There’s one major paradigm shift that has to take place to enable entrepreneurs to escape the 80% of small business owners that fail, and become a part of the 20%. There’s a major shift that separates the businesses that transcend the most common growth stages where stagnation occurs to proceed into more growth and impact. They must know how to create small business systems that enable them to scale.
Unfortunately, most small business owners, overlook systems which is why they stay in the infancy or adolescent stages and don’t achieve the levels of success they could because of one of these top 10 reasons.
If you’d like to see this content in video format, check it out here:
- 1 What is an Entrepreneur?
- 2 System Reliance Has Created Great Countries
- 3 Creating a Business Prototype
- 4 1. Client Fulfillment System
- 5 2. Lead Generation System
- 6 3. Lead Conversion System
- 7 4. The Branding System
- 8 5. The Job Prototypes
- 9 6. The Management System
- 10 7. The Leadership System
- 11 Final Word on Small Business Systems that Enable You to Scale
- 12 Now, it’s Your Turn…
In the “What is an Entrepreneur?” series, we talked about the definition of an entrepreneur. While many people think of an entrepreneur as a risk-taker and many other traits. The leading difference between an entrepreneur and being self-employed is that an entrepreneur invents a system that’s able to operate even in their absence.
The United States is a perfect example of a system that operates well regardless of the president, vice president, or Congress. The system (composed of laws, rules, and regulations that instruct people how to govern a country) was created well.
Other businesses have been able to create a system that regulates the people inside to create a successful entity that operates well after the entrepreneur or “inventor of the system” has retired or died.
System Reliance Has Created Great Countries
If you look back at history and analyze how the great countries (Egypt, Greece, Rome, Israel, Brittain, America, etc.) became great, you’ll find they were system reliant. They were not well-known specifically for one leader, but the system the leader put in place, or the system the leader was able to operate within.
Look at the US for example, the system–composed of the Constitution, Republic, and Laws–is such a great compilation of instruction manuals that even 200+ years after their creation, they are still referenced to govern millions of people in a fairly organized way.
The US system enables people to be born with no skills, get trained to the capacity they desire, and have a chance at being wealthy regardless of their background, upbringing, or ethnicity. What an amazing system!
Can you imagine what type of business you would have if you could create a system with operations manuals that enabled ordinary people to get extraordinary results?
Creating a Business Prototype
The United States has been a forerunner because the system works exceptionally well even in comparison to other governing systems that have regulated large populations in the past. Citizens are able to be born or immigrate, get an education, work hard, and become successful in the system. There are several American dream success stories to prove the success of the system.
Whereas many other governing systems disable people from having the same opportunity to life, liberty, and the pursuit of happiness that we often take for granted.
Similarly, the business prototype is a compilation of instructions for how to run the system invented by the entrepreneur. It tells how to generate leads, how to deliver uniform products and services, how to convert leads, how to manage, how to train, and so much more.
For the business prototype to work uniformly, all work performed in the business is documented in operations manuals, each person working in the system has to work according to the operations manuals, and each person is responsible for providing feedback or suggestions to continually improve the prototype.
For the US, the operations manuals are the laws, rules, and regulations, but for a business prototype, these are operations manuals or training manuals. Seven necessary systems for a small business to scale are the client fulfillment system, the lead generation system, the lead conversion system, the branding system, the job prototypes, the management system, and the leadership system.
1. Client Fulfillment System
The Client Fulfillment System is the system of how the promises to the customers is fulfilled. It’s the process of how products are developed and delivered to the client, the process of how services are provided, the quality standards, the customer service, and the system that regulates the customer’s experience. When creating the client fulfillment system, you have to answer questions like:
- What skills are required to fulfill our promises to customers?
- How can we train people with minimal skills to provide services to our customers in a uniform way?
- How can we deliver the same quality standard consistently to our clients?
- How can we create an experience for our customers that distinguishes us from the market?
Completing a customer journey map can be very helpful to plan and consider the customer experience, take notes about the processes, and compile effective operations manuals.
2. Lead Generation System
The Lead Generation System tells how you will continually get leads into the business and escort them thru the marketing and sales funnel. The lead generation system tells how to use necessary technology, what technology should be used, what skills are necessary, and so on.
Some common job prototypes of the lead generation system are:
- Public Relations
- Social Media Managers
- Cold callers
- Cold emailers
- and others…
While these job prototypes require skill, the operations manuals should be clear about how to perform to the specifications of the business, and to work to a satisfactory level where there are sufficient leads to create optimal levels of sales conversions.
3. Lead Conversion System
The Lead Conversion System tells how to convert the generated leads into sales. This can include email optins, email marketing, landing pages, and other technology, but as the business scales, it may also include Inbound and Outbound Sales personnel, Customer Service personnel, and other personnel, technology, and instructions.
4. The Branding System
Studies show that people are persuaded to patronize locations based on their colors, fonts, and the way the branding makes them “feel”. With this in mind, choosing the branding color palette is no light choice.
Even beyond color palette, logo, and store aesthetics, the branding system tells how to maintain the reputation of the company. What voice to write in, what tone to use, what standard of excellence to apply, how the customers should envision the company, and how to act to ensure the customers maintain the view of the company as desired.
The branding system is crucial as the “silent player” that often gets overlooked, but a vital component that separates generic companies from reputable ones. Branding is a way of adding equity into a company and enabling continual price advantages in the market.
5. The Job Prototypes
Job prototypes regulate what each person hired is responsible to accomplish, performance standards, training, and consistently expected productivity outcomes. Instead of abdicating or offloading jobs onto employees, job prototyping helps to delegate tasks: providing the necessary training, leadership, accountability, and instruction to complete the job.
6. The Management System
The Management System tells us how to manage the business system: how many employees per manager, how managers should train and reprimand, how to hold others accountable in the client fulfillment, lead conversion, and lead generation systems.
7. The Leadership System
The Leadership System tell how leaders should train leaders within the organization, how they should present themselves as a company leader, how to strategize, forecast, and amend things within the organization. Similar to how the US Constitution tells leaders how they should run the government, the leadership system tells company leaders how to run the company.
Final Word on Small Business Systems that Enable You to Scale
The goal of this article was to show 7 small business systems that enable you to scale. Hopefully, this article gave you lots of great ideas for creating systems and things to consider so you can scale your business. I’d love to hear that you’ve used the information here to scale a massive enterprise one day! If you have questions or concerns about this, don’t hesitate to leave them in the comments section. I’d love to help you out!
Now, it’s Your Turn…
What additional small business systems have you noticed help businesses to scale? Have you added these systems into your business? Why or why not? Leave your comments, questions, and feedback below.