The 7 Core Systems for Every Business

by | Jan 28, 2020 | Workspace Organization |

The 7 Core Systems for Every Business

It’s all about the systems, right? That’s what we’re told by just about everyone who’s successful in business. You’ve got to build solid systems. Great, but what the heck does that really mean?

To help you understand this better I wanted to dive in today to explore two questions:

1. What is a system?
2. What systems do I need for my business?

The topic of business systems has been written about many times by others, but it’s confusing. I’m not at all surprised if you feel a bit baffled about building better systems in your business. So, let’s start with some definitions because there are three words that often get used interchangeably and create a bunch of confusion: tool, system, & process.

Definitions: Tool, System, & Process

What is a Tool?

A specific app, software, hardware, gadget, or physical “office supply” that is designed (or can be used) to accomplish a particular outcome.

Examples: Asana, Canva, your smartphone, SIM Card, laptop, a lapel microphone, your paper planner, post-it notes.

Often we assume that if we just found the right app, software, or gadget that everything would be easy, but the tools are only one piece of the system puzzle. I’ve written in the past about this common misunderstanding that the right tool will magically fix whatever is broken in your business.

Now, don’t get me wrong. I love a good productivity tool, but alone they are not enough. So, if you’ve been asking around for the “best productivity app,” then keep reading because you’ll need more than that app to create the success you want.

What is a System?

The consistent use of three components (Tools, Habits, & Mindset) to organize a specific set of information.

Example: Your calendar organizes your appointments.

To function effectively this system needs:

  • A digital or paper calendar tool
  • Your habit of writing appointments down and reviewing it each day to ensure you show up.
  • Your mindset, beliefs, personal policies about when you are and are not available, what meetings you will take and which you won’t, what your priorities are for a given day or season.

 

Remember, if you choose an awesome calendar tool but never put your appointments into it, then it won’t be able to ensure you show up for appointments. Your habit of using the tool is essential.

Similarly, if you say yes to every request that shows up, then you’re likely to end up feeling exhausted, over-worked, and scattered… or waking up at all hours for those meetings with people on the other side of the planet.

In this case, your tool might be tracking your appointments, but it’s not keeping your mind and business organized and focused for growth as well as it could if your mindset about how you use it were fully-aligned with your priorities. (Put on your own oxygen mask before helping anyone else *wink*)

What is a Process?

The sequence of tasks and systems used to create a consistent, repeatable outcome. A process may leverage multiple systems and specific tasks to achieve its outcome.

Example: Onboarding a new client may involve multiple systems used in a specific sequence to move someone from “Sale to Client.”

  1. Take notes on client’s goals and needs (Digital Note-taking System)
  2. Create and sign client contract (Document Org System)
  3. Communicate with others (client and team) about new client project (Communication System)
  4. Send client invoice for first payment (Financial System)
  5. Schedule first working meeting (Calendar & Scheduling System)
  6. Map out initial project vision, scope, and plan (Planning System)
  7. Create new client “project & tasks” to track progress (Project Management System)

Why are these distinctions important to your business?

Understanding the difference between a tool, a system, and a process will help you begin to diagnose where the gaps are in your current business’ flow, and where you really need to focus to begin to fix what’s not working or improve upon what is working.

After all, if you don’t have good habits of writing appointments in your calendar, then a new calendar tool may not be the solution to fix it, but working on a better habit development strategy may be. That’s why I include several lessons on habit development in my upcoming course The Freedom Evolution.

Similarly, if you’re great at sales and converting prospects into clients, but then struggle with the follow-through to onboard them, then that might point out that your onboarding process could use some refinement, clarification, or support from appropriate team members. Don’t have team members yet? Then, keep reading …

It’s all about solving the right problem, and yes, systems are a part of that equation for sure. But, they are not the whole story.

