E192: John Seiffer's Insights on Systemizing and Exiting Companies Without Selling - Watch Here

About the Guest(s):

John Seiffer is a business coach and author with extensive experience in helping business owners systemize their companies and improve their overall operations. He has been coaching business owners since the late 1990s and is known for his expertise in helping entrepreneurs exit their companies without selling them. John is the author of the book "Output Thinking" and is the founder of CEO Bootcamp.

Episode Summary:

In this episode, Ronald Skelton interviews John Seiffer, a business coach and author, about the concept of exiting a company without selling it. John shares his own experience of systemizing his company and reducing his involvement to just a few hours a month, which allowed him to focus on other interests and ultimately exit the company on his own terms. He explains the importance of defining outputs and creating systems within different areas of the business, such as production, sales, support, and growth. John also discusses the value of documenting standard operating procedures (SOPs) and utilizing technology to streamline processes. By implementing these strategies, business owners can increase the value of their companies and create more freedom for themselves.

Key Takeaways:

• Systemizing a company and reducing the owner's involvement can increase its value and create more freedom for the owner.
• Defining outputs and creating systems within different areas of the business is essential for scalability and efficiency.
• Documenting standard operating procedures (SOPs) and utilizing technology can streamline processes and improve productivity.
• Outsourcing or delegating tasks can free up the owner's time and allow them to focus on higher-level strategic activities.
• Exiting a company without selling it requires careful planning and the development of a strong management team.

Notable Quotes:

• "Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes." - John Seiffer
• "Every system that produces outputs has four parts: trigger, input, transformation, and output." - John Seiffer
• "Don't do stuff that somebody else is qualified to do. And you do the things that only you are qualified to do." - John Seiffer

Article:

Output Thinking: A Guide to Systemizing Your Business for Increased Value

In today's fast-paced business world, entrepreneurs are constantly seeking ways to maximize their company's value. One effective strategy is to systemize the business, allowing the owner to step away from day-to-day operations and focus on strategic growth. This approach, known as "exiting without selling," can lead to a more valuable company and provide the owner with the freedom and flexibility they desire.

In a recent interview with business coach John Seiffer, we explored the concept of output thinking and how it can revolutionize the way business owners approach their companies. Seiffer, who has been coaching business owners since the late 1990s, shared his insights on systemizing a company and the benefits it can bring.

The Power of Output Thinking

At the core of output thinking is the idea that every role in a company is focused on producing specific outputs. Rather than thinking in terms of job titles or departments, business owners should identify the key outputs that drive their business and ensure that each output is being produced effectively and efficiently.

Seiffer breaks down these outputs into seven key buckets: production, sales, support (including finance, people, information, and compliance), and growth. By understanding the outputs within each bucket, business owners can begin to identify areas where they are heavily involved and where they can start to delegate or outsource tasks.

According to Seiffer, "I manage to do things for companies that are 1800 miles away, 2000 miles away. And they know that if they have a call with me, they have the answer to those four questions. They know 99% chance I'm gonna ask the first three. What are we doing well, what can we improve? What are we missing?"

The Importance of Documentation

One of the first steps in systemizing a company is to document the processes and procedures that drive the business. This documentation serves two purposes: training new employees and monitoring the performance of existing employees. By having clear and detailed documentation, business owners can ensure that tasks are being completed consistently and accurately, even when they are not directly involved.

Seiffer recommends using a platform that allows for easy searchability and editing, such as Notion. This platform can house all the documentation in one place, making it easily accessible for employees. Additionally, video recordings can be a valuable tool for documenting processes, especially for tasks that are more visual or hands-on.

As Seiffer explains, "Those are documented, and I start looking at that and going, why have we been saying that this needs to be improved upon for 14 weeks straight? There's a problem here, right? Who's working on this? It's kind of one of those, um, it's like, I guess it, that's kind of my standard operating procedure, I guess you would say. It's one of my systems."

Leveraging AI and Technology

As technology continues to advance, business owners have more tools at their disposal to streamline processes and improve efficiency. AI, in particular, has the potential to revolutionize the way businesses operate. By leveraging AI tools, business owners can automate tasks, analyze data, and gain valuable insights.

Seiffer suggests using AI to improve standard operating procedures (SOPs). By feeding SOPs into AI platforms, business owners can receive suggestions for improvements and identify areas where processes can be streamlined. This can lead to increased efficiency and productivity within the company.

Seiffer explains, "Sometimes it's ego. Some of it's just frustration. Like I just need this done. I'll do it myself, right? I tend to have the mentality to lead, follower, get the hell out of my way. That said, well, how do people get that book? What's the best way for them to get a copy of it?"

Identifying Low-Hanging Fruit

When working with business owners, Seiffer often identifies areas where quick improvements can be made. One common issue is that business owners are too heavily involved in day-to-day operations, leading to a lack of delegation and reliance on their expertise. By identifying the outputs that depend on the owner and finding ways to delegate or outsource those tasks, business owners can free up their time and focus on higher-level strategic initiatives.

Another area of improvement is email management. Many business owners spend a significant amount of time on email, which can be a drain on productivity. By categorizing emails into different buckets and training employees to handle certain types of emails, business owners can reduce their email workload and focus on more important tasks.

Seiffer emphasizes, "Don't do stuff that somebody else is qualified to do. And you do the things that only you are qualified to do."

The Future of Systemizing Businesses

As technology continues to evolve, the way businesses operate will undoubtedly change. However, the core principles of output thinking will remain the same. The purpose of a business is to create value for customers, and this can be achieved by systemizing processes, empowering employees, and focusing on continuous improvement.

Business owners should always be looking for ways to optimize their operations and leverage technology to their advantage. By embracing output thinking and implementing systems and processes, business owners can create a more valuable company and achieve their desired outcomes.

In conclusion, systemizing a business is a powerful strategy for increasing its value. By focusing on outputs, documenting processes, leveraging technology, and identifying areas for improvement, business owners can position themselves for success. Whether they choose to exit without selling or prepare their company for a future sale, systemization is key to achieving their goals.

---- MORE COOL STUFF ---

Are you ready to take your podcast listening to the next level? Subscribe to "DEEPER by How2Exit" newsletter and never miss out on our latest episodes. Join our  newsletter  HERE

Want to stay in touch with what's happening in the Main Street M&A Space?  Subscribe to Growth & Acquisitions(Formerly The Hub)