Growing
a business is so consuming that many business owners get
strung out and exhausted with the day-to-day details.
This is like becoming lost in the 'trees' (details & issues)
and losing sight of the 'forest' (competitive marketplace).
As we discussed in the last e-news, growth without systems
leads to chaos. Controlled growth is great. Out-of-control
growth can be disastrous.
Growing Pains are signs that growth is getting out of control.
Warning signs are:
- You/your employees work long hours, all the time.
- Customers complain about lateness/poor quality.
- Checks are bouncing and/or creditors are calling.
- Work isn't fun any more.
If you/your company are experiencing growing pains, it's
important to take time out from the day-to-day, to work
ON the business.
Take Time Out - Get Perspective.
To get perspective, you need to be free from the constant
interruptions of the workday and gather information from
sources outside of your head.
A vacation or an off-site 'retreat' can be helpful in allowing
you to focus on the big picture. Gathering input from
the key players for your business is useful in broadening
your perspective.
For example, get an update on:
- What is important to your customers;
- What is happening in the marketplace;
- What your competition is doing;
- What your company is doing well; and
- What your company needs to improve.
This is the big picture or 'forest'; next we'll look at
the 'trees' (details & issues).
Flow-chart your current operations.
Flow-charting - or diagramming your current business operations
- is a good way to get a visual picture of how business
is currently handled.
Listing the specific steps that are followed from the start
of a customer transaction through completion of an order
or project helps to establish a consistent way of handling
transactions.
With a visual framework, you can decide with your team,
or get feedback from advisors, about how to handle larger
volumes of business. This can also lead to clear delegation
of assignments and responsibilities as well as checkpoints
or controls.
Plan for Employee Turnover
In workplaces without systems, the departure of a key employee
can leave a project completely up in the air.
Without systems, employee burnout is common. As the volume
of business increases, the few employees who know how to
get things done cannot sustain the pace of growth. Just
adding more employees doesn't help unless the new employees
have a clearly defined role.
Systems improve the work environment for current employees
and lay the foundation for making new employees productive.
Systems reduce stress and make workloads more predictable
and manageable. They also help when you need to replace
departing employees, because all the knowledge of the job
does not walk out the door with the departing employee.
Systems are the infrastructure for growth.
Systems apply to all aspects of your business. As your
company grows, systems - including 'internal controls' -
become critical. Internal controls are like checks and balances
to make sure that the business does not get out of control.
To conclude, by paying attention to both the big picture,
as well as the details of daily operations, you can plan
for the orderly and controlled growth of the business. Systems
help to address the 'details and issues' that are critical
to your company handling a higher volume of business successfully.
Jean D. Sifleet
Attorney & CPA
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