5 Must-Have Small Business Systems
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Your small business systems are the backbone of your business and your systems and processes in business are what come together to make your business what it is. Think of a giant web (business) of interconnected pieces (processes) and parts (systems).
You may have already read my blog post, What are Small Business Systems?, in which I explain what exactly systems are and why you need them.
If you need a more in-depth understanding of systems for business, I recommend you read that blog post first.
TLDR that post; Your Business = Multiple Systems. A System = Multiple Processes. A Process = Procedure + Tool(s).
If you’re more of a visual person, I’ve included a simplified graphic for you.
Your Business = A Machine
Imagine your business as a large machine. The systems are the gears that work together to make up the whole machine which is what my clients see and experience when they work with me. Processes are the steps involved in a specific task or activity. These are the things you have to do to get the whole thing done.
Each process has a procedure. Procedures, documented by SOPs or standard operating procedures, are the directions for how to do the processes. If we go back to the machine, the procedures are the manual that comes with it.
Tools are another piece of your system. For your business, it’s going to be the tech that you use. In our machine metaphor, the tools are, well, the tools that put that machine together. Since I’m not a machinist, I will not go into depth here as to avoid showing my ignorance about machines and mechanics.
Your system is the culmination of these tools and processes. AKA, your system is the gear which has multiple cogs, multiple pieces and parts to create the gear.
Your business is the group of systems that work together to create your business, the machine.
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The 5 Must-Have Small Business Systems
I’d like to preface this by reminding you that I am all about creating a business that works for you and your clientele. No two businesses are alike. When you create business systems, you should consider what you want your experience to be like, your team’s experience to be like, and your clients’ experiences to be like. That being said, these are the business management systems that I recommend for all small businesses.
1.) Lead Generation System
What It Is
Your lead generation system is a set of processes that determine how you generate leads. A solid lead generation system includes procedures (SOPs) for each of the following processes:
where you find leads
how you get their information
how you follow up with them
how you nurture them
plus anything else that is involved with generating leads for your business
Why You Need It
No leads? No business.
If you do not have a steady stream of leads coming in, you don’t have a clients or customers to sell to which means you don’t have a business. You have to keep leads coming in to keep your business growing and successful.
What It Might Look Like
Disclaimer: The example I am giving you is a generic example so that it is relatable to a wider variety of small business owners and includes as little jargon as possible. Your real systems may be more (or less) complex than what you are seeing here. I do not recommend you copy exactly what I have put here without really thinking about what will work for your business.
Process: Attracting New Leads with Lead Magnet #1
Tools
Procedure
Updating the marketing calendar for days we will share the lead magnet and where
Create marketing materials (see marketing SOPs → Lead Generation)
Share per the calendar
Create pop-up on website
Share on Facebook and in groups
Documentation
The procedures, tools, and all necessary resources for this process are in the “Attracting Leads w/Lead Magnet #1” SOP located: SOP Folder → Client Management → Lead Generation
Process: Lead Tracking
Tools
Procedure
When a new lead comes in, add them to the Leads list in ClickUp
Mark how they became a lead and how you followed up
Set a date to follow up and decide on a method
Continue to update as lead progresses through pipeline.
Check leads list a minimum of 1 time per week.
Documentation
The procedures, tools, and all necessary resources for this process are in the “Lead Tracking” SOP located: SOP Folder → Client Management → Lead Generation
Business Software You Might Consider for Your Lead Generation System
Note: These are just a few of the tools that are available for you to help you create business systems. I only include tools I have used in the past and tools I would recommend to a client or fellow business owner. Remember, not every tool is for every business, every business owner, or even all systems and processes in business.
2.) Bookkeeping or Revenue Tracking System
What It Is
Your bookkeeping or revenue tracking system is how you keep track of what you’re spending. It may include invoicing and payment processing, but definitely includes tracking payments and expenses. This may also be part of a larger system that has to do with finances overall and also includes your taxes, accounting, and payroll if you are a larger business.
Why You Need It
This is one of those business management systems that can make or break your business. If you don’t know how much you have coming in and what you’re spending each month, you cannot make informed decisions about your finances. Likewise, it’s difficult to know what to pay yourself or decide on any investments you’d like to make if you do not have a solid understanding of your financial situation.
What It Might Look Like
Disclaimer: The example I am giving you is a generic example so that it is relatable to a wider variety of small business owners and includes as little jargon as possible. Your real systems may be more (or less) complex than what you are seeing here. I do not recommend you copy exactly what I have put here without really thinking about what will work for your business.
