Efficient Business Systems Make Your Exit Easier

Based on insights from the ‘Exit Like a Boss Podcast – 21-Step Challenge‘, this blog covers Step 10 – Systems and Procedures.

We get it – discussing systems, policies, and procedures might not make your heart race with excitement. However, in this journey of Exit Like a Boss, we’re delving into a critical aspect that can significantly impact how potential buyers, lenders, or investors perceive your business. The focus here is to transform your business into an organized, efficient entity – a truly attractive prospect.

The Evolution of Businesses

Many businesses evolve over time, starting small with a couple of owners or founders and eventually growing in size and complexity. As your business expands, the processes that initially worked may become outdated or inadequate for the larger scale of operations. You start noticing variations in how different offices or branches handle tasks. This is where inefficiencies creep in, jeopardizing the streamlined functioning of your business.

Streamlining your business operations through well-defined systems, policies, and procedures is paramount. It’s about ensuring everyone in your team knows exactly what to do and how to do it. Not only does this enhance efficiency, but it also minimizes risks by ensuring compliance with established processes.

From a buyer’s perspective, this all boils down to risk assessment. Any deviation from established processes introduces risk into the business. Imagine having different methods for making a simple burger – it slows down operations, increases costs, and introduces inconsistency. Just like in a busy kitchen, your business needs a standardized set of instructions and processes to function smoothly and efficiently.

Implementing a Systemized Approach

Look at industry leaders like McDonald’s; they have mastered the art of systemization. Every step of their operations is meticulously planned and timed for optimal efficiency. Similarly, in your business, every action, from handling a client request to managing product variations, should follow a standardized process. Modern technology offers countless tools to document and systemize these processes.

One of the keys to success is documenting your policies and procedures in an accessible and user-friendly manner. A well-documented system empowers your team to act confidently and efficiently in any scenario, regardless of their role or experience level.

An efficiently systemized business doesn’t just function smoothly; it becomes less reliant on any single individual, including you. It’s a show of consistency, reliability, and professionalism to both your internal team and your customers. Moreover, it Saves YourSelf Time, Effort, and Money – the true essence of systems.

Regardless of your business’s nature, consider systemizing everything. Implement policies and procedures, leverage technology, and showcase a business that’s structured, disciplined, and ready for success. By minimizing risk, maximizing efficiency, and ensuring consistency, your business becomes incredibly appealing to potential buyers, lenders, and investors.

In conclusion, embrace the power of systems, policies, and procedures as you pave your way to exit like a true boss. Your journey toward efficiency and streamlining isn’t just about impressing others; it’s about shaping a better, more lucrative future for your business. Start systemizing, start adding value, and start exiting with confidence.

This article was originally published on capitaliz.com.

Craig West

Executive Chairman | Succession Plus

Craig West is a strategic accountant with over 20 years of experience advising business owners. His background as a CPA in public practice has provided invaluable experience in the key issues of concern to business owners.

In March 2014, Craig was appointed Executive Chairman of the SME Association of Australia, Australia’s largest small business organisation representing over 300,000 business owners.

In October 2014, he was awarded the Exit Planner of the Year at the Exit Planning Institute Annual Conference in Texas, USA, due to his innovative development of an exit planning process to help business owners maximise business value and achieve a successful exit.

Craig’s proprietary structure - a Peak Performance Trust - has won the Australia-wide award for the Employee Share Ownership Plan of the year twice in four years.

In November 2018, Craig launched SME Experts in partnership with Mark Bouris’ Mentored on Podcast One and quickly grew the monthly podcast audience to over 26,500 downloads; in October 2019, he released a new podcast focused on medium-sized businesses - Mid-Market Matters.

In July 2021, Craig joined the NSW Committee for STEP (Society of Trust & Estate Practitioners) – focusing on advising families across generations.

Craig has also launched a SaaS platform, Capitaliz (which captures the 21-step process), to assist other advisers internationally deliver advisory services at scale.

In November 2021, Craig was appointed Executive Chairman of NSW Leaders, a business mentoring group for leading NSW businesses.

In July 2022, Craig West received the award of Doctor of Business Administration for his research thesis titled “Examination of the key factors driving business exit options in Australian Small and Medium Enterprises.”

Craig is passionate about encouraging business owners to think strategically, maximise the value of their business and achieve a successful exit.