As you build the system that is your business, you are building its value in multiple ways.
The most obvious way you are building value is by building a profitable money generating operation. It will pay you well over the years, provide for your family, and provide for your employees. Your systematized business will give you the freedom you envisioned when you first started. That is one valuable business.
Less obvious, but perhaps more importantly, you also increase your options in terms of what you can do with your business. Here are three possibilities for realizing more value from a well-systematized business:
- Sell your business. People are looking to buy a money making machine. A profitable turnkey operation can be very attractive to potential buyers. Not only can you show potential buyers impressive financials, you can show them the systems for running the business. When they see how your business runs and realize they can get great results just by following your system: well that’s value and they will pay for it. Don’t be like many unsystematized small businesses that fade away because the owner can no longer run the company and is unable to sell.
- Branch out: across the city, or across the state. Once your first location is systematized and operating smoothly, rolling out more locations is much easier. Of course, you will need to create additional systems for running a multi-branch business. But, that shouldn’t be too difficult after all the experience gained in systematizing your original location.
- Franchise your business. More and more people are looking to go into business for themselves. They see a proven franchise model as a low risk way to go. There are a number of different franchise methods and one or more may be applicable to your situation.
But, none of these options are available to you – until you have your business systematized.
Start building the value of your business. Begin now by documenting your systems. If you are not sure where to start, or how to organize and manage all your systems, check out the Business System Organizer manual. It has “how-to” techniques for dealing with all the documents created when building your systems. It also helps you decided where to start when creating your business systems.
There is no Easy Button
Creating your business systems must be a priority. It cannot a spare time activity. It takes time and effort to establish systems, document them, and refine them. A myriad of things will get in your way but you must persist. Schedule time each week to work on your systems. Aim to complete a system a week. Systems that are more complex will take longer. If you have employees, get them involved.
Stuff happens. Be ready to embrace problems and solve them for good using the 5 Whys technique.
Realize that by systematizing your business you are doing more than just building a good business. You are creating your own possibilities.