Sam Penny (00:31)
Welcome back to another built to sell session. My name is Sam Penny. And if you're new here, I'm a business coach who helps brave founders get out of the day to day and into real freedom. Now, today we're diving into one of the most overlooked but probably one of the most powerful levers for increasing the value of your business and that is systems. So most people think of systems
pretty boring, they're uninspiring, and maybe even a bit corporate. But what I'm going to show you is that systems are actually a secret weapon to creating a business that's both more sellable and also more livable. So whether you're getting ready for a sale or you just want to stop feeling like you're drowning in chaos, this session is going to give you a real actionable steps.
And by the end of it, you'll know exactly what to systemize, how to do it without getting overwhelmed and what it means for your valuation. So let's dive in.
Build to sell, systemize to maximize, turn chaos into value. So before we get into the framework, let me share a little about myself, who I am and why this topic means so much to me. I've spent about 25 years building, scaling, exiting businesses across a whole heap of different industries from medical devices, manufacturing to food.
e-commerce and services done a bit of being deep in the trenches. I've managed a lot of chaos of juggled teams of run cashflow to the wire, which I'm sure many business owners can relate to. I've also sat on the other side as a business buyer, investor, and a coach to business owners preparing to sell. On a side note, and side passions, I was the first person to attempt
to swim the English channel in winter. I know it's crazy. I've done ice miles, ultra marathons, and I bring some of that mindset of endurance, structure and grit into business transformation. What I do today is work hands-on with founders who feel like they're trapped inside their own business. Even when it's growing, they've built something great, something successful, but they can't step away. Everything relies on them.
And that's not freedom. And it's certainly not value. So if any part of your business feels like that, like you're overwhelmed, like you're trapped, like you're in a day to day, like it's constantly pulling you back in, you're not alone. And the good news is there is a way out. And that's what today is all about. Before we dive any deeper, I just want to take a moment to tell you about the podcast.
really ties all of this together. It's called Built to Sell, Built to Buy. Whether you're a business owner looking to exit at a premium or an investor preparing to buy your first or even your next business, this show is made for you. Each week, I unpack real strategies for increasing business value, reducing founder dependency, improve deal flow, and also building businesses that run without you.
Now I cover both sides of the transaction, how to sell smart, but also how to buy right. I also bring in some guest experts and real stories from the field and practical frameworks that you can really implement right now. Whether you're sitting in the boardroom or walking the dog, download it. there's everything there for you in the built to sell, built to buy the podcast.
So if today's session has resonated with you, or if you want to go deeper into the world of business exits and acquisitions, make sure you subscribe to Built to Sell, Built to Buy. On your favorite platforms, it's on Spotify, it's on Apple podcasts. All you need to do is search for Built to Sell, Built to Buy and hit follow. It means a lot to me if you do. That way you're never going to miss an episode and you'll always be one step ahead of your next move.
Now what to expect from today. Let me give you a quick roadmap of where we're heading today. We're going to start by lifting the lid on the real costs of chaos in a business because while it might seem manageable day to day chaos really has a compounding effect.
that shows up in lost revenue, high staff turnover, and most importantly, a lower business valuation. Then we'll draw a clear line between systemization and valuation. Because what buyers are really looking for, it's not just profit, it's predictability. And the systems are the foundation of a predictable result.
After that, I'm going to walk you through a practical, easy to follow framework for systemizing your business without drowning documentation or falling into the corporate trap. Cause I tell you what systemization isn't all about, but overwhelmed with folders and folders and folders of SOPs. You'll learn how to start to build momentum. And we're going to start small, small steps. Cause it's that first step that matters most.
and create systems that actually get used. Now it's all about you. It's all about your business. And this is the time to get clarity. So whether you're listening to this live or later on the podcast, I want you to walk away with clear actionable steps.
that you can implement this week.
All right, let's talk about something that I think is quite uncomfortable, but it's very common. And it's chaos. If you feel like every single issue eventually finds its way to you, whether it's a late client, missed invoice, team member who doesn't know what they're doing, then you're living in founder chaos. You're not alone though.
So many founders, they build great businesses, they build great products, they have solid revenue, they've got happy clients, but the machine that's running it is really fragile. And it's dependent on quick fixes, verbal instructions, late nights, muscle memory, no systems, just hustle. And let me be blunt, that is not scalable. That's not something a buyer wants.
