Ask yourself this question. If you went away for six months leaving your business behind, when you came back would it be in better or worse shape than you left it? Would you even have a business left?
If your answered negatively to either of these questions, then it’s likely you don’t have a business – rather you ARE the business.
In his must-read book, The 40 Hour Work Year, Scott Fritz calls this ‘the ownership paradox’, and says:
“Like it or not, the company value is directly connected to how involved the owner is in the business…if entrepreneur’s built companies that were system-dependent and not owner-dependent…the valuation would grow higher, quicker.”
So, let’s look at the power of business systems. This is by far the most overlooked aspect of running a successful independent restoration company. We’ll look at what they are, why you need them and how they can help you build massive value in your restoration business.
What Are Business Systems?
In short, business systems start with documented procedures, methods and processes that allow your business to run successfully without you. This is often referred to as ‘Standard Operating Procedures’ (SOP), and take the form of operations manuals and their purpose is to capture the “know how” of the business.
A great example of business systems is McDonalds. This is a complex, global, business that is essentially run by teenagers.
How do they do this?
Because they have amazing business systems. Their SOP’s cover everything from hiring to product delivery to customer interaction.
Business Systems Are Often Overlooked – Don’t Make This Expensive Mistake!
There are two reasons why business systems are often overlooked by many independent restoration company owners.
The first reason is because business systems are “back office” functions. Unlike the latest marketing strategies, sales techniques or other highly visible aspects of your business, good business systems are considered by some as boring.
Because of a perceived lack of urgency. When you’re looking to take your business to the next level, there are seemingly much more important things to do like sales and marketing.
With all of these important things vying for the scarce time of the owner, systems seem like something that can be dealt with later. But like anything else we neglect, it usually doesn’t end well.
Why You Want Systems in Your Independent Restoration Company
It’s an unfortunate thing when an independent restoration company owner goes to sell their business and finds out after putting in many years of hard work, that it’s worth a lot less than they thought.
It’s not so much that the business itself is worthless, it’s that they ARE the business and without them there is no real business to sell. In situations like this they can’t sell it for any kind of reasonable sum.
There are numerous benefits to implementing systems in your business. Here are some of the most important.
- It builds a valuable asset. It’s nice if your business gives you great cash flow to fund your lifestyle. But wouldn’t it be fabulous if one day when you decided it was time, you could sell your business and have the biggest pay day of your life? You can only do this if you build the value of the business and that can only happen if it is a system that can continue running without you.
- Consistency. Consistency is one of the keys to delivering an excellent customer experience.
- Lower labor costs. When you and your staff don’t have to waste time and effort re-inventing the wheel each time, this improves your efficiency and reduces your labor costs.
Your Business and You
Many small restoration companies, especially when they are sole operators or where all the partners work in the business, make the mistake for reasons outlined above, of not thinking about systems.
Unfortunately this thought process dooms them to staying small and remaining ‘stuck’ in their business. They have no time to work on the business because they are too busy working in the business. And they can’t get away from the business because they haven’t developed documented systems and processes.
Don’t get us wrong, they may be financially successful. Their business may be thriving with a loyal base of customers but the problem is they are stuck – shackled to their business. If they were to leave or get sick for an extended period of time, their business would cease to exist.
The only way out is to have documented business systems.
Thankfully this daunting process doesn’t have to be difficult. More Floods has developed and perfected business systems designed specifically for independent restoration companies. Our marketing and operations systems enable you to transform your company ‘overnight’. To get you working on the business, and not in the business. And ultimately, to help you grow and develop your business in to a valuable asset.
Contact us today to learn more about how More Floods can help you scale your business today, just like we’ve done for hundreds of others since 2002.