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“All Systems Go”

Run your business instead of your business running you

By Paul Montelongo

“There just isn’t enough time in the day to get it all done.” This is the sentiment of many business owners. One of the most common challenges facing entrepreneurs in this economy is the difficulty of doing everything needed to maintain and manage the business. In the beginning of a venture the majority of your effort is spent promoting and marketing in hopes of obtaining enough business to get free time to enjoy life. The irony for many entrepreneurs is the more clients and income you obtain, the more time it takes to manage the business.

What is the answer? Systems need to be in place to help your business run more smoothly and efficiently. A system is the disciplined arrangement of actions taken to allow specific areas of your business to operate with minimal control on your part. In other words, a standard operating procedure is predetermined and tested to ensure that quality, productivity and profitability is maintained. A system can be set in place for any segment of your business. Systems can be created for marketing, sales, production, accounting, management, order fulfillment and warranty service. Determine the primary areas of your business and implement standard operating procedures for these areas. Here are three basic steps for creating systems in your business.

Set Up the System

Identify one specific function of your business and examine closely what happens in that area. Ask yourself, “What is the natural and logical order of things to be done?” Start with the most basic step needed. Do not assume anything. If a phone call is involved in the process, take note of that. If a form or some paperwork is required, take note of that. Which employees, trade contractors, or vendors are involved in this function? Examine the entire process of that one area from start to finish. With each step in the process, record on paper precisely what is happening. Documentation is essential. The objective here is to identify every detail of the process and record these details. This will begin to arrange a blueprint of the system to be created. Keep in mind that once the system is created; it should be transferable to virtually anyone who comes to work for you. It is imperative that the details of the function be noted in order for people to understand the entire process of the function. The system will run the business and the people in your business will run the system.

Test the System

Now that you have a written record of the steps required for a specific segment of your business, test the process. In other words, run the operation exactly as you have it documented on paper. Do not deviate. The concept here is for anyone to be able to read the steps, follow them and obtain the desired end result. During this testing period, notice what is working and what needs to be refined. Ask for feedback from those involved in the particular function you are testing. Remember the objective is for the process to have the ability to be duplicated many times with the same results of efficiency. If there is a step that is not working or seems out of order, correct it and document it. The system should be tested enough times for there to be a standard operating procedure established. Is this operating procedure set up in such a way that people can easily be trained in the system? The documentation may need to be revised in order to create clarity for your people. Now test the system again by training someone else to perform the operation. If the trainee is able to perform the system and the desired end result is obtained, then your system is in good shape.

Refine the System

Once you have a system in place with a set of written guidelines, look for ways to improve the system. This usually becomes apparent when the system fails or does not work up to its potential. The addition of new products or services may require refinement of the system or may create a whole new system. Hiring new employees, or technological advances may dictate a change in your systems. An increase in your sales volume may mean that your system needs to be refined. Or you may just think of a different and better way to perform a certain procedure. The ideal system will allow for changes in your business. However, the reality is, as your business changes so must your systems. It’s not something you do and then are done with. It’s something you do all the time. With the innovation of new products and services, your systems continue to be refined.

The benefits of setting up systems in your business are enormous. Your people will run the systems that run your business. It will allow you time to focus your energy on the expansion, recognition and perpetuity of your enterprise. Your employees and customers will know exactly what to expect from your business and the system. You will be in charge of your business rather than your business running you. And, isn’t that what we all want?

Paul Montelongo is the author of 101 Power Strategies; Tools to Promote Yourself as the Contractor of Choice. Paul is a nationally recognized speaker and consultant to the construction industry. Visit Paul at www.ContractorOfChoice.com and register for a free E-mail newsletter to receive tips, strategies and concepts to help you grow your business and increase your profits. Paul has owned and operated his own multi-million dollar construction company for over 23 years.

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“All Systems Go”

Run your business instead of your business running you