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Your Business Takes a Journey Through Your Community

When I designed the Small Business Operating System and the 3 journeys in your business, I wasn’t fully satisfied, because I knew that our businesses are not separate from our communities, but I couldn’t see how community fit with the journeys in business. On one of my many walks in Nature as I make my way across Canada, I decided to put some thought to this question and it hit me. The community doesn’t take a journey through your business, your business takes a journey through your community.

How could we take that paradigm and apply it to the concept of your business taking a journey through your community?

The three parts of the journeys are attraction, engagement and delight.

Many business owners are attracted to a slice of their community. We can’t do everything, we can’t fix everything so we have to decide what is important to us and work on that.

The next step is to engage with that slice. In other words, do something, not just talk. Engaging means more than simply pledging money to the cause, but going deeper.

Delight by spending time and resources to make a difference. Work with organisations, set up programs and let your staff spend time.

Make sure your business is actively working within to make changes that reflect your values. You can’t fund a recycling program, then not recycle everything in your business.

Paula is a consultant in the training space. She puts on events, including fundraisers for women’s causes she believes in. Everyone knows her as a woman who cares.

Ariel believes everyone should have access to healthy, regular food. She opened her cafe to do exactly that. All her food is locally sourced and healthily prepared. Her design and packaging reflect her environmental leanings. She brings in local entertainment to make the place more welcoming and relaxing.

 

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How can systems help when it is all going to hell in a hand basket?

 

Many business owners resist putting systems in place because there is just too much going on and they can’t see how systems can even stay intact. let alone help with emergency situations. And there are always emergency situations.

How to deal

When I was a construction manager, my crews would come into my office and say there was an emergency. I would pick up the phone (this was before everyone had a cell phone) and ask, “Ambulance, Police or Fire Service?” It was never one of those. It was a problem that had to be dealt with. The biggest problem we had was when the building inspector shut us down. I went to him with an attitude of let’s work together to get this thing back on track. Half hour later we were back in business. Other builders were shocked to see our crews back on site so soon. This story illustrates many components of dealing with ’emergencies’ and we will unpack them here.

Put it in context

Unless there is blood or imminent loss of life, it is not an emergency. It could be a very major problem but it isn’t an emergency. You will be able to deal with it better if you are not in high fight or flight mode. Dig in, find out the problem and fix it. I approached the building inspector in that way. I was inquiring what we needed to do to comply. I made it clear that our only intention is to do what was right and somehow our needs clashed and my desire was to out everything in order. He was used to project managers yelling and blaming. When it is in context you can take a constructive approach.

Build Slack into your system

Shit happens. All the time.

If your business is running on the edge you don’t leave yourself any wiggle room to deal with the inevitable snafus as they show up. You end up making decisions based on what is right in the moment rather than what is right for the business and everyone involved. Those two decisions are rarely the same.

Your people are willing to step up when required, until the are required to step up all the time. You know those businesses where everyone seems to be on high-alert all the time. There is a toxic sort of energy in the air. Rather than the creative hum of energy. Build slack into your system so you aren’t burning your people out.

Your customers can be forgiving, too. For a while. If your aisles are always full of product waiting to be shelved, or your turn around time stays longer than industry standard or you can’t get the parts you need to complete the work, your customers will go elsewhere. Build slack into your system.

This is where systems shine. You design them during the best of times and that gives you the luxury of seeing where you can add the slack you need.

Learn as you go

Every time you deal with an emergency, take time afterwards to study what happened. Is there something about your system that triggered the problem? How can you avoid that problem and any others like it? Is there a procedure you can put in place for how to deal quickly with similar situations.

Each of these situations is an opportunity to fine tune your systems.

Empower your people

Your team are in the thick of your business and can see problems before they get so big. Empower them with the ability to head problems off. When you people are clear on what outcomes you want, what your culture is and where their authority extends, they will be able to confidently handle most problems before they become too big.

Take some time after every snafu to figure out where and how it could be avoided in future. It’s important to do this without blame. Blame gets in the way of an effective team working together.

Your systems will give them what they need to know.

Systems make it easier to run your business. Systems help you weather the inevitable problems that come your way. Systems help you avert many problems or deal with them when they are small.

