Why Every Startup Needs A Systemic Approach For Success
SQI Security Entrepreneur Series 53
Transform Your Startup With A Proven System
Introduction:
When it comes to running a successful company, it is important to remember that your business, as well as the markets you serve, are not static, but are in a constant state of flux. This means that over time you’ll need to rene and redesign your systems and controls. The more you grow, the more that growth will require you to evolve your systems. Rapid growth will continue to make increasing demands on your outdated systems.
The systems that worked for a $500,000-a-year business will no longer be sufficient to cope with a $5 million company. This is why you need to approach your systems and controls as a work in progress as you continue to scale your business. As you grow your business, your policies and controls must grow with you if you want to run a successful business.
What Is Systemization
Many startups, when they hear the word systemization,turn to the idea of an endless array of meetings that create a ton of action items that must be followed up on at the next meeting so even more action items can be created. In short, people believe that systemization is nothing more than an ongoing, convoluted series of processes that only make running a business more complicated. This could not be further from the truth.
Why You Need Systemization
There are many benefits that you can gain by systemizing your online business. With a sound system, people in your organization have a clear understanding of the work they need to perform and what is expected of them. Without policies, there are many unanswered questions, and quality and service cannot be guaranteed. Now that you understand why it’s good to have a systemized business let’s explore the benefits that you can gain.
- Reduce Costs
- Increase Efficiency
- Improve Performance
- Improve Communication
- Scale Your Business
- Measure Your Progress
- Meet Deadlines
- Free up More Time
How To Systemize
Whether you already own a startup business and find yourself constantly exhausted from the daily work, or you are planning on starting one in the future, there is still plenty of time for you to get into the swing of systemizing your business. Once you start working on the steps outlined in this guide, you may begin to realize that many of them are simply common sense.
When To Create A SOP
To truly systemize your business and ensure that it continues to run smoothly, you have to document your processes and create a Standard Operating Procedures Manual, or SOP. Standard operating procedures are an essential part of the operating system for any company. The idea is a simple one and is used by the US military and successful businesses like McDonald’s.
The SOP guidelines are created to facilitate the entire way that you do business. They are designed to make things run smoother and more effortless and help to prevent costly mistakes from occurring. Not only do SOPs simplify and formalize every task in your business, but they also make it, so no process in your company rests solely in the hands of a single member of your team.
The lack of SOPs in your business creates a condition that if key people were to leave, their knowledge and expertise wouldn’t disappear with them. Without these systems in place, you are running the risk that your business may eventually be crippled because you have an operational reliance on the expertise of a handful of individuals who are the only ones who know the “secret sauce” of your business model. Having SOPs in place means you would not have to worry that the loss of key people could cripple your business.
