Happy August team!

Another month down, time really does fly doesn’t it?!  Jingle bells will be ringing in the air before we know it!

A big thank you to everyone for your kind messages during our birthday month and a very warm welcome to all the new members who joined us in July – it is terrific to have you on board.

This week we want to discuss the benefits – and pitfalls – of systemising your business.  Read below to find out why systemising is the wise thing to do. To thank you for being a Grow NZ member, we’re also offering you a free eBook on the topic this month. Head to your Grow NZ Member Portal Home Page to download our top-level guide, “How To Systemise Your Business”. You can also download it via this link.

Read on for a taster on what systemising can do for your business.

*Spoiler alert*…our biggest tip is to systemise for profit, not efficiency…

Hang on, back up the bus, what do you mean by  ‘systemise’ my business?

No, I didn’t just invent a verb, systemising your business is the process of organising and structuring your company and its processes in order to maximise and scale efficiently while boosting your business value via increased profits.

There are many examples of what systemising can look like and some of them are pretty obvious. From ordering goods online to save time and petrol and using XERO/ MYOB to manage your accounting, to taking cash out of the ATM machine – instead of via the bank teller – and creating training programmes for onboarding, or exiting, employees; all of these initiatives use systems to generate time and cost efficiencies, and many of them are supported by machines or digital tools.

Systemise for PROFIT, not efficiency

It’s crucial to remember however, that while machines and automated customer management systems can be excellent tools for systemising and supporting business growth, we mustn’t forget the value of human-to-human connection. Despite all the technology available to us today, research shows humans still prefer talking to other humans, especially when it comes to discussing a complicated matter, or something that requires positive reinforcement.

So, our very first tip is to systemise for PROFIT, not efficiency.

If your sales process or service process delivers revenue/profits based on human conversations that develop need, trust and intent for a sale, upsell or cross sell, be very careful with how you automate. Automation that removes the human component of your sales process may save you on cost, but can end up actually costing you profit. It’s all about finding the most profitable, rather than the most efficient, balance between human input and automated systems.

And it comes back to the same message we have reinforced many, many times before: first walk in your customers shoes’ to understand what they value and what they don’t before making any changes.

The benefits of systemising for profit

There are three key reasons to justify systemising your business for profit.

1. You can maximise profits by reducing costs and/or increasing revenue.
2. You can unlock opportunities to scale your business – increasing your profits and margins as the percentage of fixed costs declines against rising revenues.
3. It will more than likely increase the value of your business – exponentially!

• Less time spent training employees, thanks to standardised training and ways of working.
• Consistency across the business, with every task completed within a set infrastructure.
• Easy transfer of work, if the need arises. Handover is much simpler when systemised.
• A reduction in faults and improved productivity. With templates and procedures, the margin for error should be lower.
• It’s easier to make improvements. Having systems and processes in place makes it easier to take a good look at your functions and tweak things.
• More control over the business without the business owner being involved in the day-to-day.
• Scalability – it’s much easier to grow a team on demand when there is already a clear structure in place.
• Exiting the business is less painful. Potential buyers will find a systemised business more attractive, and will pay up to 4 times as much (refer back to our eBook “Maximise Your Business Value” located in your Grow NZ Member Portal.

There’s more where this came from

Check out our free “How To Systemise Your Business” eBook on your Grow NZ Member Portal Home Page for more on this important topic. If you would like some additional expert help here, the good news is your business may be eligible for a subsidy of up to 50% via our Business Sustainability Programme.   Tourism businesses could qualify for up to 100% subsidy. Find out more here.