How your Small Business is like a House 🏠

When teaching different concepts in the Peace Corps, I tried to explain things in a way that people could relate to. For example, when discussing the importance of keeping a farm kept up, I likened it to a household and children growing up in the house. In order for plants to grow strong and healthy, they need a clean and nurturing environment, just as children do in the home.

In the business world, with all the complexities of owning a business… and let’s be frank, the boring and tedious tasks as well… it is helpful to see our businesses in a different light to help us better understand the importance of various facets of our businesses we may not think of. As always, I nerd out about Policies, Processes, and Procedures, and lately, I have been discussing their parallel with the construction of a house. Just as a well-built home stands on a strong foundation, these important elements of a business work in harmony to establish a solid base that not only protects, but also frees the business owner, sets consistent and quality standards, and provides support and guidance in our businesses.

Often, as business owners, we fly by the seat of our pants. As I have said before, most entrepreneurs start businesses because either their parents had, they are good at something, they make great products, or even out of necessity. When we start out thinking of our businesses, deciding how to start them, what to offer, how to price, etc.… we are preparing the foundation of our business. We often start either start with an idea, passion, or need. We prepare the ground by thinking, planning, and growing our plan. We then lay the foundation by creating a business structure, filing with State and Federal entities, opening a bank account, marketing our new business, and setting the groundwork for future success.

Once we have our foundation, our main idea or product, we sort of throw things together to get the business going. Ever see a lean-to? Or watch any survival shows where people build a shelter of sticks? That is how most of us typically start a business - we set it up just enough that it will hold our idea and enable us to move forward with making money. At this point, we think, “oh, I’ll go back and set that up properly… at some point,” or tell ourselves or a few employees we might be able to afford, “this is how I first started doing it because it worked then… it should still work now.” The thing is, the more the business grows and flourishes, the more sticks we have to put on our lean-to, to protect our businesses. As we all know, this isn’t sustainable, and often stunts our business’s growth… but what is the best way forward?

Well, let's begin at looking at Policies - they function as the roof sheltering our business. Just as a roof shields a home from the elements, Policies shield our business from potential risks and uncertainties. These guidelines and rules maintain order, ensuring a smooth operation that can withstand the storms of unforeseen challenges. Without policies, our businesses, inevitably will experience frequent leaks in the form of problems that require immediate patching or adding more sticks.

So, now we have our roof, let's think about Processes - the sturdy frame that holds everything together. Like a home's frame provides structure and support, Processes outline the step-by-step methodology for various tasks in our business. These blueprints for business operations prevent chaos and disarray, ensuring that everyone knows their role and responsibilities. Picture your business as a house built on a strong frame, ensuring everything is in its place and nothing is out of order. Without well-defined Processes, your business might feel like a construction site with no blueprint, where confusion reigns and inefficiencies abound.

Alright, we’ve got the roof and frame, let’s look at Procedures, which serve as the walls enclosing our business. Similar to room dividers (walls) in a home, Procedures offer detailed instructions for specific tasks, maintaining order and defining roles. They act as a protective barrier, enabling everyone to perform their duties efficiently. Imagine your business as a well-organized and structured house, where each room serves a specific purpose, and everyone knows where to go and what to do. Without proper Procedures, your business might feel like an open concept space, where everything blends into a disorganized mess, leaving your team feeling lost and uncertain.

But the true magic happens 🪄 when Policies, Processes, and Procedures work together seamlessly, creating a fortress-like foundation for your business. This formidable trio becomes the guardians of our business, protecting it against potential storms and uncertainties. They ensure streamlined operations, which, in turn, lead to increased productivity and customer satisfaction. Just like a house with a strong foundation, your business stands tall and resilient, ready to face any challenge that comes its way.

The beauty of these essential elements is that they are not one-size-fits-all; you have the power to design them to suit your unique business needs. Each business is like a custom-built home, where you can tailor Policies, Processes, and Procedures to create the perfect fit. As the mastermind behind your business, you craft the blueprints for success, aligning these vital elements with your vision and goals.

Building a house (or a business) requires effort, patience, and attention to detail, but don't fret! Rome wasn't built in a day, and neither was a successful business. Start small, prioritize what's necessary, and expand gradually as your business flourishes. By focusing on these foundational elements, you create a robust infrastructure that can withstand the test of time.

So, the next time you ponder Policies, Processes, and Procedures, remember that they're not just mundane paperwork - they are the key ingredients for a solid and prosperous home for your business. Embrace their power, customize them to fit your needs, and witness your business thrive in its secure and successful haven!