June 21, 2018

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2 Minute Coaching - The 5 Step Systems Creation Process

Gary Stauble’s 2 Minute Coaching

This monthly article gives you quick, easy-to-implement ideas on various subjects. This month’s topics have to do with creating systems, the “10% rule” and getting paid in a timely manner.

Topic #1:

The 5 Step Systems Creation Process

We’ve all heard the grim statistics regarding how many businesses fail to survive and prosper. Fifty seven percent of all small businesses fail within first year. At the five year mark, whopping eighty percent fail. Here’s a stat you may not be aware of; eighty percent of those who survive the first five years end up failing in the second five years. Those are staggering statistics.

One of the main reasons for these failures is that most businesses operate without systems. Often they operate on adrenaline with the owner running around with his or her hair perpetually on fire. In essence, they lack a clear system of operation.

The beauty of systems is that if you take the time to document them once, you never have to re-create them from scratch again. Below, I’ll outline a 5 step system creation process that I learned from Michael Gerber. Before I do that, here are a couple of helpful definitions:

System: a documented way of performing a task that solves a problem and ensures that the task is performed properly and consistently.

Frustration: a frustration in your business is an undesirable pattern of events that can be eliminated by installing a system.

The 5 Step Systems Creation Process:

  1. Define the frustration without blaming people: “I don’t know _____” “I don’t know how many sendouts I’ve had in the last 12 months.”

    “I don’t know how to reduce the time to find good candidates for a new search.”

  2. Identify the system solution needed to solve the problem: “The solution is to install a system that will ______________”

  3. Decide if it warrants a system: Would it be easier to just tolerate it or does it warrant a system?

  4. Design the system: accountability, systems steps, forms etc.

  5. Implement the system: implement it right away and be prepared to modify it.

Topic #2:

The 10% Rule

The ten percent rule states that you don’t want more than ten percent of your business coming from any single client. There are exceptions to this “rule” but it’s definitely something that you want to keep in mind as you look over your list of clients. The reasons are obvious- more diversity means more security for you.

You have probably heard the phrase, “The best defense is a good offence” and in regards to your business, this means expanding your client base is the best way to ensure you thrive in any market. The more broad your client base right now, the better. As an example, if you were to build a desk primarily doing splits with other recruiters, being the candidate “importer”, or the one with the client relationships, would put you in a much stronger position. Obviously the more client diversity you have, the less risk you expose yourself to.

Action step: Answer this question, “What would it take for me to make at least 1 placement with 2 brand new clients in the next 90 days”?

Topic #3:

Get Paid Fast

In terms of getting paid, speed matters! Particularly in a sluggish economy, you want your clients to pay you quickly- otherwise you're essentially a lender.

Here are a couple of ideas to collect your fees more quickly:

  1. Extend the guarantee by 30 days for early pay.

  2. Offer a 5% discount if they pay within 10 days of the start date.

  3. Make your guarantee conditional upon prompt payment.

- Gary Stauble

Gary Stauble is the Principal Consultant for The “Recruiting Lab”. He offers several Free Special Reports on his website including, “$1 Million Time Management”. Get your copies now at His new website is called, “Done By Noon” and is focused on Time Management & Lifestyle Design training. You can get his new Report, “3 No B.S. Strategies for Increasing Productivity” at www.DoneByNoon