Mistake 1, Part 3: Trying to do Everything Yourself (or at least too much)?

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How do you build a business that works without you?

Every business has its own unique characteristics, but there is always a flow of work that makes up the overall concept.  Your task as the owner is to identify and build your own systems, detailed in a ‘procedures/tasks manual’ (sometimes called an ‘operations manual’). Every segment of your business must have definite procedures that make up the workflow. These procedures are totally consistent with your strategic goals in the business.

Just being armed with a business plan or a set of strategic goals does not mean that running your business will be easy. Work must be done to get the systems, procedures, and organisational structure right. Ray Kroc sweated over this for a considerable time before he was confident that a franchise operator could come in, switch on the register and lights and stovetop, and deliver the same high-quality hamburger, time and time again. Every detail of the business must be handled, examined, improved and documented, and improved upon again.

Up until now, whether making a sale, negotiating with a supplier, or keeping track of expenses, it has been you, as the business operator, just getting the job done.  This is fine, if the business is just you. But if you are ready to grow into developing your ‘systems and procedures’, then a change is needed.

This exercise requires all key people to be considered. Each person in the business must ask, ‘what would best service our customers here? How could I streamline or adapt the practices, in order to give the customer what they want most easily, while at the same time maximizing profits?’

To kick off this process, ask yourself: do you have the time, the skills and the capacity to execute these activities to develop your “perfect” business model?  If not, you could plug into an existing system – which is, of course, already the domain of franchises, but also exist in many network-marketing businesses. From The 7 Biggest “Costly” Mistakes Business Owners Make (And How to Survive & Thrive) by Richard Cooper – Continued in Part 4………

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About richardcooperch

Partner - Crowe Horwath (Aust) Pty Ltd, a part of Findex. Vice President - Alzheimer's Australia (Tas) Inc. Richard has over 20 years experience in Business Advisory, Taxation & Accounting at Crowe Horwath in Hobart. His primary goal is to help his clients, family, friends, and team members reach their maximum potential. Accounting and financial services is about providing people with meaningful knowledge and insight that helps them make good decisions. Some professionals forget that it is the person receiving the advice that needs to understand the issues at hand. Richard is a business partner to his clients and focuses on providing relevant, reliable and timely advice in a language they can understand. Richard believes in delivering outcomes, outcomes that must be defined by clients, and as a result he is not focused on charging time unlike most other accountants and advisors. For the first time, through its parent company Findex, clients of Crowe Horwath will gain access to their own office of financial and business advisory specialists for their personal and business affairs. Their adviser will act as a single point of contact and provide access an expanded suite of services under the one umbrella. These range from tax, wealth management, risk consulting, lending, insurance, self-managed superannuation, audit and assurance, management consulting to business advisory and more.

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