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Systemising Your Business

Friday, 11 June 2010 3:20 PM

Do you wish:

• your business could run more efficiently and effectively - and without you?
• you could reduce the number of 'single points of failure' in your business?
• you could increase the value of your business ?
• you could improve staff morale and retention?

Systemising your business can dramatically improve all aspects of your professional operations - from staff performance to the bottom line. It will also allow you to step away from the detail and minutiae of the day-to-day running of your business to focus on the bigger, more strategic picture. To achieve this, however, you need to commit to 'working on the business' as distinct from 'working in the business'.

Why systemise?

The benefits of systemising your business are vast. A systemised business will help with:

• becoming more systems dependent and less people dependent - reducing 'single points of failure' when key staff leave
• enabling decision making by your staff, and increasing your confidence in them
• bettering the work quality and consistency delivered
• reducing training time as new staff members are brought up to speed more quickly, and
• creating a more saleable business with the ability to deliver a streamlined and complete handover to a new owner, in turn creating a more valuable business.

How do we begin?

Before undertaking this exercise, you need to ask yourself some key questions:

    1. Where are we now?

What are the key areas within your business operations? How do you ensure the work of your team meets your standards? How do new team members know what to do? Create a list of all the areas that need systems developed and documented, such as administrative tasks, HR and recruitment processes, sales systems, client service and even simple 'last person to leave' systems - everything needs to be evaluated for systemising.

    2. Where do we want to go?

Take a moment to think about what you want these systems to look like. Do you need step-by-step documentation of procedures, or check-lists, or both? Who will use them? What business outcomes do you want to achieve with the systems? For example, will they provide greater efficiency? Greater accuracy? Better profit margins? Standardisation of practices? Knowing the desired outcome of each process will guide the development of content for your systems.

    3. How will we get there?

Who will do the documenting? Will you do it yourself, will you delegate it, or will you outsource the job? Do you have all the resources and information you need? Who are the 'knowledge storehouses' in your business? By knowing the answers to these questions you can start to plan for the project and work through the exercise of mapping processes, assigning key roles and responsibilities to each process and capturing the necessary variations.

Train, measure and reassess

So you've systemised your business and documented all identified processes. Now you need to ensure your staff receive training in the new systems. While documented processes certainly allow for greater 'self-training', your team still needs to be given the tools to make these systems work for your business.

A common error made by businesses is to go through the systems documentation process and assume the job is done. Processes need to be reviewed regularly so systems can be modified, streamlined or completely overhauled as business requirements change. And there is always room for improvement.

Set review dates for your systems. You may choose to do a big annual review, or stagger regular, smaller reviews every few months. But you must commit to a process of continual improvement:

• Can the systems be made to be even more efficient?
• Are some systems now redundant?
• Is there a requirement for documenting new systems?
• Can we benchmark the performance of existing systems? How do we measure up against this? Do we need to establish new targets?

The six most expensive words are, "we've always done it that way." Don't let your business fall into this trap.

What's stopping you?

Now that you are across the fundamentals of systemising your business, do you understand the benefits? Do you know what you need to do? If you feel you need help with systemising your business, contact us. We have helped many businesses improve the efficiency and effectiveness of their operations. The quicker you take action, the quicker one of our business consultants can help your business become systemised and work like a well-oiled machine.

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Tips to Boost your Business Performance - Part 2

Monday, 31 August 2009 8:54 AM

Business success seems simple enough: you begin with a plan, you have some goals and strategies and you carry them out. However, the reality of operating a business can be very different.

The joy and freedom of running your own business can be clouded when business owners struggle for direction, get swamped by administration, suffer inconsistent cash flow and get stressed about staff or clients. Sound familiar? These problems can distract business owners from growing and taking their business to the next level.

Here are the next five tried and tested tips which will boost your business performance.

Tip 6 - Hire the best staff you can find and build the dream team. Get the right people with the right attitudes, beliefs and skills in the right positions. It is your staff that can provide a positive experience for your clients and make the wheels in the business run smoother. This is such an important area to get right.

