Most businesses rely on the owner to work hard to achieve a level of success just above survival.
It’s sad, but if you operate the way 97% of businesses do, you’ll never become wealthy or free.
If you would like to discover the steps to create real business success, and all the money, time and freedom to enjoy what you want in life, you can’t afford this power-packed workshop.
Now don’t get me wrong.
There is nothing wrong with hard work.
The trouble is, most business owners are working hard on the wrong things!
But business owners that consistently get huge profits and have the time to enjoy the rewards, do things very differently to everyone else.
• How to turn the deep frustrations of being trapped and locked into the business struggle into the very reasons to create an exciting, successful business adventure!
• Simple, yet largely unused business development truths you need to know, understand and use.
• The simple, but normally neglected, steps you need to take to ensure you get maximum rewards from your business, while freeing up your own time to do anything you want and live the life of your dreams!
How To Systemize Your Business So It Runs Without You – Dan Lok
Why did you start your business?
- I’m unemployable
- Personal growth
- Pick who you work with
- Tax benefits
- Helping others
- Control the direction of your life
The E-Myth or Entrepreneurial Myth
Is the myth that most people who start small businesses, are entrepreneurs. It’s the fatal assumption that an individual who understands the technical work can successfully run a business that does that technical work.
Typically, the owner of a bakery is the baker. The owner of the graphic design agency is a graphic designer. The owner of a dental practice is a dentist. What typically happens is they try and solve their problems by working harder at what they “DO”.
The sad truth is most business owners fail because they work in their business rather than on it.To be a successful entrepreneur, you must recognize that the skills that made you a successful technician has LITTLE or NOTHING to do with the skills required to build and manage a business!
There are 3 types of people in a business: Entrepreneur, manager, and a technician. Being a technician is what is preventing you from success.
“What is the purpose of a business?”
The purpose of a business is to give the owner what he or she wants! The purpose of your business is not to make you miserable, consume all your time, force you to whine about your employees, make you hate your customers, and pile on financial stress. Most business owners shoot for MORE – more sales, more jobs, more customers, more profit or more of the same.
7 Key Areas to Master – The Entrepreneurial Success Cycle
- Attract clients to YOU, instead of chasing them.
- Anything you’re doing to retain and keep a client.
- That 1st sale is the first step in building a long-term relationship with a quality client.
- Optimize and maximize the lifetime value of your clients.
- Sell more stuff to more people, more often.
- Today’s focus is systematization.
- Once something in your business is working put systems in place to create consistent and predictable results.
- Allows you to teach your method of doing things to anybody.
- People are really hard to manage. Manage the system instead.
- You’ll never see the owner of a Mcdonald’s working at his restaurant.
- Most business owner don’t have a business they have a job.
- My revenue went up when I was away on vacation.
- Can you walk away from your business and maintain the same revenue?
- Once you have systems you can delegate
- You can’t get rich unless you delegate. There is only so much you can do. Your income will be limited.
- The goal with delegation is to free up your time so you can spend it on higher income earning activities.
- Using technology to automate tasks and work smarter.
5.Now you can expand!
- You can’t expand until you have all of the above setup and functioning properly.
3 Simple Steps To Systemizing Your Business So That You Can Live The Life You Want
Step 1 – Describe Your Perfect Business
- What would it do?
- How big would it be?
- What type of products, services, or projects would it be known for?
- How would it be unique and different from the competition?
- What type of customers would it target?
- How much money would it make? What would it do for you?
- Would it deliver peace of mind, security, freedom and fun?
Build An On-Purpose Business
- The purpose of owning my business is….
- My business will allow me to…
- So I can enjoy…
- And have the ability to…
What are the roles, goals, responsibilities in your business?
- What is it you are trying to do here? What is the structure of the business? Who is meant to do what, when and how? Who are they responsible for and answerable to?
- A successful business is like an orchestra, a basketball team, or an army. All of these organizations contain numerous individuals, all with a distinct function, all doing different things but contributing towards the same end objective. You are the conductor!
