Free Guide: How to Systemize Your Business

Doing it ALL by yourself?  Then you don’t need an Operating Manual. However, if you have or want to build a Team… then you need an Operating Manual.

Most Founders put this off because it seems like such a Herculean task. Keep the K.I.S.S. Principle in mind and the process becomes more doable.

Organization

Start very simple using Google Drive, with a Google Sheet for your Master Systems List, and Google Docs for your Systems.  More on that later…

Departments

List 5 key departments in your business:

1. Leadership & Management
2. Marketing & Sales
3. Operations & Fulfillment
4. Accounting & Finance
5. Back Office Administration

Processes

Next, pick one of those departments and break it down into 5 key functions:

ex. Accounting & Finance:

• Accounts Payable
• Accounts Receivable
• Banking
• Bookkeeping
• Invoicing

Assuming 5 departments and 5 key functions per department, your operating manual outline should only have 25 functions you need to document.

You can do this!

Tasks

Next, pick one of those functions and break it down further into 3-5 key systems:

Banking:

• Making Check Deposits
• Ordering Checks
• Reconcile Bank Accounts
• Transferring Funds

Checklists

Next, pick one of those systems and break it down into a checklist:

Making Check Deposits:

• Deposit Flip - Front
• Deposit Slip - Rear
• Record Check Info
• Photocopy Deposit Slip
• Attach Check Copies
• Remember: Get a Receipt!
• Photocopy Deposit Receipt

Later, you can come back and create a more detailed system procedure like this:

Making Check Deposits:

1. Complete a bank-issued deposit slip in ink.
2. Fill out the form on the back of the deposit slip with the check number, the amount, and the date of the check.
3. Make a photocopy of the front and back of the deposit slip and staple it together with copies of each check.
4. Remember to get a receipt when you do the transaction with the teller.
5. Make a copy of the deposit receipt when you get back to the office.

Or you may want to augment the written procedure with a simple Loom or Vimeo video for each system:

Keep it simple, Founders! The key is simply to get started.

Master Systems List

Using a Google sheet, create a Master Systems List like the following, and link each system to a corresponding Google Doc in an Operating Manual folder in Google Drive.

The Master Systems List should look something like this:

Operating Manual Folder

The Google Drive Operating Manual folder should look something like this:

Conclusion

Initially, you’ll only have a few key systems documented. Over time, the number will grow into the dozens, and later into the hundreds as your business grows. 

When I sold my business this last year (for 7 figures, all cash), I had over 500 documented systems. Those documented systems, and the fact that I had a systems-dependent and not an owner-dependent business, are the main reasons I was able to attract a buyer and sell for the price I wanted.

Having an Operating Manual with documented systems that everyone can access is key to transforming and growing your business.

Start simple and build from there.

You can do this!