Operational Efficiency & Growth – Small Business Pivots Podcast

By Biz Team | October 24, 2024

The Power of Documentation: Enhancing Business Efficiency with Joshua Monge

In the podcast episode of “Small Business Pivots” hosted by Michael Morrison with guest Joshua Monge, the focus is on the significance of systems and processes in small businesses. Joshua, a fractional COO, shares his journey and insights on creating operational systems to help businesses run more smoothly and effectively.

They discuss the importance of process documentation for contingency planning, hiring, and potential business sale, emphasizing beginning with high-level processes and progressively refining them. Throughout the conversation, Joshua highlights the significance of having systems in place for marketing, customer intake, payment, fulfillment, and customer follow-up to foster business resilience and growth.

Key Takeaways:

Process Documentation: Begin with high-level processes and continuously refine them. Create a system or process that documents tasks, which helps relieve stress during critical business moments.
Incremental Improvements: Implement changes in small increments over time to achieve a compounding effect. Consistent documentation of simple processes can significantly improve business operations over months.
Financial Processes: Efficient accounts receivables systems are crucial for maintaining cash flow. Include processes that ensure timely payments, such as invoicing systems with auto follow-ups.
Employee Engagement: Involve employees in creating and refining processes to foster ownership and adherence. Clear communication of expectations and leadership by example can drive compliance with documented processes.

Timestamp Overview

00:00 Process documentation is essential for business contingency.

04:32 Learned hard way to run a business.

07:14 Returned to school, economics degree, experienced entrepreneur.

09:42 Systems and processes are essential to survival.

15:19 Stay in touch regularly to be remembered.

19:24 Boss simplifies business ownership for success.

20:50 Sales or collections issues delay business payments.

23:58 Implement a system; use due on receipt.

27:29 Video documentation is fine, but writing essential.

30:58 Document processes to ensure team accessibility.

34:33 Business challenges: owners’ responsibility, creation, or allowance.

36:37 Create IP documentation, build operations binder/system.

7 Key Takeaways

Process Documentation Importance
Communication and Expectations
Efficient Payment Systems
Client Engagement Strategies
Operational Efficiency
Leadership Accountability
Fractional COO Services

Sequence of Topics Covered

Episode Overview

Host: Michael Morrison
Special Guest: Joshua Monge, fractional COO and founder of Thinkadapt Build
Focus on operational efficiency and business growth for small businesses

Treating a Business as a Business

Structured Processes
- Cash flow, marketing, customer care, tax compliance

Process Documentation

Importance
- Clarity, retention, accessibility
Methods
- Video, written, centralized documentation
Concise Language
- Clear communication for newcomers
Visualization and Mapping
- Identify complexity in processes

Employee Involvement

Overcoming Documentation Resistance
- Benefit of employee collaboration
Employee Buy-In
- Encouraging alignment and preparation for changes

Communication and Client Management

Service Provider Communication
- Inform clients about requirements
Payment Processes
- Transparency and streamlined methods
Service and Follow-Up
- Post-service strategies for retention

Operational Efficiency

Identifying and Addressing Gaps
- Streamline decision-making
Employee Empowerment
- Use of authorization limits

Business Owner Challenges

Time Management Strategies
- Start small with consistent documentation

Joshua Monge’s Background

Economic Development Experience
- Building successful business frameworks
SEO Business
- Success during COVID and fractional COO role

Process Prioritization

Focus on Meta Processes
- Detailed documentation over time

Customer Experience

Smooth Intake
- Ensuring a welcoming and aligned experience

Business Value and Exit Strategy

Adding Value
- Positioning for a profitable exit

Realistic Business Approaches

Learning from Failures
- Open discussion to enhance learning

Leadership and Systemization

Inclusive Approach
- Encouraging team co-ownership
Accountability
- Leading by example and maintaining standards

Business, Hobby, and Job Distinction

Functionality Without Owner

Fractional COO Services

Target: Businesses with $500,000 to $10 million in revenue
Documentation and Operations Manuals

Contact Information

Joshua Monge’s LinkedIn and website (thinkadaptbuild.com)

Sponsorship

Sponsored by Boss, providing business resources

Cash Flow Solutions

Addressing collection and invoicing problems

Common Business Structures

Service business operation foundations
Addressing system objections

Leadership and Accountability

Setting standards and enabling independent operation

Conclusion

Subscription reminder and business consultation advice

Encouragement to utilize resources

Operational Efficiency & Business Growth: The Importance of Systems & Processes

Unlocking Business Potential with Joshua Monge

In the latest episode of “Small Business Pivots” podcast, host Michael Morrison and guest Joshua Monge delve deep into the critical importance of systems and processes for small business success. From cash flow management and customer relations to tax compliance and marketing, the discussion provides valuable insights and actionable strategies for business owners. Here’s a comprehensive look at the key takeaways from the episode.

