7 Business-Building Systems Every Entrepreneur Must Have
Posted on March 10, 2015 by Lioness Staff
The term “system” can be defined as the process by which a plan or procedure is formalized and therefore actionable to produce a specific result. That’s what entrepreneurs need to create in order to become small business owners. Unfortunately, the large majority of the 22 million business owners classified by the SBA as “non-employer entities” are tacticians. In other words, service providers, hamsters on a wheel. They are chasing the dollars instead of building empires to serve their intended clients. This is because they are so busy creating a job for themselves that they never look up, create a vision, and from that vision develop a systematic approach to experiencing much more than being self-employed.
Having systems is the key to gaining leverage in your business because having systems in your business makes success predictable. With systems, creating strategy becomes more effective. And, when you have effective strategy in your business, you make more money. These are the seven systems every business needs to have in place:
- An operational system – how you will manage the day to day in your company. Remember, what gets attended to, gets done. So write everything down – your logins, passwords, key contacts, and how you operate your business.
- A client management system – how you will manage customer service and client related inquiries including refunds, exchanges, complaints, commendations, and anything else that could come to you from a client or customer.
- A financial management system – how you will manage your revenue and cash flow. What is your profit margin goal and how will you ensure that you achieve it? This should absolutely be documented along with all of the other financial management spreadsheets, systems and software that must be used in your business.
- A sales management system – this includes your entire sales funnel from pre to post sale as well as how you maintain and make adjustments. Is there a specific software that you use to keep track?
- A marketing management system – this includes how you get known and found in the marketplace. This covers so much from your customer relationship management tool to the actual marketing strategies that you’ll use consistently in your business and everything marketing in between.
- Talent management system – this is to manage those who will help you serve your clients and includes hiring, firing, sub contracting, etc.
- Legal management system – having agreements, contracts, etc. is key to building business and sustaining it. So how will your agreement be developed? How will you manage an inquiry that needs legal advice?
The key to all these systems is documentation. If it’s not documented it can’t be implemented. Every one of these systems should be included in your operations manual for quick and easy reference.
“Business optimization strategist, Darnyelle A, Jervey, is CEO of Incredible One Enterprises, a business consulting and coaching firm that helps entrepreneurs and business owners realize financial and spiritual abundance. Jervey is an award-winning coach, consultant, strategist and a best-selling author with 7 books to her credit, including her latest projects: “Burn the Box: 7 Breakthrough Strategies for Standing Up, Stepping In and Igniting Success” and “Market Like a R.O.C.K. Star.” Jervey may be reached online at www.incredibleoneenterprises.com.