Why Your Small Business Needs An Organisational Structure
Why Your Small Business Needs An Organisational Structure
“It’s easier and a lot quicker if just do it myself…”
I am sure you have said this in your head, if not said it out loud in your years of business. I have heard this more times than I can remember from small business owners who are trying to scale their company.
In fact, I heard it just recently...
The other day, I sat down to have a conversation with a guy, who we’ll call Bill. He runs a service-based business and we eventually got into a conversation around what the issues were that were stressing him out…
“I just feel like I have to do everything. Clients seem to constantly be chasing me for their work, I am always behind – putting out fires – and the phone just keeps on ringing. The team let me down all the time, and I am stuck in the office until 11pm most nights of the week just trying to keep up. The wife’s not real happy, but hey – I gotta do what I gotta do…right?”
Well…. No Bill. Wrong.
You don’t ‘gotta do what you gotta do…” What you really ‘gotta do’ is build an organisational structure that can function without you having to do everything.
Making All The Decisions
In all my years of business, the commonality I see amongst small business owners is that they typically have the business owner at the top making all the decisions, and carrying the weight of the company, with a team of people beneath them running around in a flap trying to keep up with the dictation from the top – just like Bill was.
Whether you like it or not, if this is how you are running your business, you are capping its potential and will be the ultimate demise of the company (along with your own health).
Successful companies are those who have managed to activate all key areas of the business, and have attributed a level of management and decision-making responsibility to those parts.
This is where organisational structures become the life-saver. Organisational structures empower teams to implement the company strategy effectively, while reducing key person risk.
By formalising a chain of command, decision-making processes, responsibilities and accountability the overall performance of the company will be operate at a much higher level, and in fact move towards the strategic goals faster.
Building An Organisational Structure in Your Business
So, if Bill was to transform his business and develop a solid organisational structure, where would he start? Where do you start?
The first place is to look at all the repeatable processes that are being performed on a daily, weekly and monthly basis in his business.
“Organise around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go, but the systems remain constant.” – Michael Gerber, E-Myth Revisited
Take one part of your business and start there. If you look at all the work you need to do to have a fully functioning systemised operation, it can seem overwhelming. Start perhaps with new leads.
Think about what happens when someone sends you an enquiry. What happens next? Is it the same type of email you send back all the time? This becomes the first step in your lead nurture system.
Then what? Perhaps a follow-up call. Is there a sales script you can develop for the call?
And so on..
Systems will transform your business. I guarantee it. It is the foundation of most successful businesses around the world when you start looking closely. It is also how we have managed to scale our advisory company to over 7 figures in just 18 months.
Ready to get started? Download our 9 Steps to Simple Systems – CLICK HERE.
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