One of the questions business owners often ask us is: ?Why is it so important that I should systematise my business?? Our standard reply is: ?What would happen if you got into your car after work tonight but never got home?? It usually takes a few seconds for this to sink in, then a little light bulb moment occurs: in most cases, the realisation is that there would no longer be a business.
The problem with many SMEs, even larger ones, is that they are almost wholly reliant on the business owner or owners for management and direction: much of the important information ? both technical and operational – is in their heads. They need to direct and manage their staff to the tiniest detail (?micro-management?) because they do not have confidence that the employees can get the job done without them. The problem with this approach is that, in the event of a tragic accident or critical illness that rendered the owner unable to work, the business could no longer function. For example, the sales pipeline would dry up, or the business would be unable to fulfill orders or complete the contracts it is working on. This potentially jeopardises the jobs of the employees, and the incomes of everybody who relies in the business for a living.
Another effect of having a business that cannot function without its owners is that it makes it virtually worthless to any potential purchaser ? they would be buying a person and his or her expertise and contacts, rather than a fully functional operation that they can simply walk into and make a living from.
At Maximum Profit Growth, we believe that all businesses can be broken down into a series of processes and procedures (?systems?) that can be written down to make them easy to follow, making it simple to take on and educate new members of the team. It also makes the business model one that can be picked up and taken elsewhere ? for example when opening another branch. The process of systematisation is not difficult, although it can be time-consuming. It is however essential to do this in order for management to obtain the benefits: enhanced efficiency and profits, which lead to enhanced value, and a better lifestyle for the owners.
If you would like to learn more about putting the systems in place to allow you to maximise the value of your business and enhance your lifestyle, call Alan Price or Brian Wrigley of Maximum Profit Growth, on 01604 214695.