In this episode, I discuss the importance of creating systems in your business. I’m not necessarily talking about systems that remove you from the business or allow it to run without you, although that is very important at some point. What I am specifically talking about are systems that allow you to follow a set process every time you buy an investment property, so that you don’t miss anything or operate in an inefficient manner.
One of the biggest weaknesses I have as a businessman is creating systems. I know exactly what needs to be done in my business, but I’ve never been great at performing operations required in the same order every time. I tend to keep too much in my head, and to not put it down on paper so that I and others can follow it. Right now my business consists primarily of myself and my wife. We really don’t have any employees, but I am starting to use virtual assistance. It is because I am starting to use VAs that I am beginning to understand how critical it is to write my systems down in an organized manner so that other people can follow them if necessary. But really, it is important that you write your systems down in order to force yourself to carry out the duties of your business the same way every time. This creates efficiencies, helps avoid mistakes, and dramatically decreases the likelihood of forgetting a step.
Below is a list of things that you should document and create systems for in order to be as productive and thorough as you can be. I am using the steps for flipping a house as an example, but obviously you should document your systems no matter what type of investing you are involved in.
- Finding leads
- Placing offers
- Closing checklist
These are just a few of the steps that you would use when flipping a house. Each of these has many parts that should be documented. Like I said before, documenting these will not only help you be more efficient and avoid making mistakes or missing a step, it will also be critical as you scale your business and hire employees to take on some of these duties.
Again, I have not always been the best at documenting my systems. I know this is a weakness in my business and something I need to get better at. It’s something I’m getting much better at now, and I realize its value every day.
I know that documenting my systems is going to help me and my business tremendously. I suggest you do the same thing once you’ve done a few deals. Document and try to be consistent in how you approach business activities. I think you’ll be glad that you did!