System and procedures are the essential building block for our companies. Every area of your business is a process that can be managed and improved by applying correct principles.
Business systems is a process that connects an organization’s intricate parts and interrelated steps to work together for the achievement of the business strategy. When you apply principles to systems and procedures that deliver value to our customers it forms a business system.
Business system is the most overlooked aspect when running a business. The two major reasons why business systems are overlooked:
A good cash flow is always welcome by your business. One day you may want to sell your business at a good price which requires you to build the value of the business inorder to get the biggest pay. It can only happen if there is a system that can continue running even without you.
Systems help businesses to expand. You can leverage your business in other areas as well or franchise the rights to your business system. Many fortunes have been made this way.
Every business requires consistency to provide a better customer experience. For example Mcdonald’s provides a very consistent customer experience anywhere you go.
When you and your staff don’t have to waste time and effort to innovate things time and again, this improves your efficiency and productivity by reducing your labor costs.
There is a thin line between YOUR business and YOU. Supposedly you travel for months overseas and after coming back you see that your business sales have dropped or it’s not the same as you left it. This implies you are the business. A proper business system will not require your presence at all times.
The only way is to structure the business process. So a lack of systems may not stunt your business growth and cost you a fortune.