That's not something that a buyer can pay a premium for. And as business owners, that's what we're here for, to increase the valuation of our business. A chaotic business, it might be profitable, but it isn't valuable in the eyes of someone else. Because they know that the moment you leave, it's all going to wobble. The wheels are going to fall off. Systemizing your business isn't just about getting organized. It's about building something
that doesn't need you at the center of every decision. Something that's durable, predictable and transferable. Now, if you've built something on hustle and instinct, well done. But now let's turn that something into something that you can grow beyond. Let's make this really clear. Chaos has a price tag. Every time a task is done wrong.
and it has to be redone. That is wasted time. Every time your team has to interrupt you to clarify what should have been just a simple clear process, that is lost momentum. Every time a mistake reaches a customer, it chips away at your trust and it all adds up. But the real cost, it's in the energy and the attention. It sucks out of you.
When you're the only one who knows how things are supposed to be done, you as the business owner become the bottleneck. And that means you can't scale. You can't step away. You can't grow without more chaos. And even worse, it introduce risk and buyers hate risk. The more unpredictable a business is, the lower its value. The more it relies on your presence.
the more discounted the offer becomes. So even if you're not looking to sell yet, you still pay in a price because a chaotic business doesn't just limit your valuation, it limits your freedom.
Okay, so here's the mind shift I want every founder to make today. Remember, the buyers aren't buying your hustle. They're not buying your sacrifice.
They're not even buying the history of strong profits of, what they might call goodwill. What they're buying is predictability. They want a business that keeps running with the same level of quality, efficiency and profitability after you leave. And it's not just a profitable business. It's a dependable machine. So in other words,
They're buying a system, not a superhero. This is why businesses with strong systems and low founder dependence, they sell faster, they sell easier, and they sell for more because a buyer, they want predictability and predictability equals value. It lowers risk. It shortens transition time. It increases confidence. If you're a business built around your personality,
your presence, your relationships. Tell you what, you got some work to do, but if it's built around processes, systems, and a well-trained team, you've got an actual asset. So the big question, ask yourself right now, would I buy this business if I wasn't me?
If the answer is no, then now's the time to build a system that someone else would be thrilled to step into.
Now let me paint a picture, two businesses, right? Same industry, same revenue, similar profit margins, but behind the scenes, they're completely different. Company A, it's got standard operating procedures. The team follows a clear playbook. They use automation to reduce manual effort. They've got tech stacks integrated and they run on rhythm, not reaction.
Meanwhile, the other company, Company B, it might also be profitable, but it's held together by the founder's brain. The team waits for instruction. Every fire is put out personally by the owner. Processes are tribal knowledge. Nothing's documented and it's not repeatable. So when both of these businesses, Company A and Company B, go to the market,
Who do you think is going to get the greater valuation? Buyers are going to look at company A and they're going to see an engine that runs. They feel confident stepping in or putting a manager in place. They see something stable, something scalable and something that also deserves a premium. Meanwhile, the other company, the one that's built basically on the founders brain and chaos, it might still attract interest, but
When it comes, it's going to come with questions. And what happens if the founder burns out or walks away? How long will it take to train someone new? What's the risk of things falling apart post-sale? There's just so much uncertainty and that drives the price down. So when I say systemization, this
is a financial strategy. It's not just an operational one. This is what I mean. Clean systems don't just make things easier for you. They make your business easier to buy.
Now, this is where a lot of founders get stuck. think that systemizing the business, they think it means documenting every possible task, creating 100 SOPs, turning the thing into a bureaucracy. That's not the goal here today. You don't need to systemize everything to see huge impact. You need to start with the engine of the business, which we're going to run through a little shortly. The parts that keep revenue flowing,
and customers coming back. And this usually means your sales process, how leads become paying customers, the fulfillment or delivery process, how you consistently deliver what you've promised. And on the admin and finance side, you know, things like invoicing, payroll, reporting, and customer experience. We've got onboarding support, retention flows.
If you get these four areas systemized, you're going to eliminate probably 80 % of the chaos and unlock most of the value. These are the functions that buyers are going to look at first. And they tell the story of whether the business is running on instinct or intention. Now, remember, it's not about perfection. It's about repeatability. If your team knows how to do the core work,
without you even asking, you're building something that's scalable, saleable and sustainable. I like that. All right, let's go one layer deeper. This is the systemization sweet spot because this is the foundation of your entire business. This is what your business runs on pretty much every business out there. What do you see here are the four pillars, sales,
fulfillment service and admin. These aren't just departments. They're the rhythm of your business. Sales is what brings your money in, as we all know. But it's not just about closing deals. It's about having repeatable processes for lead capture, qualifications, proposals, follow-ups. If that process is built around just one person's charm, it's pretty fragile. If it's built on structure,
documented systems, then that there right there is value. Now let's move on to the second pillar, which is fulfillment. And this is how you deliver on your promises, whether it's a physical product, a service or consulting, your ability to fulfill efficiently and consistently without creating bottlenecks or errors, it's critical. So buyers know this is where reputations are made or broken. Now,
The third pillar, service or customer service is what others, the customer experience. This is the part most founders forget to systemize. But this is so key to retention, referrals and long-term brand equity. From building onboarding to support to even feedback loops. If there's no system, you're losing a silent churn.
