you money.
Having spent the last 20+ years now turning around businesses and in the last 5 working more closely with small business owners and solo entrepreneurs, I’ve seen first hand how quickly businesses grow and scale when the entrepreneur prioritises building business systems.
Why?
1. Systems are Predictable
My daughter works at a well-known donut franchise. One of the key things she does every shift is having to mix the donut batter.
Now, imagine having to mix the batter every day without having a system for what goes into the batter and what to do with it to make the donuts.
Every day the donuts would come out a little different. Some days great with that perfect shape donuts are known for. And some days, maybe more like onion rings!
Customers wouldn’t know what to expect and would not trust that they would be getting the same product every day.
The same is true in every area of your business.
Think about it: if you follow up with a new lead differently every time, the experience you’re delivering is going to be hit-or-miss.
Some clients will view you as prompt and professional, while others might feel that you’re dropping the ball and can’t be trusted with their business.
To have consistency in the products or services you deliver, there must be “a way” you do it every time — a process or operating system.
Many small business owners build these consistent systems naturally out of habit, but they don’t clarify or document it. So it lives in their head – and they end up feeling like those tasks are only able to be done by them to the (invisible) standards that they hold.
Know what I mean?
It’s no wonder they are feeling overwhelmed, overworked and headed for burnout!
2. Systems can be Delegated
Until you’ve got clear systems in place, you are really limited to one of three options to getting the work done…
- Do it yourself
- Get someone to do it but get frustrated by the work because it’s not up to your standards.
- Becoming overly dependent on someone (a staff member or consultant) who does do it correctly – but you may not know how it’s being done and you’re unable to get anyone else to do it if anything happens.
With clear systems in place, you can train someone with the right skills or qualifications. And you can provide clear expectations so that the work is completed the way you want it every single time.
If someone leaves, the system remains and is able to be replicated by someone else.
3. Systems are Mesurable
When things are documented and done in a specific way each time, they become measurable.
You can start testing certain variables to see whether they move the needle in your business.
For example, if you are using a sales script or framework for sales conversations, you’ll be able to know what’s working and what’s not. Why some conversations get better results than others.
But you won’t know if you’re approaching the sales process differently each time or if you’re not recording your process.
4. Systems are Built for Improvement
When you’re able to measure, you have the ability to make improvements.
You’ll be able to measure your results and determine what to test and tweak to get an even better outcome.
From there, it’s a matter of implementing a step by step project to test your way to an increasingly better business.
5. Systems are Built for Scale
Once you have systems that are documented, predictable and measurably working to a level of success, you’ll be able to scale by simply adding additional resources.
For example, with a sales funnel…
- Add other traffic sources
- Add more salespeople
Your business growth now becomes intentional!
It’s a choice you make when you choose to.
It has levers you can pull to direct the growth in the direction you want to.
6. Systems can be Automated
It goes without saying that once you’ve identified a system that works for you, it may be worth your while to see what can be automated.
A word of caution: not every system can be automated, but for those that are, it may be possible to utilise software or integration tools to reliably, instantly and inexpensively run some processes for you.
7. Systems Create Value (and Freedom)
Finally, and possibly most importantly, systems add enormous value to your business.
As entrepreneurs we started businesses to create freedom. Mainly time and money freedom.
Systems are also immensely valuable in the eyes of prospective buyers and investors. Easy to follow, detailed systems in place mean that they can start using them to train others to continue running the business.
So you see, systems are the business.
When you build systems, you’re truly building your business.
Next up we’ll look at the best way to create these systems in your business.
I know what you’re thinking – “Where will I find the time?”
Not to worry, we have you covered.