Well-run companies have great systems.

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Your Effortless Business as Algorithms

An algorithm is a methodical set of steps that produces a predictable result. That’s what you want your business to be, because a business that runs smoothly and predictably will make your life easier.

While life, people and business can be unpredictable, you can design most of that out of your business with the right algorithms. Your business can be set up to take most of the unpredictability out by designing your algorithm/business to respond predictably to events. Most events are predictable, even if they are unforeseen. We don’t spend enough time thinking through the possibilities.

Some people think of fast food restaurants when they think of predictability (and not in a good way). They want to offer a more personalized service. Reframe it this way, the more predictable you make most of your business, the more ability you have to offer a higher quality service where it can have the most impact..

Predictable may sound boring to you, but your customers and your team want to know what they are getting and what to expect when they come to you.

Your business can be a series of logical steps that you, your customers and your team take to reach the outcome you each desire. The clearer you are on what outcomes you want to achieve for each of these people, the easier it is for you to design these algorithms. String enough algorithms together and you create journeys that attract the right people, engage them in your business and make them feel served and delighted.

That is the way business should be.

An algorithm can be as simple as a checklist outlining the steps you take to complete a task. It can include if/then statements. For instance, IF the customer in front of you in your store is from out of town, THEN you offer a shipping home option and here are the steps you follow to make that happen. IF your customer stalls on the work you are doing together because she gets stuck on a piece of technology, THEN you offer her a mini course on that technology, or a VIP day to get her past her snafu.

Let’s look at an example. Your team journey can be made up of these algorithms:

  1. Attract the best: Tell the stories of your best team members
  2. Engage:
    1. Have a Join my team link on your website
    2. Ongoing growth plan – skills assessment and inventory
    3. Interview process
    4. Onboarding process
  3. Serve and Delight
    1. Project management
    2. Individual team member check ins

Each of those algorithms takes a series of steps that can include processes, forms, checklists and may include if/then statements that stream people or information to the appropriate place.

Most of that work can be done once and reused every time you need someone to take the Team journey. For instance, the Join My Team link would be a package they could download or forms they can fill in so you know what skills they have. You may include a step that starts the process of checking in with values, attitudes and worldviews. The interview algorithm and the onboarding algorithm are both pretty standard algorithms you can set up.

Some of those algorithms  such as the ongoing growth plan – skills assessment and inventory will be a process that is followed regularly and the outcome will be added to this journey. As you identify skills you need to add to your business, you trigger certain algorithms in the team journey such as checking to see who has completed the Join My Team algorithm with the necessary skills.

You can have a business that grows steadily and predictably with team members who know what they are doing and how they fit in. Or you can have a business with high turnover, lots of drama, and skills gaps that make everyone struggle to meet outcomes. It all comes down to algorithms.

Find out the Essential Eleven Algorithms in Your Effortless Business Template below

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Why you should keep an eye on your numbers

You are required to do your books in order to report your taxes: once a year for income tax and usually more often for HST (It can be annually, quarterly or monthly).  But the most important reasons for doing your books are to find out how you are doing and to continually improve your business.

The most successful business owners I deal with check their numbers at least once a month.  They look for specific numbers based on the specific aspects of their business they are trying to improve.  Let me give you a few examples:

Let’s suppose you want to take a trip in a few months.  You need to get a few dollars ahead to pay for the trip and to cover your ongoing costs while you are away.  There are several strategies you can use.

  1. You can decrease your spending and save up the difference.  You would watch your bank account to see that it is increasing to match your plan.  This is a question of cash flow, so there would be a mix of decreased spending, deferral of spending (watch out that you can pay as the bills come due) and keeping your cash in the bank.
  2. You can increase revenues by working extra hard for the months leading up to the trip.  You would watch for overall sales, sales per customer and accounts receivable to see that your invoices are being paid in a timely matter (again, this is a lot about cash flow).
  3. You can set up a few subcontractors to carry on for you while you are away.  You’d watch profit per project, interim billings and their payments.  This is a strategy that you would have to have used in the past because it is not something to start just before leaving town.  Possibly a good long-term move.