every single month. And the last one, admin. Look, let's face it, admin really is, this is the plumbing of your business. It's your invoicing, payroll, scheduling, reporting. Yeah, some people might find it boring, maybe. But I tell you what, if this breaks, everything stalls. And the reason I call this the sweet spot is because when these four are running smoothly,
Your business hums, you can step back, you can delegate with confidence. And when a buyer looks under the hood, they're going to see structure, not scramble. So if you're not sure where to begin, this is where you begin. Get the engine working without your daily push. This is how you shift from essential to optional. And as a business owner, wouldn't it be great to be optional in your business?
All right. Now let's talk about how to actually implement systemization. It sounds like it can be quite daunting. Sounds like it can be very overwhelming, but I tell you what, if you follow this framework, it's actually pretty easy because, in theory, this is great, but it won't change your life until it shows up in your daily workflow. I use a simple three step model.
with all of my clients, we document, we delegate, and we automate. Think of it as just climbing up a ladder. You climb it step by step. And so let's look at step one. This is documentation. This is where you write down how things get done. You start with the tasks that are repeatable and drain your time. It doesn't need to be fancy. just bullet points are fine. A screen recording.
is fine. Just get it out of your head and into a format that your team can follow. Now the second step is to delegate. Once it's documented, hand it over, train someone, give them the SOP, the standard operating procedure. And like I said just before, it doesn't need to be fancy. It doesn't need to come in a beautiful folder or binder or anything like that. But you need to let them own it.
And this is where most founders struggle. They either micromanage or they completely abdicate. The key is really structured delegation with accountability. And you need to check in, you need to coach. But then what I want you to do is then step back. And that for, I'm sure a lot of business owners is pretty hard.
And the third step of systemization, this is automation.
Once a task is documented and working well, you need to ask, can a tool do this better? So there's many automation tools out there. You've got Zapier, you've got Make, you can connect systems automatically. And could you use a scheduling tool instead of back and forth emails? This is where you can really reduce labor. You can eliminate errors, missed emails. We see that all the time.
and increase scale. And here's the best part. You don't need to do all of this at once. You just start with one task, walk it up the ladder, then another, and soon your role changes from doer to designer. And that right there is how you reclaim time as a business owner. And this is how you grow. And this is how you make your business
more valuable.
So let's talk about the most underrated systemization tool.
It's SOPs, standard operating procedures. Now, most people think of SOPs they think that it's something only big corporations do. They think that they're long winded, they're outdated, they're manuals, they sit in a binder, they collect dust, but that's not what we're building. A real SOP, it's short, sharp and usable.
It's a tool that your team can use today, not a 30 page policy doc who's going to read a 30 page document, a 30 page SOP? No one, none of your team are going to read it. And when this is done right, it's what turns your business into a predictable and scalable machine.
In SOP, it answers one simple question. How do we do this here?
This is going to create consistency. It's going to create accountability and it creates freedom because it means that you don't have to be the one doing the task or answering the same questions every week. And as every business owner, we all know that we're always having to answer the same questions every week. That's because we don't have SOPs in place.
So if you're still the bottleneck in your business, if your team keeps asking you how to do the same thing, or if you're nervous about letting someone go and leave, you don't have enough SOPs. And the beauty is creating these things is easier than you think. And once they exist, they multiply their value over time. It's a one-time effort that saves you hours every single month.
It increases your business valuation. It gives your team the clarity they crave. you what, I've seen so many teams and work with so many business owners. Once they get some great SOPs in place, team craves it. So if you've been resisting SOPs, this is your sign. They don't just help you delegate, they help you design a business that doesn't depend on you.
All right, now that you understand why they matter, the next question usually is, well, how do we actually write one? Here's the template for creating a simple SOP. This gives you a simple, effective structure, and it's not about making it pretty. It's about making it usable. So we're going to start with what's the task. And this is where I want you to be really specific. if we said, I need you to process payroll.
