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The Importance of Systems in Your Business

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Whether you’re a one-man operation or a giant corporation you must have systems and processes in place and working if you want your business to go to the next level.

Without the proper systems your business will never venture out of the infancy stage.

You can’t run a start-up the same way you’d run a more mature business. As a business grows it needs systems and processes to manage that growth. If your business doesn’t have systems and processes in place, overwhelm sets in and stagnation occurs.

The time to have systems up and running is during the infancy stage of your business – even if you’re just a one-man gang right now. Having them ready now will save you a lot of heartache later.

One question you might be asking is what should I systematize in my business? Good question, grasshopper.

The first thing you should do is look for areas in your business that need improving. A good kick start for your brain would be to think about places in your biz where:

  • Your results aren’t what you expected
  • Mistakes are being made constantly
  • Areas of your business where you’re spending too much time
  • Your business would improve if it were more consistent doing this

After you’ve brainstormed for awhile write down the problem areas and develop systems for those trouble spots.

If you’re a one-man operation right now think about areas of your business you could outsource. The only things an entrepreneur should be focused on are revenue producing activities and nothing else. The rest should be delegated or outsourced.

When you start your business all the systems reside in you.

As your business grows you’ll begin to hand off more and more of the responsibilities. You need to make sure that the entire system made up of people, processes, policies, key metrics, assets and strategies work together to meet the promise made to the customers, employees, and owners in a repeatable and predictable fashion.

In essence, your business systems will determine the future performance of your company.

What you want to do is find the bottlenecks inside your organization and eradicate them with solid systems.

The Characteristics of Solid Systems

Every good system must have certain features in it. A well thought out system will have these six characteristics:

  1. Defined
  2. Transferable
  3. Repeatable
  4. Flexible
  5. Measurable
  6. Feedback

Your system must have step-by-step processes (defined); others can be trained to do them (transferable); the steps must produce the same result over and over (repeatable); the process should allow for future changes (flexible); you must have a way to track results (measurable), and the system must have feedback built into it to improve performance.

What Should You Systematize?

Anything that your business does over and over again on a consistent basis should have a system with it.

Here are some examples to get you started:

  • Marketing
  • Sales
  • Customer Service
  • Management
  • Operations
  • Job Duties

These are the most important ones and systems should be designed and implemented even if you’re a small company.

Just list the step-by-step processes each one entails and create a system around it using mind maps or a flowchart. Give the documents to your people or keep them in a three-ring binder for all to see.

It may seem an arduous task in the beginning but trust me it’s worth it if you want your business to blast off into the six and seven figure range. Every company who broke those barriers did so with systems and processes in place.

Take the time to put systems in for all your repeatable tasks. In the end it will save you time, money, and future problems down the road.

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