Business Systemization

by Sean Foster | December 03, 2020 | Newsletter

There is something very different between starting up your first, even your first few, businesses compared to how you do it when you have a whole lot more experience. You have probably heard of some people who buy businesses that are run down and then fix them, only to sell them within months to a couple of years, and all for a roaring profit.

What is the difference between the above two scenarios? At first glance, it appears to just experience, and it is, but what is this experience?

Recently many of our BIG members started the process of “processing their businesses” also referred to as “business systemization.”

This is what experienced business owners instinctively do. From prior experience, they have learnt what works and what does not work in their businesses, and they go about designing their business around what works and what to do to minimise inefficiencies and costly mistakes, that tends to plague the newbies.

So, what is business systemization?

In a nutshell, it is creating some form of structure within the business that allows the business to operate smoothly without being dependent on the business owner. In fact, it reduces any key person dependability at all levels within the business. Many business owners believe that their business is unique: the reality is most businesses have more similarities than differences, and this can be demonstrated after your business has been systemised and you then note how similar the systems are between businesses.

For the average business owner, business life is all about keeping pace with the ever more complex and faster-moving hamster wheel.

There are really three distinct phases in the life of a business, and they go like this.

Phase I: you figure out what works and what doesn't work by hustling like a magician. This is the phase of exploration, experimentation, significant risk, but all balanced out by your optimism and good energy levels.

Phase II: you now start to bed-down on what works and what is profitable. You start taking on more overheads, employees and other costs. Hopefully, you start generating profits and catching up with those pressing tax liabilities. Generally, the business is still financially exposed but done correctly, the bones of the business start to take form.  

Phase III: the business has established a good client base, has a reputation for its products or services, is profitable and ready to scale. In the real world, the majority of SME’s never really reach this phase.

My question to you is: when do you introduce systemization into your business?

I do have a firm opinion on this:

  • If you are a serial entrepreneur and this is yet another business that you are starting up, and especially if this new business is similar to your previous ones, then start your business from day one, with a systematised process in place.
  • However, and this applies to most new start-ups, systemization is both counterproductive and wasteful of your time and resources. What is required is for you to figure out what your business needs to deliver on in order to make sustainable profits, and as quickly as possible. Phase 1 could take place over a few months to a year or two.  

Once you can tick off phase one and you realize you are entering phase two territory, this is when you should embrace systemising your business. And if you are already in phase three, then better late than never: get going and systemize.


So here are some options for you:  

  1. You can download the 7-step systemization eBook here. It is like a condensed DIY manual.
  2. You can work with me one on one in your business on this specific project and create a processed business – this is your best chance of creating a business that is NOT reliant on you or other key person dependencies.
  1. You can join the BIG group and work ON your business, including systemizing it. The BIG format is both safe and affordable, whilst also cross-learning from other industries and businesses.

Lastly, if you are just a little stuck, not exactly sure what or how business systemization could work for you, and maybe it can’t , then simply book a free strat session with me to explore the possible options.

Interested to learn a little more about BIG? It’s not an adults’ only shop, it is the Business Improvement Group. Exclusive membership for business owners who want to grow and improve both their businesses and themselves.