Process: Reconciling Books
Tools
Procedure
On the 5th of every month, look at the previous month’s sales.
Ensure that the correct sales amount is shown–not what was transferred from payment processor.
Change amounts as necessary
Ensure expenses are correct and receipts are saved in correct file
Documentation
The procedures, tools, and all necessary resources for this process are in the “Reconciling Books” SOP located: SOP Folder → Operations → Money & Finances
Process: Creating Monthly Profit & Loss Statements
Tools
Procedure
After reconciliation has occurred, download profit & loss statement in Quickbooks.
Documentation
The procedures, tools, and all necessary resources for this process are in the “Monthly Profit & Loss Statements” SOP located: SOP Folder → Operations → Money & Finances
Process: Weekly Update of Quickbooks
Tools
Email
Procedure
Each week on Monday afternoon, check the sales and expenses from the previous week to make sure everything was processed correctly, the correct tags were added, the correct categories were added, and add an receipts necessary
Documentation
The procedures, tools, and all necessary resources for this process are in the “Weekly Quickbooks Update” SOP located: SOP Folder → Operations → Money & Finances
Business Software You Might Consider for Your Bookkeeping or Revenue Tracking System
Note: These are just a few of the tools that are available for you to help you create business systems. I only include tools I have used in the past and tools I would recommend to a client or fellow business owner. Remember, not every tool is for every business, every business owner, or even all systems and processes in business.
3. Client Onboarding System
What It Is
Your client onboarding system is how you welcome clients into your business (even if you’re product-based!) and what happens when your clients or customers purchase from you. This can be simple or expansive depending on what it is you need from your business and what you want and need your clients to experience.
Why You Need It
This is another one of those examples of business systems that looks very different from person to person, so I’m going to keep this explanation simple and vague.
You need a client onboarding system because it is one of the first impressions you have with a client. It’s how you know when someone buys from you. It can help someone feel confident in their decision to buy from you. It also ensures you deliver what you say you’re going to deliver.
What It Might Look Like
Disclaimer: The example I am giving you is a generic example so that it is relatable to a wider variety of small business owners and includes as little jargon as possible. Your real systems may be more (or less) complex than what you are seeing here. I do not recommend you copy exactly what I have put here without really thinking about what will work for your business.
Process: Client Purchases a Course
Tools
Procedure
Client purchases course
Automated email sent with receipt to client
Automated email sent to team with client name and program name
Automated email sent to client with course details, log in information, and Loom with directions on how to access course, log in, and create a password.
Client entered into 5-day automated email sequence welcoming them to course, our business, giving them tips and tricks for being successful, etc.
Documentation
The procedures, tools, and all necessary resources for this process are in the “Course Purchased” SOP located: SOP Folder → Client Management → Onboarding & Offboarding → Onboarding
Process: Sending New Client Gift
Tools
Procedure
Receive email from Kajabi that client has purchased course
Order Welcome Card on Postable with custom note telling them how excited we are they have joined.
Pick an appropriate stationary set on Postable to send to client along with their card
Documentation
The procedures, tools, and all necessary resources for this process are in the “New Client Gift” SOP located: SOP Folder → Client Management → Onboarding & Offboarding → Onboarding
Business Software You Might Consider for Your Client Onboarding System
Note: These are just a few of the tools that are available for you to help you create business systems. I only include tools I have used in the past and tools I would recommend to a client or fellow business owner. Remember, not every tool is for every business, every business owner, or even all systems and processes in business.
Want more ideas for business systems to implement in your small business? Join my email list!
4.) Marketing System
What It Is
Your marketing system is how you’re going to tell the world all about your small business. It includes what you’re going to use to market your business, where you’re going to show up, who your ideal client is, and even knowing when and where clients or customers are right for you.
Why You Need It
This is how you’re going to get the word out there about your business and how you’re going to let potential clients know about your business and offers. It’s directly related to how you’re going to make money.
What It Might Look Like
Disclaimer: The example I am giving you is a generic example so that it is relatable to a wider variety of small business owners and includes as little jargon as possible. Your real systems may be more (or less) complex than what you are seeing here. I do not recommend you copy exactly what I have put here without really thinking about what will work for your business.