Tip 7 - Reward excellence. If you want the best team, you are going to have to make a solid financial investment in the right people. Pay people a fair and reasonable salary or wage, then offer additional incentive payments. These incentive payments should be linked to a person's individual performance and the overall performance in the business. The process for calculating incentive payments needs to be transparent and clearly communicated to staff. Incentives are an important recognition tool and a way of sharing the businesses success with staff due to their efforts.

Tip 8 - Invest in staff training and development. Ongoing (internal and external) training programs demonstrate to staff that the organisation is genuinely interested in and responsive to their needs for improvement. The organisation also benefits by equipping staff with the skills and tools to perform at their best, which is good for business.

Tip 9 - Streamline and systemise. In Demings immortal words "96% of your success depends on your system". Think of the differences between a business with documented procedures and systems and one without and then consider what would happen to each business if the owner or manager were hit by a bus tomorrow. Which would survive? Create processes and systems that standardise your business operations and save time, energy and money in the long run.

Tip 10 - Be committed to continuous improvement. Review your practises, operations and performance regularly. Take time out to reflect on lessons learnt to improve the way you do things.

If you think your business performance could be better or you'd like some perspective about what's really taking place in your organisation, pick up the phone and contact us now to take advantage of our FREE initial consultation.

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Tips to Boost your Business Performance - Part 1

Friday, 31 July 2009 3:49 PM

Business success seems simple enough: you begin with a plan, you have some goals and strategies and you carry them out. However, the reality of operating a business can be very different.

The joy and freedom of running your own business can be clouded when business owners struggle for direction, get swamped by administration, suffer inconsistent cash flow and get stressed about staff or clients. Sound familiar? These problems can distract business owners from growing and taking their business to the next level.

Here are the first five tried and tested tips which will boost your business performance.

Tip 1: Start with the end in mind. Regardless of whether you are up to your neck in issues or run a successful business, it is essential to write down measurable goals and develop strategies for achieving these goals. Moreover, be sure to stay focused on things that meet you goals first, rather than being distracted by trivial issues.

Tip 2: Measure your performance using a range of indicators. This vital area is often overlooked, despite the fact that many of the information management systems have good reporting functions. It is fundamental to measure financial performance such as: revenue, expenses, operating profit and cash flow. However, other areas are also important to measure such as: lead generation, sales conversion, utilisation of billable professional staff, staff turnover, level of workplace injuries, level of client satisfaction, etc. The feedback you get from measuring your performance on a regular basis will let you know whether your strategies are working or not. This allows an opportunity to change or modify strategies if necessary.

Tip 3: Focus on your ideal clients. Unfortunately many businesses never analyse their database to determine their ideal (most profitable) clients. In addition, many also do not have strategies to attract ideal clients and convert them into sales. This is a big part of growing revenue. I believe every aspect of business development should be design to support the attraction and conversion of ideal clients into the business.

Tip 4: Deliver outstanding client service. Once you have attracted your ideal clients, ensure that every step of the client experience delivers a client-focused approach. Happy and satisfied clients will do business with you time and time again which builds ongoing revenue. In addition, they are great advocates for your business and they fuel your word-of-mouth promotion, which attracts more like-minded clients. Delivering outstanding client service can be a key point of differentiation for your business.

Tip 5: Get regular feedback from your clients. I believe it is essential to conduct client satisfaction surveys in order to make sure your clients' needs are being met, to find out what they like about you, what they don't like and why they do business with you. This data over time provides valuable feedback on how you can further improve the service you offer to your clients.

Stay tuned for the next five tips in the next article.

If you think your business performance could be better or you'd like some perspective about what's really taking place in your organisation, pick up the phone and contact us now to take advantage of our FREE initial consultation.

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Tax Tips for Companies

Tuesday, 16 June 2009 2:45 PM

It's Tax Time - Again!

