When the rules should be broken

Developing systems for your small business is an important part of long-term success. Having specific steps for performing the myriad tasks within a business helps to insure consistent and desirable results. But sometimes, following those steps too rigidly can create problems. Sometimes the rules may need to be broken.

Bill Hogg provides an example. He submitted an article, which was promptly rejected because it did not meet certain guidelines. After considerable explaining on Hogg’s part, the publisher finally relented and published the article.

In this instance, the publisher had a perfectly valid rule in place. But in this particular instance, that rule was defeating the purpose for which it was implemented. In other words, the rule was not achieving the desired results.

There are times when we must break the rules. Of course, if we do this too often the rules become meaningless. But if we drop the context and follow the rules, no matter the outcome, the rules are equally meaningless. Rules are not intended to be commandments to be followed no matter what. They are established to be applied in a specific context.

When we establish procedures we must do more than just state what we want done. We must explain why we want it done–what results we are seeking. Not only does this provide clarity to the procedure, it also helps us identify when the rules should be broken.

Systems for analyzing small business marketing

One of the great challenges for a small business is attracting customers. Indeed, marketing is a frequent topic of discussion among small business owners.

Many small business owners are looking for a “magic pill”–some method of marketing that will drive eager buyers to their business. While it would certainly make life easier to find such a solution, marketing is seldom so simple. Markets are dynamic, undergoing continual change, and often what worked yesterday won’t work today.

But how do we know what works? How do we determine if we should continue our yellow page ad, or distribute more door hangers, or invest more in Google Adwords?

Far too frequently small business owners simply guess. They go on their “gut”. They make decisions based on what they believe to be true, rather than the actual facts. Far too often, small business owners do not track and analyze their marketing.

While the specifics can vary between industries, a business owner must track his leads if he is to make intelligent, informed decisions regarding his marketing. He must know what marketing is drawing customers, if those customers are buying, and how much they are buying. A particular ad may fill the store, but if those customers are not buying, the ad is providing little benefit. Conversely, another ad may attract few customers, but these are eager buyers.

We must be able to make these identifications and distinctions. We must be able to compare our various advertising. And we must use more than a hunch to do so. We must have a system in place for identifying the source of our customers.

Book review: The E-Myth

Few books can be called revolutionary. The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It, by Michael Gerber, is one such book.

This best seller presents a compelling argument for entrepreneurs to look at their business differently. Gerber points out that many entrepreneurs start a business doing something that they love, believing that their days will be filled with an enjoyable activity. However, as the business grows, and new employees must be hired, the owner quickly discovers problems that previously did not exist.

These new employees don’t have the experience and motivation of the owner. They don’t have the same drive and desire as the owner. While the owner recognizes the need to train his employees, it is the nature of that training which often proves inadequate.

While sitting in a McDonald’s one morning, killing time between appointments, Gerber wondered why the Golden Arches were so successful. Most of the employees were teenagers possessing few job skills. Yet the quality of the service and the product was similar in every store.

Gerber realized that the company’s success derived from its approach to the business. Each step of the process was carefully analyzed, and then procedures and policies were developed. That is, a system was developed, and when followed, the system virtually assures success. Thus, a McDonald’s in Houston operates almost identically to one in London, and with very similar results.

Throughout the book, Gerber exhorts the reader to work on his job, not at it. In other words, develop a systematic approach to each job within the organization. In the process, the success of the business is less dependent upon any one individual. As with McDonald’s, the system becomes the key to success.

Of course, this is usually easier said than done. Within any business, hundreds, perhaps thousands, of tasks must be performed. Often, the owner has automatized these tasks, and performs them with little or no conscious thought. Yet, he must identify and then explain each of them clearly. Systems, and their documentation in an Operations Manual, is the key to becoming a true business owner, rather than the owner of a job.

By developing production procedures and policies, and then properly training production personnel, this transition can go smoothly. The owner can then spend his time working his business, rather than in it.

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