Systems are the best business insurance

The conversation was meandering like a ball in a pinball machine, hitting this topic and that before coming back to the first again. And, much like my Dad’s antique pinball machine, it was fun since discussing business and systems and growth makes me light up.

We had just discussed the value in franchising and selling a business when my friend said, “we’re finding that without systems the value in a business is really small.”

I agreed and added, “systems are like… fire insurance. You know you need it but not until you need it does it become a priority.”

In the few days since that conversation I’ve amended my original position.

Systems are health, life, fire, flood, hurricane, disaster and disability insurance all in one

Let’s talk about why.

1. You never know when something will happen that prevents business as usual.

It can be as innocuous as a power outage or life changing as a pregnancy. You could have your dream client offer to fly you to Hawaii or get laryngitis. There are thousands of scenarios that could stop you, or any of your team, from doing the work of the business.

What happens? Do you shrug and say “no one will miss my newsletter this month” or can you easily enable another person to step in.

I can’t tell you how often “my VA just quit with no notice” comes across my desk and it’s always stressful and that stress is nearly always unavoidable.

2. In times of uncertainty, systems are the rock.

Think of all those insurance slogans you know: “Like a good neighbor, State Farm is there” or “You’re in Good Hands with Allstate.”

What if your own business slogan was “we’ve got a system for that” so that when your VA is out of the office or a client payment fails or your plane is delayed and calls need to be reshceduled there’s no stress. Simply, “sure, we’ve got a system for that.”

3. Systems add real value to the bottom line of a business.

And not just in how systems can help you make and keep more money right now but in the total value of your business if you choose to license, franchise or sell it later on.

It’s because the success of your business cannot be trapped in who you are and what you know. Yes, this is slightly terrifying because if you can be replaced then it feels very insecure. But if you’re irreplaceable then you can’t grow into bigger things. You can’t take a vacation. You can’t ever retire.

The very thing that brings value to the business are those proven systems that others can follow to success.

I like to call this creating the GPS of your business, the resource that tells you where to go and how to get there in detail. But like a GPS, if you imagine mapping the entire world it easily becomes too overwhelming of a project to start.

Instead begin by mapping out your frequently traveled routes by answering the questions below.

Action Step: Decide your most common tasks by answering 2 questions: “What task do you do every single month without fail (or should be doing)?” and “What do you do for every client (or want to) that you work with?”

Those are your first systems, the first bit of insurance policy for your business to protect you from the plague, natural disaster, employees who quit and so much more.