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Jul 26 in General discussion
How to Create Business Systems: 5 Easy Steps for Better Efficiency
Feeling overwhelmed by the endless tasks in your business?
You're not alone.
Most business owners spend way too much time stuck in the day-to-day grind.
Too many decisions fall back on you. It's exhausting and it feels like your business owns you, not the other way around.
What if you could change that?
Imagine having systems in place so things run smoothly even when you’re not there.
Sounds good, right?
Well, that's what we’re here for.
In this guide, we'll show you how to create business systems in 5 simple steps.
Relieve the stress, buy back your time, and make better decisions.
Ready for a change? Let's get started.
What You'll Learn
  • The importance of recognizing real problems vs. distractions
  • How to identify recurring issues and address them
  • Easy frameworks to solve problems without you
  • How to set up systems that actually work
  • Ways to empower your team to make better decisions
Step 1: Recognize the Real Problem
Are you swamped with problems every single day?
Or do you sometimes feel like everyone's coming to you for solutions?
This is common for many business owners.
But not every issue needs your attention.
Identify Real Problems vs. Distractions
Ask yourself or your team these questions to figure out if the problem is real:
  • Is this really a problem?
  • Is it recurring?
  • Does it need to be solved now?
  • How can it be solved?
Example:
An employee keeps coming to you because of a glitch in the ordering system.
Instead of just fixing it, ask, "Is this a one-time problem or does it happen often?"
If it happens often, you have a real problem on your hands.
Best Practice:
Have a weekly meeting where your team can bring up recurring issues.
Make a list of these issues and prioritize them.
Tip: Use a simple spreadsheet or a tool like Trello to track these problems.
Potential Pitfall: Not Differentiating Urgent from Important
Remember, something urgent isn't always important.
Teach your team to see the difference.
Step 2: Find the Root Cause
Okay, you’ve identified a real problem.
Now, don't just solve the surface issue.
Dig deeper to find the root cause.
How to Dig Deeper:
Use tools like the "5 Whys" method.
This involves asking "Why?" five times to get to the heart of the problem.
Example:
The glitch in the ordering system:
  1. Why did it happen? Because a software update was missed.
  2. Why was the update missed? Because no one was assigned to do it.
  3. Why was no one assigned? There’s no clear responsibility for updates.
  4. Why isn’t there clear responsibility? Because the process isn't documented.
  5. Why isn't it documented? Because we never set up a system.
See how deep that goes?
Best Practice:
Every time a problem happens, write down your "5 Whys" to understand it fully.
Tip: Choose one person responsible for documenting these root causes.
Potential Pitfall: Stopping at the First Reason
Avoid the temptation to fix the first thing that pops up.
Keep asking "Why?" until you get to the root cause.
Step 3: Create a Framework for Solutions
After knowing the root cause, it's time to set up a system to prevent it from happening again.
How to Craft Your Framework:
  • Define the problem
  • Identify the root cause
  • List the steps to solve it
  • Assign responsibility
  • Set up a check-and-balance system
Example:
The ordering system glitch framework might look like this:
  1. Problem: Glitch in the ordering system.
  2. Root Cause: Missed software update due to lack of responsibility.
  3. Solution Steps:Document the software update process.Assign a team member responsible for updates.Set up monthly update reminders.
  4. Responsibility: Assigned to John in IT.
  5. Check-and-Balance: Monthly review meeting to ensure updates are done.
Best Practice:
Use simple visual aids like flowcharts or step-by-step guides.
Tip: Tools like Lucidchart or even a whiteboard can help visualize the process.
Potential Pitfall: Over-complicating the Framework
Keep it simple. Your system should be easy for everyone to understand and follow.
In the following steps, we’ll set up and implement these systems and teach you how to empower your team to take action. These steps are crucial in shifting from being overwhelmed to owning a well-oiled business machine.
Step 4: Set Up the System
Now that you have your framework, it's time to get it up and running.