Step 2 – Create an Organizational Chart
- Start by getting organized, by developing a structure that reflects the functions that go on in the business.
Every business essentially has 4 CORE functions.
“You have to start thinking of your business as apart from you, not a part of you.” – Dan Lok
Defining and naming positions
When you are defining the different positions within the business it is important to give consideration to the titles that you associate with each position. The name creates not only a mindset of expectation but an assumption of seniority.
- Director of DLIC VS Sales Manager.
- Problem Solver Extraordinaire VS Assistant.
- Chief of Revenue Generation VS Marketing Manager
- Give some thought to the name of each title.
- Never use junior or senior in your titles because it makes the senior staff feel like they can boss people around.
3 Types of Employees
- Mercenaries work for money. Nothing wrong with that. These people are good to put in sales positions.
- Grunts do the minimal work to get paid.
- Patriots go above and beyond. They are more interested in your company culture, training program, they are driven by your mission and want to be apart of your business. You can’t teach this. These people are good for management roles.
Kick ass interview Tip for Key Positions
- Give them a dufus test.
- Get them to do something out of the norm.
- Interview at 5am downtown – See how they react.
- Do they make excuses?
- Change it back to 9am after they agree.
- Get me the sports section.
- Look for people that go the extra mile.
- I had someone that created me a summary / report.
- Do a few tests to get them to show you your habits.
- Give them a small project on a very short deadline like 7 hours.
- Challenge them to make it better.
The Importance of a Clear Job Description
- It is essential that job descriptions are not build around the particular skills that a current team member has. In fact, because people will come and go, the exact opposite is needed.
- If you want to attract top talent you need to sell them in the job description.
Importance of a good job description
- The people need to fit the job description; the job description SHOULD NOT be designed to fit the people.
- Set high expectations
Step 3 – Develop Business Management Systems
What is a system?
- Series of best practices and steps to get predictable results.
- What to do when a customer complains
- How to greet a customer
- How to interview employees
- How you generate leads
- How you make sales
- Checklist for setting up at events
Regardless of the business you’re in, there are best practices, ways to doing things that have the best chance of bringing about a particular result consistently.
Once you have identified what that “best practice” is, break it down into a series of steps that can be written down, illustrated, or photographed, so they can be repeated again and again.
“How can you solve a problem not ONCE, but forever?”
If your business is NOT system dependent… it’s dependent on you!
What you don’t see is Steve Jobs from Apple telling the staff how to arrange product displays, or Ray Kroc, founder of McDonald’s flipping burgers.
S.Y.S.T.E.M – Saves Yourself Stress, Time, Effort and Money
Systems take on three forms.
1 Hard systems:
- Hard systems are what something looks like. i.e. uniform, logo, decor, design.
- Information systems are standardized reports or processes. i.e. training program, tracking KPI, website traffic report.
- Soft systems are what something sounds like. i.e. how you answer the phone, how you greet customers, how you deal with complaints, how you sell, upsell, cross sell and follow up.
- Without a script how can you produce predictable results?
- You can’t expect your employees to sell better than you.
- You have to be the best sales person so you can coach them for success.
- Set them up for success.
Policies and Procedures Manual and Administration Manual
- Start with 1 page. It’s not going to happen overnight.
- Hire a systems specialist to help you with this.
- Don’t confuse what you don’t like to do, with what you don’t need to do!
- The solutions to most business problems are systems and training solutions.
- You want to run your business not have it run you.
Working On, Not Just In Your Business
You now fully understand the need to have a clear vision. You now fully understand the need for structure organization and clearly defined positions so that you can everyone else are aware of their responsibilities.
You now also fully understand the need to have systems to support everyone in delivering consistent standards across every facet of the business.
You can’t even get yourself to do the things you want in life. For example, get fit, lose weight, stop smoking. So what hope do you have of getting other people to do what you want?
You can’t manage people!
But you can manage time, space and systems. The systems run the business and the people run the systems.