This is what a system does for you, and your business.  It breaks things down into bite-sized pieces, which in turn gives the option to eat (or use) that bite or not. 

When you break down each piece of an action, or event, it can then be identified and defined.  Whenever you convert that action, event, or thing into small, single actions, events or things, you are able to assume control of them. The next step is putting each of those single actions, events or things into a smoothly operating order.  As a result, you have created a system, or procedure, that can be duplicated – over and over and over. 

Once each piece is identified, it can be arranged, rearranged, adjusted or completely eliminated.  Anything can be handled once it has been broken down into its individual actions, events or things. 

Do this for each function of your business and soon you will see your systems development become your pathway to a mature business and personal freedom.

A System is a Procedure that works every time in a repeatable and efficient manner.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com

Look at your business as if it was a child.

Initially you must do everything for your Baby Business.  Gradually, as it starts growing, it begins doing more and more things on its own.  Being a concerned parent you establish boundaries and guidelines to ensure it plays fair and communicates with well with the others in the marketplace.  These procedural guidelines, also known as systems, become an automatic response to behaviors in the “home” (workplace) as well as in the play area of the marketplace. These fundamental guideline/systems define preferred action and reaction for Baby Business, and apply to all of the staff from the top down.

As Baby Business continues to grow, more and more systems must be put into place and kept updated.  Example: When Marketing sends a potential customer in the door, what procedures (systems) are activated for sales, customer service, processing the payment, delivery, follow-up etc.   If these systems are clearly written, consistent on-going procedures, any new caretakers (employees) can be quickly brought up to speed, as well as able to more quickly adapt to the guideline philosophy of Business. Everyone at each level of management should be comfortably knowledgeable of all aspects of the care and conduct of Business as it applies to their area of expertise.

To develop and maintain strong core philosophy, it is imperative to integrate the systems, policies, chain of command and social skills (customer service, marketing, sales, interoffice relations, etc.) from the very beginning.  If these procedures become a part of daily life with “Little Business”, it will make it much easier to survive the Terrible Twos, as well as the Pre-Teen through Teenage years. Once these values are embedded within the core, “Little Business” will mature into a self-sufficient “Big Business”.  And “Yes”, Business growth goes through all of these stages just as an offspring does. 

There is one decided advantage to raising a Business vs a Child.  If you didn’t get all of the proper systems in place along the way and you lose control, you can close the doors and walk away; free to start over with all of your freshly acquired knowledge.  (It is only failure if you didn’t learn from it.)

The purpose for all of the systems, policies and procedures is to allow “Business” to continue taking more and more responsibility and initiative. Business needs to be encouraged to grow into maturity. This will allow you to slowly start backing out of being the primary care-giver. You should gradually transition into only being an advisor during the occasional rough spots, and eventually not even that.

By this time Business will have put quality, well trained managers and employees into all of the positions.  All systems will have been well tested by time and use. These foundation systems will only need scheduled “tweaking/adjustment” to stay current with the business’s changing services, products and the ever evolving marketplace.

So when is your Business mature? 

The day you can walk out the door for as long as you like and know Business will “continue as usual” – supporting itself and you – by itself.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – http://www.mynext30.com/

Third Party Lenders are often a good source when banks decline your loan request. When you can show you have a healthy company they are usually able to be more creative than a bank. The criteria still includes showing a history for the business, and that it is capable of making a profit.

Potential lenders or investors are keenly aware of the risk and want a return matching that risk:  the greater the risk involved in the venture, the greater the return demanded.  There are a number of factors they will take into consideration when reviewing your Business Plan, however if you have a solid plan, your chances are greatly improved.  Some of those factors are listed below.

 1.  The Plan describes a marketable idea.

Lenders and investors want to see proof that customers want your product or service and are willing to buy it for a price that gains you a consistent profit.

2.  The Plan must show good profit potential in a short period of time.

Because new business ventures are so risky, they are expected to earn at least a 25% annual return, and preferably more.

3.  The Plan targets a clearly defined market with enough size and purchasing power to produce a profit.

 Lenders and investors look for businesses whose target markets are clearly defined. They also prefer large markets with high growth potential, but avoid businesses that try to be “everything to everybody.”

4.  The Plan explains clearly the “competitive edge” your product or service has in the marketplace.

The more unique your product or service is, the better.   Show how you offer the customer something the competitor doesn’t or can’t.

 5.  The Plan shows the company’s ability to control both the quality of the product or service and its delivery.

Dependence upon outside contractors and sales representatives can be considered a potential weakness when quality of delivery, installation, and service of the product is primary to the company’s success.

6.  The Plan shows that managers and employees have the skills and the experience to make the company a success.

Lenders and investors don’t put their money into a business; they put it into its people.  Skilled, experienced managers and employees can make a business work even when resources are stretched thin and conditions are tough.  Lenders and investors also know that experienced managers and employees will improve their chances of getting their money back.

7.  The Business Plan idea is not overly complex.

Trying to do too much too fast—and/or having to educate the consumer about a product’s or service’s benefits–can put a company under before it can even get started.  This applies to expansion plans as well as start-ups.

8.  The Plan shows a personal investment in the business.

If you don’t believe in your own venture enough to invest at least some of your own money into it, no one else will want to either.  ”Sweat equity”–unpaid personal time and hard work–can be important, but lenders and investors prefer to see an entrepreneur motivated by a substantial financial stake in the business.

9.  The Plan lays out a clear, well-conceived, workable strategy for getting the business up and running or taking it to the next level.

Nothing scares off lenders and investors faster than an entrepreneur who has no time to prepare a business plan that lays out a clearly defined, workable business strategy. Preparing a plan is an essential ingredient in making a business venture work. There are no shortcuts!

10.  The Plan contains realistic financial projections.

Realistic projections are so important to potential lenders and investors who, just as you do, want to be sure that the “dollars and cents” of the deal make sense.  Most entrepreneurs underestimate the amount of money needed then fail simply because they didn’t request the actual funds required to succeed. 

11.  The Plan communicates the vision for the business and why it will succeed in a clear, concise fashion.

Now is another occasion for you test the caliber of your plan. Many times you must sell your idea on paper before you get the opportunity to explain it in person. Lenders and investors formulate opinions about entrepreneurs and their business ventures based on first impressions, which usually is from the pages of your Business Plan.

BUT – What if you aren’t able to secure funding?

If you are unable to secure funding from the outside, then you need to refocus your efforts to nurture and build the business you currently have. 

• Seek out and stem on-going leaks of cash flow.  There are always expenditures that can be reduced or cut.
• Study your plan to find overlooked or underdeveloped sources of revenue and assets.  Sometimes just a tweaked application or an alternative presentation can add to the bottom line.

Even though growth may be slower without outside funding, you will be establishing a stronger and more efficient business base.  When funding becomes available, you will be ready. 

Compliments of Lew West Business Consultants 

 www.lewwest.com  Blog  www.MyNext30.com