How to Set it Up:
  1. Document Processes: Write down each step clearly.
  2. Assign Roles: Make sure everyone knows their part.
  3. Train Your Team: Go through the new system with each team member.
  4. Use Tools: Utilize tools to automate and track tasks.
Example:
For the ordering system glitch:
  1. Document Process: Create a document with step-by-step instructions for software updates.
  2. Assign Roles: John in IT is now responsible for updates.
  3. Train Your Team: John holds a training session to show how updates are done.
  4. Use Tools: Set reminders in Google Calendar and use Asana for task tracking.
Best Practice:
Create a checklist for each process. This makes it easy for anyone to follow.
Tip: Use templates where possible. Tools like Process Street can help you create repeatable processes.
Potential Pitfall: Lack of Clear Instructions
Vague instructions can lead to confusion. Make sure your documents are detailed and easy to understand.
Step 5: Empower Your Team
Your system is set up. Now, it’s time to let your team take the reins.
How to Empower Your Team:
  1. Trust Them: Show confidence in their abilities.
  2. Provide Resources: Ensure they have the tools needed.
  3. Encourage Initiative: Let them know it’s okay to make decisions.
  4. Offer Support: Be there to guide but don’t micromanage.
Example:
For the ordering system, after training, John runs monthly updates. He knows he can ask for help but doesn’t need constant supervision.
Best Practice:
Hold regular check-ins to discuss how the system is working and make any necessary adjustments.
Tip: Create a culture where feedback is welcomed. This encourages continuous improvement.
Potential Pitfall: Micromanaging
Once your team is trained, step back. Let them handle things but remain available for support.
Step 6: Continually Optimize Your Systems
Congratulations on setting up your systems!
But the work doesn’t stop here.
Systems need regular tweaks to stay efficient and relevant.
How to Optimize Continually:
  1. Regular Reviews: Schedule periodic check-ins to assess each system.
  2. Collect Feedback: Encourage your team to share their thoughts on what's working and what isn't.
  3. Implement Changes: Be open to making adjustments based on feedback.
  4. Measure Performance: Track metrics to see if the systems are improving efficiency.
Example:
For your ordering system:
  1. Regular Reviews: Check in every quarter with John to review the update process.
  2. Collect Feedback: Ask John and others in IT if they face any challenges or have suggestions.
  3. Implement Changes: If they suggest automating part of the process, explore tools that could help.
  4. Measure Performance: Monitor if software issues decrease over time.
Best Practice:
Set specific KPIs (Key Performance Indicators) to measure system effectiveness.
Tip: Use project management tools like Asana or Monday.com to track these metrics.
Potential Pitfall: Ignoring Feedback
Your team is your best resource for improvement ideas. Make sure you listen and act on their feedback.
The Power of Delegation
Efficient systems and a well-trained team free you up to focus on big-picture stuff.
How Delegation Transforms Your Role:
  1. Shift Focus: Move from day-to-day tasks to strategic planning.
  2. Empower Leaders: Let team members take ownership of their areas.
  3. Increase Growth: Use your freed-up time to think of ways to grow your business.
Best Practice:
Create a delegation plan that outlines who handles what tasks.
Tip: Use tools like Slack for clear communication and task management.
Potential Pitfall: Taking Back Tasks
Resist the urge to take back control when things get shaky. Teach and trust your team to handle the issues.
Final Thoughts: Make Your Business Work for You
Creating business systems isn’t just about efficiency.
It’s about reclaiming your time and sanity.
It’s about empowering your team and focusing on growth.
Quick Recap:
  1. Recognize real problems.
  2. Find the root cause.
  3. Create a framework.
  4. Set up the system.
  5. Empower your team.
  6. Continually optimize.
By following these steps, you’ll transform how your business operates.
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Aaron Bae
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How to Create Business Systems: 5 Easy Steps for Better Efficiency
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