How to Run Your Business Successfully (Part 2)
This is the second part of running your business successfully. You can read the first part here.
We will be looking at how to build systems that keep your business sustainable.
Building Systems That Keep You in Control
We often hear systems that systems this and wonder what that means. System is a repeatable process that delivers the same result regardless of who performs it.
Consider system as a recipe that is closely followed by the chef. You will get the same result no matter who is making the food.
Source
A system lets you stay in control whether you are present or absent. Businesses without systems often fail because they don’t function when the owner is absent. This leads to burning out and business collapses.
Having a solid system saves time, reduces mistakes, removes confusion and keeps operation stable even when the owner steps back.
This is why you see businesses have branches everywhere and don’t compromise on consistency. Their service delivery, taste, feel, and everything feels the same.
That is system working.
Define the Core Processes
Your business runs on set of essential activities and that is your core process that you need to define in simple terms.
A food business core process would be different from a recycling business or a private school business.
In my recycling business, the essential activities are
- How recyclables are collected and scaled
- How payments are made
- How recyclables are sorted
- How recyclables are baled
- How baled products are sold
- How reports are made
A process should be documented and not just live in the owner’s head. This is what makes it easier for the new staff to get onboard with ease. The core process should be easy to follow, and it can be modified regularly to reflect new changes in the business.
Checklists
Have you visited an office and saw a notice on the wall detailing things to do before closing for the day. That is a checklist, and it helps to prevent forgetfulness. We are humans and have tendency to forget even important things. This is why checklists are important.
I have one for machine operators in my recycling business
Don’t start the generator until you
- Check the water
- Check the oil
- Check the diesel
- Check for leakages
You can have a checklist for anything. It can be for opening and closing tasks or safety check. Checklist removes guesswork and keeps performance uniform across board.
Standardization
Systems allow you to have similar standards everywhere and anytime. It gives you predictable results and makes training easier for new staff.
Many businesses go out of style because people start improvising, therefore letting the standards drop. This is why systems must be monitored closely that people are indeed following the set of methods in the system.
Tracking
A system only works if it is measured quantitatively. You need metrics and indicators. In the food business, simple metrics can be
- Daily Sales
- Complaints made
- Inventory reports
- Delivery time
The main aim of the metric is to show you where the system is faulty and need repair.
Systems give you control over your business. When systems work, the business becomes stable and predictable thereby allowing growth.
System allows you to shape the business to what he want and not work in it daily.
I will talk about Cashflow in the next part. Stay tuned
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You are absolutely right that systems are important for workflow. I can't say that I know the recyclable business but I do know the Pharmacy business and we have rigid checklists to make sure that everything is done correctly each time, every time.
Most of the time I will agree that a system is important but I've also worked in enough corporate jobs to know that good employees know not only the system but also the reason for each step in the process. Sometimes rigidly applying a system can just be silly.
An example is how the College of Pharmacists mandates what I must tell a patient with every prescription. They have a list of information I must convey such as what the medication is, what it is for, how to store the medication side effects, and what to do with missed doses. Overall it is a good system to make sure people know what they are getting and how to use it.
However, the College of Pharmacists does random checks on pharmacists to verify they are following the rules. They watched me deal with 5 patients and for four of the patients I followed the requirements. However, one of the patients was a special case. He came to the pharmacy every single day to take a dose of long acting morphine to control withdrawl cravings from long term drug use. I saw him every day for months and he always got the same two capsules.
I didn't bother telling him where to store his medication (he was taking it as soon as he left the pharmacy). I didn't tell him what to do if he missed a dose. Seriously...he is taking it in 5 minutes and its only one dose.
Agree that a system is vitally important but a little common sense can be useful sometimes also :)
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