The operational system that protects your business

Happy Tuesday!

Last week I covered the importance of financial systems and how I maintain visibility across my portfolio without being pulled into the details every day.

Today I’m covering operational systems, which ensure the work gets done correctly whether or not you’re in the building.

Avi is an M&A attorney who closed on a $310K SaaS business in just 4 months after joining Acquisition Ace.

Even with 30+ deals under his belt as an attorney, he needed to learn the buyer side - and the community recorded calls taught him everything he needed to be successful.

👉 Want access to a library of deal breakdowns and a community of experienced buyers? Book a call with our team here.

The problem with knowledge that lives in people’s heads

When a key employee leaves (and eventually, they will) the knowledge they carry walks out the door with them.

The only way to prevent that from becoming a crisis is to document how critical work actually gets done before you need to replace anyone.

Every important process in my businesses has a written standard operating procedure (and not because I love paperwork!).

I do this because documented processes allow a new hire to step in and maintain quality without a six-month learning curve.

This is especially important in the first year of ownership.

You’re still learning the business yourself.

The last thing you need is for a key person to leave and take institutional knowledge with them that nobody else has.

(Inside Acquisition Ace, members learn how to evaluate whether a business already has documented processes in place before making an offer, because it significantly affects how smooth the transition will be. To see how our community can help you on your path to business ownership, book a call with our team here.)

Measuring what matters

Documented processes only work if you’re also tracking whether they’re being followed and whether they’re producing the right results.

If your business needs a certain volume of activity to hit its targets:

• Jobs completed

• Clients served

• Calls made

Then you need to know what that number is and whether you’re hitting it, because you can’t act on a problem you can’t measure.

Investing in your people

The third piece of operational systems is ongoing training.

People who feel like they’re developing stay longer and perform better.

Retention directly affects operational stability, and operational stability is what allows you to step back without things falling apart.

When you invest in developing your team, they become more invested in the business.

That shift - from employees who show up to employees who care - is one of the most valuable things you can create as an owner.

Tomorrow, I’ll cover communication systems, and how to stay connected with your team without getting pulled back into daily operations.

In the meantime, to see how the Acquisition Ace community could help you successfully acquire your first business…

👉 Book a call with my team here.