Many entrepreneurs operate with their business systems and processes in their heads. They know what they need to do each day and the way they want to get things done.
Unfortunately when a business grows and staff need to be hired – or the owner needs to take time away from the business – it’s a real liability not having processes and systems documented in one place.
Read on to learn the top five reasons to record your business systems and processes, so your business can run more efficiently and effectively even when you’re not there.
Improve efficiency without reinventing the wheel
When you sit down to record your business systems and processes, you may discover gaps where improvements could be made. You might find better ways to perform routine tasks, reducing bottlenecks, and eliminating extra steps. You may decide that some tasks are too time consuming, and you’d save time and money switching to an automated solution. Reviewing how you do things as you record systems can help create better systems, improving productivity.
Support staff training with documented procedures
When it’s time to hire new talent, a documented business systems and processes can dramatically reduce the time you spend training. Documenting your processes can also ensure jobs are consistently performed to a high standard. Sharing your process and procedure guidelines can help new employees and casual staff quickly get up to speed on expectations, and give them a reference to check before asking questions.
Sell your business systems and processes
Develop a unique turnkey system that other businesses can implement to save time and cut costs, and you can increase profits by selling your business systems and processes. Those documented processes are part of your company’s intellectual property, and can be licensed just like your brand name.
Get away and trust the business will run without you
One of the perks of running your own business is setting your own schedule. But without good systems in place, it can be difficult to get away for a vacation, let alone retire. In order to build a business that can run without you, you need to be able to delegate the tasks and processes to someone else, with confidence they’ll be performed correctly and consistently. Another excellent reason to make sure your business systems and processes are documented and updated regularly.
Sell your business with documented business systems and processes
When it comes time to sell your business, you’ll get top dollar if you can provide a buyer with documented business systems and processes. A potential buyer wants to know the business will continue to run smoothly without you throughout the transition period, and that institutional memory will be retained when there’s staff turnover. The greater ease with which someone can step in and operate the business, the greater the value and the higher your compensation when you’re ready to sell.
As we’ve seen, there are a number of excellent reasons to review and document your systems and processes, even if you’re just starting out. You might plan to update it yearly, just like your business plan, to discover best practices and ensure it maintains its usefulness to you and your team.
Ready to begin documenting your processes and systems? Try this free template offered by manualtemplate.org to help you get started. Or if you’d like help with a more sophisticated system feel free to reach out to us.