How do you know if your business has any real value?

Person examines value
I’d like to tell you about Ben.

However, before that, I’d like to ask you a question.
If you were to take the Managing Director/CEO out of your business, what would be left?
Would the company be able to carry on without you/him/her, or would things eventually fall apart?

Ben used to be the dictionary definition of fit and healthy. He was an avid jogger and had run marathons. One summer after a number of years of working hard building his business, friends of Ben’s had offered him the use of their holiday villa in Bali for a holiday.
Ben was excited – he hadn’t had a holiday in years and his 6 year old daughter Amber had never been outside the country. He thought it would be a great chance for them to get away and spend some quality time together given how much time he had been spending in the office lately.
They had a wonderful break together, enjoying the beach, sea and sun. On the morning they were due to leave Amber begged Ben for one last swim in the shared pool. They had time so Ben smiled and agreed.
That night when they landed at home Ben’s sister picked them up from the airport. She remarked that Ben didn’t look great. He said he didn’t feel great but probably nothing a good sleep wouldn’t fix.
When Ben came to breakfast the next morning, his sister immediately called an ambulance to take him straight to the hospital. He had arrived with weird clothes, different socks and shoes on each foot. He was mumbling about a business meeting he had attended that morning, despite not being due back to work the following day.
Less than 3 hours later, Ben was unconscious and on an operating table having major brain surgery.
Some bacteria in the swimming pool had gotten into his ear canal, traversed the blood/brain barrier and had created a really dangerous situation for him. He could have been a vegetable for the rest of his life and in fact the doctors told him had he not arrived when he did, he most likely would have been.
Today Ben is mostly back to health. He’s not running marathons anymore but he is able to once again work in his business. It’s been a long road for Ben, he was recovering from surgery for months.
Ben’s business’ health was not as lucky as Ben was unfortunately. Ben liked to be really hands on and unfortunately never took the time to build out systems for everything in his business.
When he disappeared for 4 months, his staff weren’t equipped to continue on without his instruction. No new sales were made because he was the only sales asset in the company. His small team did great work on finishing off their existing client work and getting that invoiced, and until the company’s working capital dried up all of their bills were paid.
Unfortunately Ben had to learn the lesson of how important systems are the hard way. When he was finally able to return to work there was really only a metaphorical wasteland where his business had once stood.
Ben resolved himself to start from scratch but vowed this time he’d spend the extra time putting systems in place from day 1.

Don’t be like Ben, get your systems in place now before it’s too late.  Register for our Systems Training Day with expert Business Coach Trent Taylor. Visit http://www.mcmahonosborne.com.au/events-seminars/upcoming-events-seminars to find out more.

 

 

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3 reasons creating great systems in your business is critical

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It’s Friday lunchtime and stress levels in Terry’s company are running high, really high. Earlier in the week a senior team member quit unexpectedly for health reasons. It left a big hole in the company’s ability to deliver work. Work that is due this Friday afternoon, in a few short hours.

Terry, the Boss, has had to roll up his sleeves and get stuck into helping deliver, while thinking in the back of his mind, next week, he would need to spend time finding a replacement. The week afterwards he’d spend most of the week training the new team member and re-shuffling other staff around so the work already on the books got done.

Frustration weighed heavily on Terry, because he had planned to spend that time finding new business. He was feeling like everything was 2 steps forward, 5 steps back. The worst part was that he just finished training someone else, so that they did everything right (but they still seemed to have a lot of questions for him).

Terry felt worn out and more than a little de-motivated. His emotional state made him feel tired and he became a little snappy with staff and even clients. He was over reacting to things and was stressed out.

Terry got the work done, and the client was ultimately happy, but it wasn’t without a personal cost to Terry and to Terry’s family. That weekend he ended up taking some of his frustration out on them by being grumpy and abrupt with them.

Terry’s story is not unique. However it does illustrate how being a hands on leader does not in itself result in a healthy, happy company. Terry’s real issue wasn’t a HR issue. It was a systems issue, and this is just one example of how a lack of systems can have a hugely detrimental effect on a business owner.

Today, we’re going to turn that around. For you. Ready?

1. Systems Level Up Staff
You can show a new team member what to do, where they should store documents, how they should talk to your customers and hold their hand throughout their on-boarding process. Really spend the time making sure they know what they have to do and how they should do it. The reality is however they will then come to you every time they hit a bump in the road. When that staff member isn’t sure about what to do they’ll either need to (if you’re lucky) use their initiative and figure it out themselves, or they’ll pick up the phone and ask you, the business owner.

Neither of these outcomes is ideal.

If you have documented and laid out everything it is they need to do they won’t need to guess and they won’t need to consult you. They’ll have somewhere they can go and see in black and white what it is they are supposed to do.

Now they’ve been empowered to make the right choice every time. To do what is best for the company, without needing their hand held and without taking time out of your day.

2. Systems remove on-boarding hassle
New staff that need training? No problem if you have everything they need to do documented. You just need to point them at the first, index page of where you have documented your systems. If that part of the prep work has been done correctly you will never need to teach your staff how to do anything again.

Think of McDonalds. They have created a system, with documentation for every conceivable task a member of staff will need to do.

3. Great Systems Mean You Get Time Off!
A lot of entrepreneurs are semi work-a-holics, but wouldn’t it be nice to not *have* to work all the time? Great systems are the difference between having to work 80 hours a week and wanting to. They are also the difference between making massive progress during those 60 hours, or possibly just fixing an issue that cropped up that your staff didn’t really know how to deal with.

If this sounds like you, why not learn more about our Systems Training Day commencing in March, 2016.  To find out more click on the link http://www.mcmahonosborne.com.au/events-seminars/upcoming-events-seminars

Systems are the essential building blocks for a successful business

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When growing your business, it is essential that you establish and implement systems early on.  Systems are the essential building blocks to a successful business and every area of your business should have a system in place to measure productivity, effectiveness and growth.  With established systems, you’re ensuring every part of your business is being used to its full potential.

Ensuring every area of your business has its own individual system, enables you, the business owner, to identify issues which may need addressing so you can achieve the best results possible.

Systems don’t work if they are non-existent, inconsistent or broken.

Having consistent systems in place provides the following benefits and advantages:
-Scale business faster with less hassle and needless wasted effort
-Train new employees quicker so they can begin producing
-Increased marketing ROI and generate more leads and conversions
-Increase customer retention
-Save time, allow employees to focus on their highest income producing activities
-Allows a business to become palatable for sale

We can’t shoot from the hip every day. There has to be a consistent way of doing things. If you intend to scale your business and eventually add to the team of people who help you, then effective systems are not just a requirement but a necessity.

If you need assistance developing a successful system in your business then why not give us a call and find out about our Systems Training Day with expert business coach Trent Taylor, coming in March 2016. Call Lynda on (03) 9744 7144 today.