Author by Wassim Karkabi
How to build leverage by building systems
Are you managing your business or is it managing you? Building systems and leverage in a business is the most misunderstood area in organizational development and growth.
Systems at every level of your business will make you and your team more empowered and dramatically increase your productivity and profits. They allow your business to work without you, building inherent leverage.
Most entrepreneurs feel it’s their obligation to go to work every day and make sure everything is being done as it should be. But why build a job for yourself when you can build an income stream that keeps growing whether you’re involved in the day-to day-operation or not?
Systems allow you to extricate yourself from the business so you can build strategy for further growth, pursue other ventures – or play golf!
What’s standing in your way?
Almost every business owner I’ve met works overtime. That’s because their business doesn’t work – they do. They don’t assign new tasks to their employees because they retain everything about the business and ‘how to do it’ in their heads. They believe they can do the job quicker and more efficiently.
Growth will be limited if you personally train every new employee. Without systems, most owners can’t even remember the things they taught the last employee when they started, nor the things they taught them all along the way. Uninspired employees are retained, rather than having to devote time to hiring and training yet again.
If you recognize yourself in these scenarios, you’ll forever work ‘IN’ your business instead of ‘ON’ your business.
How can you free yourself?
The answer is systems, and learning to divide in order to grow your business. We call it divide to multiply. The essence of this is systematizing your business. Take a moment to imagine a business you didn’t have to work in. Would it still function efficiently? Would all the systems and people integrate to achieve the result you and your customers or clients want? Of course it would, with the proper systems in place.
Five-point plan to manage your business
The five major areas to systematize your business are:
- People and education
- Operations and distribution
- Improvement testing and measuring
- Marketing and sales
- IT and technology
Start by identifying which areas to systematize. You’ll ultimately transform your business from a job to a growing enterprise that makes you a leader in your field. All you need are the right systems to run your business and the right people to run your systems.