Are you a business owner who has spent years trying to work out the secret of business? Perhaps you’ve attended seminars, read books and magazines or listened to CDs on the subject of business systems and improvement. Afterward you return to your business and get swamped by the never ending stream of events that throw up pressures and challenges every day and never actually get to implement the ideas you saw and heard.

What are business systems?

One of the most often repeated words of advice is to ‘systemise’ your business. This is probably the most important project to complete in your business to ensure short and long term success…and it’s simple, yet most business owners avoid it and then miss the secret that systems contain.

Quite simply systemisation starts with documenting how you do what you do. This task may be referred to as completing a systems manual, operations manual or polices and procedures manual. Whatever you call it, the purpose is to capture the collective intelligence or ‘know how’ of everyone in the business. The why, what, when, where, who and how of your business. Your business system!

What are the most important business systems?

The top three critical systems are

1. Your Sales System – This system describes how your business finds prospects, presents, quotes and closes your sales

2. Your deliver or fulfilment system – This details how your product or service is delivered to your customers

3. Customer service systems – This shows how your business stays in contact with your customers over time

An example sales system would look like this…

Step 1. The system starts with an inquiry by a potential customer or by a sales person prospecting

Step 2. Meet with customer and assess their needs

Step 3. Present your product or service solution

Step 4. Create and deliver a proposal with a quote or invoice

Step 5. Follow up the contact and ask for the sale

Step 6. Acceptance by the customer

Step 7. Sale processed

Step 8. Payment received, system ends

Very simplistic and generic, but this is the start. This example system is one of probably 10-20 that exist in your business. Others include

• Advertising and marketing systems
• Accounts payable, receivable and payroll systems
• Recruiting, hiring, inducting, training and performance systems
• Customer service systems
• Production, warehousing, inventory and logistics systems
• Safety and quality systems
• Administration, reception and record keeping systems

How do you start systemising?

To get the ball rolling, start a document in Word for your sales system and write down the simple steps that show how your company does this. Now expand on each of the steps with a paragraph or two of the critical elements involved so that it starts to become individual to your company. Write it as you would say it as if you had just hired a new sales person.

For each step identify in bullet points the instructional documents that may be needed for extra detail; i.e. “How to arrange a meeting with a customer” would be a instructional document that may be required in order to train new employees.

After that write the instructions in detail, once completed you may have 5-20 pages which explain all of the actions required and the rules and guidelines which govern the decisions made along the way. Typically when one system ends another starts, in the case of sales the next system is your product/service delivery or fulfilment system.

How to measure the effectiveness of your systems?

When a system is working you’ll know it! No customer complaints, no late delivery, no staff complaining about things or each other…just harmony and productivity in action and all targets being met.

To test your systems try

· Asking two different staff members to explain a system and compare those against your own interpretation

· Interview your customers to determine their satisfaction

· Ask your customers to explain their experience with your business, good & bad!

At each step in any system you will be able to analyse the effectiveness by looking at the inputs and outputs of a step and measuring the result. In many cases you will have to determine what your goals are for certain steps first in order to determine if the system is delivering upon those targets.

In the sales system for instance, how many new customer proposals end up as sales. If you have set a standard or goal already you will be able to consistently measure the result and determine if the system requires changing.

Developing your systems?

Once you have a library of documented systems you will be able to focus your attention on any particular area so as to review and update it to ensure that the system delivers upon you goals.

So now you’re well on the way to being a market leader in your industry through the implementation of systems. It’s time to reap the personal benefits on offer that are inextricably linked to business benefits. Once you have documented the systems that you are personally managing and involved with it is possible to remove yourself from each responsibility methodically and meticulously without creating a chaos in your business.

Once you are spending less time doing the actual work of the business you are free to do the most important work of all. Commonly referred to as working on it, not in it! Which leaves you time to focus on things like: business purpose and cultural development; strategy development and planning; market identification, measurement and product development; development of your team and its collective skills; innovation and improvement; financial planning and investment.

Why develop systems?

Consider that a systemised business with an up to date operations manual will experience…

• Higher productivity through staff not carrying out tasks incorrectly or needing to continually ask for confirmation or clarity
• Greater customer satisfaction and confidence resulting in higher average sale process and increased repeat business
• Better accountability of staff through easier measurement of their performance against the systems
• Ease of movement of staff in, out and around the business
• Less reliance upon key individuals, most of all the owner, as a result of systems being in place and available for training and up-skilling others
• Greater control over the flow of information throughout the business leading to less double handling resulting in a reduction of errors

Beware of the traps of systemisation

The literal task of writing documents, creating folders, files, forms and checklists, manuals and all others contents of a system. You may find yourself quickly developing another problem of just how to organise and deliver the contents in a logical way to the people who will benefit most, your staff. There are many tools available to assist you to control the development of your systems manual, such as software applications. This can and will be a low cost undertaking provided you research the tools and plan the project effectively.

