Issue link: https://read.dmtmag.com/i/720597
SEPTEMBER 2016 24 THE JOURNAL Want Consistent Results? Develop Your Systems! BY SCOTT STROUD MARKETING CONSULTANT This morning I helped another retailer install and implement an automated CRM system. They did so begrudgingly; with the thought right up until we turned it on that what they had been doing was wor king "just fine". Every week I talk with at least one new retailer who is running their business 'old school'– pretty much the way they were 20 years ago, because that's what they are comfortable doing. It's the "can't teach an old dog new tricks" thing. They inherently know that even basic technology today (i.e. smart phone) could improve their perform- ance, but the effort seems too great. As an example, consider how leads are stored, qualified and followed up on. Often, lead man- agement involves little more than a legal pad and a desk phone. And honestly, that's a problem be- cause most of your buyers – yes, even the ones that are retired – are used to more robust and or- ganized communications. In fact, they demand it. So, if you're not using at least a basic CRM (Contact Relationship Management) System, then even your best efforts will seem slow to your potential buyers. And slow service means you lose business. It's that simple. Without a CRM, you can't be competitive. The problem isn't as much a fear of technology as it is a lack of systematized processes within our companies – a set way that we move every buyer through the funnel. Building the processes is rel- atively easy; it's just a matter of defining what the steps are that we go through to complete a partic- ular activity, writing those steps down, and refin- ing them until the process is streamlined and effective. For example, consider any repetitive process - how you process an order or what happens when a prospect completes a credit application. If you re- ally look at all the steps that take place with each of these activities and how many people or tasks are involves, you'll see that even these simple steps can be time consuming. Creating a system – a process that ensures that the same steps are followed every time, will save you time, energy and money. Rather, too many times we "shoot from the hip", without following a set routine every time. Or, we feel we don't need to write it down be- cause "it's all right there in my head." That's flawed thinking, and it's costing you money. At Cash Flow Engineering, we teach business owners how to create streamlined systems in all three major areas of their business: Sales & Mar- keting, Operations, and Financial Management. These systems not only save our clients money, they increase revenue and cash flow. Here are some reasons why: Why You Need Systems Reason 1: Without a system, things get overlooked. An old Chinese proverb states, "The faintest ink more powerful than the strongest memory." Just like a pilot's checklist, systems ensure that everything that is supposed to happen actually happens, no matter how distracted you might be. So, all the boxes get checked, everyone that is supposed to be notified is called, etc. Think: what is the real cost to you when some- thing falls through the cracks – a permit doesn't get pulled on time or an inspection is missed? It costs you time and could delay a project's comple- tion or your getting paid. Having systems in place prevents this and ensures that things happen con- sistently and predictably every time. Reason 2: Systems make your entire enter- prise more efficient. If you have a set system for every function in your business, then teaching new staff, employees or sub-contractors that system becomes easy. When your system is written down as a series of steps or as a checklist, you have a document that you can use to hold others accountable. Example: You can ask you sales team to ask their prospects how they learned of your company so that you can measure the effectiveness of your marketing strategies. Sometimes they will; other times they won't. However, if entering a new lead into a system requires that a Lead Source be entered, you'll get that information every time. The result is that you'll have specific marketing data that will help you discover where your mar- keting dollars are having the most effect, infor- mation that you wouldn't otherwise obtain. Having a system makes onboarding new em- ployees faster, and helps them become productive much more quickly. Systems are not open to in- terpretation, and they can't be bypassed. Reason 3: Systems can be refined and auto- mated. What most of my clients find is that when we define the steps of a particular function (estimat- ing, scheduling, purchasing, sales processing, de- livery, punch lists – each of these should have clearly defined steps that become a system), those processes become more measurable and manage- able. As a result, a culture of continuous im- provement takes root, as those processes are constantly being reviewed and improved. The other big "AHA" comes when we see ways to apply automation to processes that not only make them more efficient, but also free up staff time for more revenue-producing tasks. For ex- ample, the act of moving a customer from the "Application" stage to the "Approved" stage can trigger a set routine that automatically sends no- tifications to specific staff, creates a new digital file, and sends an email to the customer – all in- stantly, consistently and reliably. The final problem with not having systems in place is that you are ultimately responsible for managing the processes and functions. Without your time, involvement and attention (or that of a staff member), you can't be sure that things get done as they should. That might mean job secu- rity for you, but it's also a great burden. Would- n't it be nice to know that things can still run smoothly at the office without your constant in- volvement? Creating and implementing systems can increase efficiency, cut costs, decrease mis- takes – and give you back some time to work on your businesses, not just in it. Scott Stroud is co-founder of Cash Flow Engineering, LLC, a firm ded- icated to providing big solutions for small businesses and teaching the fun- damentals of generating consistent predictable and sustainable cash flow. He has over 35 year's experience in marketing and selling factory built housing, and consults with retailers, communities and manufacturers on how to create processes that generate consistent, predictable and sus- tainable cash flow. Contact Scott at sstroud@cashflowengineering.com, or directly at 606-416-2078. T J