The Business Ladder of Success – Step 3
In this series of Fast Forward Your Business Blogs, I am going to address the 6 Levels of business that are required to have a successful business. We define a successful business as a:
‘Commercial, profitable enterprise, that works, without YOU’ …
The Business Ladder of Success
In the last instalment we addressed Level 2 – Niche. At the Niche Level, this is about marketing and having a consistent cashflow. This week we move on to Level 3 – Leverage
Level 3 – Leverage
Leverage is all about systematising your business. The definition of Leverage is ‘The ability to influence a system, or an environment, in a way that multiplies the outcome of one’s efforts without a corresponding increase in the consumption of resources’. In other words, leverage is the advantageous condition of having a relatively small amount of cost in terms of Time, Energy or Money, yield a relatively high level of return.
There are 4 Ways to Leverage in Business
- People and Education
… building a much better, more educated and stronger team. The key here is to identify the skills and strengths of your staff, document this into a skills matrix, which will enable to you establish a training plan for the needs of the business.
Another key aspect with people and education is to ensure that you not only have the right people on the bus, but also the right people in the right position
- Systems and Technology
… developing a stronger, more efficient company through documented systems and better technology
Identify the types of systems and technology that will best suit your business. Key things to look for here is how will the technology save your Time, Energy and Money.
For example, if you are a service based business utilising technology software such as ServiceM8 will enable your business to be more efficient and effective in communicating with your customers, improve the productivity of your team, reporting all in one place, link to your accounting software plus so much more.
- Delivery and distribution
… increasing margins, throughput & speedy delivery with better distribution & delivery processes.
Take into consideration how easy are you making it for your customers to buy from you eg. On-line ordering systems, customer service commitment, quality products with a service commitment to getting it right the first time.
- Test and Measure
… managing finance, Cashflow, team productivity & ensuring marketing is investment not an expense with comprehensive testing & measuring including KPIs.
If you are not testing and measuring the key areas of your business, you will most likely be missing opportunities to grow and improve your business.
9 Steps to Business Systematisation
Having clarity around your ‘Business Why’ (covered earlier in Mastery – Part 1) and then articulating this into documented Vision, Mission and Culture statements is the best way to gain leverage with staff and customers. This becomes very evident when you walk into a business and you immediately get the ‘feel’ of how the business operates and their commitment to provide the very best in their products and services.
Applying the principles of SMART goals and writing them down is one of the keys to achieving business success.
It is important to document your Organisational Structure as this articulates the key positions in the organisation. When considering an organisational structure, develop this with a view to what the Company will look like in 5 years’ time, particularly in terms of the positions that will be required for sustainable growth.
Combine the Organisational Structure with Employment Contracts and Position Descriptions that clearly identify whom is responsible for what tasks within the organisation. This must also include the Business Owner.
Clearly identify the Key Operating Indicators (KPI’s) in your own business that will enable you to gain a quick picture of how your business is operating at a glance. Develop a Dashboard with this information and break it down into the Daily, Weekly, Monthly, Quarterly and Annual Buckets that best fit each KPI category.
Developing Standard Operating Procedures (SOP’s) into your business will enable routine tasks to be conducted with clarity and consistency, not only saving time but improving productivity.
SOP’s will aid in the training of new staff and ensure that tasks are being consistently completed the same way ALL of the time.
Be constantly on the lookout for Management Systems that you could introduce into the business that will enable you to ‘do more with less’ and free up the business resources especially in Saving Your Self Time Energy and Money
‘Systematise the Routine, Humanise the Exception’
In the next instalment of Fast Forward Your Business we will address Level 4 – Team
In business, it is always the little things that get big results. Take the Business Health Check Here to receive a complimentary report on the ‘health status’ of your Business …