14 Jan Why it’s vital to have company documentation
What many freelancers – or entrepreneurs – make the crucial mistake of doing is not treating themselves like a business. Why? Well, it’s very simple says Michael E Gerber author of the recently released Beyond the E-Myth. It’s because they don’t have the mentality that they want to grow smartly as large businesses do. They don’t have the company documentation that big businesses do.
So how do large businesses grow?
They develop a model for their business – which is easily replicable – that others can easily implement. This model will guarantee success.
Michael recounts the story of McDonalds. Ray Kroc, whose claim to fame is building the fastfood chain to where it is today, built a model for McDonalds that is easily replicable. So in Hong Kong, New York, Johannesburg and Sydney, if you walk into a McDonalds outlet, you will be guaranteed the same experience.
Is this model successful? Well, to answer that question just look at the fastfood chain’s annual earnings.
(While I was doing some research for this post, I came across a new movie about the rise of McDonalds, which stars Michael Keaton, called The Founder. I found the trailer on YouTube – here it is.)
What’s the basis of this model?
You need a well-documented system so that your next employee or franchisee knows exactly how things need to be done – in your company – to ensure that it keeps on being the resounding success that it is. Your company documentation needs to be stellar so that all of your company stakeholders are on the same page.
As a freelancer do I really need to go to this trouble?
Yes you do. There is going to come a time when you have so much work that you don’t know what to do with it. So rather than simply farming it out to other freelancers – and lose out on the income, which you would have earned from that work, entirely – take on similarly minded and skilled freelancer to help you.
Project manage the process so that you can still reap some of the rewards from the clients that you’ve worked so hard to keep.