That's way too vague. But if we said send weekly payroll reports to zero every Friday, that is so much better. Next, we need to decide who owns it because a task, if it doesn't have an owner, it's not going to get done consistently. And ownership brings clarity and accountability.
And the third step.
We need to give step by step instructions. Now pretend you're handing this over to someone on their first day. What would they need to know to do this without you? Include any tools, templates, logins that they need to get the job done. And look, don't assume that they know where to find that spreadsheet or which platform to log into. And finally,
which is also one of the most important parts of this template, describe how success is measured. What's the outcome that you're expecting? And this helps ensure that the job doesn't
just get done, it gets done right. And if you build your SOPs using this structure, this simple SOP template, they're gonna be clear, they're gonna be concise, and they're actually gonna get used. And remember, version one, it's gonna be good enough. You can always refine it. These are living documents. The point is, I just want you to start as a business owner. Get that first task out of your mind.
documented, follow this template and then start to hand over tasks to your team.
Now, here's the great news about systemization today. There are so many incredible tools that are available and they can do a lot of the heavy lifting for you. And you don't have to build everything from scratch. Remember, we're just small steps, one SOP at a time, one task at a time.
You just need to know where you're repeating effort and then plug in the right tool to reduce that manual input, improve consistency and free up your time. So let's break it down. There's a lot of great tools out there. So from a project management perspective, you've got things like Asana and Trello there. You go to, if you're keeping track of who's doing what and by when.
And there's no more relying on email chains or remembering verbal instructions. You can assign tasks, deadlines, you can see when everybody's deadline is visible to everybody. And the thing is everyone then is on the same page. The second point here, we've got a CRM platforms. There's HubSpot, there's PipeDrive. these can all systemize
your sales pipeline. use pipe drive. It's really simple. It automates a lot of my tasks every single day, every single lead, every single deal, every single follower. It's all in one place. And this doesn't just boost conversion. It builds predictability. And remember, buyers love predictability. You're going to hear that a lot from me today.
And there's a lot of automation tools like Zapier or Make, and they connect different apps to create workflows that just simply run in the background. So like when a form is filled out, an email can get sent and a task can be created and a file can be saved all without having human intervention. It all just happens in the background instantly. And finally, documentation tools like
Notion or Loom, they make SOPs easy to build, update and share. If you want to explain a process, record a Loom video once, and then you can just keep sharing that with your team and they can keep referring to it forever. And that's real leverage. I love using Loom, Loom is a great tool. It's ⁓ the easiest way to train your team. Now, here's the key.
Don't get overwhelmed by the options. Just start with asking, what am I doing manually that I do more than once a week? And that's where the real ROI is, the real return on investment. And this is where ROI on tech starts to show up first. And the right tools used the right way, they don't just help you scale, they make your business more attractive, more efficient.
I tell you what, so much more fun to run.
But this is where founders, most founders get stuck. They think systems need to be perfect before they roll them out. But this is really a mindset trap. You might've heard of the Pareto principle, the 80-20 rule. Perfection is the enemy of progress. What you need isn't a flawless SOP or an airtight workflow. You just need a live system. One that works now.
and one that the team can actually use today and one that evolves over time.
Like here's a great way to think about it. Think about your phone's operating system. It updates constantly, not because it's broken, but because it's improving. And this is how your your business systems should be. They should be the same. Start messy and just start simple. Record a loom. Write a bullet point checklist. Let your team use it and then ask what's missing.
And then just iterate because the goal isn't to build a museum of those dusty S.O.P folders that everybody might have in their drawers. It's all about building momentum. And remember, a rough system in use is infinitely more valuable than a perfect one that's stuck in your head or a Google Drive folder or something that no one is going to open.
So stop waiting for perfect build useful and build live. They improve as you grow. Remember these alive documents. And if we go back to the SOP template, the last point.
really forces the feedback loop. How can we improve on what we're doing?
This is the core mindset shift I'm going to leave you with. Your job isn't to be at the center of your business. It's to make yourself optional. Way too many founders, they wear their involvement like a badge of honor. The business can't run without me. ⁓
What you're actually saying is that this business is fragile. True value. the type that buyers pay premium for, they come when the business runs without you. It runs smoothly, it runs predictably, and it runs confidently. So here's what I want you to yourself. Can your business run if you take Friday off? Can it run for a week?
Can it run for a month? Can you go on a holiday for a month? How many business owners you know, or even yourself, can take a month off their business?
And if you can't, if you said no to any of those, you don't own a business. What you've done is built a job.
