When you consider all the decisions you must make as an entrepreneur, especially in a start-up, it is mind-blowing. Some decisions are one-offs that you need to answer, but the majority of decisions related to your business will be about the day to day running. These decisions will be made over and over, week in, week out. When to call a lead back? What to say to someone who has a customer service request? How much to charge for a particular service? These decisions and the effort you have to expend to come to a conclusion are holding your productivity back. If the conclusion for a decision is optimal, then the decision you reach for a specific question should be the same every time. You should not waste time on making an educated choice every time an issue rears its head. Instead, you should have a clear set of instructions to be followed so that you, and your team, will know what to do when a situation occurs. Producing a formal process for given business situations is the mark of a consistent and productive business.
Sales Management – an exampleTo take the area of sales management the benefits of a formal and shared process are evident. A study showed that having a formal sales process increases revenue by 18%. Spending time managing your sales pipeline can increase revenue by 11% for just 3 hours of work a month. Having trained salespersons increases revenue by 9%. When these three options are combined, then an increase in revenue of 28% was witnessed. Those using a formal sales process were 33% more likely to close sales at a higher rate. A formal process allows you to:
- Optimise your process
- Never forget steps in the process
- Know what your team is doing
- Identify potential automation
- Identify waste and errors
- Onboard new staff member quickly