How to systemize your business so that it runs without you

Date: October 16, 2016

Name: How to systemize your business so that it runs without you

Presenter: Dan Lok

Most entrepreneurs are limiting their business’ growth because they are relying on hard work. Moreover, successful entrepreneurs focus on something different. Vancouver Entrepreneurs Group invites Dan Lok, the serial entrepreneur, to discuss how to create system to maximize business. In this presentation, Dan Lok will reveal the unwritten strategies to help entrepreneurs free up their time while creating above and beyond business profit. Entrepreneurs will discover the hidden truth behind systems and be able to enjoy the progress of their business.

Dan Lok is the Founder of Vancouver Entrepreneurs Group. He is also the multi-millionaire and one of the international best-selling authors. Young entrepreneurs refer him as the “Millionaire Mentor” because he has the passion to help entrepreneurs elevate their businesses to the next level. He dominates the internet business platform and publishing field. In addition, he is also the CEO of Charm Junction Inc and the keynote speakers for many leadership conferences.

The value of intuition is what Dan Lok refers as “Zen”. In order to absorb new value, Lok suggests entrepreneurs to empty their cups, which contains their current “Zen”. Business is like a mirror image. Instead of accepting the reality or the truth, many entrepreneurs blame others for their problems. They feel it is easier to accept. Therefore, in this presentation, Lok will reveal the truth for entrepreneurs. The truth can hurt entrepreneurs, but in long term, they will be relieved. Sometimes it is best to walk away and cut the loss.

“If you cannot get 6 figures in 5 years, you need to empty the cup”

There are thousands of reasons why people start their businesses. Based on the book, “The E-Myth”, the myth that most people who start small businesses are entrepreneurs. However, entrepreneurs have the assumption of by only understanding the technical work of business can successfully run the business. Therefore, Michael Gerber, the author of The E-Myth, believes most entrepreneurs are merely technicians with an entrepreneurial seizure; in fact, they fail because they are working in their businesses rather than on their businesses.

Lok believes any business needs 3 types of people: entrepreneur, manager, and technician. It is a see-saw situation if the business only runs by the owner. The reality is that most entrepreneurs are running their business like a see-saw. Most entrepreneurs are technicians and they believe they can solve business problem by working harder at what they do. Nevertheless, they are preventing themselves from growing their businesses. Lok reveals in order to be a successful entrepreneur, they need to understand the skills that make them a successful technician has little or nothing to do with the skills that are required to build and manage a business. They do not realize that most business owners do not have a business; instead, they have a job.

Lok has a blueprint of a successful cycle that every successful business will go through.

1. Attraction
2. Retention
3. Optimization
4. Systemization
5. Delegation
6. Automation
7. Expansion

Not many entrepreneurs are aware that they are going in the wrong direction by going form step 7 to step 1.

Attraction means to attract ideal customers. If entrepreneurs do not have a method to attract their ideal clients, they have a hobby instead of a business. Retention means to retain ideal customers. Optimization means to optimize the values for client from the start. There are 3 simple ways to make more money: increase customers, increase the frequency of customer visits, and increase the transaction size. Many entrepreneurs do not realize that systemization is the forth step and not the first because entrepreneurs need something that works first in order to start systemize.

“If you have a lousy result and you systemize it, you get lousier result”

Entrepreneurs need a system first before delegation. Delegate without system means inconsistent results. It depends on people’s personalities to run the business. Therefore, instead of manage people, entrepreneurs should manage the system.

Automation means to use the tools to automate the system, and expansion means to increase business market by duplicating the system. Entrepreneurs should be system depended, not people depended. Lok likes to ask entrepreneurs the following question: “Can you walk away from your business and maintain the same result?”. If not, entrepreneurs do not have a system in place.

The purpose of business is to provide entrepreneurs what they want. It is not to make them miserable. Most entrepreneurs are miserable because their businesses are consuming all their time, forcing them to whine, stressing out the financials, and hating their customers. A typically question most entrepreneurs ask is “how many hours do I need to work?”. Lok believes that is an employee mentality. The problem for entrepreneurs is that they want freedom from day 1. Entrepreneurs want more sales and profit. In order for them to get more, they need to systemize their business to reduce the hours they need to work.

Lok provides 3 simple steps to systemize business for entrepreneurs.

Step 1: Describe your perfect business

Lok wants entrepreneurs to visualize their perfect business. Entrepreneurs can use these questions to help the process.

• What would it do?
• How big would it be?
• What type of products, services, or projects would it be known for?
• How would it be unique and different from the competition?
• What type of customers would it target?
• How much money would it make?
• What would it do for you?
• Would it deliver peace of mind, security, freedom and fun?

If entrepreneurs are not clear of their perfect business, they would not know when their perfect business arrive. They need to think business like a product. It is important to develop the skill of business to make their perfect business into reality.

Now entrepreneurs need to know the purpose of owning that business. They need to know what that business can allow them to have, what kind of enjoyment that business can create, and what the abilities that business can bring. Usually the first thought is the most accurate. When entrepreneurs are clear, they might realize the business is not as big as they think. The price they have to pay will be different.

Lok believes business is a vehicle to get what entrepreneurs want. Entrepreneurs should not get attached to business because entrepreneurs can always sell and create.

By looking at a typical online business, the business needs content, list building, finance, technology, copywriting, traffic and offers. Dan shares a list of tasks require for each section.