Making a plan of just how this whole project will look at the start is critical. Research the available tools and expertise required to evaluate your intended method before jumping in too far.

As a reader you are invited to evaluate TKO (Turn-Key-Operation) business modeller software. This tool is specifically designed for businesses of all sizes and industries to create, edit, review and publish your complete business system. TKO will easily and effectively enable you to create a manual with policies and procedures, job descriptions, organisational charts, to do lists and training systems. It also has the ability to output manuals for the entire business, single department or an individual in several formats including HTML web manual, PDF or printed.

All the best with your system development and may your business deliver you the life you deserve.

To enjoy more income, more time and more life to do the things they are passionate about

We are living in a time where there are opportunities everywhere we choose to look. The ‘stuff’ that sells newspapers is doom and gloom, and with the current financial down turn the journalists are having a field day.

As Business Owners we have to recognize that in times like these the prepared ones will see the opportunities that are everywhere and flourish.

What do I mean? Well, we need to take a look at what I call the ‘Old’ model of business and start to consider a ‘New’ model of doing business. First let’s take a look at the reasons why businesses may struggle and fail in the current climate and compare it to the New Model:

1. Most business owners don’t have a business! They are self-employed which often is another term for a Job – The new model is about building a system to run the business without you being there.

2. Most Business Owners don’t understand what their business does! They are in to make money (or simply to survive) focusing on profit. The New Model focuses on the dignity of a customer service centered business and giving value. Believe me do this and the profit will take care of itself.

3. Old Model businesses have no Vision & Mission statement that is instilled n everything they do. No vision or mission and your business will have no purpose – simply making money is not a vision! The New Model business takes time to clarify it’s Vision and Mission, everybody connected with the business takes ownership of this.

4.The New business model statement becomes the culture of the business. Clarify your mission or purpose in your business
Articulate your mission statement – who are you going to serve (your ideal client) & who you are not (the 80%). What problems and frustrations are you solving for your (ideal) customer?
What frustrations does your customer have?
What can your customers expect EVERY time they deal with you.

5. Old model businesses are constantly looking for the next customer after the sale is completed. New model businesses have defined their Ideal Customer, the 20% that will give them 80% of their revenue. They build relationships and their customers become advocates for their business.

6. Old model businesses are the same as their competitors. They often compete on price or offer the service that their customers expect from everyone. New model businesses Identify their competitive advantage, their USP, Unique Selling Proposition – Not price or service, something that the customer wants but doesn’t expect.
Does your marketing tell them & does it align with your Mission. Can you deliver it in the world of the customer.

7. Old model businesses treat customers like a commodity – New model nurture & love them .. they go “Beyond the Cash register”
Systemize your customer experience. Turn them from a suspect to an evangelist for your business.
Ask them and listen to them “What are your frustrations about {Your} Industry” Most dissatisfied people just walk out without saying why they are not happy with your service – New
Tell them about your guarantee, New model businesses will call their customers and let them know that they have two weeks of the guarantee left to return their goods if they are not completely satisfied!

8. Old model businesses are all about themselves, self promotion and looking good. New Model businesses concentrate on treating others how they would like to be treated. They get interested in others, they love their people and customers. They are interested in no.1 their Staff & no.2 their customers.
They have a system to build relationships with people not things (products and services, etc) They know people want to be understood, heard, recognized, acknowledged & loved. Yes, you read it correctly, we want to be loved! So do you people and customers.
Ever had a letter from your bank signed Customer Relationship Manager – Try talking or calling the relationship manager and see if you can get through to them?

New model businesses will make sure someone answers the phone and their communication is in the callers world and aligned with the USP, Vision and Mission statements and always reminds the caller about the guarantee. Communicate rather than speak to them, for example:
How are you? – Listen to the answer
Any frustrations? – Listen to the answer
Don’t forget your guarantee
Is there anything else we can do for you- Listen to the answer and make notes
Did you know…. (New products that are aligned to this customers profile)

9. The old business model is in its death throws. The new model is to manage themselves better, they know daily how the business is performing/serving/delivering/what the customers feedback is. They Know & manage their KPI’s and Metrics – love their customers but do not extend credit to them, beyond the agreed terms.
They always have a minimum of 3 months worth of creditor funds in hand

Conclusion: This blog is all about the New Model of doing business now, today.

In years to come these will be the good old days. Prepare now, start to let go of the old model and implement the ideas we will be sharing with you & your opportunities will appear.

We Guarantee It!