Businesses that fail to have systems also fail to reach their full potential, because you cannot run a successful business by hoping everyone is doing a particular task correctly. Some businesses have “informal” systems, but a system not documented is also a system for failure.
If you do not develop written systems, a set of guidelines for your team to follow, your team will just start making them up as they go and this causes confusion between team members and ultimately poor results.
So here are the seven reasons why your business needs systems:
1. Improved productivity
Everyone involved in the business will have a set of processes to follow which will deliver a predictable result each and every time it is followed correctly, which will improve productivity and develop a happier work environment.
2. Greater client satisfaction and confidence
This results in higher profits and return business. You will receive more referrals from clients who are satisfied with your service and have confidence in your advice. When clients refer friends and family and you do a great job, it makes them look good as well.
3. Fewer mistakes and errors
With systems in place there is greater control over how information is distributed throughout the business, which results in less double- handling and reduces errors. There’s also less guessing.
4. Better accountability for team members
If an error does occur, well-documented systems will allow you to identify the point at which the error occurred and who may be responsible for the error.
5. Less reliance on the business owner
Systems give the business owner freedom. A good system should document the question, the answer and the expected outcome, so team members can make decisions without the business owner being present
6. Improved training
It is much easier to train new team members when systems are in place. Even the training process itself can be a system.
7. Consistency
I believe this to be the most important reason for having formalised and well-developed business systems. Your clients will notice consistency, and when tasks are completed in a consistent manner it speeds up the process.
Now that you understand why you need to have systems, it's now time to start putting your systems together. How you record your systems is up to you. Systems can be written and placed in manuals or they can be a combination of written or electronic notes, photographs and short videos.
Systems are discussed in far more details in my book It's No Secret There's Money in Small Business, Chapter 12.
If you have any question about this podcast article, or you need assistance in developing systems for your business please email me directly at