Process: Responding to a Booked Sales Call
Tools
Procedure
A potential client has booked a Sales call & you receive notification
Automatic email was sent thanking them for booking the call and with the calendar invite
Automatic email sent giving them a heads up about what the call will be like and how long it will last
Automatic reminder set for owner to send a Loom the next day thanking the potential client for booking the call and noting our excitement to meet them
(Next day) Make Loom & send to client using email template in SOP
Documentation
The procedures, tools, and all necessary resources for this process are in the “Responding to Booked Sales Call” SOP located: SOP Folder → Marketing → Potential Client Outreach
Process: Commenting on Posts in Facebook Groups
Tools
Procedure
Visit the Online Entrepreneur’s Group and the HoneyBook for non-tech savvy people group every day
Comment on at least 2 new posts in each group each day
Be helpful and offer value–do not sell
Documentation
The procedures, tools, and all necessary resources for this process are in the “Commenting in Facebook Groups” SOP located: SOP Folder → Marketing → Social Media → Facebook
Business Software You Might Consider for Your Marketing System
Note: These are just a few of the tools that are available for you to help you create business systems. I only include tools I have used in the past and tools I would recommend to a client or fellow business owner. Remember, not every tool is for every business, every business owner, or even all systems and processes in business.
5.) File Organization System
What It Is
Your file organization system is pretty much what it sounds like. It is a how you organize your files so that you can find things more easily, things are named the right way each time, and you know exactly how to name and organize each and every little thing you save.
Why You Need It
This is one of those types of business systems that seems silly when you’re first creating and implementing it (especially if you’re still pretty small), but can make a big difference in your productivity and overall business in the long run.
I’ve seen too many business owners spend too much time trying to find files and they can’t even remember what they named them or might have named them because they don’t have naming conventions or a system for this. Things are never in their place or a place that makes sense and it is constantly changing which means we’re going to forget again down the road. The whole things just causes a headache and could be solved if we had a system for how we were going to do these things that we followed each and every time.
What It Might Look Like
Disclaimer: The example I am giving you is a generic example so that it is relatable to a wider variety of small business owners and includes as little jargon as possible. Your real systems may be more (or less) complex than what you are seeing here. I do not recommend you copy exactly what I have put here without really thinking about what will work for your business.
Process: File Naming Conventions
Tools
Procedure
All documents are saved under Google Drive in the appropriate folder as determined by the SOP.
Google Docs will be named as such: mm/dd/yy_Project Name_Mega Folder_Document Title
Google Sheets will be named as such: mm/dd/yy_Project Name_Mega Folder_SheetTitle
Google Forms will be named as such: mm/dd/yy_Project Name_Mega Folder_Form Title
Documentation
The procedures, tools, and all necessary resources for this process are in the “File Naming Conventions” SOP located: SOP Folder → File Organization → Naming Conventions
Process: Folder Structure
Tools
Procedure
Folders should be organized in Google Drive according to the SOP to ensure proper hierarch of folders.
Company folder structure (made up example)
SOPs
Marketing
Email
Social Media
Lead Magnets
Website
Sales
Client Management
Lead Generation
Onboarding & Offboarding
Hiring
Team Members
Contractors
File Organization
Naming Conventions
Folder Hierarchy
Backup & Recovery
Documentation
The procedures, tools, and all necessary resources for this process are in the “Folder Structure” SOP located: SOP Folder → File Organization → Folder Hierarchy
Process: Backup & Recovery
Tools
Biz Google Drive
Personal Google Drive
iCloud (or whatever else you can think of here. I back mine up to my personal GDrive and I was gonna say flash drive, but I don’t think people use those anymore haha)
Procedure
Follow the procedure as documented by the SOP.
Follow the SOP to ensure backup occurs automatically every 30 days.
On the first day of each quarter, do a manual back up of the drive. Directions are in the SOP.
Documentation
The procedures, tools, and all necessary resources for this process are in the “Backup & Recovery” SOP located: SOP Folder → File Organization → Backup & Recovery
Business Software You Might Consider for Your File Organization System
Note: These are just a few of the tools that are available for you to help you create business systems. I only include tools I have used in the past and tools I would recommend to a client or fellow business owner. Remember, not every tool is for every business, every business owner, or even all systems and processes in business.
Conclusion
When working to grow your business, it’s important to consider the business management systems that will continue to grow your business, but are also appropriate for your business where it is now. You should always consider the overall experience you want your clients to feel, your team to feel, and you yourself want to feel when you create business systems or refine them.
Chances are you probably have a lot of these things started, but when you want to have quality business systems, you may have to make some adjustments here or there, or maybe even start all over with the business systems you already have in place.
Now that you’ve read through this blog, I’m curious. Which business systems do you think are most important for business owners to have?
Comment below with the systems and processes in business YOU think are most important for small business owners to have.
Want to know what other systems and processes I think small business owners should have? Join my email list and get my ideas sent to your inbox each week.
