Why You Need a Knowledge Base

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Where does your knowledge reside?

When you are small, you can run and grow your business in your head. In the early days, it’s hard to think that you play many different roles because you do different jobs yourself. You can be the salesperson, accountant, marketer, product development manager, HR administrator and many other roles without calling these out as you move from task to task.

But, when your demand grows, you can’t do it all. You need more people to help grow the business and make your customers happy.

If you are under $1M, most of your effort should be on selling. If you are past $1M, you have to make the business work. Either way, your business is about knowledge. How things get done to create a customer and deliver your product or service consistently becomes harder when you scale up.

A knowledge base is a place that organizes the knowledge that’s in your head. It helps everyone on your team understand how to do their job clearly and interact with other people doing their respective jobs.

Furthermore, a knowledge base has the following benefits to growing a business:

1. Facilitates Onboarding and Training

It is a systematic way to help a new person get started and be productive in their hired job. It also provides professionalism, job satisfaction and clarity for new employees that could otherwise be disoriented, overwhelmed and frustrated in a new role.

2. Makes Information Sharing Efficient: 

A place that is structured and searchable makes it easy for your team members to get what they need, when they need it. If you have to keep answering the same question many times, rather than allowing people to find answers for themselves, you are the bottleneck in your business. It’s not a great use of time. Document it once and let it be consumed many times.

3. Increases the Value of Your Business

If you want to sell your business, what will you sell? Having systems that are clear and a methodology for growing easily and rapidly is extreme value to a buyer who wants to know how to operate the business. If you don’t have a knowledge base, then the information required to execute consistently is in your head. You can’t step out. You are the business.

4. Forces Clarity

How you do things now may change later. Having a system that is continually living and updated helps everyone stay clear for their own job. And information that is documented and does not make sense in context of your business goals or handoffs to other jobs can be debated, clarified and updated. You can push on refining your methodology as new realities emerge during business growth.

5. Helps You Lead

A large complaint of employees is that they see dysfunction from management or ineptitude. You can lead with clarity and conviction when your team sees commitment to systems, process and order. Furthermore, you can open up ideas and ways of doing things through continuous improvement to a knowledge base that should welcome better ideas and ways of executing from the people doing the work. Your leadership can center around knowledge rather than charisma. It takes the pressure off you and focuses it on business systems, where it should be.

Growing Your Business

The more people you get involved the more complexity you have to manage in your business. Clarity becomes a bottleneck to growing your business because you have to take time to explain, manage and oversee how things get done.

Furthermore, the jobs that have to get done are continually changing. You want the best ideas and approaches available and clear for everyone in a system that is repeatable and continually improving.

Here’s a resource to help you get started on building your knowledge base. It can help you start a critical piece to effectively growing your business.

I Like the Boring Business

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When it comes to business building, I like boring. I like creating outputs from inputs. I like throughput. Drama, inconsistencies, high stress and heroics are fantastic for movie plots. But they don’t contribute positively to profit and loss in a business. Boring helps cash flow. Cash flow makes customers, vendors, employees, and owners happy.

I am not sure why a certain level of craziness persists for so many operations. Here are my guesses:

A business owner thinks a bit of chaos is normal.

Employees have completely different incentives. Chaos and disorder might reward them with a sense of relevance (and dependency).

Growing so fast with headcount and lacking a solid culture has newcomers confused.

The business owner only cares about money and doesn’t realize the importance of strategy to get money long-term.

There’s not enough drama going on in people’s personal lives.

When I see a boring business that has cash flow working like a machine, someone prioritized making the business work and keeping first things first. They simplified as they grew. New systems, processes and people create complexity. And they were intentional to inject strategies, culture and execution to overcome the complexity. It was more than a money grab.

With the ridiculous amount of competition out there, the last thing you need is chaos and drama when it comes to operations and selling. Making customers happy requires alignment internally on all fronts. Perhaps certain niches can hide for a bit. But, someone is going to eat your lunch that comes along and builds that boring business that reliably executes day in and day out.

Are you operating on systems or charisma?

Do you have consistency or failure points that keep showing up?

Are customers leaving you regularly?

Are employees leaving you disgruntled?

Do you think chaos is normal?

The marketplace is moving so fast and commoditizing every sector. Focus on building the boring business so you can be agile enough to react. It’s hard enough out there.

Here’s How You Build Trust With Clients

It’s hard living in an imperfect world, especially with people that might expect perfectionism. Perfectionism is not realistic. There are too many variables, players on the field and unrealistic expectations to muddy the waters of doing good business.

But, being in the connected human economy affords us the opportunity to work with imperfection and even build trust through it all by simply communicating well.

If you want to build trust with clients, as a given, execute well. However, when you can’t deliver, communicate. It’s how I have built trust with clients for many years and it astounds me how poor most people are at communicating timely, honestly and with leadership. In the end, it does take leadership and guts.

Don’t hide. Don’t rationalize. Don’t wait for your client to dictate. Don’t be a coward.

I overcommunicate all the time.

I educate clients and ensure they are comfortable.

I listen carefully and dial into how clients like to be communicated with.

And it keeps things from building up into unnecessary crises. You can stay ahead of most things by addressing issues, being clear and being humble.

I can’t say it enough, when you can’t deliver, communicate. You will easily stand apart from other service providers and the many other options of people out there trying to deliver value. You will build trust by being transparent and leading.

Trust is hard to build and easy to lose. So, unless you want to churn through relationships, you can work on this specific skill and ensure your communications, whether in writing or verbally, always focuses on problem-solving, empathy and goals.

Trying to be perfect is not realistic. But trying to be more human and leading proactively with care can even turn problems into amazing opportunities for connection as you get on the same side of the table with those you serve. You get to go down the journey together with your clients this way.

Selling By Systems Not By Sweat

There is a story of a mountain village which experienced an unforgiving drought. The condition was deteriorating to the point that a village elders’ meeting was held. They decided to hire two men to solve the problem of bringing water to the village from the valley below where a well existed.

The first man got two large buckets and started going back and forth from the village to the well below. He sold the water at a handsome price. He brought his sons on board to the venture and made as many trips as possible to sell his water. Continue reading