How Does Systematizing Help You Accelerate Growth And Maximize Value? / by Kerri
However, the most notable businesses that we remember and talk about are not the thousands of businesses that get started each year. Rather they are those enterprises that look like and act like a thriving business entity. Those businesses that survive, flourish and grow are distinctive in a number of areas. These are the business owners who actively and intentionally become strategic entrepreneurs. Here are some of the benefits they obtain as a direct result of systematizing their businesses.
- Run your business as a business with goals, budgets, strategy, campaigns, customer centric, attentive to market trends and outside influences,
- Keep accurate current financials. Do not run the entire business out of the checkbook. They can withstand a complete audit.
- Use credit and debt responsibly to grow the business because it’s built into their strategic plan
- Take direction from their Boards. Leverage their Board of Directors and Board of Advisors wisely. All because they documented their strategic plan for using their boards and trained their boards from the beginning
- Are responsive to the market because they have systems in place to monitor, the prospect market, the competition and outside influences
- They build a strong team of experts around them by expecting everyone to document standards and systems in their area of expertise from inception, company value is evident and not dependent on one individual
- They can master the art of delegating, outsourcing, and automating in every area of their business – because they have a recorded every process, policy and system to be repeatable by someone else.
- They see their productivity escalate by adhering to these systems and the team can emulate this use of systems to get more done too
- With governance and legal documents and forms always up to date – these businesses are always ready for an eager buyer’s due diligence
- With growth forecasts and goals in hand, they can anticipate capital requirements and capital expenditures and develop attractive options and minimize risks
- New systems they implement are designed for the company to grow into, replacing the systems they’ve outgrown that are holding them back
- They are very resilient and responsive because they always have a Plan B for every eventuality
- All their short-term and long-term decisions and goals have always been tied to what it would take to fulfill their Exit Plan
Systemization is a critical aspect of grooming the business for sale. It takes time to plan, decide, implement and monitor results of your strategic systemization. You will develop Key Performance Indicators to evaluate and refine these systems. When you package up those same Key Performance Indicators as a trends report with 2-3 years data – it becomes powerful proof to persuade your buyer of the value they are buying.