Business systemization gained notoriety from the bestselling book by Michael E. Gerber, published in 1986, The E-Myth – Why most businesses don’t work and what to do about it. In 2011, this groundbreaking book was named the number 1 business book of all time by The Wall Street Journal. In The E-Myth (Entrepreneurial Myth) Gerber explains how businesses are usually started by those who know the content of a business – so-called “Technicians”, people who know how to do the technical work involved in an enterprise – rather than by those who know business itself – so-called “Entrepreneurs” – and why start-ups are therefore by definition prone to failing.

In order for a company or business to thrive, it must move beyond relying on the so-called “Technician” who is now also the company owner. Gerber uses the franchise model to demonstrate how a business does this: Franchises are prototype businesses that are operated in terms of well-documented systems, i.e., there are manuals describing in minute detail how to run the business. Gerber argues that the entrepreneur should spend time creating a business that can run by itself, without the presence of the entrepreneur, and this is achieved through business systemization.

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The following is a guest contribution from Wendy Tadokoro, Systemisation Specialist at Organising Works!

As a successful entrepreneur, your business will gradually expand to the point where you can no longer be involved in all the day-to-day business activities.

Moving to the next growth phase requires you to create systems that free you from the operational side, and allow you to focus on growing and improving the business instead.

The time has come to set up and document your business systems – how things should be done. Indeed, business systemization is vital if you want to be successful, expand and have a sustainable business.

However, there are a number of mistakes that the small business owner often makes when first introducing business systemization.

Avoid these five common pitfalls when systemizing business processes and you’ll get the results you want.

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Successful business owners know the advantages of scaling through delegation and at the same time, preserving the quality of the service experience. Success is not something you achieve “all by yourself”.

Handing over some of the reigns is something most one-man businesses struggle with.

It makes me think of a good friend who launched her own public relations agency just over a year ago.

She told me about having just acquired two influential new clients, on top of how well some of her existing clients were doing, creating a lot more work for her in the process.

But instead of being happy and excited about her successful venture, she was complaining about the additional workload, and quite apprehensive about how it might increase even more in the future.

“How can I duplicate myself?” she asked nervously.

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As a small business grows, and the number of employees increases, it is no longer possible for the person at the helm, the business owner, to attend to all problems as they arise. Without systems in place, you may find that you are dealing with issues in an ad hoc, time-consuming and often chaotic manner. It will mean that your employees are constantly bringing problems to you and that your business cannot run without you. This can be enormously stressful for you as a manager and frustrating for your staff. Systemisation of your business will be a key factor in helping you create a scalable, sustainable business that operates equally effectively whether you are present or not.

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It may not necessarily occur to the entrepreneur of a one-person start-up company to document the processes and procedures that are followed in the day-to-day running of the business, but as the business grows, there comes a time when it will be vital to have records of how things are done. “Documenting business processes”, or “business systemisation” as it’s also known, will make the difference between a business that plods along with a business owner constantly on the verge of burnout, and one that is successful and grows and prospers, and where the business owner is secure in the knowledge that things will go smoothly whether he or she is on site or not. Here are some of the main reasons why you as an entrepreneur need to document your business processes.

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