"Find out how you can LEGALLY MINIMISE your TAXATION obligations"

Some business owners simply pay too much tax! This occurs because they do not use strategies which legally minimise their taxation obligations. As a result the business can suffer a drain on cash flow and in the end the money goes to the taxman instead of you. Therefore, we recommend to all our clients that they plan (with their accountant) for their taxation liabilities and consider appropriate tax deductions prior to June 30.

Some suggested deductions include:

Increasing superannuation payments for directors; however, this is subject to the maximum contribution and also depends on your cash flow position. From 1 July 2009, the maximum deduction for superannuation will be: $25,000 per year (previously $50,000) for the under 50's and $50,000 per year (previously $100,000) for the over 50's.

Making the necessary superannuation payments for all staff.

Purchasing work related equipment.

Bringing forward spending on repairs and maintenance.

Purchasing additional work related supplies and stationery.

Making donations to registered charities.

Writing-off bad debts provided you can prove that you have taken reasonable steps to collect them.

Some of the above strategies (where applicable) can be useful for reducing company taxation liabilities. Please note - this information does not warrant advice and all taxation strategies that apply to you situation should be discussed fully with your taxation accountant.

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Recession Proof Your Business

Saturday, 8 November 2008 2:04 PM

"ARE YOU WORRIED ABOUT HOW A RECESSION MIGHT AFFECT YOUR BUSINESS? DISCOVER TODAY HOW TO RECESSION-PROOF YOUR BUSINESS!"

Australia is feeling the pinch of recession and as a result many business owners fret that this will mean fewer customers and reduced sales as people limit their discretionary spending. Therefore, it's critical for business owners to take steps NOW to minimise the damage to their businesses that could happen as a result of a recession.

Many organisations during tough times take the traditional approach and make the mistake of initially cutting back expenditure and laying-off staff. These measures only focus on controlling costs and addressing short term needs. This one sided approach can be harmful to your revenue and does not position your organisation to capitalise on the return of better times.

Here are some practical tips for recession-proofing your business.

1. Stay focused on your long term goals. There is nothing more destructive than business short sightedness. You may experience rough times, but do not get too distracted in the present situation. Rather keep focused and make every decision beneficial to the present and the future.

2. Control costs. Great organisations have a willingness to listen to everyone within the business and pay close attention to their ideas and suggestions. Employees will often have powerful money saving ideas. There is no better time to implement these measures than during an economic slowdown, but make sure that these reductions do not impact revenue in a negative way.

3. Control inventory. During harder times, the last thing you want to do is get stuck with piles of inventory. Move to a just-in-time ordering system, establish inventory targets and make sure your sales and purchasing staff are communicating.

4. Use effective marketing and communication strategies. The first and easiest reaction for many businesses is to cut marketing and communication expenditure. This can have a detrimental effect on future revenue streams for the business. During a recession you need to re-assess your marketing strategies to make sure they are cost effective. If you are not seeing a good sales effect from every dollar spent on promotions, then you are wasting valuable resources.

5. Maintain prices. During quieter times you may be tempted to slash prices to generate more business. Generally, this is a poor strategy, as it dilutes the value of your product or service and also reduces your profit margin in the process.

6. Deliver outstanding customer service. When money is tight, customers often expect more for their dollar. If you want to keep their business, you must keep them happy. Ensure that every step of the customer experience delivers a customer-focused approach. The use of flexible payment arrangements is often regarded positively by customers. You may also like to conduct customer satisfaction surveys in order to make sure your customers' needs are being met.

7. Listen to your customers. During a downturn many of your customers will be feeling the pinch and they may have suggestions for your business. Don't take their suggestions lightly as they may be offering you an entirely new and profitable product and service line.

