[MBV Playbook] Ch. 35 — Document Important Processes (#195) Artwork

Maximize Business Value Podcast

A podcast for business owners passionate about building long-term, sustainable value in their businesses - and ultimately transitioning on their terms. Mastery Partners Certified Partners host the Maximize Business Value Podcast: Dave Casey, Darren Williams, and Terry Chevalier. Mastery Partners equips business owners to maximize business value so that they can transition on their terms. Check us out at masterypartners.com.

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Maximize Business Value Podcast

[MBV Playbook] Ch. 35 — Document Important Processes (#195)

February 15, 2024 • Episode 195

Join Tom Bronson in this pivotal episode of the Maximize Business Value Podcast as he unveils the transformative power of documenting company processes. Tom asserts that if business owners prioritize just one action item from his book, it should unequivocally be this: meticulously document all company processes.

Tom emphasizes that a business with clearly documented, repeatable processes inherently holds greater value than one lacking structured procedures. The advantages of solid, documented processes are multifaceted and profound:

Error Reduction: Documented processes significantly decrease the likelihood of serious errors, fostering operational accuracy and efficiency.
Efficient Training: Streamlined processes facilitate easier and more efficient training for new hires, minimizing onboarding time and knowledge gaps.
Regulatory Compliance: Documented procedures ensure adherence to regulatory and compliance requirements, mitigating risks and liabilities.
Consistency and Expectations: Clearly defined processes set expectations for task execution, fostering consistency and standardization across departments.
Risk Mitigation: Documented processes mitigate risks associated with operational ambiguity and reliance on tribal knowledge.

Tom draws an analogy to the childhood game telephone, illustrating how operational knowledge can become distorted and fragmented over time without documented processes. As businesses expand and personnel turnover occurs, the absence of documented procedures can lead to operational chaos and detachment from the owner's vision.

While the prospect of documenting processes may seem daunting, Tom offers a pragmatic approach to initiation:

Start Small: Begin by documenting critical processes incrementally, gradually expanding documentation efforts over time.
Prioritize: Focus on documenting processes with the highest impact on operational efficiency, risk mitigation, and regulatory compliance.
Allocate Resources: Dedicate sufficient resources and personnel to the documentation process, ensuring comprehensive coverage across all business functions

Mastery Partners

Elevating Businesses to Achieve The Business Owner’s Dream Exit
The unfortunate reality is that for every business that comes on the market (for whatever reason), only 17% of them achieve a successful exit. You read that right. 83% of attempted business transitions never reach the closing table. Mastery Partners is on a mission to change that. We ELEVATE businesses to achieve maximum value and reach that dream exit.

Our objectives are simple - understand where the business is today, identify opportunities for dramatic improvement, and offer solutions to enhance the business, making it more marketable and valuable. And that all starts with understanding the business owner’s definition of his or her dream exit.
Mastery has developed a 4-Step Process to help business owners achieve their dreams.

STEP 1: Transition Readiness Assessment
STEP 2: Roadmap for Value Acceleration
STEP 3: Relentless Execution
STEP 4: Decision: Now that desired results are achieved, the business is ready for the next step in the journey!