By Karina Samperi
How many of you would attempt to build a house without laying the foundations first? Yet how many actually follow this principle when building a business?
Let’s compare the two concepts. To build a house there is a system that people (i.e. builders) use. This ensures that the structure, when completed, will be a house that stands upright and is designed to last hundreds of years. The system goes something like this:
1. Draw up a plan
2. Map out the measurements and dig holes into the ground
3. Lay foundations using steel, concrete and wood
4. Construct walls that connect to the foundations and tighten with screws, nails, nuts and bolts
5. Build the roof (using steel, iron, timber) that connects to the walls, that connect to the foundations. Tighten the roof to the walls with screws, nails, nuts and bolts to ensure the roof doesn’t collapse, leak or fly away.
If the foundations of the house are not strong, the walls will start to crack and move, then the roof may start leaking and collapse. We hear plenty of stories about new houses that are unliveable - either you strengthen the foundations for the home to remain standing, or knock it down and start again.
The same principle applies to building a business. However, some business owners build the walls and the roof, and forget about the foundations – they then wonder why everything is about to collapse!
To build a business, you need to build solid foundations that give your business the structure from which to grow. That sounds all very well you say, but what are the foundations you need to grow your business?
Let’s compare the two concepts. To build a house there is a system that people (i.e. builders) use. This ensures that the structure, when completed, will be a house that stands upright and is designed to last hundreds of years. The system goes something like this:1. Draw up a plan
2. Map out the measurements and dig holes into the ground
3. Lay foundations using steel, concrete and wood
4. Construct walls that connect to the foundations and tighten with screws, nails, nuts and bolts
5. Build the roof (using steel, iron, timber) that connects to the walls, that connect to the foundations. Tighten the roof to the walls with screws, nails, nuts and bolts to ensure the roof doesn’t collapse, leak or fly away.
If the foundations of the house are not strong, the walls will start to crack and move, then the roof may start leaking and collapse. We hear plenty of stories about new houses that are unliveable - either you strengthen the foundations for the home to remain standing, or knock it down and start again.
The same principle applies to building a business. However, some business owners build the walls and the roof, and forget about the foundations – they then wonder why everything is about to collapse!
To build a business, you need to build solid foundations that give your business the structure from which to grow. That sounds all very well you say, but what are the foundations you need to grow your business?
Make it Independent
You can’t build a business if it depends on you. A house doesn’t depend on you to hold the walls up - the structure holds it up. There was a process used to build the house, and therefore it is Process Dependent. If your business depends on you to hold the walls up for the business to survive, then it is People Dependent. If a business is people dependent, it doesn’t have the structure in place for which to grow, slowly cracks and leaks will start to appear, and eventually it will collapse.
Business development and proper planning are crucial. A business needs to be developed so that it works as an independent, integrated system with a purpose, a process and people.
To build a Process Dependent business versus a People Dependent business you need to:
You can’t build a business if it depends on you. A house doesn’t depend on you to hold the walls up - the structure holds it up. There was a process used to build the house, and therefore it is Process Dependent. If your business depends on you to hold the walls up for the business to survive, then it is People Dependent. If a business is people dependent, it doesn’t have the structure in place for which to grow, slowly cracks and leaks will start to appear, and eventually it will collapse.
Business development and proper planning are crucial. A business needs to be developed so that it works as an independent, integrated system with a purpose, a process and people.
To build a Process Dependent business versus a People Dependent business you need to:
1. Draw up a plan with a clear picture of what you expect from the business
If you don’t know what it looks like, how will you know when you get there? Identify your vision and purpose, and develop both short and long terms goals. How many staff will you need? What staff training is required? What technology do you require? Will your business need to relocate? How much will it cost? Do you have enough capital?
If you don’t know what it looks like, how will you know when you get there? Identify your vision and purpose, and develop both short and long terms goals. How many staff will you need? What staff training is required? What technology do you require? Will your business need to relocate? How much will it cost? Do you have enough capital?
2. Design and document business systems and operating procedures that anyone can follow
Realise the importance of operating procedures and processes within all facets of business. Everyone knows how time consuming it is if each time you write a letter, you need to start from scratch - it is just like re-inventing the wheel. Ensure that you plan for growth from the start; build systems that do more than cope by documenting what your systems are, in a written form. If it is not written down, it doesn’t exist. Design, develop and implement systems and procedures that can be replicated many times over, by anybody. This enables you to free up resources and make operations run more smoothly, and ultimately enhances the professional image of your business.
Realise the importance of operating procedures and processes within all facets of business. Everyone knows how time consuming it is if each time you write a letter, you need to start from scratch - it is just like re-inventing the wheel. Ensure that you plan for growth from the start; build systems that do more than cope by documenting what your systems are, in a written form. If it is not written down, it doesn’t exist. Design, develop and implement systems and procedures that can be replicated many times over, by anybody. This enables you to free up resources and make operations run more smoothly, and ultimately enhances the professional image of your business.
3. Measure your results frequently!
You must be able to monitor, on a regular basis, how your business is performing. With the technology available today, there is no excuse for not having an efficient way of being able to analyse your business performance, and receive reports that outline the financial position. This is also a way to measure the progress towards reaching your goals, so that necessary changes can be made in order to keep you on the right track.
You must be able to monitor, on a regular basis, how your business is performing. With the technology available today, there is no excuse for not having an efficient way of being able to analyse your business performance, and receive reports that outline the financial position. This is also a way to measure the progress towards reaching your goals, so that necessary changes can be made in order to keep you on the right track.
4. Ensure you and your staff have clarity about what they do, and why they do it.
By having Job Descriptions, and a company Policy and Procedures Manual, staff are able to clearly understand the business operations and the reasons behind each policy. The existence of these documents enables consistent delivery of your products and services to customers.
By having Job Descriptions, and a company Policy and Procedures Manual, staff are able to clearly understand the business operations and the reasons behind each policy. The existence of these documents enables consistent delivery of your products and services to customers.
5. Identify areas in which you need help, and seek outside assistance.
If you don’t have the internal skills, identify and contract experts to do the job – they can do it faster and more cost effectively than you doing it from scratch. We like to think we can do everything, but the reality is quite different. An expert can help you uncover what is not immediately obvious, motivate you to focus on the key issues and more importantly, provide support and understanding in this change process.
Remember, just like our houses, we all want our businesses to stand the test of time. The development of foundation systems is the key to creating a business that thrives.
For those of you who have started building, but feel that you need to re-lay those foundations, or for those of you who are looking at starting afresh, now is the time to think about getting those foundations right!
If you don’t have the internal skills, identify and contract experts to do the job – they can do it faster and more cost effectively than you doing it from scratch. We like to think we can do everything, but the reality is quite different. An expert can help you uncover what is not immediately obvious, motivate you to focus on the key issues and more importantly, provide support and understanding in this change process.
Remember, just like our houses, we all want our businesses to stand the test of time. The development of foundation systems is the key to creating a business that thrives.
For those of you who have started building, but feel that you need to re-lay those foundations, or for those of you who are looking at starting afresh, now is the time to think about getting those foundations right!
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