8. Invest in employees. During a recession most casual and non-essential staff are typically reviewed and stood down if necessary. However, some businesses make larger layoffs and what needs to be remembered is that most economic downturns are short-lived. Permanent employees that are asked to leave during a recession will have to be re-hired-which is costly for companies in the long run. During recession times talented people will leave or be let go by your competitors and if your company can afford them - this is a terrific time to add their skills, experience, fresh thinking and ideas to your company. At the same time, your current staff's morale will remain high as they won't feel threatened by layoffs.

9. Improve your cash flow. Delay purchasing any non-essential capital purcahses. If you are feeling the pinch during uncertain times ask your suppliers for extended payment terms. This is also a time to collect all outstanding debts. Having cash on hand will help your business meet commitments to staff and suppliers and facilitate the future growth of your business.

10. Streamline and systemise. Create processes and systems that keep your operations flowing smoothly - and save time and money in the long run.

Many people worry about how harder times will impact their business, but the truth is that businesses can prosper in recessionary times by applying sound and effective business strategies. Importantly, it is essential to take greater control of all facets of your business and monitor your performance on a regular basis.

If you are worried about an economic downturn and would like to 'recession-proof' your business or you'd like an objective view of the limiting factors affecting your business, contact us. The quicker you act - the quicker one of our business coaches or consultants can help you take action to position your business to not only survive but prosper during the harder times.

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The PROBLEM with most businesses

Tuesday, 23 September 2008 6:35 AM

During this article you are going to discover the number one problem most business owners are experiencing that prevents them growth and financial success.

The fundamental problem with most businesses is that they are often started or purchased by people who are good at what they do.  Unfortunately being good at your profession is not enough to build a highly successful business. However, with the right business know how and support business owners can dramatically boost their business performance and achieve a more energetic and passionate state of mind.

Most business owners develop their technical (professional) skills via formal learning and/or practical training. However, many of these courses and training sessions do not adequately equip business owners with the knowledge, skills and tools they need in the business world. Not surprisingly, therefore, many business owners often lack the business acumen and entrepreneurial abilities to cultivate a thriving business. Often times the necessary skills are hard-won through first-hand trials, which can be both stressful and costly for the business owner.

In his book, The E-Myth, Michael Gerber comments on the three forms of work required to build a highly successful business: (1) Entrepreneurial; (2) Managerial and (3) Technical.

Typically business owners spend a great deal of time and effort working as technicians in their profession (e.g. an accountant or lawyer) and applying their technical abilities. In most cases there is little focus on entrepreneurial and managerial work. Thus the core problem is revealed - rarely will it be possible to build a booming business whilst you are absorbed in technician mode and concerned solely with your profession day in and day out.

In the business world an entrepreneur will not be concerned with the technical aspects of your profession, but rather the associated opportunity for enterprise.  Likewise, a manager will not be concerned with the practice of your profession, but rather the effective and efficient operation of the business. Thus it is only the technician whom is concerned with the practice of the profession.

As most business owners are concerned with the technical aspects of their profession many fall victim to working IN the business rather than also working ON it.

This occurs because they do not really understand the profound price they're paying by failing to perform the three forms of work - the work of the entrepreneur, the manager and the technician. Once this is understood, segregated and managed correctly - a fundamental shift occurs within the business and the operating efficiency is greatly enhanced and this frees-up the resources necessary to develop strategic opportunities upon which a successful business can grow. The point here is not to stop practising your profession, but to be aware of the opportunities to build an enterprise and a business, rather than just working in your business.

A business that depends upon the technician is not a true business at all. It is a business in which you work and trying to break the daily grind can be difficult. To really change you must look objectively at the way your business operates. Are you a technician? If so - what changes are you going to make so that you can improve the way you work? It can be a challenging road to creating the lifestyle you want through your business, therefore don't be afraid to ask for help so that you can make the necessary changes to the way you operate and thus reap the benefits.

Do you feel like you're operating more like a technician than an entrepreneur? If so, find out how to change this balance so that you can build the success you have always desired.  Organise your  one-on-one business coaching session today. Click here to discover more..

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You Get What You Measure

Wednesday, 16 July 2008 12:35 PM

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