Shipshape and Bristol Fashion
Like it or not, your business premises tell a story. A story about efficiency, or the lack of it. Each time a new piece of work or a new customer crosses your threshold, do your staff follow a clear, simple process which creates brilliant results? Or do job cards get misplaced, do tasks pile up, do your staff keep hitting dead ends? It doesn’t matter what kind of business you run—a mechanical workshop, a retail store, or an accounting practice. You have inputs, work processes, and outputs. Your premises should be set up to turn your inputs—new work, materials and equipment—into profits. And the greater your efficiency, the higher your profit margin.
Consider a mechanical workshop. If tools are scattered everywhere, if the place is filthy, if spare parts are piled high in no particular order, it’s going to take longer for the mechanic to fix your car. If the admin person on the front desk doesn’t follow a simple process to turn worksheets into invoices, you’ll be left cooling your heels while she fumbles with her calculator. A tidy workshop where the tools and parts fall quickly to hand is always going to be more profitable.
Papa don’t preach
Easy for me to say, you reckon. It’s not like accountants have to manage anything as complex as a mechanical workshop.
Maybe not. But I’ve always run a tight ship. We’ve developed systems that help our clients look two years into the future with impeccable clarity. We input the right data to get the best outcome. My staff always had a folder for each assignment. I challenged them to pick up the folder the minimum number of times before finishing the job. Ring the client once and ask five questions, rather than ringing the client five times because you never got your head around the file. Set a finish date for each task, hit it, then move on to the next.
How did this regime wash with my staff? The good ones loved it because it gave them a sense of accomplishment. The bad ones left. They simply could not perform.
So yeah, I hold myself to the same high standards. In any business there should be a designated time each week to down tools and tidy the place to the expected standard. It’s not a cost. It’s a saving.
Are you indispensable?
Some business owners are indispensable. The business won’t function without them. Maybe you’re in this category. If so, don’t expect a medal. I’m not suggesting you’re the Donald Bradman of injection moulding, or whatever your gig is. In my view, the most successful businesses don’t rely on one person to make things happen.
Think about all those messy workshops you’ve seen. If the work environment is sloppy, it’s odds-on the work procedures will be sloppy too—that is, if they exist at all. In the absence of clear procedures, how do your staff know what to do? They ask the boss, of course!
This is a recipe for overwork and high stress, for you and your staff. It’s hard to give consistent direction to your people if you’re making it up on the run. On the other hand, if everyone understands their individual roles and responsibilities, it becomes so much easier for you to delegate work to your staff.
Mind you, some business owners find it hard to delegate. They think the task is too hard to explain, or they fear losing control, or they don’t trust their people to do the job to their standards. You know what I’m hearing? Excuses. Because if you can’t delegate effectively, your business is worth far less than you believe.
To market, to market
The time will come when you decide to sell your business. Often, this comes when you least expect it. A medical scare, a divorce, the death of a spouse or business partner, or changes in market conditions—all these crises can trigger the need to sell. Urgently.
There are many preconditions to a successful sale, which we’ll explore in the coming months. Presentation is key, however. Remember how I read the mood any time I visit a new business? Any potential buyer will do the same. First impressions begin at reception. Are guests welcomed warmly, is the sign-in process streamlined, does the receptionist have her finger on the pulse of the business?
When your prospect steps into the office or warehouse or factory, what story are you telling them? Are the files or parts bins colour-coded, clearly labelled, and free from clutter? Are the signage and workflows obvious to a newcomer? Are the employees proud of their work? When asked, can they explain what they are doing, and why?
These are the qualities which will convince potential buyers of the worth of your business. But they can’t be faked. You can’t hang up a few signs, mark the walkways and hope for the best. You need to begin at least three years before you decide to sell. Build a positive staff culture, sort your workflows, bank two years of strong and rising profits. So when a prospective buyer inspects your premises, they start writing themselves into the story.
So, take an objective look at your business. If you were coming in cold, would you buy it? If not, it’s time for some spit and polish.