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The Importance of Adding Structure to Your Business

Many people go into a business ‘flying by the seat of their pants’ as I like to describe it. They have a great idea and they charge full steam ahead, which is not necessarily a bad thing.  Statistics show that the most successful people react quickly and make decisions on their instincts.  They are risk takers:  they see the need and the opportunity and they go for it.   This can create a great return to start but it’s sustaining the growth and profitability that suffers without a solid infrastructure.  If you want to create a strong, self-sustaining long term operation you have to have a solid foundation for your business.  What exactly does that mean?

There are key areas in business that must be solidified if you are going to experience continual growth and  profitability.  In all my years of experience I have learned the key problem areas  in just about every business I have worked in and consulted for. They are lack of processes, lack of documentation of processes and training of personnel.  In all of these areas the answer comes down to this: Consistency and Predictability.  Consistency is a necessity and to achieve that you have to take discretion out of the hands of the employees.   There is a one best way of performing each repeatable process and if you don’t identify it AND document it you are headed for trouble.  The reason franchises are so successful is because they create a repeatable process, document it and then pass it to every franchise owner so that everyone is doing the same thing, creating a predicable outcome.  So to create this success, identify the one best way of completing each process and document it in an easy to follow instructional format.  I call this the Business Bible, or the Operations Manual.

Think of your business as a living breathing organism and realize that as your business changes your ‘one best way’ may also change. Your Business Bible, or Operations Manual is also a living document that will require fine tuning from time to time, as your business grows and changes.

Regardless of the size of your business, whether you are a one man band or have an entire team, you need to structure your business so that you are prepared for growth, increased profitability and expansion.   You need to create a well oiled machine that practically runs itself!

K-LO

4/29/2013

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