6. Systems and Manuals
What is a system?
Systems are the way you do things.
To successfully operate any business it is critical to have detailed systems in easy to read manuals. With a bit of training anyone can run the business without the current owners. Remember ‘a successful business’ is one that runs without you. Systems reduce the risk to the new owner. They must explicitly explain all aspects of the operation, control mechanisms, production processes, selling, buying, suppliers, staff, training, marketing, customers, basically how to everything without the owner. If you can read you should be able to run the business.
Different types of documentation:
Organisation charts, Job descriptions , Customer agreements, Supplier agreements, Contracts, Employee manuals, (contracts, training, incentives, rules & regulations) Permits and Licensing, Lease agreements , Financials, Picking and Shipping, to name a few.
Systems are scalable and not dependent on specialised knowledge. Systems provide consistency when they are followed and carried out are repetitively.
All successful franchises and businesses have very detailed systems that almost anyone can follow. They are the recipe to success. Prospective buyers can see the flow and consistency and how easy new employees can easily fit in if proper systems are in place.