It's the systems that allow you to step back without everything grinding to a halt. They give your team the tools that they need to succeed. They give you the ability to think, to lead, to rest and eventually to sell. Just imagine that as a business owner, being able to rest, being able to take a day off, being able to take a week holiday, a month holiday.
So stop asking yourself, how do I get more done? And start asking, how can I make this run without me? That's where your freedom comes from. And remember that buyers buy confidence and it really begins. Okay. Now I want to zoom out and let's have a look at this transformation visually because
Let's have a look at a true before and after.
If any of this resonates with you before you're in every meeting, you're in every decision, every decision goes through you. Every single fire you have to put out, every fix, every client request, it all ends up on your desk. And you feel like the business can't run without you because you know what? It actually can't.
It's because you've become the bottleneck and it's exhausting.
Now just imagine if we had all these SOPs in place. Just imagine if we systemized our business to maximize their valuation. You've built the systems and your team knows the playbook. Tasks get done without you. Clients are served so much better probably without your input. Sales close without your involvement. Operations just hum without you checking in.
You've gone from being the engine to being the architect. And that shift changes everything. It buys you back time. Just imagine buying back time. It clears your mind. It frees your business from dependency and it turns your company into something a buyer can confidently step into. This is what we're aiming for here. Not perfection. We're not aiming for complexity.
We're aiming for freedom through structure.
All right, let's get a little bit practical here. I want you to think about this. What's one task you do every single week that drains your time?
It could be, I don't know, sending a report on board in a new client, approving content, chasing invoices, whatever it is. it's those things that happen every week and you're still, you're still the one doing it. And that's the sign.
So here's an action step. I want you to document it right now, like literally open a document and write down the steps. I don't want you to overthink it. Just get it out of your head. Even if it's just bullet points, that's your first SOP right there. And this is how it starts because systemization, it's not just one big project. It's a series of small wins, one SOP at a time.
one delegation at a time, one system that runs without you. This is how you buy back your time. This is how you take the first step from chaos to clarity. So let's pause for a moment. Ask yourself, what is my weekly drain?
now documented. And just like that, you started building a business that works without you. Remember, small steps.
All right, now it's time to this broadcast to conversation. What's your biggest roadblock when it comes to systemizing your business? What part feels unclear? Where do you feel overwhelmed or even just frustrated? It could be not knowing where to start. It could be resistance from your team. It could be
Every time you document a system, no one uses it. Whatever it is, now's the time to bring it up. Let's not stuff around. There's no judgment here. Let's tackle it together because a systemization, it's one of those things that we all know we should do, but very few actually implement. And often it's not a lack of knowledge that holds people back. It's the friction in the process.
It's the fear of doing it wrong. It's the sense that it'll take too much time. Remember, we're not aiming for perfection. We're aiming to start. Take that first step.
Share your situation, I'd love to hear whether it's a tactical one, how do I delegate this? Or even a strategic one, how do I get buy-in from my team? And we can work through it together. And if you're listening to this on the podcast, hit pause and reflect for a moment. Hit me up on my socials. What's the one thing that's stopping you from systemizing your business today?
Whatever your barrier is, let's break through it and let's find it.
All right. If this session, if it's hit home for you, and if you're thinking, yes, I needs to systemize, but I just don't know how to do it alone. Then this is exactly what I helped founders with inside of my execution accelerator. It's a simple 90 day coaching sprint where we work hands on together, remove you from the day to day, build your systems and build your business needs.
and create a business that's truly built to sell.
you can book a strategy call with me, 30 minutes strategy call where we can just talk about anything that you want.
And look, we're not just talking about strategy. We're doing the work. You'll get weekly calls, daily check-ins, personal accountability, and a proven structure to follow. No more spinning your wheels, no more trying to figure it out. And if you're listening to this thinking, I'm too deep in the chaos to even begin, then you're the exact person for this. So head over to sampenny.com, book a free strategy call.
Let's talk about it. Let's talk about where you're stuck, whether this is the right step for you. You don't have to systemize alone. And when you do it right, everything changes.
Thanks again for being here today. I hope this session has shifted your thinking and given you a clear path forward. And our next built to sell webinar it's going to be a big one. I'm calling it the numbers that drive your sale price. This is where we dig into the financials, but not in a boring spreadsheet kind of way. We're going to break it down with the key metrics that buyers care about most, the most
common financial traps that reduce your valuation and how you can optimize your numbers before you go to market. Because when you understand what actually drives your sale price, you can focus your energy where it counts. And you can avoid leaving money on the table. Until then, keep building something worth buying.