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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.
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:
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:
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Managers
set the company’s vision and keep their eyes toward what will best
serve customer needs and how to get there.
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Team
members energize customer-sensitive systems that grease daily
operations.
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Customers
race for your products and services at a rate that grows your business.
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.
Here
are some tips to make sure your systems are up and running at a winning
pace:
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.
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.
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.
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.
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.
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