A Buyer’s Guide To Documenting and Following Processes With Michael Richman

Michael Richman is a Certified EOS Implementer® at EOS Worldwide, where he educates, facilitates, and coaches companies on optimizing their leadership teams and businesses. As a fourth-generation entrepreneur, he managed a multimillion-dollar custom manufacturing company, serving top brands like Panda Express and Four Seasons Hotel. During Michael’s tenure, the company doubled in size and increased profitability margins by 20%.

Here’s a glimpse of what you’ll learn:

[2:20] Michael Richman talks about managing a manufacturing business with his father
[3:49] Why Michael exited his company
[6:00] How to document processes and procedures efficiently
[9:02] The consequences of buyers not following processes
[12:28] Obstacles to ensuring process follow-through

In this episode:

After purchasing a company, some buyers try reinventing the wheel rather than following established processes, leading to potential bankruptcy. How can new business owners adopt well-documented and observed processes from previous owners?

EOS expert Michael Richman sold his company to an overzealous buyer who believed the business didn’t need systems to survive and eventually ran it into the ground. He emphasizes documenting processes efficiently through checklists rather than lengthy documents to ensure readability and follow-through. Michael also recommends that new owners encourage employees to update and refer to established systems instead of accomplishing tasks individually.

Tune in to this week’s episode of Systems Simplified as Adi Klevit chats with Michael Richman, a Certified EOS Implementer® at EOS Worldwide, about the importance of following established processes after purchasing a business. He shares why he exited his company, the barriers to process follow-through, and his multigenerational entrepreneurial background.

Resources mentioned in this episode:

Adi Klevit on LinkedIn
Business Success Consulting Group
Michael Richman on LinkedIn | EOS Worldwide | Email
“Systemizing Your Way to Freedom With Eric Doumani” on Systems Simplified

Quotable Moments:

"Processes are a living thing; you must update them with technology changes or risk becoming old and stale."
"If all the knowledge lives up here, then your whole business is built in one or two people's heads."
"You cannot be held hostage by one or two or three employees."
"Nobody wants to buy a business and then reinvent the wheel; they love having a playbook."
"When businesses cease to follow successful processes and try to reinvent the wheel, you're going to have problems."

Action Steps:

Document your business processes: Start by creating clear and concise documentation for all key processes in your business. This acts as a foundational playbook that ensures consistency and clarity, especially when new employees are onboarded or when transitioning during a sale.
Utilize checklists for routine tasks: Implement simple checklists for regular operational tasks, such as daily operations. This reduces human error and ensures essential tasks are consistently completed.
Regularly review and update processes: Schedule regular reviews of your documented processes to ensure they remain relevant and effective. This proactive approach allows businesses to adapt to technological advancements or changes in business strategy.
Encourage process adherence: Foster a company culture where employees are encouraged and expected to follow documented processes. This addresses the challenge of employee resistance to standardized procedures and ensures that operations remain scalable and sustainable.
Leverage technology for process documentation: Use digital platforms to document processes with multimedia elements like videos and screenshots. These tools make processes more accessible and easier to understand, promoting better adherence and reducing the learning curve for new employees.

This episode is brought to you by Business Success Consulting Group.

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