The 7 CORE Business Systems

 
There are 7 systems that are core to virtually every business. Most entrepreneurs quickly (or eventually) create each of these systems to keep their information flowing:
  1. Cloud Document Organization System (Documents & Files)
  2. Digital Notebook System (Note-taking)
  3. Calendar & Scheduling System (Appointments)
  4. Project Management System (Projects/Tasks/Priorities)
  5. Team Communications Systems (Email/Communications/Messages)
  6. Financial & Bookkeeping Systems (Finances)
  7. Personal Productivity & Planning Systems (Vision/Plan/Goals/Balance)
You may even notice in the client onboarding process example above that all seven of these core systems plays a role. Essentially, these seven systems are foundational to virtually every business process including, marketing, sales, fulfillment/service delivery, customer service, and many more.
These 7 systems are the backbone of virtually every business. They are how we organize, access, and manage our information and our decision-making. Now, are there other systems that many businesses use? Sure, depending on your business model and industry others may be necessary, but these 7 are fairly universal.
What this means is if you want to start improving the systems in your business, then start by confirming that you have solid tools, habits, and mindset practices for each of these 7 core systems. Most of us are quickly aware if there’s something “off” with one of these systems.
For instance, I was talking with a potential client recently who admitted that she was overdue in sending out invoices for her current customers simply because she hadn’t yet decided which invoicing tool to use or setup a consistent financial bookkeeping system. It was an immediately obvious gap in her seven core systems.
I’ve also worked with many clients in the past who were limping along trying to keep all of their project information in their heads and lacking any effective to-do list or project management system other than their own memories. That gap lead to dropped balls, unclear priorities, and an inability to share the load and delegate with others because there wasn’t anyway to see what steps were coming up and who was responsible for which tasks.
A gap (or lack of consistency and clarity) in any of these 7 Core business systems can be crippling to the growth of your business. And, probably if you just read over the list above and reflect on the recent challenges you’ve had in your own business you’ll know whether you have a gap or instability in one of these core systems. Often, however, even if we have a system established, we may not have taken the time to clarify or refine how we’re using that system in our frequent business processes.
The real business magic lies in the processes we use. How we create a specific experience for our clients or customers from the first time they hear about us to when they become raving fans is all grounded in a collection of processes that we create and craft as entrepreneurs.Your business processes are your secret sauce.They ensure that all the important information ends up exactly where it’s most useful and the customer experience of working with you becomes graceful and seamless.

Do You Have the Recipe for Your Secret Sauce?

If you’ve been keeping a recipe in your head, then no wonder if you occasionally skip steps or forget ingredients. Similarly, if you’re keeping all those processes in your head, then how are you going to train your sous chefs to be able to produce that dish flawlessly when you’re on vacation or out sick?
Defining, clarifying, and improving our key business processes is the magic of how everything happens! I know processes don’t sound particularly magical, but they are how we create our signature experience for our clients and customers. They are how we create our impact and serve those who need us. They are our secret sauce.
They are also the key to our personal freedom. It’s in defining (and documenting) your signature business processes that you take the first step to freeing up your time and energy. With well-defined processes you are able to begin to hire and delegate basic parts of your business to others. Your business processes make freedom possible in your business… freedom to travel, to spend time with your family, to relax on a beach or take a hike.
This magic is what all those successful business celebrities are really talking about when they’re telling you that you need better systems. Yes, you need solid systems, but you also really need clear business processes that take you out of the middle of everything in your business.
That’s why I want to help you start creating better processes for your business!
While many of us don’t love going to the doctor for a “check-up,” sometimes it’s necessary to figure out how to make things better. So, rather than giving your business a “check-up,” we’re going to give you a way to “Check-in” with your business and reflect on what you could be doing differently or better to both improve your customer’s experience and consider how to get more work and tasks off of your plate!
The best way to do that is to download a copy of Your Freedom Map eGuide to help you end the grind and start creating a business that can run on auto-pilot 😉.

Get the eGuide

It will help you:
  • Brainstorm the processes that you can simplify, document, and delegate to start freeing your time and energy.
  • Get a step-by-step approach to develop your business processes so they become easier to do and to delegate.
  • Identify the areas of your business where you’ve been “flying-by-the-seat-of-your-pants” for too long and wasting time and energy.
  • Walk you through a checklist of 50+ Business Processes to clarify what’s working (or not) in your current business.
The worksheet included with the Freedom Map gives you a way to know today where your business needs more support, and the guide and lessons that follow walk you though the steps to start developing the business processes you need to create the freedom you want. Go for it, and request a copy by clicking the image above.