Do you want to know how to create systems in your business?
Is it really necessary to systematize your business?
Yes! …that is if you want it to grow.
A system is a set of detailed methods and procedures created to carry out an activity.
They are essentially a certain way of doing things.
Systems are the principles, methods, and procedures by which you run your business.
They are very important in business.
Systems set successful companies apart from unsuccessful ones
Successful companies have systems in place to make sure that their services and products are consistent in standards and quality.
Don’t think of systems and consistency as boring.
In fact, they are key to achieving your goals.
This article will show you how to create systems in your business.
So what are the benefits of using systems in your business?
Benefits of Using Systems in Business
Since we are having a conversation about how to create systems in your business, you really should know what’s in it for you.
Here are the benefits of using systems in your business.
Systems help you get things done with speed and competence.
They streamline your workflow.
Using systems in your small business will help you optimize operations and earn more revenue.
Systems will also help you scale seamlessly and easily since they provide a structure that works.
Having a system in place is about using methods, procedures, and policies that are effective and reliable.
Systems have instructions that result in repeatable standards.
Repeatability ensures predictable and consistent results.
This benefits your business.
Using systems in your business will help people do their tasks more efficiently.
Also, they can help them find items and information faster, preventing people from wasting time.
Without systems in your business, you are the business.
The business needs you to get things done.
This makes it difficult for you to scale up.
It also makes it difficult for you to take time off.
With systems, you can step back, delegate and your business with still run without you.
When you use systems in your business, you don’t have to reinvent the wheel every time a task needs to be performed.
Because there is already a documented and recorded system of doing the task, the system can simply be used to carry out the task.
You don’t have to give the same instructions all over again.
Systems reduce your labor cost.
You save all that time and effort you would have spent explaining and demonstrating the same thing over and over again.
That time translates into money saved for your business.
Systems help you build a business that you can sell.
A day might come when you decide that you want to sip Pina Coladas on a beach somewhere or you simply want to try something else.
You decide to sell your business.
A business with systems is more attractive to buyers. Potential buyers are assured that your business’s success will continue even when you are not in the picture.
When you systematize your business, you create opportunities for productivity, consistency, and efficiency.
How to Create Systems in Your Business
In thinking of how to create systems in your business, you definitely want to know when to use systems in your business.
Some people might say that any tasks performed at least twice should have a proven system.
Systems should be definitely be set up for the activities that you use to run your business.
If any activity is required to get things done in your business, then it should have a system.
Each business is unique so you will need to go through the exercise of creating the specific system for your business.
To do this
Step back and think about all the roles that are required to get things done in your business.
- You may be the one carrying out most of the activities now, however, if you were 10 times your current size what roles would you need.
- Write down these roles.
Write down the tasks that these roles need to perform.
Create systems that show how to get these tasks done.
- Document the procedures, create checklists or videos that show how these tasks can be done.
- Capture the actions sequentially
- Specify the tools and software that are required and how they are useful
Identify the interdependencies between different tasks and different roles in your business.
- Identify the handover points between tasks done by different roles. Document these as part of the systems.
In determining which area to start with, focus on the area of your business that has the greatest impact on your revenue, profit, or customer satisfaction.
Test the systems and refine them as needed.
- Delete areas that are not needed. In other words, stop doing things that are not beneficial to your business.
- Consolidate areas you need to consolidate. You may find that two different people are doing similar tasks. That’s an opportunity for consolidation.
- Batch tasks where needed. You may find that it’s more beneficial for a group of tasks to be done in a batch instead of at different times.
Explore opportunities for automation.
- Can you increase efficiency by using software or other tools to automate certain tasks?
- Are there repetitive tasks that you can automate?
- Do you have two tools performing tasks that can be done by one tool?
Keep in mind that you should not merely focus on using technology when developing systems for business.
It is much more important for your systems to be simple and consistent.
They should involve methods that individuals can replicate and follow.
7 Systems You Need To Set Up To Run Your Business
Here are 7 of the systems you need to set up to run your business.
1. Lead Generation
Leads are your potential customers.
Lead generation is the process of acquiring your potential customers, nurturing them, and getting them to buy from you.
What is the sequence of activities involved in getting leads for your business?
Does traffic need to come to your website?
Does someone need to pick up the phone and make phone calls?
You need to understand these and create a system so that this activity takes place on autopilot in your business.
2. Lead Conversion
Another thing you need to systematize your business is having a tried-and-tested sales system for converting the leads, the potential customers, into paying customers.
Such a system could start with a sales script that all salespersons and customer service representatives must use, from their initial contact with the prospect through the completion of the sale.
These scripts can help you save time and energy.
By using them, anyone who answers the phone, greets customers walking into the store, or interacts with a customer already knows exactly what has to be said throughout the sales process.
Then again, you will need to test and iterate to develop the right sales system for you.
The more you evaluate the sales process, the easier it becomes for you to determine the things that you should do and stop doing.
Eventually, you will be able to smooth out rough patches and make the sales process easier.
3. Service or Product Production
Likewise, you should have a system for the production of your service or product.
This system would ensure the ease of operation, quality consistency, activity efficiency, and low costs of delivery and production.
4. Delivery System
Some of the best tasks to automate are those that are done repeatedly, such as delivering orders to customers.
If you want existing customers to continue doing business with you as well as for new customers to trust you, you have to deliver their orders on time and to standards.
In order for you to do this, you have to systematize your business in such a way that you deliver the products efficiently and quickly.
Customers need to have the assurance of high quality and minimum delays.
5. Service Systems
You should have written procedures and policies for follow-up services.
These should include ways of handling customer complaints, generating sales and communicating with customers.
It should also include getting recommendations and referrals from old customers to new ones, and alerting customers about the latest services and products available.
6. Accounting Systems
See to it that you also have good accounting systems in place to track your revenues and expenses.
Automating processes such as accounting and bookkeeping is necessary to avoid errors.
So, when you want to systematize your business, instead of doing accounting calculations manually, use a software program.
There are a variety of software programs available that can help you deal with your finances.
7. Personnel, Hiring, and Training Systems
It is crucial to have written systems that describe jobs and how they should be done.
Moreover, you should have systems for personnel relations, training, and development.
Your employees should know exactly what they have to do.
They have to understand the conditions and terms of their jobs, the grounds for termination, as well as what unsatisfactory performance looks like.
In addition to this, Your employees also have to be informed about their medical insurance, vacation leave, and sick pay.
Final Thoughts on How to Create Systems in Your Business
Monitor, Track, and Optimize.
In your bid to systematize your business, be aware that you can only find out how well your systems work if you use reporting features and key metrics.
See to it that you track and follow them on a regular basis as well.
Metrics will let you and your team members know if you are doing the right thing and if the systems are working.
It will also let you know what you can do to make improvements.
Keep in mind that successful companies have reached such goals or accomplishments not because they were perfect or did not make mistakes.
They are where they are now because they have systems that work.
You can have a successful business, too.
Follow the tips and steps discussed in this article.
Do not be afraid to try new things and experiment with flexible business systems.
Do not be afraid to fail.
Through trial and error, you can find out what works and what does not work.
And once you find out what works for you, do stick with it.