Are business systems a foreign concept?
Are you one of those people who when you hear the words ‘business systems’ it makes you want to run a mile, or even 10, or you break out in cold sweats even thinking about it?
Business systems sound way scarier than they actually are. Quite simply, business systems are what makes the foundation of your business solid so that from there you can go out and do what needs to be done to grow your business and thrive, without concerning yourself about how the business is running. The right business systems support your business to run itself….so to speak. Obviously, the systems still need to be maintained, but that’s phase 2.
People often think of business systems as just technology, but business systems are much more than that and can be split into the categories below, which are by no means exhaustive. I find that as a small business owner, these are the foundational systems that support me to front foot and get ahead in my business and enable me to support other business owners fully because I’m not having to worry about how the business is functioning, hence freeing up space for me to focus on providing an exceptional level of service to others.
Foundational Business Systems for small business*:
* Not all will apply to your business
· Finance system
Having a robust accounting system is the most important system for any business. Gone are the days of managing your finances via complicated spreadsheets, and hello to a wide choice of online systems. Many, if not all, business owners ask the same question – where do I even begin?
You begin with asking yourself what you need from a bookkeeping system:
o How advanced does it need to be - does it need all the bells and whistles (i.e., premium version) right from the get-go or can I have a basic system that can grow with my business?
o Do I need to do the bookkeeping myself, which means the system needs to be basic? Unless of course you’re already a whizz and know your way around accounting systems.
o Do you need the system to do everything for you; from invoices, purchase orders, credit notes, uploading images for cash payments, reconciling, management reporting, and more? Be clear on what you need the system to do for you.
o Given you’ve answered all the questions above, and have more clarity, the next question is, which bookkeeping system do I choose to support me and my business as it grows? There are many online options including: Xero, QuickBooks, FreshBooks, and others.
· Document management system
This is another system that is the bedrock of a business to ensure simplicity, order and flow. Having an effective and easily manageable document management system makes a huge difference to how your business runs. When I refer to document management systems, it’s all about how and where your documents are filed, and in some cases, also version controlled. An efficient document storage system follows the analogy of a tree – if often has big branches with little branches coming off each main branch, and following the theme of the tree, it may even be further divided into twigs.
There are many great document management systems out there including: SharePoint (probably one of the most secure), Google Drive, Dropbox, iCloud, and many others. Choose a simple system that works for your business and that can grow with you.
· Client Relationship Management system
A client relationship management system, aka CRM is simply a database system that allows you to manage your business relationships, i.e., clients and potential clients, and has the potential to help grow your business. I wouldn’t say that this is an absolute necessity from the start, but definitely something to consider as your business grows and you find your client base growing and it’s come time to store client contact details, keep them updated, track all interactions and manage their accounts. A CRM is fundamentally designed to support the ongoing development of your client relationships.
Using a CRM does away with notepads, documents on laptops or even the storage space that details take up in your head. It takes your client information and turns it into useful, actionable insight that can transform your business.
Things that I would use a CRM for other than contact details would be to note down meeting outcomes, phone conversations, agreements with what next steps are, action points, meeting dates, scheduling next contact, etc.
It is a very useful tool and can definitely simplify things and reduce unnecessary documents in your document management system and the use of copious amounts of notepads.
· Human Resources
As a small business owner you may not have any employees or contractors, however, as you grow you may choose to get support so you can focus on your business objectives and delegate administration to someone else. HR systems can be really basic and don’t necessarily require any specific software, other than a secure document management system. What is an HR system? In its simplest form it provides the business and employees and/or contractors with a level of settlement knowing that everything relating to working together is covered in terms of safe and secure work practices.
The things I would include in a basic HR system include:
o Recruitment and selection process
o Onboarding/induction procedure
o Learning and development
o Performance management
o Payroll system (if salaried)
o Employee / Contractor Records
o HR Policy, which includes workplace safety
As soon as you’re ready to expand your business to include others, it is time to look at what you need to have in place to support you and the business.
Start with the basic questions:
o What do I need to support me in order for me to grow the business?
o What tasks can I delegate that will enable me to focus on expansion?
o Do I need someone in the office, or can the work be done virtually, e.g., a virtual assistant or online business manager or project manager.
o Is this position full-time, part-time, ad hoc (project based)?
o Do I need an employee, a self-employed contractor, or a more casual arrangement?
Once you’ve answered these questions you will have a clear path forward. Let the fun begin!
. Operations system
I don’t know about you, but being a born organiser, and a lover of simplicity and flow, having effective operations are key for me. I’ve seen many small business owners find it extremely difficult to run their business without having a solid operational foundation.
Operations means different things to different people, but when I think of operations I think of everything that makes the business function day-to-day. The ‘practicals’, which actually includes most of the systems bullet pointed above.
I would begin with a basic Operations and Governance Manual, which can be as small as 3 pages and as large as 20+ pages. It’s what works for your business. What do you need to capture in a document that covers everything operational and all things governance, so that if someone stepped in to support you, they could use this manual and get on with their job?
What is included in the manual will also depend on the type of business, as a construction business may have different operational requirements to a hair salon or dog walking service, however, the fundamentals are generally the same.
What can be included in your Operations & Governance Manual?
o The Team – who is in the team? This is who supports you in your business, which may be your accountant, bookkeeper, lawyer, etc
o Administration:
§ Branding guidelines/font pack
§ Company email addresses
§ Logins, e.g Docusign, 1Password, accounting system, etc
§ Insurance policies (name of policy, who held with, expiry date)
§ Meetings – what meetings are needed regularly, their frequency, set agenda if a regular meeting, are they held in-person or online, who needs to attend
§ Finance procedures – can be broken down into payments, invoicing, purchasing, bank reconciliation, monthly finance reporting, filing system, etc
§ Document storage procedures
§ Human Resources – recruitment procedures, template contracts, induction procedures, workplace code of conduct
§ Policies and Procedures – confidentiality agreement, finance policy, data security policy, health and safety policy, privacy policy
§ Governance – signing authority and how the business is run. For example, can someone other than the business owner spend company money without authorisation or is there a limit that can be spent before needing sign-off by the business owner?
An operations manual is your bricks and mortar of the business. It may seem like a task that can wait, but in my experience, even if it is super simple and only a few pages, it not only settles you, the business owner, but it also supports the business to be ready for what is next.
· Marketing & Communications
What does marketing & communications mean to a small business?
It’s all about getting your product or service out in the market to be seen by prospective clients/patients/customers.
How you do that is where marketing and communications come in. A lot of business owners find the idea of marketing very challenging, but it doesn’t need to be this big extravagant marketing and communications plan, it can be very simple and still effective.
A few things to consider in relation to marketing and communications:
What do you want your business to look and feel like to others (branding, e.g., logo, font styles)?
What message do you want to get across to your audience?
What tone (mood or emotion of your communication) will portray your message to your specific audience?
How do you get your message out there (email, social media, etc)?
What platform do you use for your messages (e.g., Mailchimp)?
Who are your audience?
How often would you like to communicate with your audience?
Do you want to offer anything that would draw people to what you and your business offer?
I realise this sounds super basic, and it is, especially if right now you’re the sole marketer in your business. It may also be useful to have a consultation with a marketing person who will be able to point you in the best direction for your business and give you tips on how to do it yourself.
When you’re passionate about your small business and want to take it out into the world, marketing can actually be fun if you let go of perfection and needing to get it right. Often marketing is about experimenting - let’s try this, let’s try that, let’s go back to that, that didn’t work, etc.
If marketing becomes serious and a chore, it will show in how your business is perceived by others, especially your specific audience. Keep it light, keep it fun, keep it real!
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