Many owners operate with their business processes and systems in their heads – they know what to do each day and how they want it done. But when a business grows and staff need to be hired, or the owner needs time away, not having processes documented in one place becomes a real liability. Here are five reasons to record your processes and systems so your business runs efficiently even when you’re not there.
1. Improve efficiency
Recording your processes often reveals gaps where improvements could be made – better ways to perform routine tasks, fewer bottlenecks, and steps you can eliminate. You may decide some tasks are too time-consuming and switch to an automated solution. Reviewing how you do things as you document them helps create better systems and improves productivity.
2. Support staff training
A systems manual can dramatically reduce the time you spend training new talent, and ensures jobs are consistently performed to a high standard. Sharing your guidelines helps new and casual staff get up to speed on expectations quickly, and gives them a reference to check before asking questions.
3. Sell your systems
Develop a unique, turnkey system that other businesses can implement to save time and cut costs, and you can increase profits by licensing your operating manual. Those documented processes are part of your company’s intellectual property, just like your brand name.
4. Get away
One perk of running your own business is setting your own schedule – but without systems it’s hard to take a holiday, let alone retire. To build a business that can run without you, you need to delegate tasks with confidence they’ll be done correctly and consistently. Another excellent reason to keep your systems recorded and your manual up to date.
5. Sell your business
When it’s time to sell, you’ll get top dollar if you can hand a buyer an operating manual. Buyers want to know the business will keep running smoothly through the transition and that institutional memory survives staff turnover. The more easily someone can step in and operate the business, the greater its value – and your compensation. There are excellent reasons to record your systems even if you’re just starting out; plan to update the manual yearly, like your business plan, so it stays useful.