Will Knowing That Millions Buy Franchises Work As Your Reasons Why?
None of us like extra work. One of the best reasons why. None of us like to be forever reinventing the wheel. In our own business, we can eventually become accustomed to it. And even though we are reinventing the wheel at a subconscious level. After doing it many times, we probably have a vague blueprint. But, how satisfactory is that? If you were a golfer or tennis player, how long would it take you to get good if you followed this path? How much better would you be if you learned the correct swing, and repeated it with every shot?
Running your business is not playing golf or tennis. However there may be some real similarities. What could your business be like if you figured out the correct swing, or the right system for everything you needed to do. Including validating it with repeat trials, and documenting it so you could remember for the next time. Then just followed your system whenever it needed to be applied. What could that mean to you and your business as you continue to operate it? Isn't this one of the most compelling reasons why?
While you continue to run your business in the same way as you would swing a golf club without learning the correct swing, you will spend most of your time working in your business. A business guru named Gerber made the distinction between working in your business and working on your business. My interpretation of that distinction is that working in your business can be viewed a merely busy work. Whereas working on your business can be viewed as value adding work. Systemize your business so you have more time to work on your business and add value. Another of the compelling reasons why.
Consider a prospective buyer, and how he will look at your business. If he doesn't see the necessary systems in place, his fear will be that he has to make it up as he goes along. And without the vague blueprint that years in the business has given you. He will be like the person on the golf course who has not learned the correct swing. He will be flailing away at the golf ball, and it will be going everywhere but down the fairway. Where will the business be going if he and his staff use a new swing every time? This will not be comforting to him.
If you don't do it for your own use, systemize your business for his sake. Show him that your business is like a franchise. That all the necessary systems have been proven effective and documented. You have given him an effective way of dealing with every conceivable situation that he could encounter. All he has to do is follow the instructions. And with the right systems in place, he will have the same ease of operation when he buys your business as he will from buying a franchise. But he won't have the ongoing franchise related costs.
Ease and convenience are good reasons to systemize your business. Another of the reasons why is predictability. When you implement proven systems, and have them documented for future use you remove sources of uncertainty. Particularly the uncertainty about responses to recurring events. The responses you will employ will come from your proven systems. Unlike businesses without proven systems to rely on, where the response might be the appropriate one, getting there may be random luck.
Let's examine another reason why. Suppose a call comes in from an unhappy customer. Specifically complaining that the item he just received was the wrong size. Because you had established a system to deal with customer relations issues, the person receiving the call took immediate action. Without trying to determine fault, the action taken was to agree to replace the item with the correct one. If the incorrect item was worth recovering, to organize to do that at your expense. And ask what else needed to be done to make it right.
Compare that to the random type of response that might have been given previously. Resulting in an angry customer, who might just become a former customer. All because a system had been implemented that incorporated a successful response. And one that will be given every time a like problem is encountered. You didn't need to be involved, because of your involvement in establishing the correct procedure, and making it part of you actions to systemize your business. How many reasons why do you need to move you to action?
To my mind, the most important of the reasons why you want to systemize your business involves the level of confidence. I greatly enhances the level of confidence any prospective buyer can have in your revenue, cost, and cash flow projections. It does the same for your business valuator. This combination will result in more interested buyers, with fewer applying their own uncertainty discounts to your cash flow projections, and their own valuations.
This has provided reasons why in summary form. Other information in this section will expand this discussion in more, specific, activity related detail. This exciting information and discussion is intended to persuade you of the power and return on your investment from systemizing your business.
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