I am constantly amazed and dismayed by the constant stream of poorly run small businesses that I encounter. It really is a tragedy. A poorly run business has many, many bad consequences. Here’s my list of the bad things that are the result of poorly operated small businesses.

Inside the business:

• The business owner works far too many hours for far too little pay
• The business owner’s family suffers
• The business owner takes risks they don’t need to take
• Employees are frustrated and turnover is prevalent. This causes the biz to have new employees who aren’t properly trained and cause additional operational problems.
• Repeat business from customers is too low which means the business must spend more money on sales/marketing to find customers to replace those who don’t return.

To the outside world:

• Customers are disappointed or frustrated and take it out on the employees, which leads to high employee turnover.
• Product/Service costs are too high and consumers bypass things that could make their life better or easier. (This is the issue when you hear economists talk about standard of living economics)
• Customers have to find alternate suppliers for the same products/services that the poorly run business offers. These alternate sources could be farther away or at a higher cost.
• Because the financial results of the business are so inconsistent and unpredictable lenders/investors will not support growth plans.
• Landlords lack confidence in the business and price the risk into the business’ rent, which raises costs.

Why do business owners allow their business to get this way? Beats me but I know what can help.

Systems, written systems in minute detail, step by step with pictures. The discipline of actually writing out systems will force a small business owner to clarify what their business actually does.

Should you try it? I think you should but be prepared… it’s more difficult than you think and it will expose the flaws in many parts of your business.

Why do it? You’ll make more money, have more time off and sleep better. What’s not to like?