Fusion Blog

Do you have a systemisation problem? Here’s a couple of ways to tell.

If something is annoying, frustrating or broken in your business, chances are you’ve got a systems problem.  And if you’re having to be involved in decisions that you know your team could make on your behalf, but don’t, you’ve got a systems problem too.

The major problem with these scenarios is that it’s very hard to improve a business that operates like this. It’s like they’ve got no base point from which to optimise (and increase profits).

The other problem with this ad hoc approach to running a business is that it decreases the value of the business (which is important in terms of having a viable exit strategy). The businesses that sell for the most money are the ones where the owner does not have to be there.

So how do you fix a business that is not systemised?

The best place to start is with what’s not working. Look at those issues that are causing you, your team or your customer’s pain, and take steps to fix them.

So how do you do that?

Well, unlike what most people think, systemisation is much more than the creation of a procedure manual.

Rather, the best place to start is to look at your business from above – in order to see how the various parts of your business fit together (like a map).

You should have a process for client engagement. Another for client acquisition. And another for client fulfillment. And collectively, the processes should flow. 

Is it something that can be done and forgotten?

No. Systemising your business is an on-going process; it’s a journey that constantly needs to be reviewed – because chances are, the systems that worked six months ago, no longer work today.

Is systemisation easy?

No again.

It’s tough looking at your business from above.

But it’s something you must do…

Particularly, if you want to grow your business, and one day, sell it for a nice profit.

What’s my first step?

Below are 5 questions that I recommend you take a few minutes to answer. Your answers will point you to exactly where you should start systemising in order to increase your profits and business value.

1. What are some areas in your business that never seem to be executed without mistakes?
2. What are some areas of your business that you know are not being done consistently?
3. What activities or tasks are you not doing regularly, that if you did, would generate extra profits?
4. What activities or tasks if you did them better would either give you more time, more freedom or more profits?
5. What activities or tasks are you doing that frustrate you because you don’t enjoy them?

This article was provided by Anthea Moffat MBA (adv), MIMC, founder and Managing Director of Business Fusion and The Business Masters Club. Join the Business Fusion mailing list at www.businessfusion.com.au and receive a complimentary VIP invitation to Anthea's next Business Masters Club workshop (valued at $135.00). The next Business Masters Club workshop, "How to Prioritise and Systemise yo Increase Profits" is on Thursday 4th November 2010, 4.30pm - 7.30pm.