Episode #16. Beverlee Rasmussen On Systems For Organized And Profitable Small Business

A breakthrough technique for Small Business: Don’t manage, build systems. 

Many small business owners experience frustration in trying to manage their businesses. So many things can get in the way of organized and profitable implementation. Management is hard, especially when it involves managing other people. Beverlee Rasmussen has interviewed and coached thousands of small business owners all over the world, and spent 10,000 hours developing her small business system of systems. 

Systems are how things get done. If you build systems, you don’t have to manage people. Beverlee offers systems for every facet of small business: Leadership Systems, Operations Systems, Financial Systems, Team Systems, and Marketing Systems. Those titles might seem like something for big businesses only. But they’re not. Every business owner can design and implement their own systems – and doing so will bring back all the joy and freedom and success that you expected from becoming an entrepreneur.

Don’t manage, build systems.

https://youtu.be/wt760dxBOe0

Resources

Beverlee’s latest book: Small Business, Big Opportunity: Systematize Your Business.

Small Business Coach Training

Small Business Field Guide: Organized and Profitable

The Small Business Coach Gameboard

Knowledge Capsule:

Leadership Systems:

• Leadership systems are essential for maintaining consistency and stability in a small business.
  • Having a leadership system means paying attention to what you measure, control, how you allocate resources, and how you react to incidents.
  • Leaders need to ensure they don’t favor certain employees over others and maintain fairness.
  • Leadership systems are about creating a consistent experience for employees and customers.

Financial Systems:

• Understanding financial concepts like cash flow, profitability, debt, P&L (Profit and Loss), and balance sheets is crucial for entrepreneurs.
  • Entrepreneurs often struggle to differentiate between cash flow and profitability, which can lead to financial problems.
  • Borrowing money for a small business is acceptable but comes with rules; avoid high-interest traps.
  • Tracking real expenses accurately is vital for borrowing and financial stability.

Operations Systems:

• Effective operational systems enable a business to run efficiently and independently of its owner.
  • Having documented processes and checklists for various operations ensures consistency and reduces errors.
  • Adaptation and change are part of small businesses, so having systems in place can help pivot and respond effectively.
  • Operational systems are crucial for scaling and maintaining high-quality service.

Organization Systems:

• Organizational systems include structure, job roles, and defining how things are done within a business.
  • Position agreements and clear expectations for employees help reduce frustrations and improve productivity.
  • A system for compensation is essential for profitability and stability.
  • Understanding your target market and catering marketing efforts to specific customer segments is part of organization systems.

Marketing Systems:

• Effective marketing systems require a deep understanding of your target market and consistent messaging.
  • Avoid falling into the trap of chasing the latest marketing trends without understanding your customers.
  • Making and consistently keeping promises to customers is crucial; going above and beyond creates a memorable experience.
  • Marketing should be based on a value proposition and understanding customers’ emotional and product needs.

In summary, Beverlee emphasizes the importance of systems thinking in leadership, finance, operations, organization, and marketing for small business success. Systems provide consistency, stability, and adaptability, allowing entrepreneurs to achieve prosperity and freedom in their businesses.