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Business Development

Create Systems Or Die. Here’s How…

systemHey Moguls, Alex Pardo here…

Today’s awesome lesson is all about the concept of systems in a business – in your business. This principle is actually uber important – and one of the most important things that any business owner has to wrap their brain around.

I’ll lay it out there: If you don’t have systems, you don’t have a business – you have a hobby, plain and simple.

And, if you’re here on Mogul, that also means you are serious about your investing and it is more than a hobby for you. (Yay!) So… you need to know that building a business is entirely different from doing an actual real estate deal… even if you’re in the real estate investing ‘business.’

Real estate tactics and strategies are important, of course, but business-building skills are a whole different thing that you have to master if you’re ‘for reals’ about creating an REI business. And, included in business building is the concept, among others, of systems and creating effective systems.

"Organize around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go but the systems remain constant"
                                                                    ~Michael Gerber, E-Myth Revisited

So, now that you know that business building is critical to your success – let’s dive in…

All Systems Go

Okay, I’ll go ahead and say it, I’ll address that pink elephant in the room…

You are tired of hearing all about systems and how important they are in your business. It does seem like this topic has been beaten to death - but for good reason. So at the risk of being annoyingly redundant, you need to hear this from me: Create systems, or die!

Sound dramatic?

Okay, maybe. But “die” is just another way to describe the infamous Rat Race! If you love running around on that wheel until you pass out, then stop reading. You are lost and need to find your sanity before any of this makes any sense.

If you want to torch that wheel and laugh while it burns, stick with me, here.

"In order for any business to succeed, it must first become a system so that the business functions exactly the same way every time down to the last detail." 
                                                          ~Rick Harshaw, Monopolize Your Marketplace

We all know and understand the importance of systems and automation right? But has anyone explained to you exactly how to create a system?

systemsWell, allow me to shed some light on what you need to do to start creating these systems that everyone talks about (or at least how we create ‘em).

System Creation Ahead

First, start by creating an outline for the different “buckets” or categories in your business (i.e. Marketing, Acquisitions, Dispositions, etc.)

Then document the different subcategories that make up each part of the outline.

For example, within the Marketing bucket, you’ll add the following subcategories: Direct Mail, Bandit Signs, Craigslist Ads, etc.

Second, document everything you do (or what needs to get done) within each subcategory to successfully produce the desired outcome for that main category.

Still with me? Not so bad, right?

Next, you’ll want to use a screen capture tool like SnagIt to record a video of yourself (or someone on your team) walking through how to complete each task in your business. I’m talking about a step-by-step process where you explain – in details – the how, the why, and what the expected outcome should be and look like.

Once you finish that video, click a button that sends it directly to your Google Drive, and when it’s done uploading, share it with your Virtual Assistant (assuming you have one), and have them create a “Standard Operating Procedure” (SOP) outlining everything that’s covered in the video. If you don’t have a VA, no worries, just create a system on “how to create an SOP,” and outsource it.

I recommend this SOP be in bullet or checklist format, complete with screenshots, arrows, call outs, etc. (SnagIt has all these features and is pretty user-friendly.)

"Systems are not sexy - but they really DO drive everything we do!" 
                                                      ~Carrie Wilkerson, Barefoot Executive

Systems in Place

You’ll know you have a good SOP when you can give it to a 15 year old, and they can complete the task on their own.

Once you test and confirm that someone can complete the task with the desired outcome, you are ready to delegate that task to someone else. Hooray!

Congrats, amigo. You are well on your way and just saved yourself countless hours of doing that boring, mundane task you dreaded like the plague.

Systems on Your Mind?

Got any systems questions? Comment below and let me know your thoughts…


Do It To It! Immediate Action Steps

Recognize that to run a successful business, you must have systems in place.

Outline the various categories and subcategories of your business in a check list-type document.

Document everything you do - or what needs to get done - within each subcategory to successfully produce the desired outcome for that main category.

Record a video explaining how each category is done, step by step.

Have your VA create a Standard Operating Procedure outlining everything you covered in each video.

Give yourself a big, fat pat on the back for taking the necessary steps to build and grow your business using systems.

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