I learned this tip from not doing it well the first time.

I said "simple", not "easy"...

Being a start-up owner is awesome and comes with a lot o advantages. It also comes with significant responsibilities. As a new entrepreneur not only do you do everything, you need to figure out what it is you need to do.

There are so many things to think about that without this one secret you are almost destined to fail. The good news is that with this simple secret you are almost guaranteed to succeed and build a company that everyone wants to buy.

What is this one secret that can make a business owner successful?

Systems. Simple straightforward, easy to implement…systems.

Consider the wisdom of beginning with the end in mind. This is a military strategy that many successful business schools, coaches and owners have adopted over the years. It works all the way down to the project and task level. What do you want the end result to be? What are you trying to accomplish?

Start there.

I rebelled against systems for years. And then I implemented some and started making real money.

Some people call them processes. Some people call them procedures. Others still call it documentation.

Consider them all part of the same solution

To be successful, scalable and sustainable you need to have systems in place that clearly define everything you need to do, when you need to do it, who needs to do it and how it is to be done.

It’s hard to define which systems are needed by which businesses because all businesses are different.

Having said that there are certain business functions that businesses have in common. Some examples include:
Either production or fulfillment depending on whether you are a manufacturer or distributor (sometimes both)

• Customer service and support
• Accounting (accounts payable and receivable) and Finance (P&L, Balance Sheets and Cash Flow)
• Sales
• Marketing and Advertising
• Management - internal staff and/or outsourced consultants/functions
• Training
• Problem resolution
• Research and development

These are present in almost every business. Sometimes they have different names and sometimes you share the burden of certain processes with partners or outside consultants, but they exist. Some people say "fulfillment" while others say "delivery". Same difference...

Systems come in many different forms;

• Hardware systems handle capacity, storage and facilitate speed and security
• Software systems handle reporting, communication, and follow-thru, automation of customer service and production…
• Flow charts can define the order of processes
• Process maps can integrate the steps involved and the owners and priorities of the steps in a process
• Online manuals and other documentation act as references for FAQ's about processes
• Visual aids such as whiteboards, diagrams and videos can be used to visually reinforce processes, so they become habits

When the proper systems are in place they create and reinforce certain behaviors that engage the culture of the organization or the individuals themselves such as;

• Focus - People are more likely to know EXACTLY what is expected and when. They are more likely to be highly proactive and less likely to be distracted. You'll find that more of the right stuff gets done in less time.
• Measurement - With solid systems in place you can track the businesses "KPI's" (Key Performance Indicators) and begin to predict the state of the organization in the future and make proactive adjustments. Profits go up and surprises go down.
• Satisfaction - With clear expectations and the ability to be proactive, people experience higher levels of satisfaction and less stress.
• Productivity - All these factors contribute to a cycle of higher productivity
• Goodwill - This stuff spreads like wildfire through the business and out to the customers and partners

As incredibly yawn-inducing, snoozefest producing, bland as dirt boring that "systems" are, they can insulate any business from failure and help any succeed in the most difficult of economies.

If your business needs work in this area (and most do), start simple. Take out a piece of paper and start scribbling out your business processes and then scratch out some systems to support the processes. Then put some spit and polish on them and come up with your own fancy names.

You can build your own or you can buy predesigned systems that are industry specific. If you choose to build your own it will cost you time and if you buy someone else’s it will cost you money. If you build your own, you may also end up with a product for resale.

Many products and services available today for resale began as solutions to very specific proprietary problems that some business owner created for himself out of necessity.

The reasons that systems will make your company worth far more when you choose to sell it are;

• The buyer will be acquiring a more efficient engine and will need less time and money to integrate your company into their operation
• The buyer has a much clearer understanding of what he is buying because everything is well documented
• It is easier to arrive at a higher more accurate valuation because many of the variables and uncertainties involved in acquiring a new entity are no longer variable or uncertain

With clear documentation and efficient systems and processes, it is reasonable to expect that you could get 2 to 4 times more for your company in a sale than you might otherwise.

You will also drive more revenue, be more profitable and nurture a healthy and energetic culture that will make things more fun while you're building.

Author's Note: I mentor entrepreneurs and people in career transition. The easiest way to engage me is to schedule a free 30-minute coaching call here. There is no obligation or selling, it’s simply to see how I can help. If you want further guidance toward a new career or business you can let me know when we’re done. If not, I will leave you with some helpful suggestions. My goal is to be generous and helpful while establishing genuine credibility. Sharing and feedback are encouraged.