Business systems: How they save your sanity!

A challenge for any solo business owner is how to get others to help run the business, so that it doesn’t completely take over your life. You can look over everybody’s shoulder all of the time or you can invest in business systems to free yourself.

In reality, solo business owners are going to do most things themselves. But it’s possible to get help from the likes of book-keepers, virtual assistants or colleagues in the same industry. This way your business doesn’t completely take over your life.

To set up a business system you have to get the knowledge out of your head and into a format that others can understand and follow. You need to identify what are the most critical actions in your business, who is responsible for them and how they should be done. Once you know these things, you can share this information with others and begin to do less of them yourself. A little time invested in giving direction to others will pay big dividends down the track.

Systems in your business are as important as the products and services you sell. If you don’t give your customer sufficient reason to purchase your product, they will go elsewhere. Look at your business systems in the same way.

Your product or service can be recreated by following a ‘recipe’. Your recipe is having systems, making sure they are functional and constantly being improved.

When you have business systems in place, others can replicate easily the critical actions. This will give you the opportunity to have a break when you want to and know the business will perform in the same way as if you were there.

If you don’t have systems you will always be a slave to your business.

Further, to expand your business it is critical that you have business systems in place. When your product is good you need to ensure you replicate the process each time you make it. You need to do the same with your business. Things that are replicated are easier for others to follow.

Business systems stop you, the business owner, from having to be the bad guy/girl all the time. When something isn’t being done as per the system you can simply say “This is the way we do it here and this is the system”. It leaves no doubt in the mind of staff about the way things need to be done. This is why McDonalds is so successful. They have business systems and they say “This is the way we do it here”.

Business systems can take many forms e.g. manuals or a web based method. Web based methods for many business processes are popular today. These types of business systems are not as expensive as you might think. What price do you put on your own sanity and health?

Another benefit of having systems in place is in added value to your business. If you wish to one day sell your business and retire, having business systems is much more attractive to a buyer than a business that runs from inside the owner’s head.

Do you have systems supporting your business?

Sue Hirst is the founder of CAD partners (also known as ‘CFO On-Call’), a team of Financial Controllers who can help business owners grow their business safely.

7 comments | Add your own

Went to a seminar earlier this month and for two days we heard about how important business systems are, and they should be introduced as early as possible. Start your business with the intention of selling. Made a lot of sense to me patrick Burgess from north Ryde NSW
Goodness, Sue, never a truer word written - "Business systems stop you, the business owner, from having to be the bad guy/girl all the time. " Blame the system! Realistically, it is not as though you are the bad person, but because there are no systems in place, people aren't sure where the boundries are. Only a very loyal dog will stay near a house with no fences. -Jess, www.zulugraphics.com.au Jess from Zulu Graphics, Newcastle
Having systems and documented processes to prepare your business for sale (ie building equity) or duplication (eg franchising) certainly makes sense but, KEEP IT SIMPLE!! Grant Hyman - salescentral from Sydney
In my business this is one of the areas that my clients get most value from. It's not enough to have the information on how they do things in their heads. Spending a small amount of time doing a brain dump and then getting me to work my magic and transforming that information into a procedures manual, or flow chart, means that when someone is sick or on holidays, work doesn't stop. Another team member can take over just by reading the procedures or manual. Another thing to note is that whilst it may make sense to you if you write the procedures/manual it may not make sense to the person reading them. So it's always good to have someone else read them and let you know if there were any gaps. Getting an outsider to review them also opens up the opportunity to find simpler and more efficient ways of doing things that will ultimately save you time. Laura Trenerry, http://www.youronlineadmin.net Laura Trenerry from Sydney
establishing new, and refining existing systems has become a priority. thank you for this timely and useful article. well written. Catherine White - Civil Celebrant Catherine White from Sydney
Thank you Sue for such a concise article on this extremely important area of business. As a solo consultant specialising in just this area, I can only agree with each and every word in your article. The amount of time spent in business trying to train staff just to take over some of your work load is enormous and requires more time and effort than it should. By using business systems that are concise and written in a way that the most inexperienced staff member can understand and follow, you take the insanity out of your work load. The added bonus that comes with documenting processes in some way, is the ability to see what's working and what can do with improvement. A good consultant will also advise areas that can be improved as well as those that are obsolete and need reworking. Keep up the good work Sue - lets get the message out there! Narelle HInchcliffe, Process Consultant. alternate1@msn.com.au Narelle Hinchcliffe from Melbourne
I agree. My first advice to clients is to identify what they do and document the process. Why should "big" businesses only have the advantage of process control. The only additional step I advise is to have your systems checked regularly by someone independant (internal audit in big business) to ensure you are still doing what you say you are doing. Thanks for the article Paul Cleary Paul Cleary from Cairns

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