Over the past couple of days, we’ve covered dealing with the pain of legal compliance and moving the needle with regards to improving profitability. As usual, the means to improving profitability depends on the business you own and how well the finances are managed.
Today I want to talk about business processes. To be honest, this is a whole course. I’m going to give you the quick rundown. Again, this is part of our CFO service, and is not included in bookkeeping and accounting packages.
Streamlining your processes and procedures allows you to do more in less time. It also allows you to make your business duplicatable. It’s much easier to hire people when you have your processes and procedures in place, even when it’s a position with little training required.
For example, it’s fine to expect an electrical journeyman to already know how to do electrical wiring, but there are also processes and procedures to be put into place as part of the job. Do you always leave your workplace neat? How do you deal with complaints? Where do you store your inventory? What are the goals of your business? We talked a bit in yesterday’s video about exit strategies, and those need to be taken into account.
The purpose of streamlining your business processes is to make sure you and your staff are focusing on the tasks that are important to business growth, rather than spinning your wheels on “busy work” that doesn’t move your business forward. It also helps with internal and external communication issues, keeps work from being chaotic, and standardizes procedures to complete the tasks that are important to your business.
One of the processes I have in place is a hiring process. I have my job descriptions pre-written, a list of questions to ask candidates, and then a process for hiring. This helps me stay on task and make sure I’m getting the best candidates for my business.
If you are ready to work on processes and procedures, there are a few steps to follow.
1. Define your goals. Why are you creating this process, and how will you know if it’s successful?
2. Plan and map your process. What strategies are you going to use?
3. Set actions and assign team members to complete the process.
4. Test the process. Testing is an important part of every large business change. Do you need to change anything about this procedure?
5. Implement the process. Train staff on the new process and start using it.
6. Monitor the results. Are you getting the results you wanted? Remember, at any time, if things aren’t working the way you wanted, you can go back and make adjustments. Document the process history – in fact, do this through all the steps of creating your processes and procedures.
7. Rinse and repeat. If your process works, you can use it for future processes.
If you’re not sure what changes you need to make in your business to improve your processes and procedures, give us a call. We can help you look at your business with fresh eyes and see what works, and what doesn’t.
Donna Harris holds a BSci in Accounting and is the owner of Bookkeeping Made Simple. She expects to complete her MBA by May, 2022.
Donna Harris, BSci Accounting, MBA student, founded Bookkeeping Made Simple with the understanding that small businesses is the heart of the American economy. After offering to do books for a friend who said he didn't have enough work to keep someone in the office 20 hours a week, she recognized the need for an efficient, online system. She has 20 years of bookkeeping and accounting experience and is excited to help small business owners achieve their goals. She enjoys spending time with her family and traveling whenever possible. She also loves reading, hiking, camping, cooking, yoga, and fitness. A huge believer in lifelong education, she is currently working on her MBA.