In his classic business book, The E-Myth Revisited, Michael Gerber asserts that Process is what differentiates successful companies from the also-rans. He says that franchises succeed because they have a clearly defined process for everything. They have a process for:

He goes on to argue that you should build processes into your business as if you are creating a franchise even if you have no intention of actually franchising your business. In other words, the act of defining a process, documenting it, testing it, tweaking it, and coming up with a standard step-by-step methodology for everything in your business, just as if you were establishing a repeatable, franchisable process will help your business succeed.

The alternative is managing your business by the seat of your pants. This can work if you are brilliant, creative, intuitive and the sole owner and employee in the business. But as soon as you have one employee and need them to do something when you aren’t there to watch, you need a process. Otherwise your customers will not get a consistent service or experience with your company. Many fast-food franchises are successful because of their consistency, in spite of their food.

Process is one of the main reasons why franchises are so successful. Someone buying and running a franchise is more likely to be in business three years later compared to someone starting their own business in a similar field. Is the franchisee more intelligent, more passionate, more committed to succeed than the competitor? Probably not, but statistically they are much more likely to succeed and earn a better living just the same. It’s also one of the reasons why franchising is still one of the fastest growing segments of business in the world.

Franchisors have developed processes that enable their franchisees to succeed in business when they follow the process. They have developed best practices through trial and error, coming up with a process that works. They have invested the time and money to make mistakes so a franchisee doesn’t have to.

Assuming you haven’t bought a franchise, then you and your staff need to do the heavy lifting to create a business that operates like a franchise. Building documented processes for each part of your business will help you:  

• Increase sales,
• Reduce costs and expenses,
• Hire the right employees,
• Retain employees,
• Keep your customers,
•  And much more.

Where do you start? Ask yourself, your employees or your customers this question: “What is the most important part of my business which could benefit immediately from a consistently excellent step-by-step approach to remove ambiguity or an uncertain outcome?” Roll that question over in your mind. Brainstorm possible answers and then prioritize them. Then do it. Start on the most important area; think through the steps; document them; review them; test them; change them based on feedback; and test them again. Once you have them to the point where you are happy with the outcomes, document the processes again, and teach them to your employees. But don’t stop there. You need to teach them again, monitor their success with the process, and repeat until it becomes a routine way of doing business.

Of course, if you have been in business for any length of time, you already have a process. It just may not be as you would like it to be, or the best way to do it. Would it pass the franchise test?