Content	List Building	Finance	Technology	Copywriting	Traffic	Offers
Articles	Lead Capture	Merchant Accounts	Hosting	Sales Pages	SEO	Upsell
Tele-seminar	Tracking	Chargeback	Server Maintenance	Subject Lines	Viral programs	Down sell
Podcasts	Autoresponder	Taxes	Plugins	Pay-per-click Ads	Sponsored Ads	Membership Site
Automated Webinar	Segmenting	Paying Affiliates	Shopping Cart	Order Pages	Keyword Research	Cross sell
Products	Deliverability	Refunds	Site Maintenance	Banner Ads	Video Marketing	Bundle Offer
Audio	Email Broadcasting	Insurance	Email Database Management	Affiliate Recruitment	Media Buy	Seminars and Workshops
Webinar		Recurring Payments	Mobil Apps	Name Capture Pages	RSS Feeds	One Time Offer
Blog posts		Accounts Payable	Tracking	Emails	Social Media	Discounted Offer
Video		Cancellations	Computer Maintenance	Facebook Ads	Links Building	Coaching and Consulting
Press Release		Payroll		Split Testing	Facebook Advertising	Backend Offer
eBook and Reports					JV Recruitment	Continuity Program
					Banner Advertising	Done For You Services
					Blogs
					Pay Per Click

Without systems, all tasks will lead to entrepreneurs themselves. It is important to leverage other people’s resources. Entrepreneurs need to know what are the roles, goals, and responsibilities in their businesses. Every business contains people with distinct function by doing differently towards the same objective. Lok asks these simple questions.

• What is it you are trying to do here?
• What is the structure of the business?
• Who is meant to do what, when, how?
• Who are the responsible for and answerable to?

“Entrepreneur is the conductor of his or her business”

Step 2: Create an organizational chart

Every business has a structure and it is entrepreneur’s responsibility to develop the structure that reflects the functions in business. Lok believes in any business, there are 4 core functions: operations, finance, marketing, and people.

Each core function can have many different positions. Lok believes it is important for entrepreneurs to pay attention on the titles of each position. The title should create a mindset of expectation, but not seniority. This means title can change on how others take on their roles. Lok suggests entrepreneurs not to use the word “junior” or “senior” because each position should treat fairly.

Lok shares there are 3 types of employees: mercenary, grunt, and patriot. Mercenary will ask money questions at the end of the interview. They are driven by sales. Grunt will do only minimum work. They usually ask benefit questions at the end of the interview. They are driven by security. Patriot asks quality value questions that can bring to business. They are driven by mission.

Entrepreneurs do not spend time changing grunt to patriot; instead, they should hire patriot at day 1.

Lok shares an interview tip. Entrepreneurs should give a test that is out of the norm for the candidates. If they make excuses, entrepreneurs should not hire them because they are not coachable and they only do what they want and never go for extra mile. Imagine if entrepreneurs hire them, it will be a disaster. For internet interview, entrepreneurs should give candidates tight deadline. If they make excuses, they do not want the position that much after all.

Job descriptions should not be built around the skills of current team member because people will come and go. The people need to fit the job description and the job description should not be designed to fit the people.

“You have to start thinking of your business as apart from you, not a part of you”

Step 3: Develop business management system

Entrepreneurs need to find the best practice to produce the best results in business. When the best practice is identified, it is important to break down and document the procedure so it can be reproduced.

System stands for “saves yourself stress, time, effort, and money”. The key mentality for entrepreneurs is to solve a problem not once, but forever. Entrepreneurs need to give their team members the chance to grow. Treat them as adult, but never do the work for them. They need to give expectation to team members so they can grow from their mistakes.

Lok believes there are 3 types of systems. The first type is called hard system. Hard system is what something looks like, such as uniform and logos. The second type is called soft system. Soft system is what something sounds like, such as the way people answer the phone, the way to greet customers, the method to deal with complaints, and the procedure to sell and follow up.

Entrepreneurs should be the best salesman in the company. If they are not the best, there is a problem because they are not able to set others for success. How can entrepreneurs teach others to sell if they cannot sell? People will work for entrepreneurs who can help them succeed.

The last type is called information system. Information system is the standardized reports or process in business, such as training program, tracking KPI, and website traffic report.

The secret is a script. Script can help entrepreneurs deliver consistent results and they will know what is not working. Unfortunately, many entrepreneurs do not have a script. Lok encourages entrepreneurs to start with one page; eventually, they can create the system and run the system.

“If your business is not system dependent, it is dependent on you”

Successful entrepreneurs do not perform core functions; instead, they delegate to others. Some entrepreneurs do not delegate because they are tired all their self-worth in their business. They want to feel important and they want control. Ultimately, they are contradicted with what they want in the first place, which is freedom.

“Only if it hurts so you can do something different”

Lok emphasizes making money and building business are two different things. Polices and procedure manual are essential. These are the materials that allows others to run it. Entrepreneurs need to think this as important things to do. They must remember they cannot get this all in overnight.

Entrepreneurs must distinguish the difference between what they do not like to do and what they do not need to do. The solutions to most business problems are system and training solutions. After they systemize their business, they can concentrate on high end productive activities.

Lok suggests entrepreneurs not to keep everything in their head; instead, they need to map it out. When they map it out, they will realize it is not overwhelming. Now entrepreneurs will have the sense of running their businesses and not driving their business with blindfold.

“Who do I need to be to win in business?”

Entrepreneurs are suggested to master their skills of business. If they could not even do the things they want in life, there is no hope to have others to do what they want. Therefore, entrepreneurs cannot manage people. They can only manage time, space and systems.

“The systems run the business and the people run the systems”

“Success is the sum of small efforts, repeated day in and day out”