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Creating systems in our business can improve efficiency, profitability, and scalability.
But when is the right time to systemize?
Creating systems too soon or too late can both cause unnecessary consequences.
This week, I wanna talk about systems. Systemization involves creating well defined processes and procedures to streamline and improve efficiency in your business. So this is incredibly important. I love talking about systems, but there's also a challenge sometimes around the timing of implementing systems and your business, timing matters when you systemize is important. Now I wanna use an analogy here to describe this. And I want you to imagine that you are running a restaurant. And it's a new restaurant, and you are thinking about your menu and you have all of these ideas for what you want on the menu, and you go ahead and you write down all of the ideas. You go ahead and publish the menu. You get them printed.
You got all of these copies. You spend all of the money to order the groceries and the food. And, again, to have those menus very much printed and, you know, maybe they're exceptionally fancy, not something that you printed yourself, and you invite people in, and then all of a sudden you're like, wait a minute. How are we gonna make this? What is our recipe? And you kinda start to try to make it work, but people don't like the food. It's not going well. You decide to change the menu. And so then you've gotta reprint things. That's an example of what it would be like when you systemize too early.
When you try to take the time to document things that aren't ready to be documented, Now on the flip side, you don't wanna wait too late. You don't want to not have a menu at all and wait until You have so many people coming in the doors, and you're just taking custom orders and every single person just gets to ask for whatever they want for dinner. Right? You also don't want that. You don't wanna be making a 1,000,000 different items and trying to figure that out on the fly without having those recipes and without having any kind of narrowed down menu. It wouldn't be very efficient. You'd have excess inventory as far as groceries, things would go to waste and be thrown away. So you don't wanna wait too long either. So there's this nice little in between balance where you want to get far enough into something that there is a process to systemize.
There is something that's working, and yet you don't wanna wait too late. Right? Okay. So how do you know when it's the right time and the wrong time? to systemize your business. There are a few different factors that I want to share with you. So the first is when something is proven. This is in comparison to when you're still testing because systems are meant to provide consistency and efficiency. Systemizing strategies that aren't proven yet are a complete waste of your time. If you're still testing whether it's an offer, an audience, a marketing strategy, any kind of a process, you need to wait until you know that it's working because systemizing ahead of time is a waste of time. Alright?
Next, when you have financial stability versus if you're experiencing strain. Now financial stability, I wanna explain what I mean here because what I don't mean is that You have to believe that you're in the best financial position possible before leveraging systems. entrepreneurs often have this lens that things can always be improved and get better, especially financially. And so I wanna be clear that we're not waiting until financials are perfect, but we are focused on stabilizing revenue and profit instead of diverting resources to develop processes that aren't gonna move the needle. in bringing in more revenue and profit. Right? So if you're not in a place where you feel financially stable, Where's your time best spent becomes the question? Are you best served to take a step back and process systemize things in the business, or is your time best spent focused on improving, bringing in profit stabilizing. Now part of stabilizing profit might mean leveraging systems, but just not unnecessarily so.
So you're very specifically, systemizing the areas where efficiency could improve profit. Okay? So that's a key there. The third factor is when something is repetitive. So you can benefit from standardizing processes and devoting your brain power or your team's brain power to more strategic, creative, or high value tasks. So anytime that there's something that you or your team needs to do or multiple team members need to be able to do something, then I definitely recommend systemizing it because then you can stop focusing on recreating the will, remembering how to do it every time, and just document it so you can do it simply quickly effectively and then spend more time on other high value tasks, like I mentioned. Okay? The 4th is when you want to scale So once something is working, once you have that financial stability, when you know that it's repetitive and you're ready now, to scale that because it is working, you want well documented and efficient systems because they ensure that your operations can be replicated without sacrificing quality. Okay? Scaling means that you do more of what's working And if it's working, let's make sure it's also efficient, and then let's do more of it. Okay? The 5th is when you want to delegate well, structured processes are going to allow your team members to quickly grasp their roles and responsibilities.
It's gonna allow you to get things off of your plate. and reduce their learning curve by leveraging that system. It's gonna be easier and faster to transition something fully off of your plate. Whenever there is a system in place, I also recommend delegating something when there is a system in place, if possible. Right? It's amazing to delegate something that's already working versus trying to delegate a problem. You don't want to hand off problems to people when you're delegating where you want to solve the problems first and delegate things where possible. Now as you expand and you hire leaders, sometimes those leaders are going to need to help you problem solve. But if you're hiring someone to come in and you think that you can hand them something to fix it for you that you haven't already solved. That's probably not a good use of your time.
But instead, what we wanna do is we wanna solve it and systemize it so that you can get it off of your plate for good. Okay? So all of this to say that the decision of when to systemize simply comes down to the benefit outweighing the costs. Some businesses systemize way too early, and I think far more weight too long. So use these 5 factors to help you decide if it's the right time to start systemizing in your business. It's such a powerful tool to use. It's tremendously helpful but it really does need to be done at the right time. And there is a such thing as systemizing too early and systemizing too late. So these five factors should help you figure that out. Okay? Put these to use, and I look forward to seeing you next week.
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