The Idea of Systemizing Your Business

People start to get uptight when they hear any talk of systemizing anything, much less a business. Their thoughts immediately turn to the idea of an endless array of meetings that produce a mountain of action items that must be followed up on at the next meeting so even more action items can be generated. In short, people see systemization as some ongoing convoluted series of processes that only make things more complicated and kill the entrepreneurial spirit.

There is a good chance that you also have this rather bleak view of systemization. Before going any further, let's define what systemization is and what it isn't:

What Systemization Is Not

To be systemized does not mean to be caught up in so many policies and procedures that there is no time left to do anything productive. Systemization is not about filling time or creating the illusion of being busy. A systemized person is not someone who is so hard-nosed that any deviation from the norm is considered scandalous or harmful to the organization.

In short, systemization is not about creating a machine and being dominated by that machine. It does not have to be complicated, function for some unknown reason, or even remain the same from one year to the next.

What Systemization Is

True systemization is more or less the opposite of what most people think it is. In reality, a truly systemized organization has a solid functioning procedure that knows what must be done, has a way to do it, and gets the job done. When a business is truly systemized, there is time to devote to other pastimes - in the case of an Internet business, making good use of that creativity that is so common to true entrepreneurs.

With a properly systemized company, the procedures make sense and always have a purpose. There is no room for empty actions that stir up a lot of dust but accomplish nothing. Within this framework, everyone knows what to do and when to do it. There are no endless meetings to contend with, no complicated policies to observe, and no time wasted spinning the wheels.

That is not to say that every process within a properly systemized company is fun. Few people find the tasks of calculating and paying taxes to be fun, for example. Still, the tasks, if organized properly, can be completed in a reasonable amount of time and leave the rest of the day to move on to something that is more interesting, such as earning new customers, working on a new product, or writing new sales copy.

The bottom line is that true systemization frees you, while a lack of properly systemized organization creates nothing but endless work and stifles you and your business until both are ready to give up.

Why You Should Systemize Your Business

Now that you understand that systemization is a good thing, let's explore just exactly how this approach to your online business is good. There are actually quite a number of benefits that come with creating an organized and systematic environment for your business. Here are some examples:

- You can measure your progress. Sure, money coming in is one measure. But what if you could also figure out how to measure how well things are coming with that next big ad campaign, or the development on a new ancillary product that will enhance your main product? If your business is organized, it is possible to do a quick check on these and other ongoing processes any time you like and get real time data on what is going on.

- Little things get done on time. Without some basic plan for each day, the little things that keep operations going can build up and eventually create a bottleneck. For example, if the posting on the Accounts Receivable and Payable are not being done on a regular schedule, you could find yourself with a lot of work to do when it comes time to cut paychecks to employees or calculate your taxes for the current period. An organized system helps to ensure you don't run in to situations where your back is to the wall and you have to drop other tasks in order to play catch-up.

- There is automatically time built in to work on business networking. If your business is systematic in its operations and functions, this

means you can spend some time in networking activities that will help your business grow. You'll be able to devote an afternoon to submitting online ads, sending promotional emails, or even promoting your business locally at Chamber of Commerce events. Best of all, you can spend your time on these endeavors knowing that the company is moving right along without your direct attention for a few hours.

- You can take time off. After all, wasn't getting control of your time one of the reasons you wanted to set up an Internet business? If your business is systematically organized, you can take time off for your son's Little League game, or your daughter's dance recital. There is also the chance that you can even take several days off in order to take a short vacation if you like. Best of all, you can do this without getting any permission or approval from anyone else, and rest assured your business will continue to move forward in your absence.

At this juncture, it would be a good idea to take a moment and evaluate your own circumstances. Make a list of what it is you want to accomplish with your Internet business. Don't hold back anything, not matter how small, vague, or inconsequential it may seem. If one of the reasons you want your own online business is so you can play poker every Thursday night instead of working a part time job to make ends meet, put it down. Should your goals have to do with finally being able to afford a two week vacation every year without worrying about how much money you spend, add it to the list.

Once you have the list written, put it to one side and keep reading. We'll come back and address the list a little later and relate it to the process of systemization in ways you may not have considered up to this point.

