When the time comes for selling a business many business owners suddenly realize how much value is created or lost based on the systems in place for the person buying the business.
We meet many business owners who are overwhelmed by the day to day fire drill they call a business and the thought of creating systems for their business is overwhelming to them. I always give the same advice:
Start Small but START NOW! SSSN!
You have to START…. 1 system no matter how small is better than no systems… 2 is better than 1..you get the idea.
But where to start? We recommend picking an important but relatively easy task or process that includes another person in your business. Work together, start with an outline and work down. Your objective at the end is to be able to create a simple checklist so that anyone can learn the process very quickly.
Here’s a sample of a simple process – What happens when a check comes in the mail at your business?
1. Person opening mail gives Check to Mary
2. Mary stamps check for deposit only (stamp in Mary’s top right drawer)
3. Mary makes 2 copies of check and puts 1 copy in daily check receipt file and the other in a/r process folder
4. Mary gives check to Joe.
There it is, Mary is done with the check. There would be another process written for Joe for what he does with the check and another process for Mary or whomever records what invoices the customer’s check paid.
Now name this system, it could be “Check Receipt Process” or whatever makes sense to you. Give Mary a copy and start a 2″ binder and put this system in the binder. There that’s a start and you probably got it done start-to-finish in 15mins. Now when you or Mary have an idea on how to improve this system (do you really need 2 copies of check? ) you just mark-up the system in the binder quick in easy.
Wait a day or two then knock off another system in a few weeks you could have 8- 10 critical business systems in your binder. And why do you want the systems in your binder?
So if Mary doesn’t come to work for 2 weeks or Mary quits. All you have to do is hand the process to the new person who handles the checks and you’re off and running. No training, just have the person work the system.
Systems make managing a business easier, improves customer service and accuracy, increases profits and reduces the cost of training and employee turnover.
Plus, it increases the value of your business when it’s time to sell and realize the value you’ve worked so hard to create,.
Remember Start Small but START NOW! SSSN