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The Secret to a Valuable Small Business is Building Systems that Generates Profits

Updated on May 22, 2015

Characteristics of Effective Systems

  1. The system is documented and can be performed by someone with very little training. Checklists, process charts and flow charts take the thinking out of the process

  2. The system has feedback loops that allow the business owner to spot trends very early.

  3. The system is the focus, the result automatically flows from the systems

  4. Failure to follow the system triggers alerts that can be identified and the causes diagnosed.

Check Your Ego at the Door

Most small business owners get a feeling of self-importance when their employees come to them for nearly every decision. The business owner justifies it in the name of “I take the risk so I make the decisions”. If the business owner thinks it through he or she will realize that they can set up systems that make the same decision the the owner would make except it doesn't require the owner to make the decision each time. Make the decision once, document it in the form of a system and then allow the workforce to manage the system.

How to Start?

Take a simple, repeat process that you have in your business and break the process down into a diagram that shows all the decision points and different paths. For instance, you could take the process of receiving a check from a client and take it step by step from the moment the envelop shows up in the mail all the way thru the deposit and the payment is recorded on the clients account.

I can promise you that if you don't have current well thought out processes in place you will find at least 6 ways to improve your current process.

Now think about how 6 improvements for each of the hundreds of processes in your business could result in dramatic business performance.

Start now, and get the help of your employees. Commit to 1 system per week. Once you get good at it you'll be able to knock out a couple a week and dramatically improve your business.


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