A Lesson Learned From The Book "The E-Myth"

Since 1985, there has been one book that has become something along the lines of scripture for many entrepreneurs. That book is "The E-Myth" by Michael E. Gerber. While the book was originally focused on business systemization in the world or brick and mortar companies, subsequent editions have included data that is inclusive of the world of Internet commerce. However, many of the ideas and strategies outlined in the original edition are just as relevant to online businesses as the more traditional ones that function with physical facilities.

The phrase "e-myth" is short for the Entrepreneurial Myth, which is easily one of the main reasons businesses of any type fail. Basically, this myth holds that if someone is an expert in a particular field, he or she should have no trouble setting up a successful business. After all, they have the vision, right?

Gerber systemically dissects this myth and lays it out for the fallacy it truly is. Within the pages of "The E-Myth" there are many lessons to learn that can help a fledgling business owner, or even someone who wants to start a business, to avoid a lot of ideas and situations that ultimately lead to failure. However, there is one core lesson that you should take away from Gerber's work, if nothing else in the book sticks with you.

That one lesson is to not work in your business, but to work on your business.

But what does that mean? Is Gerber urging business owners to be detached from the business, allowing others to handle everything as he or she blithely goes in whatever direction they wish to go?

Not at all. The point Gerber is making is that the true entrepreneur sets up a system that is able to allow the business to function efficiently, and with the full participation of the business owner. But, the business owner is not bogged down in having to take care of so many different tasks that there is no room left to grow (or work on) the business.

So How Do I Work ON My Business Without Working IN My Business

One easy way to think of the distinction between these two states is to think of working in your business as essentially having a job. With this job, you have assigned tasks that you do over and over again. Your focus is on those tasks, leaving you little or no time to think of any other tasks or functions that may be going on at the same time you plod through your own assigned list of tasks.

From this perspective, being "in" your business is a lot like working for someone else. When you are an employee, you don't spend much time wondering what tasks the VP of Marketing is doing, or how the Accounting department works. You handle things in your own little world, collect your paycheck, and go your merry way.

By contrast, working on your business encompasses a lot more territory. As a business owner, you must think in terms of not one little corner of the business operation, but the entire organization. This means you can't afford to be bogged down in tasks associated with one area. If you want to be successful, you must always have a view of the big picture.

Being able to see the big picture and work on growing your business is where the idea of systemization comes in. You create and implement systems that allow all those little things to work while you are focusing on a broader view of things. Working on your business means you don't have to do everything yourself, and you don't have to micro-manage anyone you've hired to do specific tasks for you. If the

system is designed properly, the day to day aspects of the business will continue with or without your attention, effectively freeing you to spend your days working on making the business stronger, more profitable, and bigger than ever before.

Is There An Example of Working On Your Business Rather Than Working In Your Business?

While there are a number of examples of working on versus working in your business, perhaps one of the easiest ways to grasp the idea is by looking at a company that just about everyone in the world is familiar with: the McDonald's Corporation.

Most people have heard the story of the beginning of McDonald's, how a single restaurant became one of the most efficiently ran franchises in the world. What many people don't think about is how the business system developed by McDonald's has made all the difference in how quickly the company was able to expand while still maintaining consistent quality everywhere.

Without getting into a lot of detail, here are a few examples of what proper systemization has done for this one company:

- There is clear and concise process for earning the right to become a franchisee in the McDonald's chain. Not everyone can do it.

- Continuing education programs for people who want to stay in the business. Yes, folks who enjoy food service really can make a career out of working at McDonald's, not just pick up some money after school or during summer vacation.

- Consistent standards in dining room and kitchen hygiene. No matter where you go, a franchise must meet the same standards as any

restaurant owned directly by the corporation. If a restaurant fails to meet those standards, the franchise can be revoked.

- Consistent quality in the food served at each restaurant. No matter where you go in the world, you can still get the same signature dishes that you've known and loved for years.

- Room for experimentation. Above and beyond the core menu, McDonald's has practical and systemized procedures for serving items of special interest in a given region, often using this tool to experiment on possible additions to the core menu. All through the process, the quality of the food served remains high.

By digging deeper into the history and current operating structure of McDonald's, you can find plenty of other examples of how a sound and working system have made this one of the more stable companies in the world today. For now, these will suffice to illustrate just what can be done by developing a strong system that allows you to work on your business rather than work in your business.

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