Treat Your Business Like a Business

Joshua Monge emphasizes the fundamental principle of treating a business as a business. This means moving beyond just technical skills and focusing on structuring processes that ensure sustainable growth. Essential areas include cash flow management, marketing, customer care, and tax compliance. By addressing these areas with dedicated processes, business owners can create a solid foundation for success.

The Power of Documentation

One of Joshua’s key points is the importance of documenting business processes. Initially, video documentation is acceptable, but written documentation is crucial for clarity and accessibility. Unlike video, written documents can be easily scanned for specific information and enhance memory retention. Joshua advises business owners to use concise yet comprehensive language in their documentation, making it accessible even to those unfamiliar with the process.

Visualization and Clarity

Process visualization is another powerful tool Joshua advocates for. Mapping out steps can reveal the complexity hidden in seemingly simple tasks. Visualization helps in understanding and streamlining processes, making them more efficient. This technique is invaluable in identifying and addressing potential bottlenecks in operations.

Engaging Employees

Implementing documented processes effectively requires collaboration with employees. Clear expectations and open communication are crucial. Some employees may resist contributing to documentation due to an attachment to their roles or knowledge hoarding. However, involving them in creating and refining processes fosters buy-in and prepares the business for staff changes, ensuring continuity.

Efficient Communication with Clients

Effective communication with clients is essential. Service providers must inform clients about specific requirements for service completion, such as time needed for home inspections. Clear documentation and communication of these needs facilitate a smooth client experience. Establishing a clear and efficient payment system, whether accepting cash, checks, or other methods, is also vital for transparency and efficiency.

Client Relationships and Follow-Up

Maintaining client relationships post-service is crucial for long-term engagement. Documenting the service fulfillment process, including notifying clients upon completion, is essential. Strategies like follow-up newsletters or thank-you notes can enhance customer retention. Transitioning one-time transactions into ongoing relationships is key to sustained business growth.

Starting Small and Building Over Time

Joshua advises prioritizing documentation of business processes, starting small and expanding gradually. This approach leads to compounding improvements over time. Having a dedicated space for process documentation, a “one source of truth,” ensures easy access and organization.

Addressing Efficiency Gaps

Examining existing processes for efficiency gaps is vital. For example, decisions on minor receipts shouldn’t require extensive approval processes. Empowering employees with authorization limits can streamline operations and reduce unnecessary burdens on business owners. This not only improves efficiency but also fosters a sense of ownership among employees.

Creating a Sustainable Business

A business should operate independently of its owner, distinguishing itself from a hobby or a job. If the business can’t function in the owner’s absence, it may indicate that it’s not a sustainable business. Business owners need to be leaders, fostering an environment conducive to growth and efficiency through systems and Standard Operating Procedures (SOPs).

Overcoming Common Objections

Business owners often believe their operations are unique, but most service businesses follow similar foundational structures. Consistent operational characteristics exist across all service industries, underscoring the importance of standardized processes.

Your Role as a Leader

Leaders must set the example by adhering to the standards and processes they establish. Consistent leadership behavior maintains organizational standards and ensures team compliance and engagement. Leadership accountability is key to operational success.

The Fractional COO Advantage

For service-based businesses with revenue between $500,000 and $10 million, Joshua Monge offers fractional COO services, focusing on implementing strategies and resolving operational issues. He assists in documenting and visualizing business processes through flow charts, aiding in job descriptions, evaluations, and protecting intellectual property. For operational consultation and support, Joshua can be contacted via LinkedIn or his website, thinkadaptbuild.com.

Conclusion: Moving Forward

Implementing structured processes can transform a business, making it not only sustainable but also poised for growth. By treating your business as a business, focusing on documentation, engaging employees, and maintaining efficient communication, you can build a robust foundation for long-term success. Remember, starting small and building over time can lead to compounding improvements, ultimately enhancing your business’s operations and growth trajectory.

Stay connected with us for more insightful discussions and expert advice on operational efficiency and business growth. Subscribe to our podcast and reach out through our website for more personalized support.

Small Business Pivots with Michael Morrison

Michael Morrison is your dedicated podcast host, bringing years of expertise in systems and processes to the forefront. With a knack for simplifying the complexities of SOPs and organizational efficiency, Michael has become a go-to resource for listeners who are eager to optimize their businesses. He understands the common challenges and hesitations that come with implementing structured systems, and through his insightful episodes, he passionately guides his audience toward sustainable success. Under Michael’s guidance, many have transformed their operational practices, avoiding burnout and achieving new heights in their ventures. Join Michael as he demystifies the essentials of business systems, inspiring entrepreneurs and professionals alike to thrive.