How to develop your very own business systems

No two businesses are the same. You could sell the same product or service but there are a range of factors like people and service levels and leadership and systems that make the difference - like a snowflake, no two are the same. In this article I want to underline the importance of having your very own unique systems in place to run your business. If you want to maintain a disciplined approach to the way you manage your business you need to focus on leading employees, developing your management team and building your business strategy. Are you too busy 'putting out fires' at work to get anything done? Instead of treating each problem as they arise, The Business Minder can help you to develop your own systems and structures that make it easier to handle problems in the future.

When you start out in business you only need to have the minimal necessary amount of efficient systems that run smoothly. Do you ever feel like your business runs in perpetual crisis mode. Every day brings new challenges that urgently need fixing and you spend most of your time troubleshooting. As your business grows, this approach simply doesn't work. You will need to put in place more complex processes.

Hiring the Right People

While an immediate crisis is always urgent, it may not matter nearly as much as other things you could be doing. Spending your time soothing an irritated customer might help protect that one relationship but recruiting and training the right sales person could lay the foundations of substantial new sales for years to come. During your first year in business, your success is really about what you personally do and the product or service that you build. After the first year in business, your success is determined more by the people you hire than by you. After the first year, or even the first few months, stop trying to do everything. All businesses produce and rely on large volumes of information - financial records, interactions with customers and other business contacts, employee details, regulatory requirements and so on. It's too much to keep track of - let alone use effectively - without the right systems. Make sure that you recruit smart people and help them to put systems in place so that things happen even when you’re not there.

Record Keeping

All businesses produce and rely on large volumes of information - financial records, interactions with customers and other business contacts, employee details, payroll, regulatory requirements and so on. It's too much to keep track of - let alone use effectively - without the right systems. Make sure you hire someone to keep track of and itemise your revenues and expenses. If you can’t afford someone, learn how to do it yourself. Have them send you a monthly income statement, balance sheet, and cash flow statement. Learn how to read a financial statement if you don’t know how. It’s up to you if you want to see your statements in a cash basis or accrual basis.

Procedures Manual

Your documentation, policies and procedures also become increasingly important. The informality that might work with one or two employees and a handful of customers simply isn't practical in a growing business. You will need proper contracts, clear terms and conditions, employee 'Standard Operating Procedures' and so on. Many growing businesses find that using established management standards are one of the most effective ways of introducing best practice. If these standards are effective they should be documented. Quality control systems are a good way of documenting standards and procedures. They can also be an important part of driving improvements and convincing larger customers that you can be relied on.

Delegation and Meetings

Responsibilities and tasks can be delegated as your business grows, but without solid management information systems you cannot manage effectively. The larger your business grows, the harder it is to ensure that information is shared and different functions work together effectively. Establishing regular reporting and communications and meetings is an essential part of helping your business to grow. Don't create too many meetings as it can disrupt productivity. Daily 20 minute team catch ups in the middle if the work day are recommended. You also need to think about your staff and putting some performance objectives in place.

Don't melt the snow flake. Investing in the right systems will pay off both short and long term. You will get day to day immediate benefits. If you ever decide to sell your business, having well run, efficient systems will be an important part of proving its value. The business Minder can help you get the right systems in place for your business. The Business Minder operates in ASEAN countries with clients in Bali Indonesia, Singapore and Malaysia.