Let’s suppose you want to figure out whether or not to buy some new equipment.  Here are some considerations and how you would answer them:

  1. Will it pay for itself?  Watch for what it costs you to do the work the equipment will do when you get it.  Will the cost of the equipment be less than that?
  2. Does it make sense?  Looking at that aspect of your business, is it profitable on its own, is it growing, is it aligned with your core business?  You can find the answers to the first 2 questions if your bookkeeping supports that information separate from your total business.  You can track that information for a few months by analyzing your income sources and your production costs.
  3. Can I afford it?  Will your current profit cover the increased operating costs and the monthly payments or the outright purchase. Or will the increased revenue and/or decreased expenses cover the new costs.  Again, history will help you make that decision.
  4. Is it a good move?  Using a combination of past information and educated forward thinking, you will know when the time is right.

Business owners who know what to track, watch these things and they know not only whether to do it or not, but when.  And they align their business (and cash or credit) to be ready.

I would be remiss if I didn’t encourage you to delegate this task, too.  It helps to have a fresh outside eye looking at your possibilities. A good advisor has information about your industry and how you are doing relative to others, which will show you areas for improvement.  And they will have a broader perspective of other industries to share a wider variety of best practices.

I have worked in many industries (including food service, agriculture, construction and business services) and with many business owners over the past 25 years helping them grow their businesses.  I am often asked to work on a project basis; taking on a CFO type of role.  Whether it is expanding into a new location or exploring new alliance opportunities, it helps to have someone else on your side.

What are you working on and how can I, and everyone I work with, help you?  Call today for a free, no obligation chat.  I love to hear what’s going on.

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How can I do my bookkeeping when I spend all my time doing my business?

 

Running your business is why you are in business, but if you don’t take care of your business you may not have it for long or worse, you could end up working hard and not getting all you deserve for it.

“It’s hard to make it a priority.”  You should realize how important the information you get is.  Good bookkeeping will not only tell you how you have done, but it will show you areas where you can save money and areas you can improve.

“How do I get motivated?”  Believe me when I tell you I know how tedious bookkeeping can be, boy do I know!  What helps me is to think of it in terms of the information I am handling.  I think about systems of gathering and storing the receipts; I think about how the information is gathered and how it can be improved; I think about what the information is telling me.  I frame the work as information management rather than mindless entering of many numbers.  Failing that, I put on CBC radio (when there isn’t a work stoppage).  I find it just engaging enough that I can work on the basic tasks and I am able to tune it out when I need to concentrate on the task at hand.

“It’s so hard to get started.”  Make a ritual for your bookkeeping start.  Brew up a cup of tea or coffee, put on some nice music, get your comfy duds on and think of it as relaxing time.  Most of the work is pretty straight forward and allows you to get into a groove.  Maybe it’s just me, but I find time disappears while I’m bookkeeping.

“Once I’m ready, I’m not sure where to begin.”  I always start with the bank account.  Bank statements are usually correct so I use it as a jumping off place to enter cheque stubs, deposits, debit purchases and automatic payments (you can set up a memorized cheque in Quick Books to automatically enter recurring payments).  Just remember to enter the actual amount going into or out of the bank.  For instance, if you bought office supplies and kid’s school supplies at Chisholm’s enter the actual amount of the purchase on your cheque and allocate the appropriate amounts to office supplies, HST and owner equity or withdrawal.  Once that work is done, your pile is pretty much gone.

“Sometimes I get hung up on questions and I don’t know who to ask.”  When I get stuck, I make a note of it, then move on and sometimes the answer presents itself as I work through the information.  Revenue Canada can be helpful.  Their business line number is 1-800-959-5525.  I invite you to email me with your questions.  I’m happy to answer.  If it is something that will take some time to work through I offer 1:1 training.

Better, yet, Get Help

I would be remiss if I didn’t encourage you to delegate this task.  It makes much more sense for you to spend your time on high value work.  I don’t want to blow my own horn, but it’s my party, so I will.  We can often take care of this chore for you faster than you can worry about it.

As I told one business owner (who was visibly relieved to hear this), “You don’t have to know how to do bookkeeping you only have to know how to get and use the information.”

While bookkeeping isn’t rocket science and anyone can do it, it’s another one of those tasks best left to the people who do it.  Things like oil changes, hair cuts and bread making.  We can do them, but why would we?