When you pick out the insides of successful companies, you will find that they have one thing in common: a foolproof system established since they started from scratch. While every venture and industry is different, a dependable system is always an ingredient for success. Whether it is a systemised workforce, business operations, or customer service, systematic processes apply to everyone, one way or another.
There are no profitable and scaling enterprises out there that operate without tried and tested systems in place. Profitability comes to those with organised processes, not ones with unsystematic operations. Do not let a day go to waste; start building networks, and see your profit and productivity increase.
Here are vital tips on how to jump-start your journey towards a systemised and profitable business:
1. Determine Business Activities
Every venture is made up of significant business activities needed for it to operate continuously, from sending emails and publishing blog posts, to launching new products and filing taxes. These small, mundane tasks are what keeps businesses up and running like an oiled machine.
Identify business activities and categorise them in terms of function (sales, marketing, production). Then, establish priority within those processes. Determine which ones give the firm a high return on investment, yields high productivity, or the ones with a recurring problem. Also, find out which tasks directly impact profit generation and include them in your priority list.
2. Establish A System
Break down each activity you listed according to the tools, processes, strategies, and people needed to do specific tasks. These four substantial components will make up your business systems. Make sure to stick with methods that are proven functional and useful in running daily company operations.
3. Think Of Ways To Improve It
After listing down the step-by-step sequences, the tools, strategies, and people required to do the work efficiently, identify the problems and seek ways to improve it. You can start by:
- Eliminating unnecessary components. Are there procedures that take up so much time and financial resources? Are there tools that are no longer relevant to the task? Do the strategies in place no longer work? Feel free to delete and eliminate non-productive tasks that have overstayed their welcome.
- Automate. Identify which tasks can be simplified by automating them. Determine if such procedure and strategy will be more profitable and organised once automated. Provide cloud-based tools to increase employee productivity and user experience. Embrace what the digital age has to offer and build better systems out of it.
- Delegate. Find out which procedures or strategies need the expertise of professionals. If outsourcing the work to expert individuals will free up your workload while also producing quality work, then it is time to delegate such tasks.
4. Monitor And Test
The only way to see whether your system works is to run it for a test drive. For automated systems, you can build measurable key metrics to identify what works and what doesn’t. For manual and hybrid processes, establish measurable factors to use in determining if your systems are working.
Also, you need to establish key performance indicators or KPIs to measure if the systems in place are effectively contributing to the company’s performance.
5. Optimise It
Assess the systemised processes individually concerning the result you came up with during the monitoring and testing phase. Tweak and optimise procedures in a way that they can significantly contribute to increasing the firm’s productivity, profitability, and performance.
As your company grows, these systems will evolve as well. They may work today, but it does not mean that they will still be effective after ten years. Do not be afraid to refine or change standard procedures to suit the current needs of your business. If you need help systemising your company for profitability, then we’re here to give you sound advice. Annette Ferguson, Chartered Accountant and Certified Profit First Professional can help you improve your business’s profitability. Get in touch with the Annette & Co. team today!