If you run a small business, you know how difficult it can be to get all the day-to-day tasks completed. You've had to become a "jack of all trades" and you NEED to be involved in every task or it just doesn't get done right. You can't even think of expanding because you can barely handle all the work as it is.

If this summarizes your take on your business, you definately need to start developing systems. But let me first define what I mean by systems for you:
A system is a business device that allows anyone in the company to complete a necessary task; its basically a script for your employee (or yourself) to get something done.

Let's say you own a web design business and you are the only one able to complete the first meeting project assessment with clients. This can lead to problems: if you are sick or unable to meet with a client, what do you do? You could leave it up to your employee and hope he asks the right questions. Or you could have developed a system for assessing projects. In this example, a list of the questions that must be answered in a meeting would suffice, along with an outline of what you must say at the end of the meeting (ask if he has any questions, schedule the next meeting...).

Developing systems for all aspects of your business allow you to leverage your time. If you are the only one able to assess a project, then you can't be out making the next sale. By developing an easy system for any of your employess to use, you can have someone else do it, someone whose time isn't worth as much as yours.

When you own a small business, you work both ON your business and IN your business. Your goal should be to do the least amount of work possible IN your business, and that is done by developing systems (which is one way of working ON your business).

Working On Your Business
Working on your business consists of doing work that doesn't directly generate a profit, but is usually necessary and, if done right, can lead to huge profits in the future. Things like marketing, hiring, and developing systems are ways you work on your business. Do you think Ray Kroc worked the register at McDonald's? Of course not! He developed great systems so that they could hire high school kids and immigrants with no business experience to run one of the most successful businesses in America.

If you close a deal with a client and make the sale, you are working in your business. If you develop a system that allows any of your employees to close a deal and make the sale, you are working on your business. If you stick to the former, your income potential is limited due to time constraints. If you go with the latter, your income potential is infinite because you aren't using your time, you are using other people's time. If you need more people to sell, you can hire more people.

Infinite time and income potential is the true power of systems.
Every successful business is built on systems. It is how they are able to expand easily without overloading the owner with work. You must focus on working ON your business, not IN your business.

If you want to see a system in action, just go to McDonald's and order something. You will most likely be asked "Would you like fries with that?"