What are Small Business Systems?
Maybe you’ve heard that systems are the backbone of a business. That’s great, but what exactly is a system, anyway?
In the online business realm, there’s a million jargon words floating around, and even as an OBM, it can be hard to keep up with them.
However, you can easily explain systems in simple terms. Your business comprises multiple systems which allow it to run smoothly and fulfill its purpose.
What Are Small Business Systems?
They are the infrastructure that helps a business run smoothly and efficiently. This can be everything from communication to software use.
Think of a business as a large machine. The systems are the gears that work together to make up the whole machine—which is what clients see. Only you and your team see all the little gears and mechanisms that keep it all running!
Types of Business Systems
Let me give you just a few examples of business systems:
Accounting/Payroll Software
CRM (customer relationship management)
Marketing Automation
Website Builder
Inventory Management Software
There are many types of business systems, and they are going to vary widely on uses. Every business has their own needs, and depending on your scale of operation, type of business, and tech-savvy level, which systems you use will be a case-by-case point.
Who Needs A Business System?
Everyone is the answer. All small businesses need systems. Without them, there would be no processes in place, and things would get pretty unpredictable quickly. Poor systems will leave you disorganized and unable to grow your business.
What If I Don’t Have These Business Management Systems?
No systems = disaster zone.
If you are trying to run a business without SOPs, with no software to automate your processes, or daily-tasks that keep things running, you’re going to enter a chaos zone quickly.
Let’s start with the tiniest piece of the system–the process.
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. In the metaphor of the machine, these would be the individual cogs/teeth of a gear and the screws (or whatever else) that hold the system together.
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.
What tools are you using to complete your processes?
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 ideal business.
Examples of Business Systems for Small Business
This is not an exhaustive list, but an idea of what we’re talking about with quality business systems:
Types of Business Systems for Small Business
Marketing Systems
Marketing systems are in place to help automate marketing efforts, such as newsletter sequences, social media posts, and lead generation. A quality business system will ensure you’re always visible and measure what’s working.
Operational Systems
Operational systems are the bread and butter of your business. These are the day-to-day tasks. This would include scheduling, inventory management, and internal communications with your team. These are a significant starting point if you have no systems in place.
Client Management Systems
Happy clients are essential. CMS help track relationships with clients through their entire journey (from lead to off-boarding). They can send initial forms, follow-ups, send invoices, etc.
Financial Systems
No one wants chaos to enter their finances, so financial systems are also essential. This is everything from automated payroll and time-tracking to invoice delivery and expense tracking.
Project Management Systems
PM systems are used to track projects, both big and small. They are crucial to planning, organizing and delegating tasks. These systems bring clarity to workflow!
Examples of Business Systems
Ready to get into specifics of what may work for your business? Here’s a few and what they may look like in practice so you can better determine if they’re the right small business system for you.
Lead Generation System
A lead generation system is essentially your game plan for bringing new clients — and on a consistent basis. This includes a strategy, tools, and step-by-step processes. For example, lead magnets are the strategy, an automated marketing system like HubSpot is the tool, and a SOP is your step-by-step process.
Monthly Bookkeeping System
This keeps your finances in check—monthly! A bookkeeping system will keep all your finances in one place, such as payroll, invoices, expense tracking, etc. You’ll be able to review your revenue and spending so you can easily analyze your finances and make better financial decisions without guessing. Whether this is something you manage yourself or you outsource to a bookkeeper, a detailed SOP should be in place, so nothing falls through the cracks.
>> Want FREE plug-and-play SOP templates? Grab our SOP Guide! <<
Task Management System
This is the meat and potatoes of daily business life. Who’s doing what, when it needs to get done and when it’s due. A Task Management System should lie out how tasks should get done, in what order, and keep everyone accountable on deadlines. The key to keeping this as smooth as possible is pairing it with detailed SOPs that outlines the workflow processes. So even when things get busy, everyone knows what’s expected of them.
Check back next week for Part Two of Small Business Systems where we dive deeper into our favorite ones!
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