Systems are the solution for small business frustrations

I have long advocated systems as a solution for virtually every problem faced by small business owners. And I have often received complaints about this. I am told things like, “It isn’t that simple,” “You don’t understand my situation,” or more bluntly, “Systems aren’t the solution to everything.”

I think that these claims arise because of a misconception regarding systems.

In a certain sense, systems are indeed simple. They provide specific guidelines for accomplishing a particular task. Follow the steps and you get the desired result. When the systems are clear and complete, a novice can follow the steps and complete the task. As an example, consider the User Manual for the latest gadget you bought. If the manual is written well, you can easily follow its instructions to accomplish the desired task.

I will admit that operating a small business is more complex than using many gadgets. There can be dozens of variables involved, not to mention the physical skills required. But the fact is, you follow a system when you produce a product or provide a service. You have certain steps that you follow. You know the results that you want and the steps required to achieve those results. That is your system.

No matter how easy or complex a specific task, there is one particular series of steps that will complete the task most efficiently. This is true whether you are balancing a check book or launching a rocket. Systems are nothing more than the process of identifying the most efficient way to achieve the desired result, and then documenting those steps.

As an example, last year I began investing in rental properties. As I was preparing to do so, I asked many people about their knowledge and experience with rentals. Some offered sound advice and encouragement, while others offered little more than negativity. What I discovered was that those with a positive attitude towards rentals were following a system, while those who were more negative weren’t.

Those who were following a system avoided many of the problems the naysayers were experiencing. By following a system and avoiding problems, the desired results were more easily achieved. The same principle applies to any task, including running a small business .

Celebrate your small business successes

I will admit to liking cigars. There is nothing quite so decadent as sitting on my deck, listening to the water fall in my pond while enjoying a fine cigar. I take that back. There is nothing quite so decadent as sitting on my deck, listening to the water fall in my pond while enjoying a fine cigar and sipping Scotch.

I believe that it was John D. Rockefeller who said that what this country needs is a good 10 cent cigar. Times have certainly changed, because now it’s hard to find a bad cigar for under $2.

Incidentally, the phrase “close, but no cigar” comes from carnivals “back in the day”. Cigars were often a prize at some of the games, and if someone almost won they were told “close, but no cigar”.

Sometimes close is good enough. Sometimes close represents a great success. For example, suppose you want to grow your small business by 20% one year. You map out a plan and implement it with diligence. However, your growth falls slightly short—let’s say 18%.

Some may consider this a failure. After all, you fell short of your goal. I think this is an absurd position—you did in fact grow your business by 18% and that is an accomplishment. To ignore the success and focus on the small shortcoming is to ignore the context.

It is rare that someone sets an ambitious goal and accomplishes it completely within the designated time frame. To focus on that “failure” simply undermines the actual success. So, I say that you should set ambitious goals. If you get close, have a cigar. And if you don’t like cigars, you can send one to me.

False alternatives can harm your small business

In business, and in life, we can sometimes present ourselves with false alternatives. For example, on a business forum that I frequent, a member asked if he should stress the quality of his product or the quality of his service. But why does it need to be one or the other?

Certainly you want our marketing to be focused and consistent. If you claim that you have the highest quality and the lowest prices your message will be confusing. The two seldom go together. But a quality product and quality service do.

The member wondered how many people would be attracted to a quality product and how many would be attracted to quality service. He wanted to develop his marketing accordingly. But it isn’t either/ or–the two options are not mutually exclusive.

If he stresses the quality of his product, those who value quality service may not be interested. If he stresses the quality of his service, those who value a quality product may not be interested. But if he stresses both, he has covered his bases.

Certainly we shouldn’t try to be all things to all people. That isn’t the case here. Those who value a quality product generally also value quality service. A great product with horrible service does not make for a great experience. Nor does a horrible product with great service.

If you find yourself struggling between two choices, consider whether those truly are your only choices. Sometimes when we think that we must choose between A and B, we really have another choice.

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