Running a business is a challenging endeavor, even for the most dedicated entrepreneurs. There are many factors to consider when working to keep your business operating as efficiently and profitably as possible, from reducing costs to making better use of your time to improving workflow.
One way to streamline operations? Systemizing.
Let’s dive in deep into what systemizing is, how to systemize your business, and how to use these processes so your business can scale and thrive.
What Is Systemization?
Let’s start with the basics: What is systemization and why does it matter for you and your business?
Systemization is the process of designing standard operating procedures (SOPs) to ensure the consistency and efficiency of an organization. In other words, you’re documenting the various essential functions of your business that make it run.
This process may take some time and effort, but it will set your business up for long-term success.
Benefits of Systemizing Your Business
- Cost Reduction—By delegating various daily tasks required to run a business, you’ll be able to more effectively prioritize your time. This will allow you to focus your energy on income-producing tasks that generate revenue for your business, not just those that take up your time.
- Increased Efficiency—Run your business more efficiently by discovering and removing any unnecessary steps you may be taking. Documenting your procedures will help you see where you’re wasting resources and, as a result, where you can increase efficiency on a daily basis.
- Improved Performance—Having clear SOPs for your team to work under will ultimately boost performance by ensuring congruency and consistency between all team members. Your team will be able to focus on due diligence efforts, project management, and prioritizing your company’s mission.
- More Free Time—With a systemized business, daily operations will continue to run smoothly, even in your absence. You’ll free up time and energy so you can pursue what’s next for your company, whether that’s securing financing or coming up with creative solutions to existing problems.
- Improved Communication—Having precise procedures will reduce miscommunications, wasted efforts, and possible arguments over how and when things should be done.
- Time Off—One of the biggest benefits of systemizing your business is the ability to keep your company running even when you step away. Take a vacation, spend time with your family, or plan for the future of your business without your daily operations taking a hit.
How to Systemize Your Business So You Can Scale
Step 1: List Recurring Tasks
- Identify how frequently the tasks will be performed. Is it daily, weekly, or monthly?
- Identify all parties that are involved in the process.
- Determine the duration of each task.
- Determine if the tasks can be delegated.
Step 2: Organize and Prioritize Functions
- Identify the group responsible for the designated function.
- Identify the importance of each function.
- Prioritize the functions according to their importance and role in keeping the business running smoothly.
In addition, you can develop policies and procedures to ensure all the essential functions of the business continue to run smoothly.
Step 3: Document Your Processes
- Be as detailed as possible. This is extremely important! Try to record and write down these processes from the perspective of someone performing the task for the first time. Provide a step-by-step guide, share screenshots, and use screen-recorded tutorial videos of you performing the tasks with accompanying narration—whatever provides the most clarity.
- Utilize all available resources and consider using free templates you can find online to cut down on some of the time spent writing the processes.
- Consider working with someone who could help in creating a training manual if you don’t have the time or resources.
Step 4: Process Implementation
- Take the processes for a test drive—perform the tasks according to the processes you wrote to see if they’re easy to follow. You may find areas that could benefit from greater clarification.
- If you can, have a colleague perform a given task using your instructions as a guide. If they ask questions, it’s probably an indication that the processes are not thorough enough and need further explanation.
- Make your processes as airtight as you can to ensure no future mistakes occur.
Step 5: Continue Improving
- Continue making tweaks to your SOPs to improve processes, increasing efficiency and efficacy over time.
- Encourage employees to make suggestions on how to improve the processes.
Systemizing Enables You to Scale
In conclusion, systemizing is an effective approach to help a business succeed. It gives the organization and its members a clear overview of their respective roles and how to perform the standard operating procedures.
With SOPs in place, your company will be more efficient and effective, which will give you the opportunity to continue to grow your business.
What do you hope to gain by systemizing your business?
Join the conversation in the comments below!