It is a remarkable consistency of business owners that they set up a business in which they themselves are qualified to provide the service or product. So far so good, but it is this working within the business that creates one of the most common frustrations that owners encounter as their businesses develop.

A wonderful book that highlights this is “The E-Myth Revisited” by Michael E Gerber. You can buy this at the airport and if you are sad like me, read it on holiday.  It is excellent reading and will keep anyone interested in understanding the most common issues faced by entrepreneurs.

In the most profitable businesses we see, the entrepreneur has released him or herself from the business by systemising each part of the business and allocating responsibilities to other people within the organisation.  This process of gradually delegating and systemising jobs that are currently carried out by owners is the path to maximising the value of a business (and quality of life of the owner).

This process of systemising your business can take time and definitely requires effort and commitment, but if you want to work smarter, not harder, this could be for you.  The process might start with the following areas to review:

1. Identify the key systems the business needs to succeed.  McDonald’s started with “quick service”.
   
2. Organise the business in a way that everyone clearly knows their objectives and responsibilities (IF YOU THINK THEY DO, ASK AROUND!)
   
3. Implement Total quality management (TQM) – we understand this stuff, and so do you (if we ditch the jargon).  Most people know what they should do, they just don’t measure and monitor because they are “too busy”.
   
4. Manage employees to get the best out of them – probably by letting them get on with it and encouraging rather than controlling.
   
5. Build systems and put procedures and scripts into place so that they can work.  The Fire brigade are pretty good at this, I understand, and you can be too.
   
6. Monitor and improve the systems.  If you get it all right first time and nothing ever changes in your business you can skip this bit.

Armed with these processes you should be able to:

1. Identify the key systems and start the process of standardising the way the business works.
   
2. Write a management plan with targeted results.
   
3. Create a detailed organisational chart with key employee objectives and position statements.  The “chart” is just a visual thing, it is the objectives and written employee “mission statements” that matter.
   
4. Set an action plan that incorporates your specific goals.

Taking these steps can be frustrating for owners and does involve an element of “letting go” but ultimately is the main route to maximising the capital value of any business.

Please let me know if you are interested in discussing this further.  Because we see a lot of businesses we can often provide advice and experience that actually works for you, our client.  We mean that stuff we put on our website and chances are, we can help!

http://www.mcleanreid.co.uk/tip-of-month/08-aug-systemising-business.htm