For this week’s blog, I looked up the word system in the dictionary, and since I didn’t find the definition I wanted to see, I will just make up my own:
System – the process by which a plan or procedure is formalized and therefore actionable to produce a specific result.
Boom. That’s my definition of what entrepreneurs need to create in order to become small business owners. Unfortunately, the large majority of the 22 million business owners classified by the SBA as non-employer entities are tacticians. You know, service providers, hamsters on a wheel. They are chasing the dollars instead of building empires to serve their intended clients. I believe it is because they are so busy creating a job for themselves that they never look up, create a vision and from that vision develop a systematic approach to experiencing much more than being self-employed.
I’m sorry. I’m sure that may hurt but it is also the God’s honest truth.
That’s why when Madelyn’s question crossed my desk; I couldn’t wait to help her understand why she’s become the bottleneck in her business:
“Hi Darnyelle. I’ve heard you say on an interview not too long ago that having systems is the key to gaining leverage in your business. Right now, I am the bottleneck in my business and I feel like I have really created a job for myself and not a business. Would you mind sharing the key systems that you recommend any business owner have so that I can begin to get my head above water?”
Watch my response to Madelyn’s question here:
During the episode, I shared three of the seven systems that I recommend, but you can find all seven below:
- An operational system – how you will manage the day to day in your company. Remember, what gets attended to, gets done. So write everything down – your logins, passwords, key contacts, and how you operate your business.
- A client management system – how you will manage customer service and client related inquiries including refunds, exchanges, complaints, commendations, and anything else that could come to you from a client or customer.
- A financial management system – how you will manage your revenue and cash flow. What is your profit margin goal and how will you ensure that you achieve it? This should absolutely be documented along with all of the other financial management spreadsheets, systems and software that must be used in your business.
- A sales management system – this includes your entire sales funnel from pre to post sale as well as how you maintain and make adjustments. Is there a specific software that you use to keep track?
- A marketing management system – this includes how you get known and found in the marketplace. This covers so much from your customer relationship management tool to the actual marketing strategies that you’ll use consistently in your business and everything marketing in between.
- Talent management system – this is to manage those who will help you serve your clients – includes hiring, firing, sub contracting, etc.
- Legal management system – having agreements, contracts, etc is key to building business and sustaining it. So how will your agreement be developed? How will you manage an inquiry that needs legal advice?
And the key to all the systems, is documentation. If it’s not documented it can’t be implemented – yes you can tweet that!
And all of these systems should be included in your operations manual.
Now I want to hear from you, what’s your two cents?: What systems do you have in place that I didn’t mention? How are you using them to aid in the growth of your company?
©2014 by Darnyelle A. Jervey. All Rights Reserved. Darnyelle A. Jervey, MBA, The Incredible Factor Business Optimization Speaker, Business Coach and Mentor, is the founder of Incredible One Enterprises.com, Incredible Factor University® and the Leverage Your Incredible Factor System®, a proven step-by-step program for more clients, more income and more leverage in your business. For more information and a FREE audio CD “7 Critical Mistakes Entrepreneurs Must Avoid When Unleashing Your Incredible Factor So You Attract More Clients, Make More Money and Gain More Leverage” just fill out the form below.