7 Systems Every Entrepreneur Must Have in Place in Order to Build Their Business
by Darnyelle A. Jervey
For this week’s blog, I looked up the word system in the dictionary and since I didn’t find the definition I wanted to see, I will just make up my own:
System – the process by which a plan or procedure is formalized and therefore actionable to produce a specific result.
That’s my definition of 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. You know, service providers, hamsters on a wheel. They are chasing the dollars instead of building empires to serve their intended clients. I believe it 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.
I’m sorry. I’m sure that may hurt but it is also God’s honest truth.
That’s why when Madelyn’s question crossed my desk; I couldn’t wait to help her understand why she’s become the bottleneck in her business:
Hi Darnyelle. I’ve heard you say in an interview not too long ago that having systems is the key to gaining leverage in your business. Right now, I am the bottleneck in my business and I feel like I have really created a job for myself and not a business. Would you mind sharing the key systems that you recommend any business owner have so that I can begin to get my head above water?
Watch my response to Madelyn’s question here.
The fact of the matter is that having systems in your business gives you leverage because they make success predictable. With systems, creating strategy becomes more effective. And, when you have an effective strategy in your business, you make more money.
During the episode, I shared three of the seven systems that I recommend but you can find all seven below:
1. An operational system – how you will manage the day-to-day in your company. Remember, what gets attended t, gets done. So write everything down – your logins, passwords, key contacts, and how you operate your business.
2. 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.
3. 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.
4. 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 specific software that you use to keep track of?
5. 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.
6. Talent management system – this is to manage those who will help you serve your clients – including hiring, firing, sub-contracting, etc.
7. 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?
And the key to all the systems, Maddy is documentation. If it’s not documented it can’t be implemented – yes you can tweet that! (add the Twitter logo here)
And all of these systems should be included in your operations manual.
Darnyelle A. Jervey is an award-winning author, sought-after speaker, award-winning certified business coach, and marketing consultant, Darnyelle A. Jervey, MBA, is the CEO of Incredible One Enterprises, LLC, a full-service consulting firm that specializes in offering business leaders marketing and business optimization strategies, empowerment and executive coaching solutions to individuals and organizations worldwide. Darnyelle offers her clients the accountability of a coach, the business acumen and example of a seasoned business professional, and the customized marketing consultation and proven strategy to grow a business in record time. Darnyelle is known for her enthusiasm, contagious energy, and passionate delivery and becomes the catalyst for transformational change and goal achievement in the lives of her coaching clients, audiences, and workshop participants because she doesn’t just inspire, she also imparts success skills, tools, strategies, and effective solutions. Darnyelle is the head coach, consultant, mentor, and speaker at Incredible One Enterprises, LLC.