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From Chaos to Calm: How to Develop Systems to Run your Business

August 24, 20235 min read

Is your business taking over your life? You need systems.

Many of the individuals I work with seek my guidance because they've grown weary of their businesses consuming their every waking moment.

The path out of this all-encompassing trap lies in the creation of a self-sustaining enterprise that operates smoothly without the constant presence of its owner.

With a self-sustaining business in place, you can:

  1. Break free from the "hub and spoke trap," where everyone turns to you for every minor issue.

  2. Attain the gift of time freedom, enabling you to leave work at a reasonable hour, enjoy weekends off, or embark on extended holidays.

  3. Plan for retirement, either by selling the business or having it managed by others while you continue to draw income from it.

  4. This concept is also an indispensable element in the journey of business growth and expansion.

At the core of a self-sustaining business model is a well-known adage from Butler Advisory: "systems govern the business, people oversee the systems, and you lead the people."

In simpler terms…

You want your business to be systems dependent instead of people dependent

When you establish highly effective systems within your business, you gain the ability to hire individuals with relatively modest skills and experience and still achieve exceptional results.

Take, for instance, the global behemoth, McDonald's.

Ever wondered how they manage to ensure their French fries taste identical whether they're being prepared in Sydney, Milan or Hong Kong? These fries are whipped up by teenagers, the same ones whose parents often struggle to get them to tidy their own rooms!

So, what's their secret?

It all boils down to their exceptional systems.

McDonald's can train any 16-year-old to meticulously follow their standardised processes.

With these systems firmly in place, you cease to be the bottleneck, the lone decision-maker, or the sole guardian of knowledge about your business operations.

Your team becomes well-versed in their roles and the processes they need to execute.

They take charge of running these systems.

Your responsibility then shifts to leading these individuals.

Where to start when building systems for your business

Wondering where to embark on your journey to systematise your business? Follow these four fundamental steps:

Identify and Prioritise Processes

Kickstart by compiling a comprehensive list of all the processes operating within your business. This includes everything, from client onboarding to managing complaints, invoicing, marketing, sales procedures, service delivery, and even how meetings are conducted. If you're unsure where to begin, consider conducting a Time Audit to uncover these processes. Once you have your list, sort them based on their frequency and importance. Where would it be most beneficial to initiate the process? Select one to start with. Remember, building processes and systems is a substantial project, so don't overwhelm yourself—break it down into manageable chunks.

Document Processes with Checklists and SOPs (Standard Operating Procedures)

When I advise my clients to create SOPs, they often envision crafting extensive employee training manuals. While this might be necessary for franchises like McDonald's, for most small businesses, SOPs can be more straightforward yet highly effective. Here are five tips for making the task faster and more manageable:

  • Utilise Video: Use a tool like Loom to record yourself explaining the instructions, keeping videos under 3 minutes. For more complex processes, break them into shorter segments.

  • Involve Employees: Engage your team in creating SOPs by discussing and documenting instructions collaboratively.

  • Keep Technology Simple: Consider using tools like Google Drive for easy sharing, access, and permission management.

  • Start Small: Begin with a basic checklist and expand it into a full SOP if necessary. Basic and repeat administrative tasks are usually the best candidates as a starting point.

  • Include Visuals: Enhance understanding by incorporating screenshots or diagrams instead of lengthy textual explanations.

  • Train Your Team.

The purpose of creating systems is to ensure consistent execution. To achieve this, every team member should understand the system and how to implement it. Make system training a part of your onboarding process. Additionally, if you're introducing new or updated systems, provide refresher training for current staff members. Keep your SOPs and checklists easily accessible via platforms like Google Drive. For optimal results, integrate systems into your workplace culture, making them the standard way of doing things.

Review, Update, and Refine Your Systems Over Time

Continuously collect feedback and fine-tune your processes. If you discover more efficient methods, promptly update your documentation. The goal is to systematise routine tasks and humanize exceptions. Typically, 85% of your work is routine and should follow standardised procedures. The remaining 10% to 15% consists of exceptions that may require special attention. In such cases, assess how you can adjust the system to prevent similar exceptions in the future. With time and diligence, your systems will evolve and become increasingly effective.

Let systems free you from your business

Implementing systems is the key to streamlining your operations, minimizing errors, and elevating the overall quality of your work.

These systems are your ticket out of the "hub and spoke" quagmire, where everything funnels through you.

Contrary to common misconceptions, system creation doesn't demand elaborate strategic blueprints, complex documentation processes, or months of meticulous planning. Instead, it's about offering your team practical guidance that empowers them to carry out tasks consistently and efficiently.

By incorporating systems, you not only enable the growth of your business but also establish a foundation for consistency and workflow optimization.

Crucially, you're setting the stage for your business to grant you the lifestyle you desire.

Developing systems is an investment well worth your time, promising substantial returns in the long haul.

If you're seeking assistance in systematising your business, consider exploring our coaching services. Let's have a conversation about it - you can schedule a call here: Book a time with Trent.

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